Penske Automotive Group (PAG) Q1 2026 earnings summary

Executive summary

• Q1 2026 revenue was $7.86 billion, down 1.1% year-over-year, with net income attributable to common stockholders of $234.5 million, a 9% decrease from Q1 2025; EPS was $3.56, down 7.8% year-over-year, and adjusted EPS was $3.05, down 15%.

• Over 126,000 new and used vehicles and nearly 3,600 commercial trucks delivered; retail automotive service and parts revenue reached a record $864 million, up 4.6%.

• Acquired two Lexus dealerships in Orlando, expected to add $450 million in annualized revenue, and completed Penske Motor Group acquisition in Nov 2025, expected to add $1.5 billion in annualized revenue.

• Repurchased 170,393 shares for $26.4 million and increased the dividend to $1.40, yielding 3.4%.

• $60.4 million pre-tax gain from a dealership sale, partially offset by $13 million in related charges.

Financial highlights

• Gross profit was $1.3 billion, down 1.7% year-over-year; operating income declined 12.3% to $289 million; EBITDA was $396.9 million, down 4%; adjusted EBITDA was $349.5 million, down 6.1%.

• Retail automotive revenue grew 1% to $7.0 billion; retail commercial truck revenue declined 15.7% to $694.6 million.

• Cash and cash equivalents at quarter-end were $83.7 million, with $1.2 billion to $1.3 billion in liquidity.

• SG&A expenses as a percentage of gross profit were 74.3%, up from 72.0% year-over-year.

• Net cash provided by operating activities was $215 million, down from $291 million year-over-year.

Outlook and guidance

• Management expects increased new truck orders and deliveries in the second half of 2026 as market trends improve, with strong demand for service and parts operations.

• Continued focus on portfolio optimization, disciplined capital allocation, and measured expansion in key markets and brands.

• Anticipate sustained cost and earnings improvements in Penske Transportation Solutions through further fleet optimization and higher lease signings.

• Macroeconomic headwinds, including inflation and geopolitical uncertainty, may pressure consumer sentiment and costs.

• Expect continued lower U.S. EV sales due to the elimination of federal tax incentives and lower product availability.