Penske Automotive Group

PAG Q2 2025 Earnings

Reported Jul 30, 2025 at 12:26 PM ET · SEC Source

Q2 25 EPS

$3.78

BEAT +6.10%

Est. $3.56

Q2 25 Revenue

$7.66B

MISS 0.82%

Est. $7.73B

vs S&P Since Q2 25

-3.3%

TRAILING MARKET

PAG +12.7% vs S&P +16.0%

Market Reaction

Did PAG Beat Earnings? Q2 2025 Results

Penske Automotive Group posted a stronger-than-expected bottom line in Q2 2025, with earnings per share of $3.78 beating the consensus estimate of $3.56 by 6.10%, even as revenue of $7.66 billion came in just 0.82% below expectations and slipped 0.5%… Read more Penske Automotive Group posted a stronger-than-expected bottom line in Q2 2025, with earnings per share of $3.78 beating the consensus estimate of $3.56 by 6.10%, even as revenue of $7.66 billion came in just 0.82% below expectations and slipped 0.5% year-over-year. The key driver behind the earnings outperformance was a deliberate pivot toward higher-margin business, with record retail automotive service and parts revenue growing 8% and now accounting for 43.4% of same-store gross profit mix, up 230 basis points from a year ago. That shift helped lift overall gross margin 50 basis points to a record $1.30 billion in gross profit, even as new retail unit deliveries fell 6% and used vehicle volumes declined amid a strategic restructuring of the U.K. Sytner Select operations. Net income attributable to common stockholders grew 4% to $250.00 million, with buybacks of 885,000 shares year-to-date providing additional EPS lift. Looking ahead, management offered no specific guidance but pointed to the company's premium brand mix, geographic diversification, and variable cost structure as meaningful buffers against tariff-related uncertainty.

Key Takeaways

  • Record retail automotive service and parts revenue up 8% and related gross profit up 9%
  • Overall gross margin improved 50 basis points to 16.9%
  • SG&A as a percentage of gross profit improved 30 basis points to 69.9%
  • Used vehicle gross profit per unit retailed increased 27.7%
  • Third consecutive quarter of year-over-year earnings growth
  • New and used vehicle gross profit per unit retailed remained stable and strong
  • Retail commercial truck revenue increased 6%
  • Foreign currency exchange positively impacted revenue by $136.6 million
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PAG YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

PAG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“I am pleased with the performance of our diversified international transportation services business in the second quarter. The second quarter represented the third consecutive quarter of year-over-year earnings growth driven by an overall gross margin increase of 50 basis points, an increase of 50 basis points in retail automotive service and parts gross margin, and a 30-basis point improvement in selling, general and administrative expenses as a percentage of gross profit. New and used vehicle gross profit per unit retailed remained stable and strong while retail automotive same-store service and parts revenue increased 7%.”

— Roger Penske, Q2 2025 Earnings Press Release