PAG

A month has gone by since the last earnings report for Penske Automotive (PAG). Shares have lost about 1.3% in that time frame, underperforming the S&P 500. Will the recent negative trend continue leading up to its next earnings release, or is Penske due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the most recent earnings report in order to get a better handle on the important drivers. Penske reported second-quarter 2026 adjusted earnings of $3.62 per share, beating the Zacks Consensus Estimate of $3.38 by 7.1%. Adjusted earnings declined 4.2% from the comparable $3.78 per share a year ago. Revenues rose 6% year over year to $8.51 billion and topped the Zacks Consensus Estimate of $7.93 billion by 7.4%. Retail automotive same-store new and used units increased 5%, while same-store service and parts gross margin improved 80 basis points to 59.5%. Retail automotive revenues increased 6% year over year to $7.3 billion. New vehicle revenues rose 5.9% to $3.38 billion, used vehicle revenues advanced 9.4% to $2.47 billion and finance and insurance revenues increased 1.3% to $211 million. Service and parts revenues rose 1.6% to $867.1 million, while fleet and wholesale revenues declined 0.8% to $375.6 million. Same-store revenues grew 5.7% to $7.12 billion. Retail automotive gross profit slipped 0.7% to $1.16 billion, with gross margin contracting to 15.8% from 16.9%. New vehicle gross profit per retail unit fell 10.4% to $4,782, while used vehicle gross profit per unit declined 8.8% to $2,095. Service and parts gross profit increased 3.1% to $517 million. Retail commercial truck revenues declined 1.7% year over year to $927.8 million. Total new and used truck units retailed increased 1.7% to 5,431, as a 64.8% jump in used units offset a 7.8% decline in new units. Retail commercial truck gross profit slipped 0.6% to $142.8 million, while gross margin improved 20 basis points to 15.4%. Class 8 market orders increased 170% in the second quarter. Premier Truck Group's backlog was about 10,400 units, with the majority expected to convert into retail sales in the second half of 2026. Used truck demand also strengthened as freight conditions improved. Commercial Vehicle Distribution and Other revenues jumped 41.1% year over year to $283.9 million. Gross profit rose 30.5% to $57.7 million, although gross margin declined to 20.3% from 22%. Australia's off-highway business was a key contributor, with revenues increasing 63% in the quarter. The company secured more than $300 million of orders during the period, bringing its 2026 secured order book to nearly $660 million, supported by energy solutions, mining and defense demand. Penske Transportation Solutions contributed $57.4 million in earnings to PAG, up 7% year over year. The improvement reflected growth in full-service leasing, better fleet utilization, lower operating expenses and lower interest costs. PTS managed more than 379,200 trucks, tractors and trailers. Continued weakness in the rental market and a lower gain on used-truck sales partly offset the benefits from improved freight conditions and fleet-rightsizing actions. Consolidated gross profit edged up 0.4% to $1.36 billion, but gross margin narrowed to 15.9% from 16.8%. Selling, general and administrative expenses increased 3.2% to $974 million, and operating income declined 7.6% to $337.6 million. Operating margin fell to 4% from 4.5%. Adjusted EBITDA was $401.8 million, up 0.3%, while other interest expense rose 53.2% to $33.1 million, reflecting higher borrowing costs associated with acquisitions. For the first six months of 2026, cash flow from operations totaled $418 million and capital expenditures were $134.9 million. As of June 30, liquidity was about $1.4 billion, including $69.5 million in cash. PAG repurchased 265,104 shares for $42.5 million in the first half, leaving $221.2 million available under its repurchase authorization. The board also raised the quarterly dividend 1.4% to $1.44 per share, marking the company's 23rd consecutive quarterly increase. Since the earnings release, investors have witnessed a upward trend in fresh estimates. At this time, Penske has a subpar Growth Score of D, however its Momentum Score is doing a lot better with a B. Following the exact same course, the stock has a score of B on the value side, putting it in the second quintile for this investment strategy. Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in. Estimates have been broadly trending upward for the stock, and the magnitude of these revisions looks promising. Interestingly, Penske has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

AutoNation, Inc. AN reported second-quarter 2026 adjusted earnings of $5.56 per share, up 1.8% from $5.46 a year ago. Earnings beat the Zacks Consensus Estimate of $5.43 by 2.4%. Results benefited from record After-Sales gross profit and stronger Customer Financial Services profitability. Revenues of $6.93 billion declined 0.6% year over year and missed the consensus estimate of $6.97 billion by 0.6%. AutoNation, Inc. price-consensus-eps-surprise-chart | AutoNation, Inc. Quote Parts and service revenues increased 3.4% year over year to $1.26 billion. Gross profit rose 1.4% to a record $607.1 million, making After-Sales the largest contributor to AutoNation's gross profit. Customer-pay revenues increased 7% year over year, while wholesale parts revenues advanced 16%. Customer-pay repair orders rose 5% and warranty repair orders increased 8%. Parts and service gross margin declined to 48.1% from 49%, mainly reflecting a higher mix of lower-margin wholesale parts. Customer Financial Services gross profit totaled $357.6 million, down 2.7% from $367.7 million a year earlier as lower retail vehicle volumes offset stronger per-unit profitability. CFS gross profit per vehicle retailed climbed 3.2% to $2,799 from $2,712. The improvement came despite an approximately 2% drag from higher AutoNation Finance originations. AutoNation Finance, meanwhile, generated income of $10.7 million, up from $2 million a year ago. The portfolio reached $2.67 billion, increasing about 52% from $1.76 billion, while quarterly originations totaled $485 million. AN Finance accounted for 11% of total vehicle sales and 18% of financed vehicle sales, highlighting the growing contribution of the captive finance platform. New vehicle revenues declined 3.1% to $3.29 billion as retail unit sales fell 4% to 63,240. New vehicle gross profit per unit dropped 14.5% to $2,381, reflecting higher vehicle costs. Much of the volume decline was due to weaker battery-electric vehicle sales and difficult comparisons against tariff-related demand pull-forward in 2025. Used vehicle revenues increased 1.3% to $2.01 billion despite a 7.5% decline in retail unit sales to 64,521. Retail used vehicle revenue per unit increased 8.4% to $28,674, while gross profit per unit slipped 2.5% to $1,582. Total gross profit fell 3.5% year over year to $1.23 billion, with gross margin narrowing to 17.8% from 18.3%. Adjusted operating income declined 7% to $343.1 million from $369.3 million. Adjusted SG&A expenses represented 68.2% of gross profit, improving sequentially from 69.8% in the first quarter but remaining above 66.2% a year ago. Management expects the ratio to reach its 66%-67% target range on a run-rate basis by year-end. Adjusted free cash flow totaled $439.2 million in the first half of 2026, representing 125% of adjusted net income. AutoNation spent $316.5 million on acquisitions and $126 million on capital expenditures during the period. The company also repurchased 2.3 million shares for $457 million in the first half.  As of June 30, 2026, cash and cash equivalents were $53.3 million. Non-vehicle debt was $4.43 billion. AutoNation had about $1 billion of liquidity, including $0.9 billion available under its revolving credit facility, net of commercial paper borrowings. Management expects after-sales customer-pay gross profit to maintain mid-single-digit growth, supported by customer retention and technician capacity. With stable vehicle unit profitability, continued CFS and After-Sales growth, AutoNation Finance expansion and a lower share count, management expects adjusted earnings per share to grow year over year in the second half of 2026. AN stock currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Penske Automotive Group, Inc. PAG reported second-quarter 2026 adjusted earnings of $3.62 per share, beating the Zacks Consensus Estimate of $3.38 by 7.1%. Adjusted earnings declined 4.2% from the comparable $3.78 per share a year ago. Penske’s revenues rose 6% year over year to $8.51 billion and topped the Zacks Consensus Estimate of $7.93 billion by 7.4%. For the first six months of 2026, cash flow from operations totaled $418 million and capital expenditures were $134.9 million. As of June 30, Penske’s liquidity was about $1.4 billion, including $69.5 million in cash. Sonic Automotive, Inc. SAH reported second-quarter 2026 adjusted earnings of $1.82 per share, down 17% year over year. Earnings beat the Zacks Consensus Estimate of $1.75 by 4%. Revenues rose 8% to $3.93 billion and topped the consensus mark of $3.78 billion by 4%. Sonic ended the quarter with about $294 million of cash and floor plan deposits and roughly $676 million of total available liquidity. The company raised full-year new-vehicle gross profit per unit guidance to $2,850-$3,000 from $2,700-$3,000. Sonic’s EchoPark unit is still expected to deliver 12%-15% retail used-unit growth this year. Lithia Motors LAD posted second-quarter 2026 adjusted earnings of $10.03 per share, which increased 9% from $9.20 a year ago. The bottom line beat the Zacks Consensus Estimate of $8.67 by 15.7%. Quarterly revenues increased 2.2% year over year to $9.79 billion and topped the consensus estimate of $9.64 billion by 1.6%. As of June 30, 2026, Lithia had cash, restricted cash and cash equivalents of $363.9 million, up from $341.8 million as of Dec. 31, 2025. During the quarter, Lithia repurchased roughly 854,000 shares at a weighted average price of $284, representing $242 million of share repurchases. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report AutoNation, Inc. (AN) : Free Stock Analysis Report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Penske Automotive Group, Inc. PAG reported second-quarter 2026 adjusted earnings of $3.62 per share, beating the Zacks Consensus Estimate of $3.38 by 7.1%. Adjusted earnings declined 4.2% from the comparable $3.78 per share a year ago. Revenues rose 6% year over year to $8.51 billion and topped the Zacks Consensus Estimate of $7.93 billion by 7.4%. Retail automotive same-store new and used units increased 5%, while same-store service and parts gross margin improved 80 basis points to 59.5%. Penske currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Penske Automotive Group, Inc. price-consensus-eps-surprise-chart | Penske Automotive Group, Inc. Quote Retail automotive revenues increased 6% year over year to $7.3 billion. New vehicle revenues rose 5.9% to $3.38 billion, used vehicle revenues advanced 9.4% to $2.47 billion and finance and insurance revenues increased 1.3% to $211 million. Service and parts revenues rose 1.6% to $867.1 million, while fleet and wholesale revenues declined 0.8% to $375.6 million. Same-store revenues grew 5.7% to $7.12 billion. Retail automotive gross profit slipped 0.7% to $1.16 billion, with gross margin contracting to 15.8% from 16.9%. New vehicle gross profit per retail unit fell 10.4% to $4,782, while used vehicle gross profit per unit declined 8.8% to $2,095. Service and parts gross profit increased 3.1% to $517 million. Retail commercial truck revenues declined 1.7% year over year to $927.8 million. Total new and used truck units retailed increased 1.7% to 5,431, as a 64.8% jump in used units offset a 7.8% decline in new units. Retail commercial truck gross profit slipped 0.6% to $142.8 million, while gross margin improved 20 basis points to 15.4%. Class 8 market orders increased 170% in the second quarter. Premier Truck Group's backlog was about 10,400 units, with the majority expected to convert into retail sales in the second half of 2026. Used truck demand also strengthened as freight conditions improved. Commercial Vehicle Distribution and Other revenues jumped 41.1% year over year to $283.9 million. Gross profit rose 30.5% to $57.7 million, although gross margin declined to 20.3% from 22%. Australia's off-highway business was a key contributor, with revenues increasing 63% in the quarter. The company secured more than $300 million of orders during the period, bringing its 2026 secured order book to nearly $660 million, supported by energy solutions, mining and defense demand. Penske Transportation Solutions contributed $57.4 million in earnings to PAG, up 7% year over year. The improvement reflected growth in full-service leasing, better fleet utilization, lower operating expenses and lower interest costs. PTS managed more than 379,200 trucks, tractors and trailers. Continued weakness in the rental market and a lower gain on used-truck sales partly offset the benefits from improved freight conditions and fleet-rightsizing actions. Consolidated gross profit edged up 0.4% to $1.36 billion, but gross margin narrowed to 15.9% from 16.8%. Selling, general and administrative expenses increased 3.2% to $974 million, and operating income declined 7.6% to $337.6 million. Operating margin fell to 4% from 4.5%. Adjusted EBITDA was $401.8 million, up 0.3%, while other interest expense rose 53.2% to $33.1 million, reflecting higher borrowing costs associated with acquisitions. For the first six months of 2026, cash flow from operations totaled $418 million and capital expenditures were $134.9 million. As of June 30, liquidity was about $1.4 billion, including $69.5 million in cash. PAG repurchased 265,104 shares for $42.5 million in the first half, leaving $221.2 million available under its repurchase authorization. The board also raised the quarterly dividend 1.4% to $1.44 per share, marking the company's 23rd consecutive quarterly increase. Sonic Automotive, Inc. SAH reported second-quarter 2026 adjusted earnings of $1.82 per share, which fell 17% year over year but beat the Zacks Consensus Estimate of $1.75 by 4%. Revenues rose 8% to $3.93 billion and topped the consensus mark of $3.78 billion by 4%. Sonic ended the quarter with about $294 million of cash and floor plan deposits and roughly $676 million of total available liquidity. The company raised full-year new-vehicle gross profit per unit guidance to $2,850-$3,000 from $2,700-$3,000. Sonic’s EchoPark unit is still expected to deliver 12%-15% retail used-unit growth this year. Lithia Motors LAD posted second-quarter 2026 adjusted earnings of $10.03 per share, which increased 9% from $9.20 a year ago. The bottom line beat the Zacks Consensus Estimate of $8.67 by 15.7%. Quarterly revenues increased 2.2% year over year to $9.79 billion and topped the consensus estimate of $9.64 billion by 1.6%. As of June 30, 2026, Lithia had cash, restricted cash and cash equivalents of $363.9 million, up from $341.8 million as of Dec. 31, 2025.During the quarter, Lithia repurchased roughly 854,000 shares at a weighted average price of $284, representing $242 million of share repurchases. AutoNation, Inc. AN reported second-quarter 2026 adjusted earnings of $5.56 per share, up 1.8% from $5.46 a year ago. Earnings beat the Zacks Consensus Estimate of $5.43 by 2.4%. Revenues of $6.93 billion declined 0.6% year over year and missed the consensus estimate of $6.97 billion by 0.6%. Parts and service revenues increased 3.4% year over year to $1.26 billion. Gross profit rose 1.4% to a record $607.1 million, making After-Sales the largest contributor to AutoNation's gross profit. As of June 30, 2026, AutoNation had cash and cash equivalents of $53.3 million. Non-vehicle debt was $4.43 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Sonic Automotive, Inc. SAH reported second-quarter 2026 adjusted earnings of $1.82 per share. Earnings declined 17% year over year but beat the Zacks Consensus Estimate of $1.75 by 4%. Revenues rose 8% to $3.93 billion and topped the consensus mark of $3.78 billion by 4%. The quarter benefited from higher retail new and used vehicle volumes and growth across EchoPark and Powersports segments. At the consolidated level, gross profit rose 2% to $616.2 million. Adjusted SG&A expenses increased 6% to $443.4 million. Adjusted SG&A, as a percentage of gross profit, was 72.0% compared with 69.2% a year earlier. Adjusted net income fell 23% to $58.3 million. Sonic Automotive, Inc. price-consensus-eps-surprise-chart | Sonic Automotive, Inc. Quote Franchised Dealerships segment revenues increased 6% year over year to $3.28 billion. New-vehicle revenues rose 5% to $1.76 billion, while used-vehicle revenues increased 9% to $814.3 million. Parts, service and collision repair revenues advanced 6% to $515.5 million, while finance, insurance and other revenues increased 2% to $147.9 million. Retail new-vehicle unit volume rose 1%, and used-vehicle volume advanced 6%. Profit per vehicle remained under pressure. Reported retail new-vehicle gross profit per unit fell 11% to $3,024, while used-vehicle gross profit per unit declined 12% to $1,399. Segment income was $70.7 million, down 23% from the year-ago period. Management cited difficult comparisons tied to pre-tariff consumer demand pull-forward in the second quarter of 2025. EchoPark revenues increased 15% to $582.9 million, while gross profit rose 4% to a second-quarter record $64.3 million. Retail used-vehicle sales volume increased 17% as Sonic carried more affordable inventory and expanded its non-auction sourcing mix. Wholesale vehicle volumes increased 12%. That volume growth came with lower per-unit economics. Total used-vehicle and F&I gross profit per unit fell 12% to $3,292. Segment income dropped 38% to $7.2 million, while adjusted EBITDA declined 15% to $13.9 million. Powersports revenues surged 53% to a second-quarter record $73.5 million. Gross profit increased 58% to $19.7 million. New retail unit volume rose 27% to 1,775 units, while used retail volume jumped 61% to 1,317 units. Finance and insurance revenues climbed 75% to $3.5 million, with F&I gross profit per unit up 27% to $1,125. Segment income improved to $2.3 million from breakeven, and adjusted EBITDA increased 145% to $4.9 million. The five Harley-Davidson dealerships acquired in April are expected to add about $100 million in annualized revenue. Sonic ended the quarter with about $294 million of cash and floor plan deposits and roughly $676 million of total available liquidity. The board approved a quarterly dividend of 41 cents per share, to be paid out on Oct. 15, 2026, to stockholders of record as of Sept. 15. Management raised full-year new-vehicle gross profit per unit guidance to $2,850-$3,000 from $2,700-$3,000. EchoPark is still expected to deliver 12%-15% retail used-unit growth, total gross profit per unit of $3,100-$3,300 and adjusted EBITDA of $35-$40 million. Sonic also expects $8-$12 million of incremental EchoPark brand marketing expense in the fourth quarter and plans to open an Orlando location during the quarter. Sonic currently has a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. Penske Automotive Group, Inc. PAG reported second-quarter 2026 adjusted earnings of $3.62 per share, beating the Zacks Consensus Estimate of $3.38 by 7.1%. Adjusted earnings declined 4.2% from the comparable $3.78 per share a year ago. Penske’s revenues rose 6% year over year to $8.51 billion and topped the Zacks Consensus Estimate of $7.93 billion by 7.4%. For the first six months of 2026, cash flow from operations totaled $418 million and capital expenditures were $134.9 million. As of June 30, Penske’s liquidity was about $1.4 billion, including $69.5 million in cash. Lithia Motors LAD posted second-quarter 2026 adjusted earnings of $10.03 per share, which increased 9% from $9.20 a year ago. The bottom line beat the Zacks Consensus Estimate of $8.67 by 15.7%. Quarterly revenues increased 2.2% year over year to $9.79 billion and topped the consensus estimate of $9.64 billion by 1.6%. As of June 30, 2026, Lithia had cash, restricted cash and cash equivalents of $363.9 million, up from $341.8 million as of Dec. 31, 2025.During the quarter, Lithia repurchased roughly 854,000 shares at a weighted average price of $284, representing $242 million of share repurchases. AutoNation, Inc. AN reported second-quarter 2026 adjusted earnings of $5.56 per share, up 1.8% from $5.46 a year ago. Earnings beat the Zacks Consensus Estimate of $5.43 by 2.4%. Revenues of $6.93 billion declined 0.6% year over year and missed the consensus estimate of $6.97 billion by 0.6%. Parts and service revenues increased 3.4% year over year to $1.26 billion. Gross profit rose 1.4% to a record $607.1 million, making After-Sales the largest contributor to AutoNation's gross profit. As of June 30, 2026, AutoNation had cash and cash equivalents of $53.3 million. Non-vehicle debt was $4.43 billion. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Sonic Automotive, Inc. (SAH) : Free Stock Analysis Report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report AutoNation, Inc. (AN) : Free Stock Analysis Report Lithia Motors, Inc. (LAD) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Interested in Penske Automotive Group, Inc.? Here are five stocks we like better. Second-quarter revenue rose 6% to $8.5 billion, with adjusted EPS of $3.62 excluding dealership-sale gains. Retail automotive, international operations and service-and-parts growth supported results. Penske reported improving commercial-truck demand: North American Class 8 orders surged 170%, Premier Truck Group’s backlog reached about 10,400 units, and management expects roughly 10,000 truck deliveries in the second half of 2026. The board formed a special committee to review an unsolicited, non-binding proposal from Penske Corporation and Mitsui to acquire remaining shares for $210 per share in cash; the committee will retain independent legal and financial advisers. 3 Stocks Generating a Ridiculous Amount of Cash Penske Automotive Group (NYSE:PAG) reported second-quarter 2026 revenue of $8.5 billion, up 6% from a year earlier, as the dealership group cited growth in retail automotive, commercial trucks and international operations. The company also disclosed that its board has formed a special committee of independent directors to evaluate an unsolicited proposal from Penske Corporation and Mitsui & Co. to acquire the shares they do not already own for $210 per share in cash. Anthony Pordon, executive vice president of investor relations and corporate development, said the proposal is preliminary and non-binding. The special committee is authorized to hire its own legal and financial advisers. The company said it would not provide further comment or take questions on the matter during the earnings call. → Refiner Stocks Are Near Record Highs—Can Iran-Driven Margins Keep Them There? Why Analysts Love These 2 Car Sales Platforms, And Avoid Dealers For the quarter, Penske Automotive reported earnings before taxes of $354 million, net income of $260 million and earnings per share of $3.96. Results included about $30 million from gains on dealership sales. Excluding that gain, adjusted income before taxes was $323 million, adjusted net income was $238 million and adjusted earnings per share was $3.62. Chairman and CEO Roger Penske said the company delivered 125,000 new and used vehicles during the quarter, along with more than 5,400 new and used commercial trucks. Same-store retail new and used vehicle units increased 5% overall. → Why SK hynix Could Be the Best AI Chip Stock to Buy Now Gross profit per new vehicle retailed was $4,782, down $1 sequentially, while used-vehicle gross profit per unit was $2,095, up $19 from the first quarter. Same-store service and parts revenue increased 2%, with related gross profit rising 3%. Service and parts gross margin expanded 60 basis points from the prior year and 80 basis points sequentially. In the U.S., same-store new and used retail automotive units rose 3%, according to Rich Shearing, chief operating officer of North American operations. About 24% of new units sold during the quarter were sold at manufacturer’s suggested retail price, unchanged from the first quarter. U.S. same-store service and parts revenue and gross profit each increased 2.5%, supported by nearly 4% growth in customer-pay work. → 3 Value ETFs to Consider as Growth Stocks Lag Behind Shearing said the company’s U.S. technician count was 2% higher than at the end of June 2025, while service-bay utilization was approximately 84%. Premier Truck Group retailed 5,431 new and used trucks in the second quarter. Same-store new-truck units declined 8%, while used-truck units rose 65%. However, new-truck deliveries increased sequentially to 4,276 from 2,786 in the first quarter. Premier Truck Group generated $928 million in revenue and $143 million in gross profit, with gross margin improving 20 basis points. Used-truck gross profit per unit rose by more than $2,000 sequentially and nearly $1,900 from the prior-year quarter, which management attributed to improved freight-market conditions and stronger spot rates. Management said North American Class 8 truck orders increased 170% in the second quarter, while the industry backlog rose 105% to 186,000 units. Shearing said Premier Truck Group’s own backlog was about 10,400 units and that most orders taken in the first half are expected to convert to retail sales in the second half of 2026. He estimated the company delivered about 6,000 trucks in the first half and expects roughly 10,000 deliveries during the second half. “The recovery in the commercial truck market is underway,” Roger Penske said, adding that improving freight conditions should benefit both the dealership business and Penske Transportation Solutions. Penske Transportation Solutions, in which Penske Automotive records equity income, produced $57 million of equity income in the quarter, up 7% from $54 million a year earlier. Operating revenue was flat, as a 1% increase in lease revenue was offset by a 12% decline in rental revenue and a 2% decline in logistics revenue. The unit sold 9,170 vehicles during the quarter and ended June with a fleet of just under 380,000 vehicles, compared with 414,000 a year earlier. Management said fleet reductions lowered operating and interest costs and improved utilization, but reduced gains on sales of used trucks by $13 million. International revenue increased 10% to $3.2 billion. Same-store new units rose 8%, used units increased 7%, and same-store gross profit grew 6%. In the United Kingdom, new vehicle deliveries climbed 14%, roughly in line with the overall market’s 13% increase. Randall Seymore, chief operating officer of international operations, said the market remains challenging because of higher taxes, affordability pressures, reduced Motability programs and government electrification requirements. He also noted that Chinese brands have increased their U.K. market share, although Penske’s operations remain predominantly focused on premium and luxury brands. In Australia, Penske’s off-highway commercial vehicle and power systems revenue increased 63%. The company secured more than $300 million in orders during the quarter, bringing its secured 2026 order book to nearly $660 million. Seymore said demand was supported by energy solutions, mining and defense, and that the company sees a path to reaching AUD 1 billion in data-center revenue by 2030. For the first six months of 2026, Penske Automotive generated $418 million in operating cash flow and $829 million of EBITDA. It invested $134 million in capital expenditures and acquired two Lexus dealerships with estimated annualized revenue of $450 million. The company increased its quarterly dividend to $1.44 per share, its 23rd consecutive quarterly increase, and repurchased 265,000 shares for $43 million. Since the start of 2023, it has returned approximately $1.6 billion to shareholders through dividends and buybacks. At the end of June, non-vehicle long-term debt was $2.5 billion and leverage was 1.7 times. The company reduced long-term debt by $141 million during the quarter. Total inventory stood at $5.1 billion, including a 51-day supply of new vehicles and a 44-day supply of used vehicles. Liquidity was approximately $1.4 billion. Penske Automotive Group, Inc (NYSE: PAG), headquartered in Bloomfield Township, Michigan, is an international transportation services company primarily focused on automotive and commercial truck dealerships. The company retails new and pre-owned vehicles across a broad spectrum of brands, while offering parts, maintenance, collision repair and reconditioning services. In addition, Penske provides financing and insurance products through its integrated finance and insurance operations, supporting both retail customers and commercial clients. Formed in 1990 as United Auto Group and publicly traded since 1999, Penske Automotive Group has grown through organic expansion and strategic acquisitions to establish a network of dealerships and service centers across the United States and Europe. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Penske Automotive Group Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for July 2026.

This article first appeared on GuruFocus. Revenue: $8.5 billion, up 6% year-over-year. Earnings Before Taxes (EBT): $354 million; adjusted EBT (excluding gain on sale) was $323 million. Net Income: $260 million; adjusted net income was $238 million. Earnings Per Share (EPS): $3.96; adjusted EPS was $3.62. Same-Store Retail New and Used Units: Increased 5%. Gross Profit Per New Unit (Retail): $4,782. Gross Profit Per Used Unit (Retail): $2,095. Service and Parts Same-Store Revenue: Increased 2%; related gross profit increased 3%. Service and Parts Gross Margin: Increased 60 basis points year-over-year and 80 basis points sequentially. Retail Commercial Truck Units: New and used units increased 2%. Premier Truck Group (PTG) Revenue: $928 million. Premier Truck Group Gross Profit: $143 million; gross margin increased 20 basis points. Penske Transportation Solutions (PTS) Equity Income: $57 million, up 7%. PTS Earnings: $207 million for the quarter. International Revenue: $3.2 billion, up 10%. International Same-Store Revenue: Increased 10%; same-store gross profit increased 6%. Cash Flow from Operations (Six Months): $418 million. EBITDA (Six Months): $829 million. Capital Expenditures (First Half 2026): $134 million. Long-Term Debt Reduction (Q2): Reduced by $141 million. Quarterly Dividend: Increased to $1.44 per share. Share Repurchases (Q2): 265,000 shares for $43 million. Non-Vehicle Long-Term Debt: $2.5 billion; leverage ratio of 1.7 times. Effective Tax Rate (Q2 2026): 26.2%. SG&A as a Percentage of Gross Profit: 71.8%. New Vehicle Inventory: 51-day supply. Used Vehicle Inventory: 44-day supply. Liquidity: Approximately $1.4 billion. Warning! GuruFocus has detected 9 Warning Sign with PAG. Is PAG fairly valued? Test your thesis with our free DCF calculator. Release Date: July 29, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. Penske Automotive Group Inc (NYSE:PAG) reported a strong second quarter with revenue up 6% to $8.5 billion and earnings per share of $3.96. The company saw a 5% increase in same-store retail new and used units, with strong gross profit per unit in both new and used vehicles. Service and parts revenue grew 2% with a 60 basis point improvement in gross margin, indicating strong aftermarket demand. The commercial truck market is recovering, with Class 8 orders up 170% and a strong order book expected to boost retail sales in the second half of 2026. Penske Transportation Solutions (PTS) equity income increased 7% to $57 million, driven by higher fleet utilization and lower operating costs. The company reduced long-term debt by $141 million and increased its quarterly dividend for the 23rd consecutive quarter. International operations, particularly in the UK and Australia, showed resilience with same-store revenue up 10% and strong growth in off-highway and energy solutions. The UK automotive market remains challenging due to higher taxes, consumer affordability issues, and government mandates toward electrification. PTS rental revenue declined 12% and gain on sale of used trucks decreased by $13 million due to fleet rightsizing. SG&A expenses increased 3% and as a percentage of gross profit rose to 71.8% from 69.8% year-over-year, driven by higher personnel and IT costs. New vehicle inventory is at a 51-day supply, with premium brands at 58 days, indicating potential overstocking. The company faces headwinds from Chinese brands gaining market share in the UK, though this primarily affects lower-cost vehicles. Interest expense increased $6 million due to higher borrowing costs from acquisitions, with a 25 basis point rate change impacting expense by $15 million. Here are the key highlights from the Penske Automotive Group Inc (NYSE:PAG) Q2 2026 earnings call, focusing on the most significant Q&A exchanges. Q: Can you provide color on the sheer magnitude of the Class 8 order book growth and how it will convert into sales? A: Richard Shearing (North American Operations Officer) explained that the industry backlog has grown to 186,000 units, representing about 8.5 months of production. For Premier Truck Group (PTG), the backlog is approximately 10,400 units. The typical timeline from order to delivery is 45-60 days. The majority of orders taken in the first half of the year are expected to convert into retail sales in the second half of 2026, with some spilling into early 2027. Roger Penske added that PTG delivered 6,000 trucks in the first half and expects to deliver 10,000 in the second half. Q: Given the strong order book, what is the outlook for used truck demand and gross profit per unit (GPU)? A: Richard Shearing noted that used truck demand is being driven by a significant improvement in spot rates (up 40-50% year-over-year), which is attracting owner-operators back into the market. This has led to a sequential increase of $2,000 in used GPU. He anticipates this demand to continue in the second half, though sourcing late-model, low-mileage trucks will be a challenge. Roger Penske added that PTS is also seeing a $2,000 to $4,000 increase in the value of its used trucks, which is a major help as it continues to defleet. Q: What is the outlook for the UK market, and how is Penske navigating the challenges there? A: Randall Seymore (International Operations) described the UK market as turbulent, citing the ZEV mandate, government changes, and the rapid growth of Chinese brands (market share doubling to over 15%). He stated this is the "new normal." However, Penske is adapting by placing Chinese brands in existing Sytner Select locations and former Jaguar facilities. Roger Penske clarified that Chinese brands are primarily in lower-cost vehicles, while Penske's UK business is 90% premium luxury, so the direct impact is currently limited. Q: Can you discuss the growth opportunity in the Australian energy solutions business and its potential scale? A: Randall Seymore highlighted that the off-highway business (2/3 of Australian CV/PS revenue) is a key growth driver. The energy solutions segment, focused on backup power for data centers, holds over 75% market share for engines over 1,250 kW. The company has a clear path to achieve AUD1 billion in data center revenue by 2030. Roger Penske added that the shift from standby to prime power (running 5,000-8,000 hours per year) creates a long-term annuity for service, maintenance, and remanufacturing, with engines running for 30+ years. Q: What drove the nice sequential improvement in SG&A as a percentage of gross profit? A: Shelley Hulgrave (CFO) attributed the 250 basis point sequential improvement primarily to the recovery in the Premier Truck Group (PTG) business, which saw a 400 basis point improvement quarter-over-quarter as they contained costs during the freight recession. She also noted the absence of Q1 weather-related costs. However, headwinds from fuel costs, employee benefits, and IT investments remain. The company remains comfortable with a "low 70s" SG&A-to-gross ratio. Roger Penske added that PTG's ratio improved from 66% to 59%, while the US retail auto business is at 68% and the UK is at 79%. Q: How are increasing lease returns impacting the business, and are you capitalizing on them? A: Richard Shearing confirmed that lease returns are increasing significantly (e.g., Toyota from 4,200 to 5,600 units next year, BMW from 9,500 to 10,700). These returns are a key source of supply for high-quality used cars and CPO sales (42% in the US). The company's objective is to exceed OEM retention metrics. Roger Penske noted that captive finance companies are "tipping in" to help retain customers, especially those facing negative equity, by supporting new vehicle leases. Q: With the strong new truck order book, is the commercial truck business now more pro-cyclical than a natural hedge? A: Richard Shearing acknowledged the business is turning a corner after a long down cycle. The fixed coverage at PTG is 125-130%, and parts and service help through peaks and valleys. Roger Penske broke down PTS, noting that 60-65% is long-term leasing with annual escalators, providing stability. The rental business, which was heavily defleeted, is now seeing improved utilization. The overall improvement in the freight market and CDL situation is a positive tailwind for both PTG and PTS. Q: What is the company's preference between acquisitions and share buybacks in the second half of the year? A: Roger Penske stated the company will continue its same cadence of acquisitions as in the first half. Anthony Pordon (EVP of IR) reinforced the commitment to a flexible, consistent approach to capital allocation across all buckets, including dividends, debt reduction, and buybacks, which has worked well historically. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Our analysts just identified a stock with the potential to be the next Nvidia. Tell us how you invest and we'll show you why it's our #1 pick. Tap here. Safe Bulkers attributed performance to a strong charter market and a young fleet average of 10.3 years, which is approximately 2 years younger than the global average. Capital Power's growth was driven by its diversification strategy, with 60% of generation coming from its U.S. fleet, reinforcing resilience against regional market volatility. Safe Bulkers achieved a 22% reduction in carbon intensity through fleet renewal and environmental upgrades, positioning the company for higher operational standards required by top-tier charters. Capital Power highlighted the 'speed to power' premium as a critical competitive advantage, where the ability to guarantee commercial operation dates is more vital than PPA pricing. Management at Safe Bulkers emphasized a conservative leverage strategy, maintaining net debt at $8 million per vessel to ensure financial flexibility for future investments. Capital Power's Meta agreement serves as a strategic template for converting merchant capacity into durable, long-term contracted cash flows without requiring additional capital investment. Safe Bulkers' supply-demand outlook for 2026 assumes 2% supply growth versus 3% demand growth, contingent on the 'open Hormuz' trade scenario. Capital Power increased its estimate of embedded annual adjusted EBITDA upside to $1.25 billion, driven by recontracting confidence and stronger Alberta merchant pricing expectations. Safe Bulkers has 10 newbuilds on order through 2029, including dual-fuel vessels capable of transitioning to alternative fuels as they become economically viable. Capital Power's 2026 guidance assumes a heavy maintenance cycle, with 66% of planned outage days already complete to ensure long-term fleet reliability. Management expects Alberta's 'Phase 2' regulatory framework to support significant data center development at the Genesee site without compromising grid affordability. Safe Bulkers flagged that 30% of the global dry bulk fleet is over 15 years old, which will likely lead to increased maintenance costs and regulatory restrictions for competitors. Capital Power reported that its second quarter results were driven by its expanded PJM portfolio and the recognition of Canadian Clean Tech ITC government grants, which contributed to an increase in AFFO to $328 million. Safe Bulkers identified persistent inflationary pressures and Chinese property sector weakness as ongoing macro headwinds affecting commodity trade volumes. Capital Power highlighted that Alberta's improving policy clarity is attracting investment and positioning the province as a leader among North American data center markets. One stock. Nvidia-level potential. 30M+ investors trust Moby to find it first. Get the pick. Tap here. Management stated the 10-plus year contract reflects their view of long-term Cost of New Entry (CONE) and includes appropriate risk-sharing mechanisms. The agreement is at the portfolio level, meaning it does not encumber specific assets like Genesee, preserving merchant upside for future opportunities. Management expressed bullishness on PJM following the latest auction, noting that reforms to the RBP process favor incumbent generators with efficient assets. They are focusing development capital on existing sites like Rolling Hills to meet tightening supply-demand fundamentals in the region. Capital Power is avoiding 'behind-the-meter' projects that might compromise grid reliability or affordability, focusing instead on collaborative utility-scale solutions. Management emphasized that successful infrastructure development requires deep engagement with local stakeholders to maintain a 'license to operate'.

New and Used Automotive Units Delivered Increase 5% to Over 125,000 Quarterly Revenue Increases 6% to $8.5 Billion Income Before Taxes of $354 Million; Net Income of $260 Million; Earnings Per Share of $3.96 Adjusted Income Before Taxes of $323 Million; Adjusted Net Income of $238 Million; Adjusted Earnings Per Share of $3.62 BLOOMFIELD HILLS, Mich., July 29, 2026 /PRNewswire/ -- 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 financial results for the second quarter of 2026. For the quarter, revenue increased 6% to $8.5 billion when compared to $8.0 billion for the same period in 2025. Net income attributable to common stockholders was $260.4 million compared to $266.6 million for the same period in 2025, and related earnings per share was $3.96 compared to $4.03 for the same period in 2025. These GAAP results include a gain on the sale of dealerships, as well as the full quarterly results of Penske Motor Group in both periods, which are required by GAAP for common control transactions (see Non-GAAP reconciliations below). Excluding the gain on the sale of dealerships, as reconciled in the attached schedules, adjusted income before taxes was $323.3 million, adjusted net income was $237.7 million, and adjusted earnings per share was $3.62. Foreign currency exchange positively impacted revenue by $47.2 million, net income attributable to common stockholders by $1.7 million, and earnings per share by $0.02. Commenting on the Company's results, Chair Roger Penske said, "In the second quarter of 2026, our diversified business delivered over 125,000 retail automotive units and more than 5,400 commercial truck units. Retail automotive same-store revenue increased 6%. Retail automotive new and used vehicle gross profit per unit remained strong and consistent when compared to the first quarter of 2026, and service and parts gross margin increased by 80 basis points. Additionally, I am encouraged with the trends we are experiencing across the commercial truck market from an improved freight environment, driving strong orders of Class 8 trucks." For the six months ended June 30, 2026, revenue was $16.4 billion compared to $16.0 billion for the same period in 2025. Net income attributable to common stockholders was $494.9 million compared to $524.3 million for the same period in 2025, and related earnings per share was $7.52 compared to $7.89 for the same period in 2025. These GAAP results include a gain on the sale of dealerships, certain disposals and other charges, as well as the full results of Penske Motor Group in both periods, which are required by GAAP for common control transactions (see Non-GAAP reconciliations below). Excluding the gain on the sale of dealerships and certain disposals and other charges, as reconciled in the attached schedules, adjusted income before taxes was $599.6 million, adjusted net income was $438.3 million, and adjusted earnings per share was $6.66. Foreign currency exchange positively impacted revenue by $274.8 million, net income attributable to common stockholders by $5.1 million, and earnings per share by $0.07. Retail Automotive Dealerships For the three months ended June 30, 2026, total new units delivered increased 5% and used units delivered increased 4%. The increase in new units is attributed to resilient consumer demand, coupled with improved new vehicle availability from certain manufacturers. Total retail automotive revenue increased 6% to $7.3 billion and increased 6% on a same-store basis. On a sequential basis when compared to the first quarter of 2026, new vehicle gross profit per unit decreased $1 and used vehicle gross profit per unit increased $19. When compared to the prior year period, same-store retail automotive service and parts revenue increased 2%, gross profit increased 3%, and gross margin improved 80 basis points to 59.5%. For the six months ended June 30, 2026, total new units delivered remained flat and used units delivered increased 2%. Total retail automotive revenue increased 3% to $14.3 billion and increased 3% on a same-store basis. When compared to the prior year period, same-store retail automotive service and parts revenue increased 3%, gross profit increased 5%, and gross margin improved 60 basis points to 59.2%. Retail Commercial Truck Dealerships For the three months ended June 30, 2026, the Company's retail commercial truck dealerships retailed 5,431 new and used units and generated $927.8 million in revenue and $47.2 million in income before taxes. This compares to 5,339 new and used units, $943.6 million of revenue, and $54.2 million in income before taxes during the same period in the prior year as lower order intake related to the weak freight environment in the third and fourth quarters of 2025 impacted truck deliveries during the second quarter of 2026. The Class 8 market order activity began to increase in late 2025 as the freight recession started to show signs of improvement. For the six months ended June 30, 2026, North American Class 8 commercial truck orders increased 118% when compared to the same period in the prior year according to industry sources. In addition, our retail commercial truck dealership operations experienced a 5% increase in service and parts revenue during the quarter. For the six months ended June 30, 2026, the Company's retail commercial truck dealerships retailed 9,014 new and used units and generated $1.6 billion in revenue and $83.5 million in income before taxes. This compares to 10,053 new and used units, $1.8 billion in revenue, and $99.3 million in income before taxes during the same period in the prior year. 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 379,200 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 six months ended June 30, 2026, PTS' results reflect the improved freight environment, and the Company recorded a 7% increase in earnings to $57.4 million and a 14% increase in earnings to $98.5 million, respectively, driven by growth in full-service leasing, improved fleet utilization, lower operating expenses, and lower interest costs, partially offset by continued challenges in the rental market and by a lower gain on the sale of used trucks. Corporate Development, Capital Allocation, Liquidity, and Leverage The Company's strong balance sheet, cash flow generation, and best-in-class leverage continue to support our flexible capital allocation approach. In February 2026, the Company announced that it completed the acquisition of Lexus of Orlando and Lexus of Winter Park, both located in the Orlando metropolitan area of Central Florida. The acquisition is expected to add $450 million in estimated annualized revenue. Coupled with the acquisitions in November 2025, the Company has acquired two Toyota and four Lexus dealerships in the last nine months, which are expected to generate approximately $2 billion in estimated annualized revenue. During the six months ended June 30, 2026, the Company repurchased 265,104 shares of common stock for approximately $42.5 million. As of June 30, 2026, $221.2 million remained outstanding and available for repurchases under our securities repurchase program. As of June 30, 2026, the Company had approximately $1.4 billion in liquidity, including $70 million in cash and $1.3 billion of availability under its U.S. and international credit agreements and revolving mortgage facilities. The Company's leverage ratio at June 30, 2026 was 1.7x. During July 2026, the Board of Directors approved an increase in the quarterly dividend of 1.4%, or $0.02 per share, to $1.44 per share, representing a forward dividend yield of 2.7%. The increase represents the Company's 23rd consecutive quarterly increase. On a trailing twelve month basis, the dividend payout ratio is 41%. The dividend is payable September 1, 2026, to shareholders of record as of August 14, 2026. Conference Call Penske Automotive Group will host a conference call discussing financial results relating to the second quarter of 2026 on Wednesday, July 29, 2026, at 2:00 p.m. Eastern Daylight Time. To listen to the conference call, participants must dial (833) 461-5787 [International, please dial (585) 542-9983] using access code 895612473. 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 second quarter 2026 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 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 28,600 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions ("PTS"), a business that employs over 40,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 379,200 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 www.penskeautomotive.com. Non-GAAP Financial Measures This release contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted revenue, adjusted gross profit, adjusted net income, adjusted earnings per share, adjusted income 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 financial 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, acquisition activity, future plans, and future revenues. 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, labor strikes, 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 from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of electric vehicles; 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; 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, the cost of acquiring and the continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, including with respect to the effect of various regulations concerning its vehicle fleet, changes in the values of used trucks, which affect 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 vehicle sales, including those related to the sales process, emissions standards, or electrification; 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; risks and uncertainties relating to an unsolicited, preliminary and non-binding take private proposal received from Penske Corporation and Mitsui & Co., Ltd. and their affiliates to acquire all of the shares of the Company not already owned by them, including the possibility that any such transaction may not be pursued, approved, or consummated on the proposed terms, within any anticipated timeline, or at all; 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 risks and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2025, its Form 10-Q for the quarterly period ended March 31, 2026, 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. Our results include the impact of the gain on the sale of a dealership and certain disposals and other charges, as well as the full quarterly and year-to-date results of Penske Motor Group in all periods, which are required by GAAP for common control transactions. The following tables present key adjusted financial line items excluding these items and present the acquisition of Penske Motor Group as if we acquired it on November 1, 2025, without common control accounting. Management believes this presentation is useful to investors in evaluating the Company's operating performance and comparability across periods. View original content to download multimedia:https://www.prnewswire.com/news-releases/penske-automotive-group-reports-quarterly-results-302837495.html

For the quarter ended June 2026, Penske Automotive (PAG) reported revenue of $8.51 billion, up 11.1% over the same period last year. EPS came in at $3.62, compared to $3.78 in the year-ago quarter. The reported revenue compares to the Zacks Consensus Estimate of $7.93 billion, representing a surprise of +7.4%. The company delivered an EPS surprise of +7.1%, with the consensus EPS estimate being $3.38. While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health. Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance. Here is how Penske performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts: Retail Automotive Revenue Per Vehicle Retailed - Used Vehicles: $41,847.00 compared to the $41,512.34 average estimate based on three analysts. Retail Commercial Truck Revenue Per Vehicle Retailed - Used Vehicles: $74,991.00 versus the three-analyst average estimate of $70,596.84. Retail Commercial Truck Revenue Per Vehicle Retailed - New Vehicles: $138,979.00 versus $143,825.20 estimated by three analysts on average. Retail Commercial Truck Units - Total: 5,431 compared to the 5,071 average estimate based on three analysts. Revenue- Retail Automotive: $7.3 billion compared to the $6.81 billion average estimate based on four analysts. The reported number represents a change of +12% year over year. Revenue- Commercial Vehicle Distribution and Other: $283.9 million compared to the $220.01 million average estimate based on four analysts. The reported number represents a change of +41.1% year over year. Revenue- Retail Automotive- Service and Parts: $867.1 million versus $889.96 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +6.2% change. Revenue- Retail Automotive- Finance and Insurance, Net: $211 million versus the four-analyst average estimate of $197.61 million. The reported number represents a year-over-year change of +5.2%. Revenue- Retail Automotive- Fleet and Wholesale: $375.6 million versus $379.49 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +4.9% change. Revenue- Retail Automotive- New Vehicles: $3.38 billion compared to the $3.02 billion average estimate based on four analysts. The reported number represents a change of +14.7% year over year. Revenue- Retail Commercial Truck: $927.8 million compared to the $922.42 million average estimate based on four analysts. The reported number represents a change of -1.7% year over year. Revenue- Retail Automotive- Used Vehicles: $2.47 billion versus $2.3 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +12.3% change. View all Key Company Metrics for Penske here>>> Shares of Penske have returned +22.9% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Penske Automotive (PAG) came out with quarterly earnings of $3.62 per share, beating the Zacks Consensus Estimate of $3.38 per share. This compares to earnings of $3.78 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +7.10%. A quarter ago, it was expected that this auto dealership chain would post earnings of $2.91 per share when it actually produced earnings of $3.05, delivering a surprise of +4.81%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Penske, which belongs to the Zacks Automotive - Retail and Whole Sales industry, posted revenues of $8.51 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 7.40%. This compares to year-ago revenues of $7.66 billion. The company has topped consensus revenue estimates two times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Penske shares have added about 39% since the beginning of the year versus the S&P 500's gain of 8.5%. While Penske has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Penske was mixed. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #3 (Hold) for the stock. So, the shares are expected to perform in line with the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $3.51 on $8.08 billion in revenues for the coming quarter and $13.45 on $32.13 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Automotive - Retail and Whole Sales is currently in the bottom 24% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. One other stock from the same industry, Titan Machinery (TITN), is yet to report results for the quarter ended July 2026. This agriculture and construction equipment seller is expected to post quarterly loss of $0.33 per share in its upcoming report, which represents a year-over-year change of -26.9%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Titan Machinery's revenues are expected to be $489.03 million, down 10.5% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Penske Automotive Group, Inc. (PAG) : Free Stock Analysis Report Titan Machinery Inc. (TITN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research