Penske Automotive Reports Third-Quarter EPS of $3.36 as Revenue Rises 5%

The Tip Desk · November 2, 2026 · 3 min read

Third-quarter revenue rose 5% to $8.4 billion as the company booked $3.36 a share including $0.07 of deal costs.

Penske Automotive Group (PAG), a diversified international transportation services company and one of the world’s premier automotive and commercial truck retailers, reported third-quarter 2026 revenue of $8.4 billion, up 5%, and earnings of $3.36 a share, including $0.07 a share in proposed transaction costs. The company entered a merger agreement to be taken private by Motown Acquisition Corp., an entity owned by Penske Corporation and Mitsui & Co., Ltd. Under the agreement, holders other than Penske Corporation, Mitsui and the other investor-group members would receive $212.00 per share in cash, valuing the company at approximately $16.3 billion enterprise value.

The proposed transaction is expected to close in the first quarter of 2027, subject to closing conditions. If completed, Penske would hold about 64% of the company and Mitsui about 36%. The company said it will not host an earnings call in connection with the quarter’s results.

For the third quarter of 2026, revenue increased 5% to $8.4 billion from $8.1 billion a year earlier, after a 6% year-over-year increase to $8.5 billion in the second quarter. Income before taxes was $302.0 million, net income attributable to common stockholders was $220.8 million, and earnings were $3.36 a share, each including $6.3 million of Proposed Transaction costs, or $4.6 million after tax, or $0.07 a share.

Operating income was $303.1 million, down 2.5% from $311.0 million a year earlier, and 3.6% of revenue versus 3.9%. Gross profit was $1,324.1 million, up 1.9% from $1,299.6 million, with total gross margin of 15.7% versus 16.1%. Equity in earnings of affiliates was $68.3 million, up 17.0% from $58.4 million. The company recorded $68.5 million of earnings on its 28.9% interest in Penske Transportation Solutions.

Retail automotive revenue increased 1% to $7.0 billion and 2% on a same-store basis, after a 6% increase to $7.3 billion, and 6% same-store, in the prior quarter. Total new units delivered decreased 2% and used units delivered increased 2%, after new units increased 5% and used units increased 4% in the second quarter. Sequential to the second quarter, new-vehicle gross profit per unit decreased $258 and used-vehicle gross profit per unit decreased $149.

New-vehicle gross profit per unit excluding agency was $4,524, down 2.5% from $4,642 a year earlier. Used-vehicle gross profit per unit was $1,946, down 6.6% from $2,083. New-vehicle gross margin was 8.4% versus 8.7%; used-vehicle gross margin was 4.7% versus 5.1%. Same-store service and parts revenue and gross profit both increased 3% versus the year-ago period.

Retail commercial truck dealerships retailed 6,779 new and used units and generated $1.1 billion in revenue and $59.6 million in income before taxes, versus 5,108 units, $918.6 million of revenue, and $41.5 million in income before taxes a year earlier. New retail units increased 33.8% to 5,749 from 4,298, and new-vehicle revenue increased 25.8% to $781.1 million from $620.8 million. New-vehicle gross profit per unit was $7,243, down 10.3% from $8,075, and new-vehicle revenue per unit was $135,857, down 5.9% from $144,435.

The Merger Agreement restricts the company’s ability to repurchase common stock, and it does not expect further repurchases under existing authority during the pendency of the deal. As of September 30, 2026, liquidity was approximately $1.6 billion, including $68 million in cash and $1.5 billion of credit availability, and the leverage ratio was 1.6x. In October 2026 the board approved a 1.4% increase in the quarterly dividend, or $0.02 a share, to $1.46 a share, annualized $5.84 a share.