Penske Automotive Reports Q3 2024 Financial Results

Penske Automotive ( (PAG) ) has realeased its Q3 earnings. Here is a breakdown of the information Penske Automotive presented to its investors.

Penske Automotive Group, Inc., headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company and a leading automotive and commercial truck retailer with operations spanning across North America, Europe, and Australasia. The company recently released its third-quarter 2024 earnings report, showcasing a revenue increase of 2% year-over-year to $7.6 billion. Despite a record $778 million in service and parts revenue, Penske faced a decline in net income attributable to common stockholders, which fell to $226.1 million from $263.4 million in the previous year. Earnings per share also decreased to $3.39, reflecting a challenging quarter impacted by several operational hurdles. Key highlights of the quarter included a noteworthy 14% increase in retail commercial truck units sold and a 14% rise in equity earnings from Penske Transportation Solutions, signaling strength in certain segments. However, the company observed a 4% decline in new and used retail automotive units delivered, driven by a 13% decrease in used vehicle sales, and a 5% drop in same-store retail automotive revenue. Looking ahead, Penske Automotive remains focused on strategic acquisitions and expansion, as evidenced by its recent moves in the Australian market and the announced acquisition of a new dealership, which is expected to boost annualized revenue significantly. The company maintains a strong liquidity position with $1.7 billion available, supporting its continued growth and shareholder return strategies.