10-Q · April 30, 2026
Penske Automotive Group reported strong Q1 2026 earnings with revenue of $7.86 billion, exceeding estimates and showing improvement from the prior quarter. Diluted EPS came in at $3.05, surpassing consensus…
Earnings analysis · 10-Q
PAG earnings analysis
Filed October 29, 2026 · Our reading of the company's report
The latest report
Penske Automotive delivered strong third-quarter revenue of $8.416 billion and diluted EPS of $3.43, beating consensus estimates, but operating margin fell to 3.6% from 3.9% a year earlier. Nine-month reported operating…
Read full summary
Penske Automotive delivered strong third-quarter revenue of $8.416 billion and diluted EPS of $3.43, beating consensus estimates, but operating margin fell to 3.6% from 3.9% a year earlier. Nine-month reported operating cash flow declined to $724.6 million from $899.4 million, while capital expenditures decreased to $217.1 million. The principal new risk is the proposed take-private transaction, including its $383.0 million termination fee, financing requirements of up to $1.8 billion in debt and restrictions on operating and capital-allocation decisions.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $3.43
- Operating margin
- 3.6%
What stood out
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Revenue grew and beat consensus
Third-quarter revenue was $8.416 billion, up from $7.7 billion in Q3 2025 and above the $8.1223 billion consensus estimate by approximately $293.7 million.
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EPS beat estimate year over year
Diluted EPS was $3.43, versus $3.23 in Q3 2025, although it declined from $3.96 in Q2 2026; EPS exceeded the $3.36 estimate by $0.07.
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Operating margin compressed
Operating margin was 3.6%, down from 3.9% in Q3 2025 and 4.0% in Q2 2026, indicating continued profitability pressure despite higher revenue.
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Reported operating cash flow declined
Nine-month operating cash flow was $724.6 million, or $834.0 million including all floor-plan notes payable, compared with $899.4 million and $869.1 million, respectively, in the prior-year period.
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Lower capex and higher asset-sale proceeds
Capital expenditures were $217.1 million for the first nine months, down from $239.3 million a year earlier; dealership-sale proceeds increased to $151.7 million from $80.1 million.
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Share repurchases fell while dividends rose
The company repurchased $26.3 million of stock and paid $281.0 million in dividends during the first nine months, compared with $119.0 million and $252.7 million, respectively, in the prior-year period.
What to watch
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Merger closing and termination risk
The proposed transaction is expected to close in the first quarter of 2027 but can terminate if it has not closed by October 15, 2027; the company may owe a $383.0 million termination fee in specified circumstances.
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Transaction financing uncertainty
Buyer financing includes up to $2.2 billion of equity financing and up to $1.8 billion of debt financing. If financing is unavailable on the anticipated terms, the transaction may be delayed or fail to close.
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Merger limits strategic flexibility
The merger agreement restricts capital allocation and operating actions, including acquisitions, debt issuance, capital expenditures, securities repurchases and dividends, subject to exceptions; the U.S. credit agreement revolving commitment may increase from $1.5 billion to as much as $2.4 billion.
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EV demand and policy headwind
Management said the elimination of federal EV tax credits has resulted in lower new U.S. EV sales, while the company continues to evaluate the impact on its financial statements and cash flows.
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Material variable-rate exposure
A 100-basis-point change in interest rates would affect annual other interest expense by approximately $14.6 million and annual floor-plan interest expense by approximately $41.3 million.
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Foreign-exchange sensitivity
A 10% change in average foreign-exchange rates versus the U.S. dollar would have changed nine-month revenue by approximately $1.0 billion, exposing reported results to currency volatility.
Management's outlook
No numeric revenue or EPS guidance was provided. Management expects the proposed take-private transaction to close in the first quarter of 2027, subject to conditions; capital expenditures are expected to be financed with operating cash flow or credit-agreement borrowings.
Earlier filings 4
10-K · February 27, 2026
Penske Automotive emphasizes diversification across retail automotive, commercial trucks, distribution/power systems and its equity stake in Penske Transportation Solutions (PTS). The 10-K highlights scale in retail…
10-Q · October 30, 2025
Penske reported Q3 revenue of $7,695.3 million and diluted EPS of $3.23. Revenue was up modestly year-over-year while operating income, diluted EPS and operating margin declined versus the prior-year quarter; the…
10-Q · July 31, 2025
Penske Automotive reported Q2 revenue of $7,662.3 million (down $34.4 million, or 0.4% vs. Q2 2024) and diluted EPS of $3.78 (up $0.17 vs. $3.61 in Q2 2024). Gross margin expanded to 16.9% and operating margin to 4.5%,…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.