Penske Automotive Group Posts Record-Breaking Q4 Earnings, Continues to Excel in Retail Auto and Commercial Truck Sales
Penske Automotive Group (PAG) has reported a record-breaking fourth quarter of 2024, with revenue increasing by 6% to a new high of $7.7 billion.
In the press release accompanying the earnings announcement, Roger Penske, Chair of PAG, praised the company's team members for their hard work and commitment to exceeding expectations, which delivered strong results for the quarter and another outstanding year of profitability.
During 2024, PAG delivered a total of 491,000 new and used vehicles and over 20,500 new and used commercial trucks. The company also completed acquisitions totaling $2.1 billion, expanding its automotive operations in the U.S. and U.K., entering the retail automotive market in Australia with three Porsche dealerships, and adding a strategic commercial truck location in Wisconsin.
The quarterly dividend was increased for the 17th consecutive year, by $0.03 per share to $1.22 per share, representing a 54% increase since the end of 2023.
On an adjusted basis, income before taxes increased 6%, net income grew 2%, and earnings per share increased 3% compared to last year's fourth quarter.
The company's retail auto business delivered 120,530 units during the quarter, with new units increasing 11% and average new vehicle transaction prices rising by 5% to $60,288. Gross profit per new vehicle retail remained strong at $5,146, up sequentially by $74 from the third quarter of 2024.
The used unit sales declined by 6%, but gross profit per vehicle retail increased $349 quarter-over-quarter, due in part to improved prices and margins on these vehicles. Used units also include a decrease associated with the disposal of three U.K.-based CarShop locations as PAG transitions them to Sytner Select in 2024.
Penske Automotive Group's Q4 performance highlights its continued success in delivering high-quality results across various business segments, including retail auto and commercial truck sales. The company maintains a strong balance sheet with debt capitalization ratios of 26.2 and leverage of 1.2x.
