Penske Automotive Group, Inc. (PAG) Earnings & Analysis

Latest quarter

Penske Automotive reported Q2 FY2026 revenue of $8.5 billion, up from $8.0 billion a year earlier. Diluted earnings per share were $3.96, compared with $4.03 a year before.

The available consensus comparisons are for the subsequent quarter ended September 30, 2026: Penske reported $8.4 billion in revenue against a consensus of $8.0 billion, while adjusted earnings per share of $3.42 missed the $3.44 consensus.

For Q2, Penske’s gross margin declined to 15.9% from 16.8%, and its operating margin fell to 3.97% from 4.55%. Free cash flow was $135.5 million, compared with $152.8 million a year earlier.

On the Q2 call, CEO Roger Penske said same-store retail new and used vehicle units increased 5%, while same-store service and parts revenue increased 2%. He said the quarter also included a gain from dealership sales. International operations executive Randall Seymore said Australian off-highway revenue increased 63.0% in Q2.

Adjusted EPS is the figure the consensus estimates, not the GAAP EPS above.

What management said on the call

On the Q2 call, Roger Penske said same-store retail new and used vehicle units increased and that service and parts revenue and gross profit also rose. He said the company reduced long-term debt by $141.0 million and raised its quarterly dividend to $1.44 per share.

For commercial trucks, the CEO said orders had increased and he expected the order book to benefit deliveries in the second half of 2026. He also expected improving freight conditions to benefit the truck dealerships and Penske Transportation Solutions. In the question-and-answer session, he said he expected truck margins to remain broadly consistent with the business mix.

International operations executive Randall Seymore described higher taxes, affordability, reduced motability programs and electrification mandates as pressures on the U.K. automotive market. Asked about competition, he said Chinese brands had gained market share and that Penske was adding those brands at existing facilities. Roger Penske said the company’s predominantly premium-luxury mix limited the immediate competitive threat from lower-cost vehicles.

In Australia, Seymore said off-highway revenue rose 63.0% in Q2 and the business secured over $300.0 million in orders, bringing secured orders for 2026 to nearly $660.0 million. He said demand included energy solutions, mining and defense. Discussing data centers, he said engine supply was a challenge the company was addressing with partners.

Roger Penske said Penske Transportation Solutions had reduced its rental fleet and that utilization had improved. He said the business sold 18,500 trucks in the first half of 2026 and expected to grow the fleet again through leasing and logistics.

Guidance

On the Q2 call, Roger Penske said the company expected 10,000 commercial truck deliveries in the second half of 2026 and broadly consistent margins based on its business mix. Penske’s subsequent filing said increased new-truck order activity was expected to benefit deliveries through the remainder of 2026.