second quarter of 2026
Filed Jul 29, 2026Quarterly Revenue Increases 6% to $8.5 Billion; Income Before Taxes of $354 Million; Net Income of $260 Million; Earnings Per Share of $3.96
Quarterly revenue and retail automotive activity increased, service and parts margin improved, and PTS earnings grew. GAAP net income and earnings per share declined from the prior-year period, while commercial truck revenue and income before taxes declined as prior weak freight conditions affected deliveries.
Key metrics
as reported| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $8.5 billion | – | 6% |
| Income before taxesGAAP | $354 million | – | – |
| Net income attributable to common stockholdersGAAP | $260.4 million | – | – |
| Earnings per shareGAAP | $3.96 | – | – |
| Adjusted income before taxesnon-GAAP | $323.3 million | – | – |
| Adjusted net incomenon-GAAP | $237.7 million | – | – |
| Adjusted earnings per sharenon-GAAP | $3.62 | – | – |
| Foreign currency exchange impact on revenueother | $47.2 million | – | – |
| Foreign currency exchange impact on net income attributable to common stockholdersother | $1.7 million | – | – |
| Foreign currency exchange impact on earnings per shareother | $0.02 | – | – |
| Six-month revenueGAAP | $16.4 billion | – | – |
| Six-month net income attributable to common stockholdersGAAP | $494.9 million | – | – |
| Six-month earnings per shareGAAP | $7.52 | – | – |
| Six-month adjusted income before taxesnon-GAAP | $599.6 million | – | – |
| Six-month adjusted net incomenon-GAAP | $438.3 million | – | – |
| Six-month adjusted earnings per sharenon-GAAP | $6.66 | – | – |
| Retail automotive service and parts gross marginother | 59.5% | – | improved 80 basis points |
| Retail automotive new vehicle gross profit per unit changeother | decreased $1 | decreased $1 | – |
| Retail automotive used vehicle gross profit per unit changeother | increased $19 | increased $19 | – |
| Retail commercial truck dealership income before taxesGAAP | $47.2 million | – | – |
| Six-month retail commercial truck dealership income before taxesGAAP | $83.5 million | – | – |
| Penske Transportation Solutions earningsother | $57.4 million | – | 7% increase |
| Six-month Penske Transportation Solutions earningsother | $98.5 million | – | 14% increase |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Retail Automotive DealershipsTotal new units delivered increased 5% and used units delivered increased 4%, attributed to resilient consumer demand and improved new vehicle availability from certain manufacturers. Revenue increased 6% on a same-store basis. | $7.3 billion | – | 6% |
| Retail Commercial Truck DealershipsThe dealerships retailed 5,431 new and used units. Lower order intake related to the weak freight environment in the third and fourth quarters of 2025 impacted truck deliveries during the second quarter of 2026. | $927.8 million | – | – |
Capital returns
- During the six months ended June 30, 2026, the Company repurchased 265,104 shares of common stock for approximately $42.5 million.
- As of June 30, 2026, $221.2 million remained outstanding and available for repurchases under our securities repurchase program.
- During July 2026, the Board of Directors approved an increase in the quarterly dividend of 1.4%, or $0.02 per share, to $1.44 per share.
- The dividend is payable September 1, 2026, to shareholders of record as of August 14, 2026.
- The dividend increase represents the Company’s 23rd consecutive quarterly increase.
- On a trailing twelve month basis, the dividend payout ratio is 41%.
What drove it
- Retail automotive same-store revenue increased 6%.
- Same-store retail automotive service and parts revenue increased 2%, gross profit increased 3%, and gross margin improved 80 basis points to 59.5%.
- The Class 8 market order activity began to increase in late 2025 as the freight recession started to show signs of improvement.
- North American Class 8 commercial truck orders increased 118% for the six months ended June 30, 2026 when compared to the same period in the prior year according to industry sources.
- PTS earnings growth was driven by growth in full-service leasing, improved fleet utilization, lower operating expenses, and lower interest costs.
- The Company completed the acquisition of Lexus of Orlando and Lexus of Winter Park in February 2026. The acquisition is expected to add $450 million in estimated annualized revenue.
Concerns
- Net income attributable to common stockholders declined to $260.4 million from $266.6 million, and earnings per share declined to $3.96 from $4.03.
- Commercial truck dealership revenue was $927.8 million compared to $943.6 million, while income before taxes was $47.2 million compared to $54.2 million.
- PTS results were partially offset by continued challenges in the rental market and by a lower gain on the sale of used trucks.
- GAAP results include a gain on the sale of dealerships and the full quarterly results of Penske Motor Group in both periods, which are required by GAAP for common control transactions.
What to watch
- Retail automotive new and used vehicle gross profit per unit remained strong and consistent when compared to the first quarter of 2026, with new vehicle gross profit per unit decreasing $1 and used vehicle gross profit per unit increasing $19.
- Retail commercial truck dealership service and parts revenue increased 5% during the quarter.
- The Company acquired two Toyota and four Lexus dealerships in the last nine months, including acquisitions in November 2025 and February 2026, which are expected to generate approximately $2 billion in estimated annualized revenue.
- The forward dividend yield was 2.7%.
Balance sheet and cash flow
- As of June 30, 2026, the Company had approximately $1.4 billion in liquidity, including $70 million in cash and $1.3 billion of availability under its U.S. and international credit agreements and revolving mortgage facilities.
- The Company’s leverage ratio at June 30, 2026 was 1.7x.
Analysis
Penske Automotive Group reported second-quarter revenue of $8.5 billion, up 6% from $8.0 billion in the prior-year period. Retail automotive dealerships generated $7.3 billion of revenue, also up 6%, including 6% same-store growth. New-unit deliveries increased 5% and used-unit deliveries increased 4%, supported by resilient consumer demand and improved availability from certain manufacturers. Foreign currency exchange positively impacted quarterly revenue by $47.2 million.
Profitability was mixed. GAAP net income attributable to common stockholders declined to $260.4 million from $266.6 million, while GAAP earnings per share declined to $3.96 from $4.03. Adjusted income before taxes was $323.3 million, adjusted net income was $237.7 million, and adjusted earnings per share was $3.62. The reported GAAP results include a gain on the sale of dealerships and the full quarterly results of Penske Motor Group in both periods as required for common control transactions.
Retail automotive aftersales was a favorable mix contributor. Same-store service and parts revenue increased 2%, gross profit increased 3%, and gross margin improved 80 basis points to 59.5%. Vehicle gross profit per unit was broadly stable sequentially, as new vehicle gross profit per unit decreased $1 and used vehicle gross profit per unit increased $19. Commercial truck operations remained the principal area of pressure: revenue was $927.8 million compared with $943.6 million and income before taxes was $47.2 million compared with $54.2 million, reflecting lower order intake during the weak freight environment in the third and fourth quarters of 2025.
PTS provided an offset, with quarterly earnings increasing 7% to $57.4 million on full-service leasing growth, better fleet utilization, lower operating expenses, and lower interest costs. The company also cited continued rental-market challenges and a lower gain on used-truck sales. Management highlighted improving freight conditions and stronger Class 8 order activity, while commercial truck dealership service and parts revenue increased 5% during the quarter.
Capital allocation remained active. The company repurchased 265,104 shares for approximately $42.5 million during the first six months and had $221.2 million remaining under its repurchase authorization at June 30, 2026. Liquidity was approximately $1.4 billion, including $70 million in cash, and leverage was 1.7x. The board raised the quarterly dividend by $0.02 per share to $1.44 per share. No formal financial guidance was provided in the filing.
Management, verbatim
In the second quarter of 2026, our diversified business delivered over 125,000 retail automotive units and more than 5,400 commercial truck units. Retail automotive same-store revenue increased 6%. Retail automotive new and used vehicle gross profit per unit remained strong and consistent when compared to the first quarter of 2026, and service and parts gross margin increased by 80 basis points. Additionally, I am encouraged with the trends we are experiencing across the commercial truck market from an improved freight environment, driving strong orders of Class 8 trucks.
Roger Penske, Chair
Not in the filing
stated, not guessed- Consolidated GAAP gross profit and gross margin for the second quarter of 2026
- Consolidated GAAP operating income for the second quarter of 2026
- Consolidated GAAP operating expenses for the second quarter of 2026
- Consolidated GAAP tax rate for the second quarter of 2026
- Operating cash flow for the second quarter of 2026
- Free cash flow for the second quarter of 2026
- Total debt at June 30, 2026
- Formal forward financial guidance for revenue, gross margin, operating expenses, tax rate, earnings, cash flow, or capital expenditures
- Prior-year quarterly figures for adjusted income before taxes, adjusted net income, and adjusted earnings per share
- Prior-quarter total revenue, net income, earnings per share, and segment revenue figures
- Revenue for Penske Transportation Solutions
AlphaAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.