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Penske Automotive Group

PAG Q3 2025 Earnings

Reported Oct 29, 2025 at 12:11 PM ET · SEC Source

Q3 25 EPS

$3.23

MISS 5.01%

Est. $3.40

Q3 25 Revenue

$7.70B

MISS 0.30%

Est. $7.72B

vs S&P Since Q3 25

+8.2%

BEATING MARKET

PAG +16.1% vs S&P +7.9%

Market Reaction

Did PAG Beat Earnings? Q3 2025 Results

Penske Automotive Group delivered a disappointing third quarter, missing on both top and bottom lines as a cluster of operational headwinds weighed on profitability. The automotive retailer posted Q3 2025 EPS of $3.23, falling 5.01% short of the $3.4… Read more Penske Automotive Group delivered a disappointing third quarter, missing on both top and bottom lines as a cluster of operational headwinds weighed on profitability. The automotive retailer posted Q3 2025 EPS of $3.23, falling 5.01% short of the $3.40 consensus estimate, while revenue of $7.70 billion edged up just 1.4% year-over-year but came in 0.30% below the $7.72 billion Wall Street expected. Management attributed roughly $23 million in pre-tax earnings pressure to four specific factors: persistent weakness in the North American freight market that crimped commercial truck demand, a cybersecurity incident at a U.K. OEM partner that disrupted retail operations, higher social program costs in the U.K., and an elevated effective tax rate. Commercial truck retail unit sales fell 19% as freight softness continued to bite, and new vehicle gross profit per unit declined 6.8%. A record $818.30 million in service and parts revenue provided some offset, with same-store service margins expanding 140 basis points to 59.1%. Looking ahead, management flagged continued freight market challenges, tariff risks on imported vehicles, and ongoing U.K. Retail headwinds as key uncertainties heading into the final quarter of the year.

Key Takeaways

  • • Record retail automotive service and parts revenue of $818.3 million with 5% same-store growth
  • • Same-store service and parts gross margin increased 140 basis points to 59.1%
  • • Same-store retail automotive new units delivered increased 4%
  • • Fixed cost absorption improved 380 basis points in U.S. retail automotive operations
  • • Used vehicle gross profit per unit increased 12.2% in retail automotive
  • • Foreign currency exchange positively impacted revenue by $92.8 million
24/7 Wall St

PAG YoY Financials

Q3 2025 vs Q3 2024, source: SEC Filings

24/7 Wall St

PAG Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“Overall, I am pleased with our performance during the third quarter. We grew same-store retail automotive new units delivered by 4%, reduced new vehicle inventory days supply by 6 days from the end of June and increased retail automotive service and parts revenue to a quarterly record of $818.3 million, including same-store service and parts revenue growth of 5%. In addition to the growth in service and parts revenue, we increased service and parts gross margin by 110 basis points and improved fixed cost absorption by 380 basis points in our U.S. retail automotive operations. However, overall profitability in the quarter was impacted by continued weakness in the North American freight market which drove lower sales and service of commercial trucks, coupled with challenges in the U.K auto retail market from a cyber security incident at one of our OEM partners, an increase in social program costs in the U.K., and a higher tax rate. As a result, third quarter earnings before taxes was negatively impacted by approximately $23 million.”

— Roger Penske, Q3 2025 Earnings Press Release

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