Penske Automotive Group Inc

Latest Results (13.11.2025):

For the third quarter of 2025, Penske Automotive Group Inc reported modest top‐line growth with revenue increasing 1.4% YoY to $7.7 billion, while net income attributable to common stockholders declined 6% to $213 million and earnings per share dropped 5% to $3.23. The period also saw record retail automotive service and parts revenue along with targeted operational improvements, even as challenges in the North American freight market and issues in the U.K. impacted overall profitability.

Revenue & Earnings

Penske Automotive Group Inc’s Q3 2025 revenue reached $7.7 billion—a 1.4% increase compared to the prior year. Despite earnings before taxes of $292 million, net income fell 6% to $213 million, and EPS declined from $3.39 to $3.23, partially due to a positive foreign currency impact.

Retail Automotive Performance

The company recorded a 5% increase in retail automotive same-store revenue, with same-store new units delivered rising by 4%. Notably, the quarter set a record with retail automotive service and parts revenue of $818.3 million, supported by a 5% same-store growth and strong improvements in gross profit margins.

Operational Efficiency & Challenges

Operational improvements were evident, with enhanced fixed cost absorption (up 380 basis points) and an increase in service and parts gross margin (rising by over 110 basis points). However, broader profitability was tempered by persistent weakness in the North American freight market and complications stemming from a U.K. cyber security incident at an OEM partner.

Capital Actions & Debt Management

In Q3 2025, Penske Automotive Group Inc also advanced its capital management initiatives by repurchasing 1,086,560 shares through October 24, 2025—equivalent to 1.6% of its outstanding shares—and repaying $550 million of senior subordinated notes at maturity. The company maintained a robust liquidity profile and a leverage ratio of 1.0x, underscoring its disciplined balance sheet management.