Penske Automotive Group (PAG) investor relations material

Executive summary

• Q1 2026 revenue was $7.9 billion, down 1.1% year-over-year, with net income attributable to common stockholders of $234.5 million, a 9% decrease from Q1 2025; EPS was $3.56, down 7.8% year-over-year, and adjusted EPS was $3.05, down 15%.

• Over 126,000 new and used vehicles and nearly 3,600 commercial trucks delivered; retail automotive service and parts revenue reached a record $864 million, up 4.6%.

• Acquired two Lexus dealerships in Orlando and completed Penske Motor Group acquisition, with combined new dealerships expected to generate $2 billion in annualized revenue.

• Repurchased 170,393 shares for $26.4 million and increased dividend to $1.40 per share, yielding 3.4%.

• $60.4 million pre-tax gain from dealership sale, offset by $13 million in other charges.

Financial highlights

• Gross profit for Q1 2026 was $1.3 billion, down 1.7% year-over-year; operating income declined 12.3% to $289 million.

• Retail automotive revenue grew 1% to $7.0 billion; retail commercial truck revenue declined 16% to $695 million.

• Gross profit per new unit retailed was $4,783 (up $94 sequentially); per used unit was $2,076 (up $306 sequentially).

• Service and parts revenue and gross profit reached Q1 records; same-store service and parts revenue up 4.6%, gross profit up 5.7%.

• Penske Transportation Solutions equity income increased 24% to $41 million.

Outlook and guidance

• Expect continued lower U.S. EV sales due to elimination of federal tax incentives and lower product availability.

• Commercial truck order activity is increasing, with higher new unit sales anticipated in H2 2026.

• Anticipate strong demand for service and parts operations, driven by an aging vehicle fleet and increased miles driven.

• Lease signings and customer acceptance in PTS are improving, supporting future earnings.

• Macroeconomic headwinds, including inflation and geopolitical uncertainty, may pressure consumer sentiment and costs.