Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world’s premier automotive and commercial truck retailers, today announced quarterly results for the third quarter of 2025. For the quarter, revenue increased 1.4% to $7.7 billion compared to $7.6 billion for the same period in 2024. Net income attributable to common stockholders decreased 6% to $213.0 million compared to $226.1 million in the prior year period, and related earnings per share decreased 5% to $3.23 compared to $3.39 for the same period in 2024. Foreign currency exchange positively impacted revenue by $92.8 million, net income attributable to common stockholders by $0.7 million, and earnings per share by $0.02.
Commenting on the Company’s third quarter results, Chair Roger Penske said, “Overall, I am pleased with our performance during the third quarter. We grew same-store retail automotive new units delivered by 4%, reduced new vehicle inventory days supply by 6 days from the end of June and increased retail automotive service and parts revenue to a quarterly record of $818.3 million, including same-store service and parts revenue growth of 5%. In addition to the growth in service and parts revenue, we increased service and parts gross margin by 110 basis points and improved fixed cost absorption by 380 basis points in our U.S. retail automotive operations. However, overall profitability in the quarter was impacted by continued weakness in the North American freight market which drove lower sales and service of commercial trucks, coupled with challenges in the U.K auto retail market from a cyber security incident at one of our OEM partners, an increase in social program costs in the U.K., and a higher tax rate. As a result, third quarter earnings before taxes was negatively impacted by approximately $23 million.”
For the nine months ended September 30, 2025, revenue increased 1% from the same period in 2024 to a record of $23.0 billion. Net income attributable to common stockholders increased 4% to $707.3 million compared to $682.5 million in the prior year period, and related earnings per share increased 5% to $10.66 compared to $10.20 for the same period in 2024. As reconciled in the attached schedules, adjusted net income increased 1% to $689.3 million and adjusted earnings per share increased 2% to $10.39. Foreign currency exchange positively impacted revenue by $189.0 million, net income attributable to common stockholders by $1.8 million, and earnings per share by $0.02.
Retail Automotive Dealerships
For the three months ended September 30, 2025, total new units delivered increased 1%. New units increased 6% in the U.S. and declined 5% internationally. Used units delivered decreased 5%, consisting of a 1% decrease in the U.S. and a 10% decrease internationally. The decrease in used units internationally is largely attributable to the previously announced realignment of the Company’s U.K. used only dealerships to Sytner Select as we either closed or sold four locations. The Sytner Select locations are more closely aligned with the existing franchised dealer operations and focus on retailing fewer units at higher margin and lower costs. Excluding the performance of the U.K. Sytner Select locations in both periods, used units delivered decreased 2%. Total retail automotive revenue increased 4% to $6.6 billion and increased 5% on a same-store basis. Total retail automotive gross profit increased 2% to $1.1 billion, and same-store gross profit increased 3%, driven by an 8% increase in same-store service and parts.
For the nine months ended September 30, 2025, total new units delivered increased 1%. Used units delivered decreased 13%. Excluding the performance of the U.K. Sytner Select locations in both periods, used units delivered decreased 2%. Total retail automotive revenue increased 1% to $19.7 billion and increased 2% on a same-store basis. Total retail automotive gross profit increased 3% to $3.3 billion, and same-store gross profit increased 3%, driven by an 8% increase in same-store service and parts.
Retail Commercial Truck Dealerships
As of September 30, 2025, Premier Truck Group operated 45 North American retail commercial truck locations. For the three months ended September 30, 2025, retail unit sales decreased 19% to 5,108 from 6,331 and decreased 19% on a same-store basis as continued weakness in the freight market impacted new and used truck demand. Earnings before taxes was $41.5 million compared to $56.5 million in the prior year period. For the nine months ended September 30, 2025, revenue decreased 2% to $2.69 billion from $2.75 billion and decreased 7% on a same-store basis, and earnings before taxes was $140.8 million compared to $158.7 million in the prior year period.
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 over 405,000 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 and nine months ended September 30, 2025, the Company recorded $58.5 million and $145.1 million in earnings compared to $60.3 million and $145.7 million for the same periods in 2024 as continued weakness in the freight market drove a decline in rental revenue, coupled with an increase in bad debt expense and lower gain on the sale of used trucks.
Corporate Development, Capital Allocation, Liquidity, and Leverage
During July 2025, we completed the acquisition of a Ferrari dealership in Italy with expected estimated annualized revenue of $40 million. Also, on October 15, 2025, the Board of Directors approved an increase in the quarterly dividend of 4.5%, or $0.06 per share, to $1.38 per share representing a forward dividend yield of 3.2%. The increase represents the Company’s 20th consecutive quarterly increase. On a trailing twelve-month basis, the dividend payout ratio is 36.5%.
During September 2025, we repaid in full at scheduled maturity our $550 million of 3.50% senior subordinated notes due September 1, 2025. During the nine months ended September 30, 2025, the Company repurchased 934,122 shares of common stock, or approximately 1.4% of its outstanding shares, consisting of 796,716 shares of common stock for approximately $119.0 million under our securities repurchase program and 137,406 shares of our common stock for $22.6 million from employees in connection with a net share settlement feature of employee equity awards. From October 1, 2025, through October 24, 2025, the Company repurchased an additional 152,438 shares for an aggregate purchase price of $25.6 million. As of October 24, 2025, $262.3 million remained outstanding and available for repurchases under our securities repurchase program. As of September 30, 2025, the Company had approximately $1.9 billion in liquidity, including $80 million in cash and $1.8 billion of availability under its U.S. and international credit agreements. The Company’s leverage ratio at September 30, 2025 was 1.0x.
About Penske Automotive
Penske Automotive Group, Inc., (NYSE: PAG) headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company and one of the world’s premier automotive and commercial truck retailers. PAG operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia and is one of the largest retailers of commercial trucks in North America for Freightliner. PAG also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. PAG employs over 28,300 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions (“PTS”), a business that employs nearly 43,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 405,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts and provides innovative transportation, supply chain, and technology solutions to its customers.
