Penske Automotive Group Inc
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.31%.
Did PAG Beat Earnings? Q4 2025 Results
Penske Automotive Group delivered a mixed fourth quarter for 2025, posting earnings that fell short of expectations even as revenue edged ahead, underscoring the uneven pressures weighing on the premium auto retailer. Adjusted EPS came in at $2.83, missing the consensus estimate of $3.18 by 11.01%, while revenue of $7.77 billion nudged ahead of the $7.68 billion forecast by 1.22%, though it was essentially flat on a year-over-year basis at just +0.6%. The shortfall in earnings was driven heavily by a 10% decline in new retail units delivered, which Chair Roger Penske attributed to tariff-related pull-forward activity and EV tax credit expirations that compressed premium brand demand, compounded by an 800-unit Land Rover and Jaguar inventory shortfall tied to an OEM cyber incident. Bright spots included a record quarter for service and parts, where same-store revenue rose 5%, and the company's 21st consecutive quarterly dividend increase, to $1.40 per share. Strategic acquisitions of Toyota and Lexus dealerships representing roughly $2 billion in annualized revenue signal continued portfolio reshaping heading into 2026, though freight market weakness and macroeconomic softness in the U.K. remain lingering headwinds.
- Record Q4 and full-year retail automotive service and parts revenue and gross profit
- Same-store service and parts revenue increased 5% in Q4
- Strong new vehicle, used vehicle, and F&I gross profit per unit
- Service and parts represented 45.8% of total retail automotive gross profit mix in Q4
- Foreign currency exchange positively impacted revenue by $113.3 million in Q4
“In 2025, our business delivered over 504,000 retail auto and commercial truck units, generated nearly $32 billion in revenue and $1.3 billion in earnings before taxes. Our diversified model remains resilient as vehicle inventory remains in good shape, service and parts remain strong, and our costs remain well controlled. I was pleased with how our team performed during the fourth quarter in light of the difficult quarter-over-quarter comparisons, including the impact to auto sales from pull forward activity, the continuing weakness in the commercial truck freight market, and the macro-economic environment in the U.K.”
Penske Automotive Group CEO, on the earnings call
Forward Guidance & Outlook
The company continues to pursue strategic portfolio reshaping, having divested 23 non-strategic dealerships over the past two years while announcing acquisitions of Toyota and Lexus dealerships representing approximately $2 billion in estimated annualized revenue. The Lexus of Orlando and Lexus of Winter Park acquisition is expected to close in Q1 2026. The company's diversified model is positioned to benefit from strong service and parts performance and strategic brand mix optimization, though headwinds persist from freight market weakness affecting commercial truck operations and macroeconomic challenges in the U.K.
PAG YoY Financials
PAG Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.