Penske Automotive Group 2025 Q1 Earnings Strong Performance as Net Income Rises 13%
Thursday, May 1, 2025 3:07 am ET
55min read Penske Automotive Group (PAG) reported its fiscal 2025 Q1 earnings on April 30th, 2025. Revenue increased by 2.1% to $7.60 billion, while net income rose 13% to $245 million. Earnings per share (EPS) improved by 14% to $3.66. The company anticipates continued growth across its various business segments and remains optimistic about navigating the changing automotive landscape. PAG's diverse operations and premium brand mix are expected to bolster performance despite market challenges.
Revenue
Penske Automotive Group's revenue rose to $7.60 billion in the first quarter of 2025, a 2.1% increase from the previous year. Retail Automotive was the leading contributor, generating $6.57 billion, while Retail Commercial Truck added $823.70 million. The Commercial Vehicle Distribution and Other segment accounted for $211.50 million, culminating in the total revenue figure. This growth reflects the company's strong performance across its diverse business segments.
Earnings/Net Income
Penske Automotive Group's EPS increased by 14.0% to $3.66 in Q1 2025, compared to $3.21 in Q1 2024. The company's net income grew by 13.3% to $245 million from $216.20 million over the same period, indicating consistent earnings growth. The EPS performance illustrates strong financial health and operational resilience.
Price Action
The stock price of penske automotive group edged down 0.61% during the latest trading day, increased 0.44% over the most recent full trading week, and jumped 10.16% month-to-date.
Post-Earnings Price Action Review
Following the earnings report, Penske Automotive Group (PAG) stock historically experiences positive short-to-medium-term gains. Data indicates that the stock typically performs well in the aftermath of earnings releases, with win rates of 55.02% over 3 days, 57.10% over 10 days, and 60.85% over 30 days. The highest return observed was 11.13% over 30 days, suggesting potential for significant price appreciation. The analysis underscores a pattern of favorable stock performance post-earnings, highlighting investor confidence in the company's financial results and future outlook.
CEO Commentary
Chair Roger Penske highlighted that Penske Automotive Group achieved record first-quarter revenue of $7.6 billion, marking a 2% increase from the previous year. The company maintained stable gross margins for seven consecutive quarters, with adjusted selling, general, and administrative expenses improving by 70 basis points. Penske noted the consistent gross profit per unit for new and used vehicles, with new vehicle gross declining slightly while used vehicle gross saw an increase. He expressed confidence in the company’s diversified operations and highlighted the importance of their premium brand mix and geographic diversification amid potential tariff impacts.
Guidance
The company anticipates continued growth driven by its varied business segments, particularly emphasizing the strength of its premium brand mix and geographic diversification. Penske Automotive Group is optimistic about its ability to navigate the changing automotive landscape, adapting its operations as required. The leadership remains focused on leveraging its variable cost structure to enhance performance amid ongoing market challenges, while closely monitoring external factors such as tariffs that could affect business dynamics.
Additional News
In recent developments, Penske Automotive Group repurchased 254,406 shares of common stock for approximately $39.9 million during the first quarter of 2025. Additionally, the company acquired 822 shares for $0.1 million from employees through a net share settlement feature of employee equity awards. Between April 1 and April 25, 2025, an additional 495,570 shares were repurchased for an aggregate purchase price of $71.2 million, leaving $45.8 million available under the company's existing repurchase authority. These strategic buybacks reflect Penske's commitment to enhancing shareholder value and demonstrate confidence in its long-term growth prospects.
Revenue
Penske Automotive Group's revenue rose to $7.60 billion in the first quarter of 2025, a 2.1% increase from the previous year. Retail Automotive was the leading contributor, generating $6.57 billion, while Retail Commercial Truck added $823.70 million. The Commercial Vehicle Distribution and Other segment accounted for $211.50 million, culminating in the total revenue figure. This growth reflects the company's strong performance across its diverse business segments.
Earnings/Net Income
Penske Automotive Group's EPS increased by 14.0% to $3.66 in Q1 2025, compared to $3.21 in Q1 2024. The company's net income grew by 13.3% to $245 million from $216.20 million over the same period, indicating consistent earnings growth. The EPS performance illustrates strong financial health and operational resilience.
Price Action
The stock price of penske automotive group edged down 0.61% during the latest trading day, increased 0.44% over the most recent full trading week, and jumped 10.16% month-to-date.
Post-Earnings Price Action Review
Following the earnings report, Penske Automotive Group (PAG) stock historically experiences positive short-to-medium-term gains. Data indicates that the stock typically performs well in the aftermath of earnings releases, with win rates of 55.02% over 3 days, 57.10% over 10 days, and 60.85% over 30 days. The highest return observed was 11.13% over 30 days, suggesting potential for significant price appreciation. The analysis underscores a pattern of favorable stock performance post-earnings, highlighting investor confidence in the company's financial results and future outlook.
CEO Commentary
Chair Roger Penske highlighted that Penske Automotive Group achieved record first-quarter revenue of $7.6 billion, marking a 2% increase from the previous year. The company maintained stable gross margins for seven consecutive quarters, with adjusted selling, general, and administrative expenses improving by 70 basis points. Penske noted the consistent gross profit per unit for new and used vehicles, with new vehicle gross declining slightly while used vehicle gross saw an increase. He expressed confidence in the company’s diversified operations and highlighted the importance of their premium brand mix and geographic diversification amid potential tariff impacts.
Guidance
The company anticipates continued growth driven by its varied business segments, particularly emphasizing the strength of its premium brand mix and geographic diversification. Penske Automotive Group is optimistic about its ability to navigate the changing automotive landscape, adapting its operations as required. The leadership remains focused on leveraging its variable cost structure to enhance performance amid ongoing market challenges, while closely monitoring external factors such as tariffs that could affect business dynamics.
Additional News
In recent developments, Penske Automotive Group repurchased 254,406 shares of common stock for approximately $39.9 million during the first quarter of 2025. Additionally, the company acquired 822 shares for $0.1 million from employees through a net share settlement feature of employee equity awards. Between April 1 and April 25, 2025, an additional 495,570 shares were repurchased for an aggregate purchase price of $71.2 million, leaving $45.8 million available under the company's existing repurchase authority. These strategic buybacks reflect Penske's commitment to enhancing shareholder value and demonstrate confidence in its long-term growth prospects.
Disclaimer: the above is a summary showing certain market information. AInvest is not responsible for any data errors, omissions or other information that may be displayed incorrectly as the data is derived from a third party source. Communications displaying market prices, data and other information available in this post are meant for informational purposes only and are not intended as an offer or solicitation for the purchase or sale of any security. Please do your own research when investing. All investments involve risk and the past performance of a security, or financial product does not guarantee future results or returns. Keep in mind that while diversification may help spread risk, it does not assure a profit, or protect against loss in a down market.
