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Penske Automotive Group Q1 Revenue Drops to $7.9 Billion

Penske Automotive Group said first-quarter revenue slipped to $7.9 billion from $8.0 billion a year earlier, while net income attributable to common stockholders fell to $234.5 million from $257.7 million. Earnings per share declined to $3.56 from $3.86.

The company said adjusted net income dropped 16% to $200.6 million and adjusted EPS fell 15% to $3.05. Foreign exchange added $227.6 million to revenue, $3.4 million to net income and $0.05 per share.

Total retail automotive and commercial truck units delivered topped 126,000 in the quarter. Retail automotive revenue rose 1% to $7.0 billion, with same-store revenue also up 1%.

Within the retail automotive business, new units delivered fell 5% and used units delivered slipped 1%. Sequentially versus the fourth quarter of 2025, gross profit per new vehicle rose $94 per unit and gross profit per used vehicle rose $306 per unit.

Same-store retail automotive service and parts revenue increased 5% from the prior year, while related gross profit increased 6% and gross margin improved 60 basis points to 59.0%. On a companywide basis, retail automotive service and parts revenue increased 4.6% to $864 million.

The retail commercial truck division delivered 3,583 new and used units, down from 4,714 a year earlier. Revenue in that segment fell to $694.6 million from $823.7 million, and earnings before taxes declined to $36.4 million from $45.1 million. Service and parts revenue in the truck business rose 5%.

Penske Transportation Solutions, in which Penske Automotive holds a 28.9% stake, contributed earnings of $41.1 million, up 24% from the prior year.

During the quarter, the company completed the acquisition of Lexus of Orlando and Lexus of Winter Park. Those deals are expected to add $450 million in annualized revenue. Combined with acquisitions completed in November 2025, Penske said it has added two Toyota and four Lexus dealerships in the past six months, representing about $2 billion in estimated annualized revenue.

Penske repurchased 170,393 shares for about $26.4 million. It ended the quarter with about $1.3 billion in liquidity, including $84 million in cash and $1.2 billion of available credit and revolving mortgage facilities. The leverage ratio stood at 1.8x. Following these announcements, the company's shares moved 0.26%, and are now trading at a price of $160.42. If you want to know more, read the company's complete 8-K report here.

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