Penske Automotive Group (PAG) investor relations material

Executive summary

• Quarterly revenue rose 6% year-over-year to $8.5 billion, with over 125,000 new and used vehicles delivered; six-month revenue was $16.4 billion.

• Net income attributable to common stockholders for Q2 2026 was $260.4 million, down 2.3% year-over-year; six-month net income was $494.9 million.

• Adjusted EPS for Q2 2026 was $3.62, and adjusted six-month EPS was $6.66.

• Board formed a special committee to evaluate a $210/share acquisition proposal from Penske Corporation and Mitsui & Co.

• Strong cash flow enabled debt reduction and the 23rd consecutive quarterly dividend increase to $1.44 per share.

Financial highlights

• Retail automotive revenue grew 6% year-over-year in Q2 2026; retail commercial truck revenue declined 2%.

• Gross profit per new retail automotive unit was $4,782; per used unit was $2,095 in Q2 2026.

• Service and parts same-store revenue increased 2%, with gross margin up 80 basis points to 59.5%.

• EBITDA for the six months ended June 30, 2026 was $829 million; adjusted EBITDA was $751 million.

• Cash flow from operations for H1 2026 was $418 million.

Outlook and guidance

• Management expects strong Class 8 truck order book and robust commercial truck demand in H2 2026.

• Used truck demand anticipated to remain elevated due to limited new truck availability and higher spot rates.

• Service and parts demand expected to remain strong, driven by an aging vehicle fleet and increased miles driven.

• New vehicle sales in the U.S. may face affordability challenges and lower EV demand due to tax incentive changes.

• Macroeconomic, geopolitical, and regulatory uncertainties may impact future results.