Pinterest : Q1 2025 Penske Automotive Group Earnings Press Release
PINS
Published on 04/30/2025 at 15:12
FOR IMMEDIATE RELEASE
$215.2 million in the prior year period, and related earnings per share increased 14% to $3.66 compared to $3.21 for the same period in 2024. As reconciled in the attached schedules, adjusted net income increased 5% to $226.3 million and adjusted earnings per share increased 6% to $3.39. Foreign currency exchange negatively impacted revenue by $40.3 million, net income attributable to common stockholders by $0.5 million, and earnings per share by $0.01.
First Quarter 2025 Operating Highlights Compared to First Quarter 2024
New Vehicle +7%; Used Vehicle -3%; Finance & Insurance -1%; Service & Parts +4%
New Vehicle +1%; Used Vehicle -2%; Finance & Insurance -1%; Service & Parts +6%
New Vehicle +7%; Used Vehicle -7%
New Vehicle -3%; Used Vehicle flat; Finance & Insurance -25%; Service & Parts -4%
Commenting on the Company's first quarter financial results, Chair Roger Penske said, "Our diversified international transportation services business generated record first quarter revenue, the seventh consecutive quarter of stable gross margin, and a 70-basis point improvement of adjusted selling, general, and administrative expenses as a percentage of gross profit. New and used vehicle gross profit per unit retailed remained consistent and strong with new vehicle gross declining only $87 per unit while used vehicle gross increased $352 per unit when compared to the fourth quarter of 2024. I was also pleased to see retail automotive service and parts gross margin improve by 60 basis points when compared to the first quarter of 2024."
Penske continued, "We continue to monitor the potential impact to our business from tariffs. As we look across our business, the benefits provided by our premium brand mix, geographic diversification across the North American retail commercial truck, Australian/New Zealand commercial vehicle and power systems, and the international automotive markets, and the diversification of our gross profit across new and used vehicles, service and parts, and finance and insurance, coupled with our highly variable cost structure, provide us with opportunities to flex our business to meet the changing automotive landscape."
Retail Automotive Dealerships
For the three months ended March 31, 2025, total new units delivered increased 6%. Used units delivered decreased 16%, consisting of a 2% increase in the U.S. and a 28% decrease internationally. The decrease internationally is attributable to a realignment of the Company's U.K. used only dealerships to Sytner Select which focuses on retailing fewer units at better margin and lower costs. Excluding the performance of the U.K. Sytner Select dealerships in both periods, used units delivered only decreased 1%. Total retail automotive revenue increased 1% to $6.6 billion and increased 2% on a same-store basis, driven by a 4% increase in same-store service and parts. Total retail automotive gross profit increased 3% to $1.1 billion, and same-store gross profit increased 3%, driven by a 6% increase in same-store service and parts.
Retail Commercial Truck Dealerships
As of March 31, 2025, Premier Truck Group operated 45 North American retail commercial truck locations. For the three months ended March 31, 2025, retail unit sales increased 4% to 4,714 from 4,540 but declined 4% on a same-store basis.
Revenue was $823.7 million and earnings before taxes was $45.1 million which compares to revenue of $791.8 million and earnings before taxes of $50.5 million in the prior year period. The decline in earnings is attributable to the continuing soft freight environment.
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 428,000 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 months ended March 31, 2025, the Company recorded
$33.2 million in earnings compared to $32.5 million for the same period in 2024, driven by an increase in revenue from leasing and maintenance business, partially offset by the continued decline in truck rental revenue and lower gain on sale of used trucks associated with weakness in the freight market.
Corporate Development, Capital Allocation, Liquidity, and Leverage
During the three months ended March 31, 2025, the Company repurchased 254,406 shares of common stock for approximately $39.9 million under our securities repurchase program and also acquired 822 shares of our common stock for
$0.1 million from employees in connection with a net share settlement feature of employee equity awards. From April 1, 2025, through April 25, 2025, the Company repurchased an additional 495,570 shares for an aggregate purchase price of $71.2 million. As of April 25, 2025, $45.8 million remained available under the Company's existing repurchase authority. As of March 31, 2025, the Company had approximately $2.1 billion in liquidity, including $118 million in cash and $2.0 billion of availability under its U.S. and international credit agreements. The Company's leverage ratio at March 31, 2025 was 1.2x.
Conference Call
Penske Automotive Group will host a conference call discussing financial results relating to the first quarter of 2025 on Wednesday, April 30, 2025, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (800) 715-9871 [International, please dial (646) 307-1963] using access code 9658297. The call will also be simultaneously broadcast over the Internet, available through the Investors section of the Penske Automotive Group website. Additionally, an investor presentation relating to the first quarter 2025 financial results has been posted to the Investors section of the Company's website. To access the presentation or to listen to the Company's webcast, please refer to https://www.penskeautomotive.com.
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 28,700 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions ("PTS"), a business that employs over 44,500 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 428,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts and provides innovative transportation, supply chain, and technology solutions to its customers. PAG is a member of the S&P Mid Cap 400, Fortune 500, Russell 1000, and Russell 3000 indexes. For additional information, visit the Company's website at https://www.penskeautomotive.com.
Non-GAAP Financial Measures
This release contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income, adjusted earnings per share, adjusted earnings before taxes, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), adjusted EBITDA, adjusted selling, general, and administrative expenses, and leverage ratio. The Company has reconciled these measures to the most directly comparable GAAP measures in the release. The Company believes that these widely accepted measures of operating profitability improve the transparency of the Company's disclosures and provide a meaningful presentation of the Company's results from its core business operations excluding the impact of items not related to the Company's ongoing core business operations and improve the period-to-period comparability of the Company's results from its core business operations. These non-GAAP financial measures are not substitutes for GAAP financial results and should only be considered in conjunction with the Company's financial information that is presented in accordance with GAAP.
Caution Concerning Forward Looking Statements
Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s financial performance, expectations and future plans. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, those related to macro-economic, geo-political and industry conditions and events, including their impact on sales of new and used vehicles, service and parts, and repair and maintenance services, the availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, demand for trucks to move freight with respect to Penske Transportation Solutions (PTS) and Premier Truck Group and other freight metrics such as spot rates or miles driven, personal discretionary spending levels, interest rates, foreign currency exchange rates, and unemployment rates; our ability to obtain vehicles and parts from our manufacturers, especially in light of supply chain disruptions due to natural disasters, tariffs and non-tariff trade barriers,
any shortages of vehicle components, international conflicts, challenges in sourcing labor, or labor strikes or work stoppages, or other disruptions; the control our manufacturer partners can exert over our operations and our reliance on them for various aspects of our business; risks to our reputation and those of our manufacturer partners; changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of EVs; disruptions to the security and availability of our information technology systems and those of our third party providers, which systems are increasingly threatened by ransomware and other cyber-attacks; the effects of a pandemic on the global economy, including our ability to react effectively to changing business conditions in light of any pandemic; the impact of tariffs targeting imported vehicles and parts, as well as changes or increases in tariffs, trade restrictions, trade disputes or non-tariff trade barriers; the rate of inflation, including its impact on vehicle affordability; changes in interest rates and foreign currency exchange rates; our ability to consummate, integrate, and realize returns on our acquisitions; with respect to PTS, changes in the financial health of its customers, labor strikes or work stoppages by its employees, a reduction in PTS' asset utilization rates, continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, including with respect to the effect of various government mandates concerning the electrification of its vehicle fleet, changes in values of used trucks which affects PTS' profitability on truck sales and regulatory risks and related compliance costs, our ability to realize returns on our significant capital investments in new and upgraded dealership facilities; our ability to navigate a rapidly changing automotive and truck landscape; our ability to respond to new or enhanced regulations in both our domestic and international markets relating to dealerships and vehicles sales, including those related to the sales process, emissions standards or electrification, as well as changes in consumer sentiment relating to commercial truck sales that may hinder our or PTS' ability to maintain, acquire, sell, or operate trucks; the success of our distribution of commercial vehicles, engines, and power systems; natural disasters; recall initiatives or other disruptions that interrupt the supply of vehicles or parts to us; the outcome of legal and administrative matters, and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group's business, markets, conditions, risks, and other uncertainties, which could affect Penske Automotive Group's future performance. The risks and uncertainties discussed above are not exhaustive and additional risk and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2024, and its other filings with the Securities and Exchange Commission. This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.
Inquiries should contact:
Shelley Hulgrave Anthony Pordon
Executive Vice President and Executive Vice President Investor Relations
Chief Financial Officer and Corporate Development
Penske Automotive Group, Inc. Penske Automotive Group, Inc.
248-648-2812 248-648-2540
[email protected] [email protected] # # #
PENSKE AUTOMOTIVE GROUP, INC.
Consolidated Condensed Statements of Income (Amounts In Millions, Except Per Share Data) (Unaudited)
2025
2024
Change
Revenue
$ 7,604.5
$ 7,447.8
2.1 %
Cost of Sales
6,335.5
6,202.6
2.1 %
Gross Profit
$ 1,269.0
$ 1,245.2
1.9 %
SG&A Expenses
913.6
879.8
3.8 %
Depreciation
39.9
37.8
5.6 %
Operating Income
$ 315.5
$ 327.6
(3.7)%
Floor Plan Interest Expense
(41.5)
(44.8)
(7.4)%
Other Interest Expense
(22.5)
(21.3)
5.6 %
Gain on sale of dealership
52.3
-
nm
Equity in Earnings of Affiliates
33.3
33.3
- %
Income Before Income Taxes
$ 337.1
$ 294.8
14.3 %
Income Taxes
(92.1)
(78.6)
17.2 %
Net Income
$ 245.0
$ 216.2
13.3 %
Less: Income Attributable to Non-Controlling Interests
0.7
1.0
(30.0)%
Net Income Attributable to Common Stockholders
$ 244.3
$ 215.2
13.5 %
Amounts Attributable to Common Stockholders:
Net Income
$ 245.0
$ 216.2
13.3 %
Less: Income Attributable to Non-Controlling Interests
0.7
1.0
(30.0)%
Net Income Attributable to Common Stockholders
$ 244.3
$ 215.2
13.5 %
Income Per Share
$ 3.66
$ 3.21
14.0 %
Weighted Average Shares Outstanding
66.8
67.1
(0.4)%
Disclaimer
Pinterest Inc. published this content on April 30, 2025, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 30, 2025 at 19:11 UTC.