Penske Automotive Group Reports Mixed Financial Results for Q3 and Nine Months Ended September 30, 2024

Penske Automotive Group, Inc. reported its financial results for the three and nine months ended September 30, 2024, showing a mixed performance compared to the previous fiscal period. Total revenue for the third quarter reached $7,590.8 million, a slight increase from $7,447.8 million in the same period of 2023. For the nine months, revenue rose to $22,735.3 million from $22,255.3 million year-over-year. However, net income for the third quarter decreased to $227.0 million from $264.4 million, and for the nine months, it fell to $686.1 million from $866.6 million in the prior year.

The company's gross profit for the third quarter was $1,243.2 million, up from $1,220.4 million in 2023, while operating income decreased to $317.4 million from $331.5 million. Basic earnings per share attributable to common stockholders dropped to $3.39 from $3.92 in the same quarter last year. Despite the decline in net income, comprehensive income for the third quarter increased significantly to $314.5 million, compared to $198.1 million in 2023.

Penske's balance sheet showed total assets increasing to $17,065.4 million as of September 30, 2024, up from $15,671.5 million at the end of 2023. Current liabilities also rose to $6,754.3 million from $5,657.9 million, contributing to an increase in total liabilities to $11,831.4 million. Stockholders' equity improved to $5,203.3 million from $4,726.2 million, reflecting retained earnings growth to $5,408.7 million from $4,990.3 million.

Strategically, Penske expanded its operations by acquiring 16 retail automotive franchises and opening one in the U.K. during the nine months ended September 30, 2024. The company also closed several dealerships, including one Jaguar franchise and one Chrysler/Dodge/Jeep/Ram dealership in the U.S. Additionally, Penske transitioned its remaining U.K. CarShop locations to Sytner Select dealerships and signed an agreement to acquire a third Porsche dealership in Melbourne, Australia.

The retail automotive segment generated $19,434.1 million in revenue for the nine months, up from $19,031.2 million, while the retail commercial truck segment saw a slight decline to $2,747.4 million from $2,779.5 million. The company reported a significant increase in service and parts revenue, which rose by 10.9% year-over-year.

Penske's cash and cash equivalents decreased to $91.9 million from $96.4 million at the end of 2023, while net cash provided by operating activities for the nine months was $962.1 million, down from $1,022.2 million in the previous year. The company also reported increased capital expenditures of $282.6 million compared to $272.1 million in 2023, reflecting ongoing investments in its operations.