Penske Q1 2025 Earnings Report
Key Takeaways
Penske Automotive Group delivered strong performance in Q1 2025 with a 2% increase in revenue to $7.6 billion, driven by strength in service and parts, consistent gross margins, and improved operational efficiency. Net income rose 14% to $244.3 million while adjusted EPS climbed to $3.39.
Revenue reached a record $7.6 billion, up 2% from Q1 2024.
Net income increased 14% to $244.3 million.
Adjusted EPS rose 6% to $3.39, despite a $0.01 FX drag.
Retail automotive service and parts gross margin improved by 60 basis points.
Penske
Penske
Penske Revenue by Segment
Penske Revenue by Geographic Location
Forward Guidance
Penske emphasized the resilience of its business model amid global uncertainty, noting its diversified brand mix and geographic reach offer flexibility for adapting to evolving market dynamics.
Positive Outlook
- Stable gross margins for the seventh consecutive quarter
- Increased gross profit per used vehicle by $352 QoQ
- Improved cost efficiency with adjusted SG&A/Gross Profit down 70 bps
- Resilient premium brand mix
- Diversification across North America, Australia/NZ, and international markets
Challenges Ahead
- Retail commercial truck earnings fell due to soft freight environment
- Used retail unit sales declined 16%
- FX impact reduced revenue by $40.3M
- SG&A expenses increased 3.8% YoY
- Ongoing concerns about tariffs and their impact on vehicle costs
Revenue & Expenses
Visualization of income flow from segment revenue to net income