Penske Automotive Group (NYSE:PAG) reported fourth-quarter results on Wednesday that fell short on profit, even as revenue exceeded Wall Street expectations.
Shares of the automotive retailer slipped 1.04% in premarket trading following the release.
Adjusted earnings per share came in at $2.91, below the $3.18 consensus estimate. Revenue totaled $7.8 billion, ahead of the $7.62 billion forecast, but down 3.8% from $8.1 billion in the same quarter a year earlier. The earnings miss reflected tough year-over-year comparisons and a challenging operating backdrop.
“In 2025, our business delivered over 504,000 retail auto and commercial truck units, generated nearly $32 billion in revenue and $1.3 billion in earnings before taxes,” said Chair Roger Penske.
“Our diversified model remains resilient as vehicle inventory remains in good shape, service and parts remain strong, and our costs remain well controlled.”
New vehicle retail sales declined 10% during the quarter, including an 8% drop in the U.S. and a 14% decrease in international markets. Used vehicle sales fell 6% overall.
Management cited divestitures, softer sales of certain premium brands in the U.S. and U.K., and supply disruptions tied to a cyber incident affecting Land Rover and Jaguar production as key factors behind the decline.
Despite pressure on vehicle sales, the company’s service and parts segment delivered record fourth-quarter revenue and gross profit. Same-store service and parts revenue rose 5% year over year.
The board approved a 1.4% increase in the quarterly dividend to $1.40 per share. In 2025, Penske repurchased 1,178,411 shares, equal to roughly 1.8% of shares outstanding.
Penske also highlighted recent expansion efforts, including the acquisition of two Toyota dealerships and four Lexus dealerships, representing approximately $2 billion in estimated annualized revenue to support future growth.