Penske Automotive Group, Inc. · NYSE:PAG
Penske Automotive — Q4 2024 Earnings Presentation
38 slides from Penske Automotive's earnings presentation, Feb 13, 2025
Slide 1: Fourth Quarter and Full-Year 2024 Financial Results
FOURTH QUARTER AND FULL-YEAR 2024 FINANCIAL RESULTS February 2025 PENSKE AUTOMOTIVE GROUP / 1
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 u
Slide 3: Company Overview
COMPANY OVERVIEW A Diversified International Transportation Services Company Headquartered in Bloomfield Hills, MI USA For the Twelve Months Ended December 31, 2024: over 28,900 4 9 employees worldwide continents countries 512,149 $30.5B new & used units delivered revenue (includes commercial trucks
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 72% 21% 2% 5% Premium Volume Non-U.S. U.S. Used Only (For the Twelve Months Ended December 31, 2024) (% of Total Worldwide Automotive Dealership Revenue) 26% 14% 10% 9% 9% 8% 7% 5% 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 Dividends $131 $68 $143 $154 $189 $274 Capital Expenditures $245 $186 $249 $283 $375 $369 Share Repurchases $174 $35 $294 $887 $382 $78 Acquisitions $327 --- $432 $393 $215 $786 (incl. repayment of seller’s floorplan notes) Total $877 $2
Slide 7: PAG Historical Long-Term Debt and Leverage
PAG HISTORICAL LONG-TERM DEBT AND LEVERAGE (USD in Millions) (As of December 31) $2,500 $2,360 3.5 3 $2,000 $1,852 2.9x $1,690 $1,622 $1,629 2.5 $1,500 $1,474 2 $1,000 1.8x 1.5 1.2x 1 $500 1.0x 0.8x 0.8x 0.5 $- 0 2019 2020 2021 2022 2023 2024 Debt Leverage* Note: Refer to Non-GAAP Reconciliation Sec
Slide 8: Diversified Revenue Mix by Geography & Segment
DIVERSIFIED REVENUE MIX BY GEOGRAPHY & SEGMENT (For the Twelve Months Ended December 31, 2024) 2% 9% 12% 31% 60% 86% Retail Automotive North America Retail Commercial Truck United Kingdom Commercial Vehicle & Distribution Other International PENSKE AUTOMOTIVE GROUP / 8
Slide 9: Q4 & 12M 2024 Review
Q4 & 12M 2024 REVIEW
Slide 10: PAG Consolidated Financial Highlights
PAG CONSOLIDATED FINANCIAL HIGHLIGHTS Q4 ’24 Q4 ’23 Chg 12M ’24 12M ’23 Chg Revenue $7,720 $7,272 +6% $30,445 $29,527 +3% Income Before Taxes $315 $256 +23% $1,240 $1,420 -13% Adjusted* $315 $297 +6% $1,240 $1,460 -15% Income Attributable to Common Stockholders $236 $191 +24% $919 $1,053 -13% Adjust
Slide 11: PAG Q4 & 12M Performance Summary
PAG Q4 & 12M PERFORMANCE SUMMARY Q4 Total Revenue Q4 Income Attributable to Q4 Earnings Per Share ($ in Billions) Common Shareholders ($ in Millions) $7.7 $298 $4.21 $7.3 $3.45* $3.54 $7.0 $231* $236 $2.84 $191 Q4 '22 Q4 '23 Q4 '24 Q4 '22 Q4 '23 Q4 '23 Q4 '24 Q4 '22 Q4 '23 Q4 '23 Q4 '24 Reported Adj
Slide 12: Key Highlights – Q4
KEY HIGHLIGHTS – Q4 Retail Automotive Liquidity Total units delivered (incl. agency*) increased 3% to Debt to total capitalization of 26.2% 120,530; same-store units increased 0.3% to 112,179 Non-vehicle debt to EBITDA of 1.2x** Same-store retail automotive revenue performance Availability
Slide 13: Retail Automotive
RETAIL AUTOMOTIVE
Slide 14: Retail Auto Diversified Revenue
(For the twelve months ended December 31, 2024) 5% 1% 3% 19% 27% 12% 46% REVENUE GROSS PROFIT RETAIL AUTO 11% DIVERSIFIED 34% 42% REVENUE STREAM PENSKE AUTOMOTIVE GROUP / 14
Slide 15: Q4 & 12M Performance Highlights
Q4 & 12M PERFORMANCE HIGHLIGHTS ($ in Millions) Q4 ’24 Q4 ’23 Chg 12M ’24 12M ’23 Chg Revenue $7,720 $7,272 +6% $30,455 $29,527 +3% Excl F/X $7,663 $7,272 +5% $30,232 $29,527 +2% Retail Auto Same-Store Revenue $6,306 $6,025 +5% $24,318 $24,408 --% Excl F/X $6,252 $6,025 +4% $24,104 $24,408 -1% Incom
Slide 16: Overall Gross Per Unit Retailed (Automotive)
OVERALL GROSS PER UNIT RETAILED (AUTOMOTIVE) (By Quarter) GROSS PER UNIT STABILITY NEW USED -$85 $6,390 $6,259 +$74 $5,790 $1,887 $1,876 $1,822 $1,882 $5,531 $1,808 $1,797 $5,229 $5,302 $5,072 $5,146 $1,564 $1,448 $1,255 $1,255 $3,286 Q4 '19 Q4 ‘19 Q1 '23 Q2 '23 Q3 '23 Q4 '23 Q1 '24 Q2 '24 Q3 '24 Q4
Slide 17: Retail Automotive Same-Store Revenue
RETAIL AUTOMOTIVE SAME-STORE REVENUE ($ in Millions) Q4 ’24 Q4 ’23 Chg 12M ’24 12M ’23 Chg New Vehicle $3,163 $2,951 +7% $11,285 $11,100 +2% Excl F/X $3,144 $2,951 +7% $11,209 $11,100 +1% Used Vehicle $1,896 $1,879 +1% $8,039 $8,429 -5% Excl F/X $1,870 $1,879 -1% $7,934 $8,429 -6% Finance & Insuranc
Slide 18: Retail Automotive Key Metrics
RETAIL AUTOMOTIVE KEY METRICS Same-Store Q4 ’24 Q4 ’23 Chg 12M ’24 12M ’23 Chg VOLUME METRICS New Units* 52,037 51,122 +2% 191,816 193,937 -1% Used Units 50,505 53,508 -6% 224,759 236,152 -5% Agency Units 9,637 7,159 +35% 34,740 29,645 +17% Total Units 112,179 111,789 --- 451,315 459,734 -2% GROSS P
Slide 19: Retail Commercial Truck
TRUCK GROUP RETAIL COMMERCIAL TRUCK
Slide 20: 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 35 full sales and service facilities 9 stand-alone service and parts facilities 2 stand-alone parts facilities 12 collision centers (2 sta
Slide 21: Premier Truck Group Highlights
During 2024 acquired River States Truck & Trailer with expected annualized revenue of $200 million Retailed 20,550 new and used units in 2024, down 4% 12M 2024 revenue of $3.5 billion, down 4% 12M 2024 service and parts gross profit provides 65% of total gross profit PREMIER TRUCK GROUP 12
Slide 22: Retail Commercial Truck
(For the twelve months ended December 31, 2024) 2% 5% RETAIL 27% 25% GROSS COMMERCIAL REVENUE 67% PROFIT 3% TRUCK 6% 65% DIVERSIFIED REVENUE Retail Automotive Used Vehicles STREAM Service & Parts F&I plus Fleet & Wholesale PENSKE AUTOMOTIVE GROUP / 22
Slide 23: Retail Commercial Truck Performance
RETAIL COMMERCIAL TRUCK PERFORMANCE Q4 Units Q4 Revenue (in Millions) Q4 EBT ($ in Millions) 5,704 $961 $905 5,409 $51 $51 $45 4,432 $774 Q4 '22 Q4 '23 Q4 '24 Q4 '22 Q4 '23 Q4 '24 Q4 '22 Q4 '23 Q4 '24 12M Units 12M Revenue ($ in Millions) 12M EBT ($ in Millions) 21,380 $3,684 $225 20,601 20,551 $215
Slide 24: Retail Commercial Truck Key Metrics
RETAIL COMMERCIAL TRUCK KEY METRICS Same-Store Q4 ’24 Q4 ’23 Chg 12M ’24 12M ’23 Chg VOLUME METRICS New Units 3,261 4,513 -28% 15,856 17,876 -11% Used Units 863 896 -4% 3,498 3,109 +13% Total Units 4,124 5,409 -24% 19,354 20,985 -8% GROSS PER UNIT New $10,075 $8,412 +20% $8,985 $7,996 +12% Used $5,6
Slide 25: Australia/New Zealand
AUSTRALIA/ NEW ZEALAND
Slide 26: 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 Parts
Slide 27: Penske Automotive Australia
PENSKE AUTOMOTIVE AUSTRALIA In 2024, acquired (3) Porsche Centers in Melbourne, Australia Expected annualized revenue of $260 million Porsche Centre Melbourne Porsche Centre Doncaster Porsche Centre Brighton PENSKE AUTOMOTIVE GROUP / 27
Slide 28: Penske Transportation Solutions
PENSKE TRANSPORTATION SOLUTIONS
Slide 29: Penske Transportation Solutions (PTS)
PENSKE TRANSPORTATION SOLUTIONS (PTS) PENSKE AUTOMOTIVE GROUP / 29
Slide 30: PTS Highlights
PTS HIGHLIGHTS OPERATING REVENUE (For the twelve months ended December 31, 2024) Managed fleet of over 435,000 trucks, tractors and trailers 28% Q4 48% PAG recorded equity income from PTS investment of $52.3 2024 million for the three months and $198.0 million for the twelve 3% months ended Dece
Slide 31: PTS Performance Summary
PTS PERFORMANCE SUMMARY PAG Equity Income of $198 Million 12M 2024 Operating Revenue ($ in Millions) Net Income ($ in Millions) $2,656 $2,738 $2,819 $344 $177 $181 Q4 '22 Q4 '23 Q4 '24 Q4 '22 Q4 '23 Q4 '24 $10,239 $10,809 $11,136 $1,694 $1,001 $685 12M '22 12M '23 12M '24 12M '22 12M '23 12M '24 PEN
Slide 32: PTS Fleet
PTS FLEET Managed fleet consists of trucks, tractors and trailers under lease, rental and/or maintenance contracts (Units in Thousands, as of December 31) 439 435 416 360 327 327 297 271 247 231 215 205 201 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 PENSKE AUTOMOTIVE GROUP / 32
Slide 33: Non-GAAP Reconciliations
NON-GAAP RECONCILIATIONS
Slide 34: Consolidated Non-GAAP Reconciliations
CONSOLIDATED NON-GAAP RECONCILIATIONS The following tables reconcile reported net income and earnings per share to adjusted net income and adjusted earnings per share for the three and twelve months ended December 31, 2024 and 2023 ($ in millions, except per share amounts) Q4 ’24 Q4 ’23 % Chg 12M ’2
Slide 35: EBITDA Reconciliation
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 and twelve months ended December 31, 2024 and 2023 ($ in Millions) Three months ended December 31 Change 202
Slide 36: 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 37: Agency
Some of our dealerships in the U.K. and Europe and Europe operate under an agency model where we receive a fee for facilitating the sale by the manufacturer of a new vehicle but do not hold the vehicle in inventory. Vehicles sold under this agency model are counted as new agency units sold instead o
Slide 38: Automotive
Automotive
Penske Automotive Group — Q4 2024 Earnings Presentation on 6ix