#USA #dividend increase #Penske Automotive #Bloomfield Hills #Q4 2024 Results

Penske Automotive Group's Q4 and Full-Year 2024 Financial Summary

Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services firm, has recently published its fourth-quarter financial results for 2024, showcasing significant growth and operational efficiencies.

Quarter Highlights

The company's revenue surged by 6%, reaching an all-time high of $7.7 billion. Notably, same-store retail automotive service and parts revenue increased by 7%, contributing to an impressive 9% boost in gross profit related to these services. This financial uptrend is a result of strategic customer engagement and robust service delivery, which was further highlighted by a 23% increase in earnings before taxes, totaling $315.2 million.

Notably, earnings per share (EPS) also saw a notable increase of 25%, rising to $3.54 when compared to the previous year. The Board of Directors responded positively to these results by declaring the 17th consecutive increase in the quarterly dividend to $1.22 per share.

This growth strategy has effectively allowed Penske Automotive to reinforce its market position amid a dynamic automotive landscape.

Yearly Overview

Examining the full year of 2024, total revenue amounted to $30.5 billion, a 3% increase compared to $29.5 billion in 2023. The gross profit for the year reached $5.0 billion, representing a slight uptick from the previous year's $4.9 billion. Interestingly, the foreign currency exchange impact added approximately $223.2 million to revenue, showcasing the company’s robust international presence.

During 2024, retail automotive service and parts revenue hit a record of over $3 billion, illustrating Penske's adept navigation of consumer needs and market trends. Although the year-on-year net income attributable to common stockholders dropped to $918.9 million from $1.05 billion in 2023, adjustments such as the exclusion of a goodwill impairment charge in 2023 present a clearer picture of profitability, indicating a steady business trajectory.

Operational Achievements

In the operational spectrum, Penske Automotive achieved several key milestones:

• - New vehicle units delivered increased by 7% in Q4, aiding in strong retail growth.
• - The gross profit per new car retailed rose $74 sequentially from Q3 2024.
• - Year-on-year, retail automotive service and parts gross margin improved by 30 basis points.

Chairman Roger Penske expressed satisfaction with these results, noting effective cost management, which has led to a decrease in selling, general, and administrative expenses relative to gross profit. These factors positioned the firm favorably in preparation for future challenges and opportunities.

Looking Ahead

Penske Automotive continues to show resilience and adaptability in the automotive market. With strategic investments like the acquisition of additional Porsche dealerships in Australia and ongoing enhancement of its retail strategies, the company demonstrates its commitment to growth.

The company plans to discuss its financial results in detail during an upcoming conference call, further underscoring its transparency with stakeholders. As Penske Automotive aims for sustained growth in 2025 and beyond, its focus on premium services and investor returns suggests a promising trajectory in this dynamic sector.

For more information, visit Penske Automotive Group.