Retail Automotive Dealerships

For the three months ended March 31, 2025, total new units delivered increased 6%. However, used units delivered decreased 16%, consisting of a 2% increase in the U.S. and a 28% decrease internationally. The decrease internationally was attributed to a realignment of the Company’s U.K. used only dealerships to Sytner Select which focuses on retailing fewer units at better margin and lower costs. Excluding the performance of the U.K. Sytner Select dealerships in both periods, used units delivered decreased 1%. Total retail automotive revenue increased 1% to $6.6 billion and increased 2% on a same-store basis, driven by a 4% increase in same-store service and parts. Total retail automotive gross profit increased 3% to $1.1 billion, and same-store gross profit increased 3%, driven by a 6% increase in same-store service and parts.

Retail Commercial Truck Dealerships

As of March 31, 2025, Premier Truck Group operated 45 North American retail commercial truck locations. For the three months ended March 31, 2025, retail unit sales increased 4% to 4714 from 4540 but declined 4% on a same-store basis. Revenue was $823.7 million and earnings before taxes was $45.1 million which compares to revenue of $791.8 million and earnings before taxes of $50.5 million in the prior year period. The decline in earnings is attributable to what PAG calls “the continuing soft freight environment.”

Penske Transportation Solutions Investment

Penske Transportation Solutions (PTS) is a leading provider of full-service truck leasing, truck rental, contract maintenance, and logistics services. PTS operates a managed fleet with more than 428,000 trucks, tractors, and trailers under lease, rental and/or maintenance contracts. Penske Automotive Group has a 28.9% ownership interest in PTS and accounts for its ownership interest using the equity method of accounting. For the three months ended March 31, 2025, PTS recorded $33.2 million in earnings compared to $32.5 million for the same period in 2024, driven by an increase in revenue from leasing and maintenance business, partially offset by the continued decline in truck rental revenue and lower gain on sale of used trucks also associated with weakness in the freight market.