Penske Automotive Group, Inc. · NYSE:PAG
Penske Automotive — Q1 2025 Earnings Presentation
38 slides from Penske Automotive's earnings presentation, Apr 30, 2025
Slide 1: First Quarter 2025 Financial Results
FIRST QUARTER 2025 FINANCIAL RESULTS April 2025
Slide 2: Forward-Looking Statement Disclaimer
FORWARD-LOOKING STATEMENT DISCLAIMER Statements in this presentation may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s financial performance, expectations and future plans. Actual results may vary materially because of risks and un
Slide 3: Company Overview
COMPANY OVERVIEW A Diversified International Transportation Services Company Headquartered in Bloomfield Hills, MI USA For the Three Months Ended March 31, 2025: over 28,700 4 9 employees worldwide continents countries 124,488 $7.6B new & used units delivered revenue (includes commercial trucks) 352
Slide 4: World Class Brands in Automotive & Trucks
WORLD CLASS BRANDS IN AUTOMOTIVE & TRUCKS PENSKE AUTOMOTIVE GROUP / 4
Slide 5: Retail Automotive Brand Mix
RETAIL AUTOMOTIVE BRAND MIX 74% 20% 2% 4% Premium Volume Non-U.S. U.S. Used Only 28% (For the three months ended March 31, 2025) (% of Total Worldwide Automotive Dealership Revenue) 13% 10% 10% 9% 8% 6% 4% 4% 3% 2% 2% 1% Used Other Only PENSKE AUTOMOTIVE GROUP / 5
Slide 6: Capital Allocation
CAPITAL ALLOCATION (In Millions) 2019 2020 2021 2022 2023 2024 2025* Dividends $131 $68 $143 $154 $189 $274 $82 Capital Expenditures $245 $186 $249 $283 $375 $369 $77 Share Repurchases $174 $35 $294 $887 $382 $78 $40 Acquisitions $327 --- $432 $393 $215 $786 --- (incl. repayment of seller’s floorpla
Slide 7: PAG Historical Long-Term Debt and Leverage
PAG HISTORICAL LONG-TERM DEBT AND LEVERAGE (USD in Millions) (As of December 31 for each applicable year, unless noted) $2,500 $2,360 3.5 3 $2,000 $1,852 $1,772 2.9x $1,690 $1,622 $1,629 2.5 $1,500 $1,474 2 $1,000 1.8x 1.5 1.2x 1.2x 1 $500 1.0x 0.8x 0.8x 0.5 $- 0 2019 2020 2021 2022 2023 2024 3/31/2
Slide 8: Diversified Revenue Mix by Geography & Segment
DIVERSIFIED REVENUE MIX BY GEOGRAPHY & SEGMENT (For the three months ended March 31, 2025) 3% 10% 11% 31% 59% 86% Retail Automotive North America Retail Commercial Truck United Kingdom Commercial Vehicle & Distribution Other International PENSKE AUTOMOTIVE GROUP / 8
Slide 9: Q1 2025 Review
Q1 2025 REVIEW
Slide 10: PAG Q1 Performance Summary
PAG Q1 PERFORMANCE SUMMARY Net Income Attributable to Total Revenue Income Per Share ($ in Billions) Common Stockholders ($ in Millions) $7.4 $7.6 $4.76 $7.3 $368 $4.31 $7.0 $3.66 $298 $3.21 $3.39 $244 $226 $215 Q1 '22 Q1 '23 Q1 '24 Q1 '25 Q1 '22 Q1 '23 Q1 '24 Q1 '25 Q1 '25* Q1 '22 Q1 '23 Q1 '24 Q1
Slide 11: PAG Performance Highlights – Q1
PAG PERFORMANCE HIGHLIGHTS – Q1 ($ in Millions) Q1 ’25 Q1 ’24 Chg Revenue $7,605 $7,448 +2% Retail Auto Same-Store Revenue $6,368 $6,234 +2% Income Before Taxes $337 $295 +14% Adjusted Income Before Taxes* $310 $295 +5% Income Attributable to Common Stockholders $244 $215 +14% Adjusted Income Attrib
Slide 12: Key Highlights – Q1 2025
KEY HIGHLIGHTS – Q1 2025 Retail Automotive Capital Allocation Avg. vehicle transactions: Since 2023 increased dividend by 54% to $1.22 in New vehicle price up 3.5% to $59,202 February 2025 Used vehicle price up 11.5% to $37,624 Returned approximately $352 million to shareholders in 2024 th
Slide 13: Retail Automotive
RETAIL AUTOMOTIVE
Slide 14: Retail Auto Diversified Revenue
(For the three months ended March 31, 2025) 5% 1% 3% 18% 26% 12% 46% REVENUE GROSS PROFIT RETAIL AUTO 12% DIVERSIFIED 34% 43% REVENUE STREAM PENSKE AUTOMOTIVE GROUP / 14
Slide 15: Gross Profit Per Unit Retailed (Automotive)
GROSS PROFIT PER UNIT RETAILED (AUTOMOTIVE) (By Quarter) GROSS PER UNIT STABILITY NEW USED +$352 -$87 Note: Numbers do not represent same-store; see next page for same-store PENSKE AUTOMOTIVE GROUP / 15
Slide 16: Retail Automotive Key Metrics
RETAIL AUTOMOTIVE KEY METRICS Same-Store Q1 ’25 Q1 ’24 Chg VOLUME METRICS New Units* 49,076 47,296 +4% Used Units 57,175 63,955 -11% Agency Units 10,686 8,069 +32% Total Units 116,937 119,320 -2% GROSS PER UNIT* New $4,991 $5,260 -5% Used $2,133 $1,941 +10% F&I $1,808 $1,749 +3% Var. Vehicle Gross $
Slide 17: Retail Automotive Same-Store Revenue
RETAIL AUTOMOTIVE SAME-STORE REVENUE ($ in Millions) Q1 ’25 Q1 ’24 Chg New Vehicle $2,923 $2,727 +7% Used Vehicle $2,137 $2,205 (3%) Finance & Insurance $195 $197 (1%) Service & Parts $765 $734 +4% Fleet & Wholesale $348 $371 (6%) Total $6,368 $6,234 +2% PENSKE AUTOMOTIVE GROUP / 17
Slide 18: Retail Commercial Truck (Premier Truck Group)
RETAIL COMMERCIAL TRUCK (Premier Truck Group)
Slide 19: North American Locations
NORTH AMERICAN LOCATIONS One of the largest dealership groups for Freightliner North America Retail new and used Freightliner and Western Star trucks 34 full sales and service facilities 9 stand-alone service and parts facilities 2 stand-alone parts facilities 12 collision centers (2 sta
Slide 20: Retail Commercial Truck Revenue and Gross Profit Mix
(For the three months ended March 31, 2025) 1% 5% RETAIL 24% COMMERCIAL 27% 64% GROSS TRUCK REVENUE PROFIT 5% DIVERSIFIED 8% 66% REVENUE STREAM New Vehicles Used Vehicles (Premier Truck Service & Parts F&I plus Fleet & Wholesale Group) PENSKE AUTOMOTIVE GROUP / 20
Slide 21: Retail Commercial Truck Performance
RETAIL COMMERCIAL TRUCK PERFORMANCE Q1 2025 same-store revenue $765 million, down 3% Q1 2025 retail commercial truck provides 11% of total PAG revenue and gross profit Q1 2025 service and parts gross profit provides 7% of total PAG gross profit Q1 2025 fixed cost absorption 118% PENSKE AUTOM
Slide 22: Retail Commercial Truck Key Metrics
RETAIL COMMERCIAL TRUCK KEY METRICS Same-Store Q1 ’25 Q1 ’24 Chg VOLUME METRICS New Units 3,419 3,491 -2% Used Units 954 1,049 -9% Total Units 4,373 4,540 -4% GROSS PER UNIT New $8,822 $9,909 -11% Used $7,541 $3,187 +137% F&I $907 $1,167 -22% PENSKE AUTOMOTIVE GROUP / 22
Slide 23: Australia / New Zealand
AUSTRALIA / NEW ZEALAND
Slide 24: Penske Australia/New Zealand
PENSKE AUSTRALIA/NEW ZEALAND Exclusive importer and distributor of certain heavy/medium-duty trucks, buses and refuse collection vehicles – Western Star, MAN, Dennis Eagle Distributor of diesel/gas engines and power systems –MTU, Detroit Diesel, Allison Transmission, and Bergen engines Commerc
Slide 25: Penske Transportation Solutions
PENSKE TRANSPORTATION SOLUTIONS
Slide 26: Penske Transportation Solutions (PTS)
PENSKE TRANSPORTATION SOLUTIONS (PTS) PENSKE AUTOMOTIVE GROUP / 26
Slide 27: PTS Highlights
PTS HIGHLIGHTS Managed fleet of over 428,000 trucks, tractors and trailers OPERATING REVENUE PAG recorded equity income from PTS investment of (For the three months ended March 31, 2025) $33.2 million for the three months ended March 31, 2025 Q1 ’25 Q1 ’24 Chg 29% Operating Revenue (in billions)
Slide 28: PTS Performance Summary
PTS PERFORMANCE SUMMARY OPERATING REVENUE NET INCOME ($ IN MILLIONS) ($ IN MILLIONS) $2,610 $2,698 $2,703 $2,375 $410 $280 $112 $115 Q1 '22 Q1 '23 Q1 '24 Q '25 Q1 '22 Q1 '23 Q1 '24 Q1 '25 PENSKE AUTOMOTIVE GROUP / 28
Slide 29: PTS Fleet
PTS FLEET Managed fleet consists of trucks, tractors and trailers under lease, rental and/or maintenance contracts (Units in Thousands, as of December 31, except as noted ) 439 435 428 416 360 327 327 297 271 247 231 215 205 201 PENSKE AUTOMOTIVE GROUP / 29
Slide 30: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS
Slide 31: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS This presentation contains certain non-GAAP financial measures as defined under SEC rules, such as adjusted net income, adjusted earnings per share, adjusted earnings before taxes, earnings before interest, taxes, depreciation, and amortization ("EBITDA"), adjusted EBITDA, a
Slide 32: EBITDA & Adj. EBITDA Reconciliation
The following tables reconcile reported net income to earnings before interest, taxes, depreciation, and amortization (“EBITDA”) and adjusted EBITDA for the three months ended March 31, 2025 and 2024 EBITDA & ADJ. EBITDA RECONCILIATION PENSKE AUTOMOTIVE GROUP / 32
Slide 33: Selling, General and Administrative Expenses
The following table reconciles reported selling, general and administrative expenses as a percentage of gross profit to selling, general and administrative expenses as a percentage of gross profit for the three months ended March 31, 2025 and 2024 Three Months Ended SELLING, March 31, 2025 vs. 2024
Slide 34: Earnings Before Taxes
The following tables reconcile reported earnings before taxes to adjusted earnings before taxes for the three months ended March 31, 2025 and 2024 EARNINGS BEFORE TAXES PENSKE AUTOMOTIVE GROUP / 34
Slide 35: Net Income and Earnings Per Share
The following tables reconcile reported net income and earnings per share to adjusted net income and adjusted earnings per share for the three months ended March 31, 2025 and 2024 NET INCOME AND EARNINGS PER SHARE PENSKE AUTOMOTIVE GROUP / 35
Slide 36: EBITDA & Leverage Ratio Reconciliation
EBITDA & LEVERAGE RATIO RECONCILIATION The following table reconciles the leverage ratio as of March 31, 2025 and December 31, 2024 Nine Three Trailing Twelve Twelve Months Ended Months Ended Months Ended Month Ended December 31, 2024 March 31, 2025 March 31, 2025 December 31, 2024 Net Income $707.2
Slide 37: EBITDA, Adj. EBITDA & Leverage Ratio Reconciliation
EBITDA, ADJ. EBITDA & LEVERAGE RATIO RECONCILIATION The following table reconciles EBITDA, Adj. EBITDA and Leverage Ratio as of December 31, from 2019 to 2024 (USD in Millions) 12M ’24 12M ’23 12M ’22 12M ’21 12M ’20 12M ’19 Net Income $923.4 $1,058.6 $1,386.2 $1,192.7 $545.3 $435.1 Add: Depreciatio
Slide 38: Automotive
Automotive
Penske Automotive Group — Q1 2025 Earnings Presentation on 6ix