Penske Automotive Group (PAG) Q2 2026 earnings summary

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, down 5.6%.

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

• A special committee is evaluating a non-binding proposal from Penske Corporation and Mitsui & Co. to acquire remaining shares at $210 per share.

• 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%.

• Commercial vehicle distribution & other revenue rose 41% in Q2 2026.

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

• EBITDA for the first half of 2026 was $829 million; adjusted EBITDA was $751 million.

• Service and parts gross margin improved by 80 basis points to 59.5% for the quarter.

Outlook and guidance

• Management expects continued strong demand for service and parts, driven by an aging vehicle fleet and increased miles driven.

• Commercial truck demand is projected to remain strong in the second half of 2026, supported by a robust order backlog.

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

• SG&A as a percentage of gross profit expected to remain in the low 70s range post-COVID.

• Management highlights a resilient business model with recurring revenue streams and a seasoned management team.