Penske Automotive Group (PAG) Q2 2026 earnings summary

Executive summary

• Second quarter 2026 revenue rose 6% year-over-year to $8.5 billion, with over 125,000 vehicles delivered and net income attributable to common stockholders at $260.4 million, down 2.3% year-over-year; EPS was $3.96.

• Adjusted income before taxes for Q2 2026 was $323 million; adjusted net income was $237.7 million and adjusted EPS was $3.62.

• Six-month revenue reached $16.4 billion, with net income at $494.9 million, both down year-over-year.

• A special committee is evaluating a $210/share acquisition proposal from Penske Corporation and Mitsui & Co.

• Foreign currency exchange provided a positive impact on revenue and net income.

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 rose 2%, with gross margin up 80 basis points to 59.5%.

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

• Equity income from Penske Transportation Solutions increased 7% to $57 million 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.

• Recent acquisitions are expected to add $2 billion in annualized revenue.

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

• Forward-looking statements caution about macroeconomic, geopolitical, and industry risks, as well as uncertainties related to supply chain, consumer demand, and regulatory changes.