Penske Automotive Group — Q3 2026 Earnings Summary

Financial Performance:

• Total revenue increased 5% to $8.4 billion for the quarter ended September 30, 2026, compared to $8.1 billion in the prior year period; for the nine months ended September 30, 2026, revenue was $24.8 billion, up 3.1% from $24.0 billion in 2025.
• Earnings before taxes were $302.0 million for the quarter (down 0.7% from $304.0 million in 2025) and $979.5 million for the nine months (down 2.8% from $1,008.0 million in 2025).
• Net income attributable to common stockholders was $220.8 million for the quarter (down 1.8% from $224.8 million) and $715.7 million for the nine months (down 4.5% from $749.1 million).
• Earnings per share (EPS) were $3.36 for the quarter (down 1.5% from $3.41) and $10.89 for the nine months (down 3.6% from $11.30).
• Gross profit was $1,324.1 million for the quarter (down 1.9% from $1,299.6 million) and $3,980.5 million for the nine months (up 0.2% from $3,973.2 million).
• Gross margin was 15.7% for the quarter (down 40 basis points from 16.1%) and 16.1% for the nine months (down 40 basis points from 16.5%).
• EBITDA was $378.4 million for the quarter (up 2.3% from $369.8 million) and $1,207.6 million for the nine months (up 0.5% from $1,201.6 million).
• Adjusted EBITDA was $378.4 million for the quarter (up 6.0% from $357.1 million) and $1,129.7 million for the nine months (flat from $1,130.1 million).
• Leverage ratio was 1.6x as of September 30, 2026, compared to 1.5x as of December 31, 2025.
• Total long-term debt was $2,367.2 million as of September 30, 2026, compared to $2,165.5 million as of December 31, 2025.
• Cash and cash equivalents were $68.3 million as of September 30, 2026, compared to $64.7 million as of December 31, 2025.
• Inventory levels were $5,020.1 million as of September 30, 2026, compared to $4,814.7 million as of December 31, 2025.
• New vehicle days' supply was 49 days as of September 30, 2026, compared to 49 days as of December 31, 2025.
• Used vehicle days' supply was 44 days as of September 30, 2026, compared to 49 days as of December 31, 2025.

Business Segments and Product Lines:

• Retail Automotive Dealerships: Total revenue increased 1% to $7.0 billion for the quarter and 3% to $21.3 billion for the nine months. Same-store retail automotive revenue increased 2% for the quarter and 3% for the nine months.
• New vehicle units delivered decreased 2% for the quarter and 1% for the nine months. Used vehicle units delivered increased 2% for both periods.
• Same-store retail automotive service and parts revenue and gross profit both increased 3% for the quarter and 3% for the nine months.
• New vehicle gross profit per unit decreased $258 sequentially (Q2 to Q3 2026) and used vehicle gross profit per unit decreased $149 sequentially.
• Retail Commercial Truck Dealerships: Generated $1.1 billion in revenue and $59.6 million in income before taxes for the quarter, compared to $918.6 million and $41.5 million in the prior year. For the nine months, revenue was $2.7 billion and income before taxes was $143.1 million, compared to $2.7 billion and $140.8 million in the prior year.
• Retail commercial truck units retailed increased 32.7% for the quarter (6,779 units) and 4.2% for the nine months (15,793 units).
• Penske Transportation Solutions (PTS): PAG holds a 28.9% ownership interest. PAG recorded earnings of $68.5 million for the quarter and $167.0 million for the nine months. PTS operates a managed fleet of over 373,600 trucks, tractors, and trailers.

Other Key Points:

• Proposed Take-Private Transaction: The Company entered into a merger agreement to be taken private by Motown Acquisition Corp., an entity owned by Penske Corporation (64% ownership) and Mitsui & Co., Ltd. (36% ownership).
• Transaction Terms: Shareholders will receive $212.00 per share in cash, valuing the Company at an enterprise value of approximately $16.3 billion.
• Closing Expectations: The transaction is expected to close in the first quarter of 2027, subject to closing conditions.
• No Conference Call: Due to the Proposed Transaction, the Company will not host an earnings conference call.
• Dividend Increase: The Board of Directors approved a 1.4% increase in the quarterly dividend to $1.46 per share (annualized $5.84), payable December 1, 2026, to shareholders of record as of November 13, 2026.
• Share Repurchases: The Company repurchased 265,104 shares for approximately $42.5 million during the nine months ended September 30, 2026. $221.2 million remained available under the repurchase program as of September 30, 2026.
• Repurchase Restriction: The Merger Agreement restricts the Company's ability to repurchase common stock; no further repurchases are expected during the pendency of the transaction.
• Liquidity: The Company had approximately $1.6 billion in liquidity as of September 30, 2026, including $68 million in cash and $1.5 billion of availability under credit agreements and revolving mortgage facilities.
• Capital Expenditures: Capital expenditures were $82.2 million for the quarter and $217.1 million for the nine months ended September 30, 2026.
• Acquisitions and Disposals: Cash paid for acquisitions was $0 for the quarter and $669.7 million for the nine months (including $115 million for property and floor plan in February 2026). Proceeds from the sale of dealerships were $1.0 million for the quarter and $151.7 million for the nine months.
• Foreign Currency Impact: Foreign currency exchange negatively impacted quarterly revenue by $2.3 million but positively impacted net income by $0.7 million and EPS by $0.01. For the nine months, it positively impacted revenue by $272.4 million, net income by $5.7 million, and EPS by $0.09.
• Transaction Costs: The quarter's results included $6.3 million of costs ($4.6 million after tax, or $0.07 per share) associated with the Proposed Transaction.
• Risk Factors: Risks include the possibility of the transaction not being completed, termination fees of $383.0 million, regulatory approval delays, disruption to business operations, and potential adverse effects on stock price and credit ratings.