PAG · Penske Automotive Group, Inc.

Penske Automotive Group announced Q1 2026 results showing revenue of $7.9 billion, down slightly from $8.0 billion in Q1 2025, primarily due to lower retail automotive new vehicle deliveries (down 5%) from weather disruptions, tariff pull-forward effects in prior year, and reduced U.S. EV demand amid regulatory changes and tax credit expiration. GAAP net income fell to $234.5 million from $257.7 million, with EPS at $3.56 versus $3.86, while adjusted figures reflected a 16% drop in net income to $200.6 million and 15% in EPS to $3.05, attributed to tough year-over-year comps and market headwinds. Positively, retail automotive gross profit per unit rose sequentially (new +$94, used +$306), and service/parts strength persisted with same-store revenue up 5%, gross profit up 6%, and margin expanding 60 bps to 59.0%. Retail commercial truck units declined to 3,583 from 4,714, revenue to $694.6 million from $823.7 million, and EBT to $36.4 million from $45.1 million due to prior weak freight impacting deliveries, though recent Class 8 orders surged 91% and service revenue grew 5%. Equity earnings from 28.9%-owned Penske Transportation Solutions rose 24% to $41.1 million on leasing growth and cost efficiencies. Management highlighted flexible capital allocation: acquiring Lexus of Orlando and Lexus of Winter Park (adding $450M annualized revenue, part of $2B from recent deals), 1.4% dividend hike, and share repurchases of 170,393 shares for $26.4M, with $221.2M remaining authorized. Balance sheet remains robust at $1.3B liquidity and 1.8x leverage. Chair Roger Penske noted sequential profitability gains and improving truck freight trends.