# PENSKE AUTOMOTIVE GROUP, INC. (PAG)

Informational only - not investment advice.

CIK: 0001019849
SIC: 5500 Retail-Auto Dealers & Gasoline Stations
SIC breadcrumb: [Retail Trade](/division/G/) > [SIC Major Group 55](/major-group/55/) > [SIC 5500 Retail-Auto Dealers & Gasoline Stations](/industry/5500/)
Latest 10-K filed: 2026-02-27
SEC page: https://www.sec.gov/edgar/browse/?CIK=1019849
Filing source: https://www.sec.gov/Archives/edgar/data/1019849/000162828026012830/pag-20251231.htm

## At a glance

FY2025 · period end 2025-12-31 · filed 2026-02-27 · accession 0001628280-26-012830 · source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001019849.json

| Metric | Value | FY | Provenance |
| --- | ---: | ---: | --- |
| Revenue | 31,808,500,000 USD | 2025 | verified |
| Net income | 935,400,000 USD | 2025 | verified |
| Assets | 17,597,700,000 USD | 2025 | verified |
| Free cash flow | 650,500,000 USD | 2025 | computed |
| Net margin | 2.94% | 2025 | computed |
| Operating margin | 4.03% | 2025 | computed |
| Revenue YoY | -0.18% | 2025 | computed |
| ROE | 16.82% | 2025 | computed |

Computed values are grepcent-computed from the verified facts above and may differ from ratios the company itself reports. Free cash flow = operating cash flow − capital expenditures. Net margin = net income ÷ revenue. Operating margin = operating income ÷ revenue. Revenue YoY = FY2025 revenue ÷ FY2024 revenue − 1 (consecutive fiscal years only). ROE = net income ÷ period-end stockholders' equity.

No market price, no rating, no forecast on this site. Not investment advice.

### Peer percentile fingerprint

| Ratio | PAG | Peer median | Percentile | N |
| --- | ---: | ---: | ---: | ---: |
| Net margin | 2.9% | 2.4% | 67 | 16 |
| Operating margin | 4.0% | 4.2% | 42 | 13 |
| Revenue growth | -0.2% | 4.6% | 27 | 16 |
| FCF margin | 2.0% | 3.4% | 38 | 14 |
| ROE | 16.8% | 12.5% | 67 | 16 |
| ROA | 5.3% | 3.8% | 69 | 17 |
| Liabilities / equity | 2.16 | 2.75 | 27 | 16 |
| Current ratio | 0.99 | 1.09 | 29 | 15 |

Percentile = share of the N covered peers reporting that ratio whose value is lower (ties counted half); computed among grepcent-covered companies in SIC industry 5500 Retail-Auto Dealers & Gasoline Stations, not the whole market. A higher percentile means a higher value of the ratio, not a better company. Ratios with fewer than 8 reporting peers are omitted. Latest reported values per company; fiscal periods may differ. Descriptive arithmetic - not a score, rating, or ranking.

## Selected Fundamentals
| Metric | Value | Unit | FY | Filed |
| --- | ---: | --- | ---: | --- |
| Revenue | 31808500000 | USD | 2025 | 2026-02-27 |
| Net income | 935400000 | USD | 2025 | 2026-02-27 |
| Assets | 17597700000 | USD | 2025 | 2026-02-27 |

## Financials

Annual standardized facts from SEC companyfacts as of latest extracted filing date 2026-02-27. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001019849.json. Derived margins, ratios, and free cash flow are computed from the extracted annual SEC facts.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Revenue | 20,118,500,000 | 21,386,900,000 | 22,785,100,000 | 23,179,400,000 | 20,443,900,000 | 25,554,700,000 | 27,814,800,000 | 30,916,500,000 | 31,864,800,000 | 31,808,500,000 |
| Net income | 342,900,000 | 613,300,000 | 471,000,000 | 435,800,000 | 543,600,000 | 1,187,800,000 | 1,380,000,000 | 1,108,800,000 | 968,900,000 | 935,400,000 |
| Operating income | 574,900,000 | 611,400,000 | 664,900,000 | 652,700,000 | 704,500,000 | 1,356,400,000 | 1,487,800,000 | 1,409,300,000 | 1,370,100,000 | 1,280,700,000 |
| Gross profit | 2,966,600,000 | 3,222,500,000 | 3,414,900,000 | 3,455,500,000 | 3,184,500,000 | 4,440,800,000 | 4,838,800,000 | 5,147,400,000 | 5,217,100,000 | 5,217,000,000 |
| Diluted EPS | 3.99 | 7.14 | 5.53 | 5.28 | 6.74 | 14.89 | 18.55 | 16.31 | 14.49 | 14.13 |
| Operating cash flow |  |  |  |  |  |  | 1,459,000,000 | 1,145,200,000 | 1,230,600,000 | 975,100,000 |
| Capital expenditures | 203,100,000 | 247,000,000 | 305,600,000 | 245,300,000 | 185,900,000 | 248,900,000 | 282,500,000 | 386,000,000 | 377,800,000 | 324,600,000 |
| Dividends paid | 95,100,000 | 108,400,000 | 121,200,000 | 130,800,000 | 68,100,000 | 142,500,000 | 154,100,000 | 189,100,000 | 274,400,000 | 343,800,000 |
| Share buybacks | 173,600,000 | 18,500,000 | 68,900,000 | 169,200,000 | 29,400,000 | 280,600,000 | 869,300,000 | 358,700,000 | 58,700,000 | 159,100,000 |
| Assets | 8,833,000,000 | 10,540,600,000 | 10,904,500,000 | 13,942,700,000 | 13,247,200,000 | 13,464,600,000 | 14,114,600,000 | 15,671,500,000 | 17,120,900,000 | 17,597,700,000 |
| Liabilities | 7,053,500,000 | 8,112,600,000 | 8,269,800,000 | 11,131,100,000 | 9,921,100,000 | 9,369,600,000 | 9,939,800,000 | 10,915,900,000 | 11,702,400,000 | 12,016,800,000 |
| Stockholders' equity | 1,750,900,000 | 2,395,200,000 | 2,609,100,000 | 2,793,400,000 | 3,302,500,000 | 4,070,000,000 | 4,148,000,000 | 4,726,200,000 | 5,401,000,000 | 5,562,400,000 |
| Cash and cash equivalents | 24,000,000 | 45,700,000 | 39,400,000 | 28,100,000 | 49,500,000 | 100,700,000 | 106,500,000 | 96,400,000 | 83,600,000 | 64,700,000 |
| Free cash flow |  |  |  |  |  |  | 1,176,500,000 | 759,200,000 | 852,800,000 | 650,500,000 |

### Ratios

ROE and ROA use period-end equity/assets. Liabilities / equity uses total liabilities divided by stockholders' equity. Current ratio uses current assets divided by current liabilities when both are reported.

| Metric | 2016 | 2017 | 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | 2025 |
| --- | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: | ---: |
| Net margin | 1.70% | 2.87% | 2.07% | 1.88% | 2.66% | 4.65% | 4.96% | 3.59% | 3.04% | 2.94% |
| Operating margin | 2.86% | 2.86% | 2.92% | 2.82% | 3.45% | 5.31% | 5.35% | 4.56% | 4.30% | 4.03% |
| Return on equity | 19.58% | 25.61% | 18.05% | 15.60% | 16.46% | 29.18% | 33.27% | 23.46% | 17.94% | 16.82% |
| Return on assets | 3.88% | 5.82% | 4.32% | 3.13% | 4.10% | 8.82% | 9.78% | 7.08% | 5.66% | 5.32% |
| Liabilities / equity | 4.03 | 3.39 | 3.17 | 3.98 | 3.00 | 2.30 | 2.40 | 2.31 | 2.17 | 2.16 |
| Current ratio | 1.04 | 1.01 | 1.01 | 0.98 | 0.94 | 0.95 | 0.99 | 1.00 | 0.92 | 0.99 |

## As-reported value updates

16 tracked differences above grepcent's stated thresholds were found between the earliest XBRL-filed value and the value currently on file for the same fiscal period.

Ledger: /company/PAG/revisions/


## Quarterly

Quarterly standardized facts from SEC companyfacts as of latest extracted filing date 2026-07-30. Source: https://data.sec.gov/api/xbrl/companyfacts/CIK0001019849.json.

Flow metrics use discrete quarter-length periods from 10-Q/10-Q/A filings. Q4 revenue and net income are derived only when annual FY and nine-month YTD facts exist for the same fiscal year; derived Q4 values are labeled. EPS Q4 is not derived.

| Quarter | End date | Revenue | Net income | Diluted EPS | Method |
| --- | --- | ---: | ---: | ---: | --- |
| 2022-Q3 | 2022-09-30 |  |  | 4.61 | reported discrete quarter |
| 2023-Q1 | 2023-03-31 |  |  | 4.31 | reported discrete quarter |
| 2023-Q2 | 2023-06-30 |  |  | 4.41 | reported discrete quarter |
| 2023-Q3 | 2023-09-30 | 7,447,800,000 | 263,400,000 | 3.92 | reported discrete quarter |
| 2023-Q4 | 2023-12-31 | 7,272,100,000 | 190,700,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2024-Q1 | 2024-03-31 | 7,447,800,000 | 215,200,000 | 3.21 | reported discrete quarter |
| 2024-Q2 | 2024-06-30 | 7,696,700,000 | 241,200,000 | 3.61 | reported discrete quarter |
| 2024-Q3 | 2024-09-30 | 7,590,800,000 | 226,100,000 | 3.39 | reported discrete quarter |
| 2024-Q4 | 2024-12-31 | 7,719,900,000 | 236,400,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2025-Q1 | 2025-03-31 | 7,604,500,000 | 244,300,000 | 3.66 | reported discrete quarter |
| 2025-Q2 | 2025-06-30 | 7,662,300,000 | 250,000,000 | 3.78 | reported discrete quarter |
| 2025-Q3 | 2025-09-30 | 7,695,300,000 | 213,000,000 | 3.23 | reported discrete quarter |
| 2025-Q4 | 2025-12-31 | 8,846,400,000 | 228,100,000 |  | derived Q4 = FY annual - nine-month YTD |
| 2026-Q1 | 2026-03-31 | 7,863,600,000 | 234,500,000 | 3.56 | reported discrete quarter |
| 2026-Q2 | 2026-06-30 | 8,512,700,000 | 260,400,000 | 3.96 | reported discrete quarter |

## Filed narrative (10-K & 10-Q)

## Business

Verbatim Item 1 Business section from PAG's latest 10-K: [/company/PAG/business/](/company/PAG/business/).

## Risk Factors

Verbatim Item 1A Risk Factors from PAG's latest 10-K: [/company/PAG/risk-factors/](/company/PAG/risk-factors/).

## Latest quarter (10-Q)

Latest 10-Q source: https://www.sec.gov/Archives/edgar/data/1019849/000162828026051036/pag-20260630.htm

Extracted structurally from real Item 2 body heading to real Item 3/4 boundary.
Confidence: high
Filing date: 2026-07-30
Report date: 2026-06-30

Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations

This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including those discussed in Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2025, Part II, Item 1A. "Risk Factors" in our Quarterly Report on Form 10-Q for the quarterly period ended March 31, 2026, Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q, and those in our other periodic reports filed with the Securities and Exchange Commission, and "Forward-Looking Statements." We have acquired, disposed, and initiated a number of businesses during the periods presented and addressed in this Management's Discussion and Analysis of Financial Condition and Results of Operations. Our financial statements include the results of operations of those businesses from the date acquired or when they commenced operations. Our period-to-period results of operations may vary depending on the dates of acquisitions or disposals.

Overview

We are a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. We operate dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia, and we are one of the largest retailers of commercial trucks in North America for Freightliner. We also distribute and retail commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. We employ over 28,600 people worldwide. Additionally, we own 28.9% of Penske Transportation Solutions, a business that employs over 40,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 379,200 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts, and provides innovative transportation, supply chain, and technology solutions to its customers.

Business Overview

During the six months ended June 30, 2026, our business generated $16.4 billion in total revenue, which is comprised of approximately $14.3 billion from retail automotive dealerships, $1.6 billion from retail commercial truck dealerships, and $485.8 million from commercial vehicle distribution and other operations. We generated $2.7 billion in gross profit, which is comprised of $2.3 billion from retail automotive dealerships, $271.0 million from retail commercial truck dealerships, and $103.9 million from commercial vehicle distribution and other operations.

Retail Automotive. We are one of the largest global automotive retailers as measured by the $27.5 billion in total retail automotive dealership revenue we generated in 2025. We are diversified geographically with 58% of our total retail automotive dealership revenues in the six months ended June 30, 2026, generated in the U.S. and Puerto Rico and 42% generated outside of the U.S. We offer over 40 vehicle brands with 71% of our retail automotive franchised dealership revenue generated from premium brands, such as Audi, BMW, Land Rover, Lexus, Mercedes-Benz, and Porsche, and 23% of revenue generated from volume non-U.S. brands such as Toyota and Honda in the six months ended June 30, 2026. As of June 30, 2026, we operated 362 retail automotive franchised dealerships, of which 146 are located in the U.S. and 216 are located outside of the U.S., principally in the U.K. As of June 30, 2026, we also operated 13 used vehicle dealerships, with six dealerships in the U.S. operating under the brand name CarShop, six dealerships in the U.K. operating under the brand name Sytner Select, and one dealership in Australia operating under the brand name Penske Select. We retailed and wholesaled, including agency units, more than 296,000 vehicles in the six months ended June 30, 2026.

In addition to selling new and used vehicles, we generate higher-margin revenue at each of our dealerships through maintenance and repair services, the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, and at certain of our locations, collision repair services. We operate our franchised dealerships under franchise agreements with a number of automotive manufacturers and distributors that are subject to certain rights and restrictions typical of the industry. Some of our dealerships in the U.K. and Europe operate under an agency model where we receive a fee for facilitating the sale by the manufacturer of a new vehicle but do not hold the vehicle in inventory. Vehicles sold under this agency model are counted as new agency units sold instead of new retail units sold by us, and only the fee we receive from the manufacturer, not the price of the vehicle, is reported as new revenue with no corresponding cost of sale.

During the six months ended June 30, 2026, in the U.S. we acquired two retail automotive franchises and sold four retail automotive franchises; in the U.K. we opened one retail automotive franchise, closed three retail automotive franchises, and sold two used vehicle dealerships; and in Germany we opened one retail automotive franchise. Retail

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automotive dealerships represented 87.1% of our total revenues and 85.9% of our total gross profit in the six months ended June 30, 2026.

Retail Commercial Truck Dealership. We operate Premier Truck Group ("PTG"), a heavy- and medium-duty retail truck dealership group offering primarily Freightliner and Western Star trucks (both Daimler brands), with locations across 10 U.S. states and the Canadian provinces of Ontario and Manitoba. As of June 30, 2026, PTG operated 45 locations selling new and/or used trucks, performing service and parts operations, or offering collision repair services. We retailed and wholesaled 9,152 new and used trucks in the six months ended June 30, 2026. This business represented 9.9% of our total revenues and 10.2% of our total gross profit in the six months ended June 30, 2026.

Penske Australia. Penske Australia is the exclusive importer and distributor of Western Star heavy-duty trucks (a Daimler brand), MAN heavy- and medium-duty trucks and buses (a VW Group brand), and Dennis Eagle refuse collection vehicles, together with associated parts, across Australia, New Zealand, and portions of the Pacific. In most of these same markets, we are also a leading distributor of diesel and gas engines and power systems, principally representing MTU (a Rolls-Royce solution), Detroit Diesel, Allison Transmission, and Bergen Engines. Penske Australia offers products across the on- and off-highway markets, including in the trucking, mining, power generation, energy solutions, defense, marine, rail, and construction sectors and supports full parts and aftersales service through a network of branches, field service locations, and dealers across the region. These businesses represented 3.0% of our total revenues and 3.9% of our total gross profit in the six months ended June 30, 2026. We also own and operate three Porsche dealerships in Melbourne, Australia, the results of which are included within our retail automotive segment described above.

Penske Transportation Solutions. We hold a 28.9% ownership interest in Penske Truck Leasing Co., L.P. ("PTL"). PTL is owned 41.1% by Penske Corporation, 28.9% by us, and 30.0% by Mitsui & Co., Ltd. ("Mitsui"). We account for our investment in PTL under the equity method, and we therefore record our share of PTL's earnings on our statements of income under the caption "Equity in earnings of affiliates," which also includes the results of our other equity method investments. Penske Transportation Solutions ("PTS") is the universal brand name for PTL's various businesses, which articulates the breadth of their services. PTS is capable of meeting customers' needs across the supply chain with a broad product offering that includes full-service truck leasing, truck rental, and contract maintenance along with logistics services, such as dedicated contract carriage, distribution center management, supply chain management, and dry van truckload carrier services. We recorded $98.5 million and $86.7 million in equity earnings from this investment for the six months ended June 30, 2026 and 2025, respectively.

Outlook/Recent Developments

Tariffs. During 2025 and 2026, the U.S. enacted various tariffs on automobiles, automobile parts, and medium- and heavy-duty trucks and related parts which have impacted certain of our automotive and commercial vehicle suppliers, as well as our and PTS' operations. In February 2026, the U.S. Supreme Court ruled that certain tariffs imposed under the International Emergency Economic Powers Act (IEEPA) were not authorized under that statute, although the ruling did not disturb other previously enacted tariffs, and many of the tariffs affected by the ruling were subsequently re-implemented under a temporary statutory authority. In July 2026, that temporary authority expired and in response, the U.S. implemented new tariffs on imports from a broad range of countries under different statutory authority, which tariffs may directly or indirectly affect certain of the vehicles, trucks, and parts we sell. Developments regarding U.S. trade policy and the applicability and impact of tariffs on the vehicles, trucks and parts we sell remain fluid, and we cannot predict the timing, scope, or outcome of future tariff-related actions or their potential effect, if any, on our results of operations. We continue to monitor tariff policies and their impact on our business and results of operations.

Macroeconomic and Geopolitical Conditions. During 2026, higher fuel and energy prices, inflation, and broader geopolitical uncertainty, including the conflict between the United States and Iran, may result in a more challenging operating environment, weaker consumer sentiment, and cost pressures in our markets. For additional discussion, see Item 1A. Risk Factors, "Macro-economic and geo-political conditions" in our Annual Report on Form 10-K for the year ended December 31, 2025.

Electric Vehicle ("EV") and Emissions Regulation. Federal and state governments and regulators in our markets have placed various restrictions on new retail automotive and commercial vehicles, in many cases requiring vehicle manufacturers to achieve progressively higher penetration of EVs or lower emissions of new internal combustion engine vehicle sales. Under the U.K. Zero Emission Vehicle Mandate ("ZEV Mandate"), manufacturers must ensure that 33% of new cars sold in 2026 are electric vehicles (with limited allowances) and are subject to significant penalties if the required percentage is not achieved. By publicly available estimates, 25% of the U.K. new car registrations through June 2026 were zero emission vehicles. The U.K. government has also confirmed a ban on the sale of new cars powered solely by internal

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combustion engines beginning in 2030, subject to limited exceptions for certain low-volume manufacturers, while allowing certain hybrid cars and vans with internal combustion engines to be sold until 2035 with limited exceptions. The ban does not apply to used vehicle sales. These U.K. regulations currently increase annually through 2035 and continue to affect the profitability and mix of vehicles sold by our U.K. dealerships. In June 2026, the U.K. government announced a review of, and public consultation regarding, its ZEV Mandate, including a potential reduction of the 2030 zero-emission vehicle sales targets, although the outcome and timing of any resulting changes remai

[Excerpt truncated for page length; source filing is linked above.]

## Latest 10-K MD&A (excerpt)

Latest 10-K Item 7 source: https://www.sec.gov/Archives/edgar/data/1019849/000162828026012830/pag-20251231.htm
Complete FY 2025 MD&A: /company/PAG/mda/fy2025/

Extracted structurally from real Item 7 body heading to real Item 7A/8 boundary.
Confidence: high
Filing date: 2026-02-27
Report date: 2025-12-31

Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations

This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including those discussed in "Item 1A. Risk Factors" and "Forward-Looking Statements." We have acquired, disposed, and initiated a number of businesses during the periods presented and addressed in this Management's Discussion and Analysis of Financial Condition and Results of Operations. Our financial statements include the results of operations of those businesses from the date acquired or when they commenced operations. Our period-to-period results of operations may vary depending on the dates of acquisitions or disposals.

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Overview

We are a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. We operate dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia, and we are one of the largest retailers of commercial trucks in North America for Freightliner. We also distribute and retail commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. We employ over 27,700 people worldwide. Additionally, we own 28.9% of Penske Transportation Solutions, a business that employs over 42,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 396,600 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts, and provides innovative transportation, supply chain, and technology solutions to its customers.

Business Overview

In 2025, our business generated $31.8 billion in total revenue, which is comprised of approximately $27.5 billion from retail automotive dealerships, $3.4 billion from retail commercial truck dealerships, and $922.6 million from commercial vehicle distribution and other operations. We generated $5.2 billion in gross profit, which is comprised of $4.5 billion from retail automotive dealerships, $542.3 million from retail commercial truck dealerships, and $192.3 million from commercial vehicle distribution and other operations.

Retail Automotive. We are one of the largest global automotive retailers as measured by the $27.5 billion in total retail automotive dealership revenue we generated in 2025. We are diversified geographically with 61% of our total retail automotive dealership revenues in 2025 generated in the U.S. and Puerto Rico and 39% generated outside of the U.S. We offer over 40 vehicle brands with 71% of our retail automotive franchised dealership revenue generated from premium brands, such as Audi, BMW, Land Rover, Lexus, Mercedes-Benz, and Porsche, and 23% of revenue generated from volume non-U.S. brands such as Toyota and Honda in 2025. As of December 31, 2025, we operated 365 retail automotive franchised dealerships, of which 148 are located in the U.S. and 217 are located outside of the U.S., principally in the U.K. As of December 31, 2025, we also operated 15 used vehicle dealerships, with six dealerships in the U.S. operating under the brand name CarShop, eight dealerships in the U.K. operating under the brand name Sytner Select, and one dealership in Australia operating under the brand name Penske Select. We retailed and wholesaled, including agency units, more than 583,000 vehicles in 2025.

In addition to selling new and used vehicles, we generate higher-margin revenue at each of our dealerships through maintenance and repair services, the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, and at certain of our locations, collision repair services. We operate our franchised dealerships under franchise agreements with a number of automotive manufacturers and distributors that are subject to certain rights and restrictions typical of the industry. Some of our dealerships in the U.K. and Europe operate under an agency model where we receive a fee for facilitating the sale by the manufacturer of a new vehicle but do not hold the vehicle in inventory. Vehicles sold under this agency model are counted as new agency units sold instead of new retail units sold by us, and only the fee we receive from the manufacturer, not the price of the vehicle, is reported as new revenue with no corresponding cost of sale.

During 2025, in the U.S. we sold four retail automotive franchises, closed one retail automotive franchise, and opened one retail automotive franchise. In addition, on November 19, 2025, we acquired all of the membership interests of Penske Motor Group, LLC ("PMG"), representing two Lexus brand locations and one Toyota brand location in California and one Toyota brand location in Texas, including Longo Toyota, the largest Toyota brand dealership in the U.S. This acquisition was accounted for as a transaction between entities under common control. Please refer to Part II, Item 8, Note 1 and Note 12 for further details. In the U.K., we sold one used vehicle dealership and opened eight retail automotive franchises at existing Sytner Select locations, representing the Geely and Chery brands, and opened two Skoda points at existing VW brand dealerships. We also acquired a Ferrari brand dealership in Modena, Italy, and opened a BYD franchise in Germany. During 2025, in aggregate we acquired or opened dealerships representing approximately $1.6 billion in expected annualized revenue, of which $1.5 billion is related to our acquisition of PMG, and disposed of dealerships representing approximately $408.5 million of expected annualized revenue. In February 2026, we acquired Lexus of Orlando and Lexus of Winter Park, both located in the Orlando metropolitan area of Central Florida.

Retail Commercial Truck Dealership. We operate Premier Truck Group ("PTG"), a heavy- and medium-duty retail truck dealership group offering primarily Freightliner and Western Star trucks (both Daimler brands), with locations across 10 U.S. states and the Canadian provinces of Ontario and Manitoba. As of December 31, 2025, PTG operated 45 locations

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selling new and/or used trucks, performing service and parts operations, or offering collision repair services. We retailed and wholesaled 19,239 new and used trucks in 2025.

Penske Australia. Penske Australia is the exclusive importer and distributor of Western Star heavy-duty trucks (a Daimler brand), MAN heavy- and medium-duty trucks and buses (a VW Group brand), and Dennis Eagle refuse collection vehicles, together with associated parts, across Australia, New Zealand, and portions of the Pacific. In most of these same markets, we are also a leading distributor of diesel and gas engines and power systems, principally representing MTU (a Rolls-Royce solution), Detroit Diesel, Allison Transmission, and Bergen Engines. Penske Australia offers products across the on- and off-highway markets, including in the trucking, mining, power generation, energy solutions, defense, marine, rail, and construction sectors and supports full parts and aftersales service through a network of branches, field service locations, and dealers across the region. We also own and operate three Porsche dealerships in Melbourne, Australia which results are included within our retail automotive segment described above.

Penske Transportation Solutions. We hold a 28.9% ownership interest in Penske Truck Leasing Co., L.P. ("PTL"). PTL is owned 41.1% by Penske Corporation, 28.9% by us, and 30.0% by Mitsui & Co., Ltd. ("Mitsui"). We account for our investment in PTL under the equity method, and we therefore record our share of PTL's earnings on our statements of income under the caption "Equity in earnings of affiliates," which also includes the results of our other equity method investments. Penske Transportation Solutions ("PTS") is the universal brand name for PTL's various businesses, which articulates the breadth of their services. PTS is capable of meeting customers' needs across the supply chain with a broad product offering that includes full-service truck leasing, truck rental, and contract maintenance along with logistics services, such as dedicated contract carriage, distribution center management, supply chain management, and dry van truckload carrier services. We recorded $192.8 million and $198.0 million in equity earnings from this investment in 2025 and 2024, respectively.

Outlook/Recent Developments

Please see “Outlook” in Part I, Item 1 for a discussion of our outlook in our markets.

Operating Overview

Automotive and commercial truck dealerships represent 97.1% of our revenue and 80.9% of our earnings before taxes during 2025. Income from our PTS investment represents 15.3% of our earnings before taxes during 2025. New and used vehicle revenues typically include sales to retail customers, agency customers, fleet customers, and leasing companies providing consumer leasing. We generate finance and insurance revenues from sales of third-party extended service contracts, sales of third-party insurance policies, commissions relating to the sale of finance and lease contracts to third parties, and the sales of certain other products. Service and parts revenues include fees paid by customers for repair, maintenance and collision services, and the sale of replacement parts and other aftermarket accessories as well as warranty repairs that are reimbursed directly by vehicle manufacturers.

Our gross profit tends to vary with the mix of revenues we derive from the sale of new vehicles, used vehicles, finance and insurance products, and service and parts transactions. Our gross profit varies across product lines with vehicle sales usually resulting in lower gross profit margins and our other revenues resulting in higher gross profit margins. Factors such as inventory and vehicle availability, customer demand, consumer confidence, unemployment, general economic conditions, seasonality, weather, credit availability, the impact of tariffs and non-tariff trade barriers, fuel prices, and manufacturers' advertising and incentives also impact the mix of our revenues and therefore, influence our gross profit margin. The results of our commercial vehicle distribution and other business in Australia and New Zealand are principally driven by the number and types of products and vehicles ordered by our customers.

As exchange rates fluctuate, our revenue and results of operations as reported in U.S. Dollars fluctuate. For example, if the British Pound were to weaken against the U.S. Dollar, our U.K. results of operations would translate into less U.S. Dollar reported results. Foreign currency average rate fluctuations increased revenue and gross profit by $302.3 million and $43.1 million, respectively, in 2025. Foreign currency average rate fluctuations increased earnings per share by approximately $0.04 per share in 2025. Excluding the impact of foreign currency average rate fluctuations, aggregate revenue and gross profit decreased 1.1% and 0.8%, respectively, in 2025.

Our selling expenses consist of advertising and compensation for sales personnel, including commissions and related bonuses. General and administrative expenses include compensation, finance, legal and management personnel costs, rent, insurance, information technology expenses, service vehicle loaner expenses, vehicle delivery and preparation expenses, utilities, and other expenses. As the majority of our selling expenses are variable and a significant portion of our general

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Table of Contents

and administrative expenses are subject to our control, we believe our ex

[Excerpt truncated for page length; the complete text is on the linked full-MD&A page.]

Read the full FY 2025 MD&A: /company/PAG/mda/fy2025/
All MD&A years: /company/PAG/mda/


## MD&A history

Prior-year 10-K MD&A spans are extracted from SEC filings with the same bounded parser used for the latest filing. Each year's full verbatim text is on its own sub-page.

- [FY 2024 MD&A](/company/PAG/mda/fy2024/): filed 2025-02-21; accession 0001019849-25-000022 (https://www.sec.gov/Archives/edgar/data/1019849/000101984925000022/pag-20241231.htm)
- [FY 2023 MD&A](/company/PAG/mda/fy2023/): filed 2024-02-16; accession 0001019849-24-000033 (https://www.sec.gov/Archives/edgar/data/1019849/000101984924000033/pag-20231231.htm)
- [FY 2022 MD&A](/company/PAG/mda/fy2022/): filed 2023-02-21; accession 0001019849-23-000038 (https://www.sec.gov/Archives/edgar/data/1019849/000101984923000038/pag-20221231.htm)
- [FY 2021 MD&A](/company/PAG/mda/fy2021/): filed 2022-02-18; accession 0001019849-22-000013 (https://www.sec.gov/Archives/edgar/data/1019849/000101984922000013/pag-20211231.htm)




## Macro cross-references

Indicators mapped to this company's SIC classification (industry 5500 Retail-Auto Dealers & Gasoline Stations) by grepcent's deterministic macro-sector crosswalk. A navigational mapping, not a statistical or causal claim.

- [RSAFS](/indicator/RSAFS/): Advance Retail Sales: Retail Trade
- [PCE](/indicator/PCE/): Personal Consumption Expenditures
- [DSPIC96](/indicator/DSPIC96/): Real Disposable Personal Income
- [PSAVERT](/indicator/PSAVERT/): Personal Saving Rate
- [CPIAUCSL](/indicator/CPIAUCSL/): Consumer Price Index for All Urban Consumers: All Items in U.S. City Average
- [CPILFESL](/indicator/CPILFESL/): Consumer Price Index for All Urban Consumers: All Items Less Food and Energy
- [CPIUFDSL](/indicator/CPIUFDSL/): Consumer Price Index for All Urban Consumers: Food
- [CES0500000003](/indicator/CES0500000003/): Average Hourly Earnings of All Employees, Total Private
- [UNRATE](/indicator/UNRATE/): Unemployment Rate
- [PAYEMS](/indicator/PAYEMS/): All Employees, Total Nonfarm

Macro-to-micro threads including this sector: [Inflation (CPI / PCE / PPI)](/thread/inflation-cpi-pce-ppi/), [US labor market](/thread/us-labor-market/), [Growth & output](/thread/growth-output/), [Sector employment](/thread/sector-employment/), [Industrial orders & inventories](/thread/industrial-orders/), [Trade & external](/thread/trade-external/).

All macro indicators: /indicators/


## For LLMs & downloads

Markdown twin: /company/PAG.md · JSON record: /company/PAG.json · verified financials: /company/PAG/financials.json / /company/PAG/financials.csv · machine TOC for the whole site: /llms.txt