Penske Automotive misses Q3 profit estimates, tops on revenue

Penske Automotive Group, Inc. (NYSE: PAG) said in an 8-K filed Oct. 28 that third-quarter 2026 revenue was $8.42 billion, topping the $8.25 billion revenue estimate compiled by Finnhub.

Earnings per share of $3.36 missed the $3.47 consensus estimate, also from Finnhub. The company said the period included costs tied to its proposed take-private transaction.

The company is headquartered in Bloomfield Hills, Michigan, and operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan and Australia.

The results were released under a merger agreement announced Oct. 15, 2026. Under that agreement, Motown Acquisition Corp., an entity owned by Penske Corporation and Mitsui & Co., Ltd., would take the company private.

Holders other than Penske Corporation, Mitsui and the other investor group members would receive $212.00 per share in cash, valuing the company at an enterprise value of about $16.3 billion.

The company expects the deal to close in the first quarter of 2027, subject to closing conditions.

Because of the proposed transaction, the company will not host an earnings conference call.

Third-quarter results

Here's how the company did:

• Revenue: $8.42 billion vs. $8.05 billion a year earlier
• Earnings per share: $3.36 vs. $3.41 a year earlier, and $3.47 expected, according to Finnhub
• Net income attributable to common stockholders: $220.8 million vs. $224.8 million a year earlier

Revenue rose 4.5% from a year earlier. Net income attributable to common stockholders fell 1.8%.

Earnings before taxes was $302.0 million. The company said the quarter included $6.3 million of costs, or $4.6 million after tax, tied to the proposed transaction.

Foreign currency exchange negatively impacted revenue by $2.3 million and positively impacted earnings per share by 1 cent.

Revenue has risen in each of the last three quarters, from $7.70 billion in the third quarter of 2025 to $8.51 billion in the second quarter of 2026, according to its SEC filings.

Segment results

Retail automotive revenue increased 1% to $7.0 billion, and same-store revenue rose 2%. New vehicle units delivered decreased 2%, while used units delivered increased 2%.

Sequentially, the company said new vehicle gross profit per unit decreased $258 and used vehicle gross profit per unit decreased $149 compared with the second quarter of 2026.

Retail commercial truck revenue was $1.1 billion, up from $918.6 million a year earlier. Income before taxes was $59.6 million, compared with $41.5 million.

The segment retailed 6,779 new and used units, compared with 5,108 a year earlier.

The company recorded $68.5 million of earnings from its 28.9% stake in Penske Transportation Solutions, which it accounts for under the equity method.

Nine-month results

For the nine months ended Sept. 30, revenue was $24.8 billion, compared with $24.0 billion a year earlier.

Net income attributable to common stockholders was $715.7 million, down from $749.1 million. Earnings per share were $10.89, compared with $11.30. The company said these results include a gain on the sale of dealerships and other charges.

Capital returns

The board approved an increase in the quarterly dividend of 2 cents per share, or 1.4%, to $1.46 per share. That brings the annualized dividend to $5.84 per share. The dividend is payable Dec. 1 to holders of record as of Nov. 13.

The company repurchased 265,104 shares for approximately $42.5 million in the first nine months. It had $221.2 million remaining under its repurchase program at Sept. 30.

The merger agreement restricts repurchases, so the company does not expect further repurchases during the pendency of the transaction.

At Sept. 30, the company had about $1.6 billion in liquidity, including $68 million in cash, and a leverage ratio of 1.6x.