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Penske Q3 Earnings Miss Expectations, Revenues Rise Y/Y
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Key Takeaways
Penske's Q3 adjusted EPS of $3.23 missed expectations, down 3.9% year over year.
Revenues rose 1.4% to $7.70 billion, led by strength in the Retail Automotive segment.
Quarterly dividend increased to $1.38 per share, marking the 20th consecutive hike.
Penske Automotive Group (PAG - Free Report) reported third-quarter 2025 adjusted earnings of $3.23 per share, which decreased 3.9% year over year and missed the Zacks Consensus Estimate of $3.48. Better-than-expected results from the Retail Automotive segment contributed to the outperformance. The company registered net sales of $7.70 billion, missing the Zacks Consensus Estimate of $7.74 billion. The top line, however, rose 1.4% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter rose 0.5% on a year-over-year basis to $1.25 billion. The operating income decreased 5.9% to $298.7 million. Foreign currency exchange positively impacted revenues by $92.8 million, net income by $700,000 and earnings per share (EPS) by 2 cents.
In the reported quarter, same-store retail units increased 0.7% year over year to 112,438. Within the Retail Automotive segment, same-store new-vehicle revenues were up 3.5% to $2.86 billion. Same-store used vehicle revenues increased 7.5% to $2.20 billion.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
In the reported period, revenues in the Retail Automotive segment were $6.57 billion, which increased 3.6% from the year-ago quarter's level and topped our estimate of $6.41 billion. Total new and used vehicle deliveries were down 3.5% year over year to 103,517 units. Gross profit was $1.07 billion, up 2.4% year over year. The figure topped our estimate of $1.06 billion.
Revenues in the Retail Commercial Truck segment decreased 13.6% to $918 million and missed our estimate of $1.13 billion. Gross profit in the segment was $136.3 million, down from $157.1 million reported in the year-earlier quarter and lagging our estimate of $183.6 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 10.6% to $206.6 million but missed our estimate of $217.4 million. Gross profit was $46.5 million, which increased from $44.6 million reported in the year-ago period and topped our estimate of $45.1 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $907.5 million, up 2.5% year over year. As of Sept. 30, 2025, Penske had cash and cash equivalents of $80.3 million, up from $72.4 million as of Dec. 31, 2024. The long-term debt amounted to $1.27 billion, up from $1.13 billion as of Dec. 31, 2024.
In the first nine months, PAG repurchased 796,716 shares of common stock for $119 million. As of Sept. 30, 2025, $262.3 million of stock repurchase authorization remained outstanding. As of Sept. 30, 2025, PAG had around $1.9 billion in liquidity.
Penske hiked its quarterly dividend by 6 cents to $1.38 per share, marking its 20th straight quarterly increase. The dividend will be paid on Dec.2 to its shareholders on record as of Nov. 14, 2025.
The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 19 cents and 30 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for KAR’s fiscal 2025 sales and earnings implies year-over-year growth of 5.6% and 37.7%, respectively. EPS estimates for fiscal 2025 have improved 13 cents in the past 90 days. EPS estimates for fiscal 2026 have improved 13 cents in the past 30 days.
The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 8 cents and 18 cents, respectively, in the past seven days.
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Penske Q3 Earnings Miss Expectations, Revenues Rise Y/Y
Key Takeaways
Penske Automotive Group (PAG - Free Report) reported third-quarter 2025 adjusted earnings of $3.23 per share, which decreased 3.9% year over year and missed the Zacks Consensus Estimate of $3.48. Better-than-expected results from the Retail Automotive segment contributed to the outperformance. The company registered net sales of $7.70 billion, missing the Zacks Consensus Estimate of $7.74 billion. The top line, however, rose 1.4% from the year-ago quarter's level.
Penske’s gross profit in the reported quarter rose 0.5% on a year-over-year basis to $1.25 billion. The operating income decreased 5.9% to $298.7 million. Foreign currency exchange positively impacted revenues by $92.8 million, net income by $700,000 and earnings per share (EPS) by 2 cents.
In the reported quarter, same-store retail units increased 0.7% year over year to 112,438. Within the Retail Automotive segment, same-store new-vehicle revenues were up 3.5% to $2.86 billion. Same-store used vehicle revenues increased 7.5% to $2.20 billion.
Penske Automotive Group, Inc. Price, Consensus and EPS Surprise
Penske Automotive Group, Inc. price-consensus-eps-surprise-chart | Penske Automotive Group, Inc. Quote
Segmental Performance of PAG
In the reported period, revenues in the Retail Automotive segment were $6.57 billion, which increased 3.6% from the year-ago quarter's level and topped our estimate of $6.41 billion. Total new and used vehicle deliveries were down 3.5% year over year to 103,517 units. Gross profit was $1.07 billion, up 2.4% year over year. The figure topped our estimate of $1.06 billion.
Revenues in the Retail Commercial Truck segment decreased 13.6% to $918 million and missed our estimate of $1.13 billion. Gross profit in the segment was $136.3 million, down from $157.1 million reported in the year-earlier quarter and lagging our estimate of $183.6 million.
The Commercial Vehicle Distribution and Other segment’s revenues in the reported quarter increased 10.6% to $206.6 million but missed our estimate of $217.4 million. Gross profit was $46.5 million, which increased from $44.6 million reported in the year-ago period and topped our estimate of $45.1 million.
Financial Tidbits
In the quarter under review, SG&A costs totaled $907.5 million, up 2.5% year over year. As of Sept. 30, 2025, Penske had cash and cash equivalents of $80.3 million, up from $72.4 million as of Dec. 31, 2024. The long-term debt amounted to $1.27 billion, up from $1.13 billion as of Dec. 31, 2024.
In the first nine months, PAG repurchased 796,716 shares of common stock for $119 million. As of Sept. 30, 2025, $262.3 million of stock repurchase authorization remained outstanding. As of Sept. 30, 2025, PAG had around $1.9 billion in liquidity.
Penske hiked its quarterly dividend by 6 cents to $1.38 per share, marking its 20th straight quarterly increase. The dividend will be paid on Dec.2 to its shareholders on record as of Nov. 14, 2025.
Penske Zacks Rank & Key Picks
PAG carries a Zacks Rank #4 (Sell) at present.
Some better-ranked stocks in the auto space are General Motors Company (GM - Free Report) , OPENLANE, Inc. (KAR - Free Report) and Garrett Motion Inc. (GTX - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for GM’s 2025 and 2026 EPS has improved 19 cents and 30 cents, respectively, in the past seven days.
The Zacks Consensus Estimate for KAR’s fiscal 2025 sales and earnings implies year-over-year growth of 5.6% and 37.7%, respectively. EPS estimates for fiscal 2025 have improved 13 cents in the past 90 days. EPS estimates for fiscal 2026 have improved 13 cents in the past 30 days.
The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 2.6% and 16.7%, respectively. EPS estimates for 2025 and 2026 have improved 8 cents and 18 cents, respectively, in the past seven days.