#United States #financial results #Penske Automotive #Bloomfield Hills #Automotive Services

Overview

Penske Automotive Group, Inc., a leading diversified transportation services company, has released its third-quarter financial results for 2025, revealing a quarter marked by growth in various segments despite facing some market challenges.

Revenue Growth

In the third quarter, Penske reported a revenue increase of 1.4%, totaling $7.7 billion compared to $7.6 billion for the same period in 2024. This growth was driven primarily by a 5% rise in retail automotive same-store revenue, complemented by record retailer service and parts revenue up 5% and a related gross profit increase of 7%. However, net income attributable to common stockholders experienced a 6% decrease to $213 million, down from $226 million last year, with earnings per share also seeing a decline, down to $3.23 from $3.39.

Market Impact and Positive Indicators

Roger Penske, the chairman of the company, expressed satisfaction with the quarterly performance, noting the achievement of significant milestones such as a 4% growth in same-store retail automotive new units delivered and a record $818.3 million in service and parts revenue. He acknowledged that these achievements were counterbalanced by the ongoing struggles in the North American freight market, which adversely affected commercial truck sales, and a specific cybersecurity incident impacting operations in the UK.

This positive momentum was further indicated by foreign currency exchange benefits contributing about $92.8 million to revenue, $0.7 million to net income, and a minor increase of $0.02 to the earnings per share.

Sector Performance Highlights

Retail Automotive Sector

The retail automotive sector showed resilience, with reports indicating:

• - A 4% increase in same-store new units delivered.
• - Service and parts revenue growth of 5%.
• - A gross margin expansion of 110 basis points among service and parts, reaching a noteworthy 59.1%.

However, within the new vehicle segment, gross profit suffered a 5% decline, while used vehicles gained an impressive 6% growth in gross profit.

Retail Commercial Truck Sector

Conversely, the retail commercial truck sector faced a 19% decrease in retail unit sales due to persistent weaknesses in freight demand, resulting in lower new and used truck sales. As of September 30, 2025, retail unit sales dropped significantly, illustrating the sector's sensitivity to market fluctuations.

Looking Ahead: Corporate Developments

In terms of corporate strategy, Penske completed the acquisition of a Ferrari dealership in Italy in July 2025, which is projected to contribute an annualized revenue of $40 million. Moreover, the Board of Directors recently announced a 4.5% increase in the quarterly dividend to $1.38 per share, marking the 20th consecutive increase. Notably, the company has continued its stock repurchase program significantly, with 934,122 shares repurchased through October 24, 2025.

With $1.9 billion in liquidity available, which includes $80 million in cash and substantial credit availability, Penske Automotive Group has positioned itself solidly for continued growth and investment opportunities.

Conclusion

Penske Automotive Group demonstrated formidable performance in its latest quarterly results, signifying resilience amidst market challenges and a steady focus on expansion and improving operational efficiency. The upcoming conference call on October 29, 2025, will provide further insights into the company's strategies and future outlook.