Penske Automotive Q2 earnings fall on record revenue

The public dealership group’s retail automotive same-store service and parts revenue was up 11 percent year over year to $653 million.

Total retail automotive revenue increased 7 percent to $6.4 billion. Total retail automotive gross profit increased 2.4 percent to $1.1 billion.

Retail automotive same-store revenue increased 5.8 percent year over year to $6.3 billion. New-vehicle same-store revenue rose 1.5 percent to $2.8 billion, while used-vehicle retail same-store revenue fell 3.5 percent to $2.3 billion. Same-store finance and insurance revenue was down 4.2 percent to $209.3 million.

Premium brands represented 71 percent of Penske’s retail automotive sales in the quarter, with BMW and Mini accounting for 25 percent of the total.

Automotive same-store gross profit for retail new vehicles rose 4 percent but dropped 21 percent for retail used vehicles. Finance and insurance gross profit was down 4 percent for retail same-store automotive, while gross profit for retail same-store automotive service and parts was up 10 percent.

In the first quarter, Penske started transitioning certain brands in the U.K. to an agency model for new-vehicle sales. These dealerships received a fee for facilitating the sale of a new vehicle by the manufacturer. Penske does not record revenue for the vehicle price, the company said. The fees Penske received for facilitating those vehicle sales are included in new-vehicle revenue and gross profit.

Other second-quarter earnings highlights:

Q2 revenue: $7.5 billion, up 8.1 percent from a year earlier.

Q2 net income: $302.6 million, down 19.5 percent.

Q2 net income attributable to common stockholders: $300.8 million, down 19.6 percent.

Q2 vehicle sales (including U.K. agency sales): On a same-store basis, Penske sold 120,203 combined new and used vehicles, up 6 percent. That total included 7,554 agency units sold in the U.K. Penske didn’t specify its U.S. sales.

Penske, of Bloomfield Hills, Mich., ranks No. 3 on Automotive News‘ list of the top 150 dealership groups based in the U.S., retailing 185,831 new vehicles in 2022.