The revenue beat and adjusted EPS surprise are positive, but GAAP earnings decline and margin compression (total gross margin -90bps YoY) suggest underlying pressure. Watch for commercial truck recovery as Class 8 orders surged 118% YTD, which could boost H2 results. The dividend increase and strong liquidity support the stock, but rising interest costs (+53% YoY) warrant monitoring.
Price Chart
Executive Summary
Penske Automotive Group reported Q2 2026 revenue of $8.5B (+6% YoY), beating consensus of $8.05B, and adjusted EPS of $3.62 (beat $3.48 consensus by 4%). However, GAAP net income declined 2.3% YoY and GAAP EPS fell 1.7% to $3.96, reflecting margin compression in vehicle sales and higher interest costs. The mixed results show top-line strength driven by automotive retail (+6% same-store) and service/parts margin expansion, offset by lower new-vehicle gross profit per unit and a 53% jump in other interest expense.
Key Financial Metrics
Key Facts
- Revenue $8.51B (+6.0% YoY) vs consensus $8.05B
- Adjusted EPS $3.62 (beat $3.48 consensus by 4.0%)
- GAAP EPS $3.96 (down 1.7% YoY from $4.03)
- Retail automotive same-store revenue +5.7%; service/parts gross margin +80bps to 59.5%
- Commercial truck revenue -1.7% YoY but service/parts +4.9%
- PTS equity earnings +7% to $57.4M
- Dividend increased 1.4% to $1.44/share (23rd consecutive quarterly increase)
- Leverage ratio 1.7x; $1.4B liquidity; $221.2M remaining buyback authorization
Financial Impact
Revenue beat consensus by ~$463M; adjusted EPS beat by $0.14
Risk Factors
- New-vehicle gross profit per unit declined 10.4% YoY ($4,782 vs $5,337)
- Other interest expense rose 53.2% YoY to $33.1M
- Commercial truck revenue remains down 1.7% YoY despite improving order trends
- Foreign currency exchange positively impacted revenue by $47.2M but could reverse
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001628280-26-050469 |
| Document: pag-20260729.htm | 0001628280-26-050469 |
| Document: 0001628280-26-050469-index-headers.html | 0001628280-26-050469 |
| Document: 0001628280-26-050469-index.html | 0001628280-26-050469 |
| Document: 0001628280-26-050469.txt | 0001628280-26-050469 |
| 8-K Data (Synthetic) | 0001628280-26-050469 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 16, 2026 10d ago | DEFA14A | $212.00 $212.32 | ▲ +0.15% | ▲ +0.30% | $212.09 (+0.04%) |
Oct 15, 2026 11d ago | DEFA14A | $212.42 $212.33 | ▼ −0.04% | ▼ −0.14% | $212.09 (−0.16%) |
Oct 15, 2026 11d ago | DFAN14A | $212.00 $212.11 | ▲ +0.05% | ▲ +1.07% | $212.09 (+0.04%) |
Oct 15, 2026 11d ago | SC 13D/A | $212.00 $212.11 | ▲ +0.05% | ▲ +1.07% | $212.09 (+0.04%) |
Oct 15, 2026 11d ago | SC 13D/A | $212.00 $212.11 | ▲ +0.05% | ▲ +1.07% | $212.09 (+0.04%) |
Oct 15, 2026 11d ago | DEFA14A | $212.00 $212.11 | ▲ +0.05% | ▲ +1.07% | $212.09 (+0.04%) |
Oct 15, 2026 11d ago | 8-K | $212.00 $212.11 | ▲ +0.05% | ▲ +1.07% | $212.09 (+0.04%) |
Oct 15, 2026 11d ago | 8-K | $212.00 $212.11 | ▲ +0.05% | ▲ +1.07% | $212.09 (+0.04%) |
Oct 15, 2026 11d ago | Press Release | $212.00 $212.11 | ▲ +0.05% | ▲ +1.07% | $212.09 (+0.04%) |
Aug 10, 2026 11w ago | 8-K | $216.66 $216.21 | ▼ −0.21% | ▲ +0.20% | $212.09 (−2.11%) |
US Market Status
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