Revenue growth has moderated to 3.4% in 2026Q1, while operating margins remain constrained at 3.7% due to persistent fixed cost burdens.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 | Dec'99 | Dec'98 | Dec'97 | Dec'96 |
|---|
| Sales/Revenue | 32.07B | 31.81B | 31.86B | 30.92B | 27.81B | 25.55B | 20.44B | 23.18B | 22.79B | 21.39B | 20.12B | 19.28B | 17.23B | 14.71B | 13.16B | 11.56B | 10.71B | 9.52B | 11.65B | 12.96B | 11.24B | 10.19B | 9.89B | 8.67B | 7.43B | 6.22B | 4.56B | 4.02B | 3.34B | 2.09B | 1.3B |
| Revenue Growth % | 4.76% | -0.18% | 3.07% | 11.15% | 8.84% | 25% | -11.8% | 1.73% | 6.54% | 6.3% | 4.32% | 11.91% | 17.18% | 11.71% | 13.91% | 7.87% | 12.5% | -18.23% | -10.12% | 15.26% | 10.32% | 3.08% | 14.01% | 16.63% | 19.52% | 36.54% | 13.26% | 20.32% | 59.97% | 60.29% | 61.84% |
| Cost of Goods Sold | 25.95B | 26.59B | 26.65B | 25.77B | 22.98B | 21.11B | 17.26B | 19.72B | 19.37B | 18.16B | 17.15B | 16.42B | 14.65B | 12.45B | 11.15B | 9.73B | 9.01B | 7.94B | 9.85B | 11.03B | 9.54B | 8.64B | 8.44B | 7.43B | 6.37B | 5.37B | 4.18B | 3.45B | 2.9B | 1.82B | 1.15B |
| COGS % of Revenue | - | 83.6% | 83.63% | 83.35% | 82.6% | 82.62% | 84.42% | 85.09% | 85.01% | 84.93% | 85.25% | 85.13% | 85.03% | 84.63% | 84.71% | 84.2% | 84.12% | 83.38% | 84.62% | 85.14% | 84.84% | 84.84% | 85.33% | 85.66% | 85.71% | 86.32% | 91.79% | 85.87% | 86.74% | 87.11% | 88.4% |
| Gross Profit | 5.25B | 5.22B | 5.22B | 5.15B | 4.84B | 4.44B | 3.18B | 3.46B | 3.41B | 3.22B | 2.97B | 2.87B | 2.58B | 2.26B | 2.01B | 1.83B | 1.7B | 1.58B | 1.79B | 1.93B | 1.66B | 1.55B | 1.45B | 1.24B | 1.06B | 851.16M | 702.13M | 568.57M | 443.4M | 269.4M | 151.3M |
| Gross Margin % | 16.36% | 16.4% | 16.37% | 16.65% | 17.4% | 17.38% | 15.58% | 14.91% | 14.99% | 15.07% | 14.75% | 14.87% | 14.97% | 15.37% | 15.29% | 15.8% | 15.88% | 16.62% | 15.38% | 14.86% | 14.76% | 15.16% | 14.67% | 14.34% | 14.29% | 13.68% | 15.41% | 14.13% | 13.26% | 12.89% | 11.6% |
| Gross Profit Growth % | - | -0% | 1.35% | 6.38% | 8.96% | 39.45% | -7.84% | 1.19% | 5.97% | 8.63% | 3.46% | 11.18% | 14.13% | 12.26% | 10.27% | 7.28% | 7.54% | -11.69% | -6.93% | 16% | 7.4% | 6.57% | 16.62% | 17.06% | 24.8% | 21.22% | 23.49% | 28.23% | 64.59% | 78.06% | 71.74% |
| Operating Expenses | 3.99B | 3.94B | 3.85B | 3.7B | 3.35B | 3.08B | 2.48B | 2.8B | 2.75B | 2.61B | 2.39B | 2.3B | 2.08B | 1.77B | 1.65B | 1.53B | 1.46B | 1.37B | 2.19B | 1.58B | 1.36B | 1.25B | 1.14B | 1.01B | 882.23M | 693.3M | 508.61M | 464.27M | 391.5M | 264.8M | 132M |
| OpEx % of Revenue | - | 12.38% | 12.07% | 11.96% | 12.05% | 12.07% | 12.13% | 12.09% | 12.07% | 12.21% | 11.89% | 11.93% | 12.06% | 12.04% | 12.52% | 13.22% | 13.63% | 14.42% | 18.81% | 12.21% | 12.08% | 12.29% | 11.57% | 11.67% | 11.87% | 11.15% | 11.16% | 11.54% | 11.71% | 12.67% | 10.12% |
| Selling, General & Admin | 2.85B | 3.76B | 3.69B | 3.55B | 3.22B | 2.96B | 2.36B | 2.69B | 2.65B | 2.52B | 2.3B | 2.22B | 2.01B | 1.71B | 1.59B | 1.48B | 1.41B | 1.32B | 1.49B | 1.53B | 1.36B | 1.21B | 1.14B | 980.01M | 882.23M | 693.3M | 508.61M | 445.14M | 375M | 255.07M | 124.2M |
| SG&A % of Revenue | - | 11.83% | 11.57% | 11.49% | 11.59% | 11.59% | 11.57% | 11.62% | 11.61% | 11.76% | 11.44% | 11.53% | 11.66% | 11.64% | 12.11% | 12.79% | 13.18% | 13.85% | 12.83% | 11.82% | 12.07% | 11.91% | 11.57% | 11.3% | 11.87% | 11.15% | 11.16% | 11.07% | 11.22% | 12.21% | 9.53% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 4M | 172.3M | 161.3M | 143.7M | 127.3M | 121.5M | 115.5M | 109.6M | 103.7M | 95.1M | 89.7M | 78M | 70.2M | 59.6M | 53.99M | 48.9M | 48.88M | 54.23M | 697.08M | 50.96M | 1.57M | 39.39M | 0 | 31.58M | 0 | 0 | 0 | 19.13M | 16.5M | 9.73M | 7.8M |
| Operating Income | 1.25B | 1.28B | 1.37B | 1.45B | 1.49B | 1.36B | 704.5M | 652.7M | 664.9M | 611.4M | 574.9M | 566.5M | 500.4M | 436.2M | 365.1M | 298.19M | 240.85M | 209.1M | -399.66M | 339.76M | 303.15M | 292.7M | 263.7M | 231.83M | 179.98M | 157.85M | 134.14M | 104.3M | 80.57M | 21.29M | 21.3M |
| Operating Margin % | 3.91% | 4.03% | 4.3% | 4.69% | 5.35% | 5.31% | 3.45% | 2.82% | 2.92% | 2.86% | 2.86% | 2.94% | 2.9% | 2.97% | 2.77% | 2.58% | 2.25% | 2.2% | -3.43% | 2.62% | 2.7% | 2.87% | 2.67% | 2.67% | 2.42% | 2.54% | 2.94% | 2.59% | 2.41% | 1.02% | 1.63% |
| Operating Income Growth % | - | -6.53% | -5.51% | -2.54% | 9.69% | 92.53% | 7.94% | -1.83% | 8.75% | 6.35% | 1.48% | 13.21% | 14.72% | 19.47% | 22.44% | 23.81% | 15.19% | 152.32% | -217.63% | 12.08% | 3.57% | 10.99% | 13.75% | 28.81% | 14.02% | 17.68% | 28.62% | 29.44% | 278.41% | -0.03% | 501.89% |
| EBITDA | 1.43B | 1.45B | 1.53B | 1.59B | 1.62B | 1.48B | 820M | 762.3M | 768.6M | 706.5M | 664.6M | 644.5M | 570.6M | 495.8M | 417.3M | 344.59M | 285.37M | 263.33M | -345.78M | 389.79M | 345.6M | 330.25M | 300.07M | 264.9M | 201.53M | 190.48M | 157.97M | 123.43M | 97.04M | 30.39M | 26.6M |
| EBITDA Margin % | 4.46% | 4.57% | 4.81% | 5.15% | 5.81% | 5.78% | 4.01% | 3.29% | 3.37% | 3.3% | 3.3% | 3.34% | 3.31% | 3.37% | 3.17% | 2.98% | 2.66% | 2.77% | -2.97% | 3.01% | 3.07% | 3.24% | 3.04% | 3.05% | 2.71% | 3.06% | 3.47% | 3.07% | 2.9% | 1.45% | 2.04% |
| EBITDA Growth % | -2.28% | -5.12% | -3.91% | -1.32% | 9.28% | 80.23% | 7.57% | -0.82% | 8.79% | 6.3% | 3.12% | 12.95% | 15.09% | 18.81% | 21.1% | 20.75% | 8.37% | 176.16% | -188.71% | 12.79% | 4.65% | 10.06% | 13.28% | 31.45% | 5.8% | 20.57% | 27.99% | 27.19% | 219.28% | 14.26% | 1164% |
| D&A (Non-Cash Add-back) | 177.2M | 172.3M | 161.3M | 143.7M | 127.3M | 121.5M | 115.5M | 109.6M | 103.7M | 95.1M | 89.7M | 78M | 70.2M | 59.6M | 52.2M | 46.4M | 44.52M | 54.23M | 53.88M | 50.03M | 42.45M | 37.55M | 36.37M | 33.08M | 21.55M | 32.62M | 23.84M | 19.13M | 16.46M | 9.1M | 5.3M |
| EBIT | 1.41B | 1.53B | 1.57B | 1.7B | 1.98B | 1.7B | 864.9M | 800.2M | 799.7M | 719M | 644.4M | 605.8M | 557.2M | 460.5M | 374.9M | 320.6M | 275.64M | 219.71M | -398.51M | 339.76M | 301.63M | 279.81M | 243.55M | 231.83M | 176.44M | 149.75M | 134.14M | 104.3M | 80.57M | 21.29M | 21.3M |
| Net Interest Income | -222M | -262.2M | -87.8M | -227.9M | -122.8M | -94.8M | -157.3M | -208.7M | -195.6M | -170.8M | -136.3M | -113.9M | -99.3M | -88.7M | -84.1M | -72.6M | -90M | -90.75M | -118.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 222M | 262.2M | 87.8M | 227.9M | 122.8M | 94.8M | 157.3M | 208.7M | 195.6M | 170.8M | 136.3M | 113.9M | 99.3M | 88.7M | 84.1M | 72.6M | 90M | 90.75M | 118.69M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Income/Expense | -3.9M | -17M | -80.2M | 25.1M | 371.4M | 251.3M | 3.1M | -61.2M | -60.8M | -63.2M | -66.8M | -74.6M | -42.5M | -60.8M | -76.11M | -49.8M | -70.68M | -79.67M | 87.78M | -143.88M | -178.45M | -173.72M | -152.02M | -88.68M | -74.18M | -77.22M | 0 | -56.17M | 0 | -33.21M | -5.2M |
| Pretax Income | 1.25B | 1.26B | 1.29B | 1.48B | 1.86B | 1.61B | 707.6M | 591.5M | 604.1M | 548.2M | 508.1M | 491.9M | 457.9M | 375.4M | 290.8M | 248.39M | 170.17M | 129.43M | -311.88M | 195.88M | 124.7M | 118.97M | 111.69M | 143.15M | 105.8M | 80.64M | 60.56M | 48.12M | 24.93M | -11.92M | 16.1M |
| Pretax Margin % | 3.9% | 3.97% | 4.05% | 4.77% | 6.68% | 6.29% | 3.46% | 2.55% | 2.65% | 2.56% | 2.53% | 2.55% | 2.66% | 2.55% | 2.21% | 2.15% | 1.59% | 1.36% | -2.68% | 1.51% | 1.11% | 1.17% | 1.13% | 1.65% | 1.42% | 1.3% | 1.33% | 1.2% | 0.75% | -0.57% | 1.23% |
| Income Tax | 323.2M | 325.8M | 316.5M | 360.9M | 473M | 416.3M | 162.7M | 156.7M | 134.3M | -64.8M | 160.7M | 158M | 153.1M | 124.3M | 94.33M | 71.93M | 57.91M | 45.39M | -100.02M | 67.31M | 67.84M | 68.87M | 67.88M | 57.46M | 41.6M | 32.97M | 26.56M | 21.41M | 11.55M | -3.98M | 7.2M |
| Effective Tax Rate % | 25.85% | 25.78% | 24.54% | 24.47% | 25.44% | 25.89% | 22.99% | 26.49% | 22.23% | -11.82% | 31.63% | 32.12% | 33.44% | 33.11% | 32.44% | 28.96% | 34.03% | 35.07% | 32.07% | 34.36% | 54.41% | 57.89% | 60.78% | 40.14% | 39.32% | 40.89% | 43.86% | 44.5% | 46.34% | 33.4% | 44.72% |
| Net Income | 925.6M | 935.4M | 968.9M | 1.11B | 1.38B | 1.19B | 543.6M | 435.8M | 471M | 613.3M | 342.9M | 326.1M | 286.7M | 244.2M | 185.54M | 176.88M | 108.28M | 76.46M | -411.9M | 127.74M | 124.7M | 118.97M | 111.69M | 82.93M | 62.24M | 44.74M | 30.03M | 27.49M | -797K | -10.14M | 3M |
| Net Margin % | 2.89% | 2.94% | 3.04% | 3.59% | 4.96% | 4.65% | 2.66% | 1.88% | 2.07% | 2.87% | 1.7% | 1.69% | 1.66% | 1.66% | 1.41% | 1.53% | 1.01% | 0.8% | -3.54% | 0.99% | 1.11% | 1.17% | 1.13% | 0.96% | 0.84% | 0.72% | 0.66% | 0.68% | -0.02% | -0.49% | 0.23% |
| Net Income Growth % | -2.36% | -3.46% | -12.62% | -19.65% | 16.18% | 118.51% | 24.74% | -7.47% | -23.2% | 78.86% | 5.15% | 13.74% | 17.4% | 31.62% | 4.9% | 63.35% | 41.62% | 118.56% | -422.46% | 2.44% | 4.81% | 6.52% | 34.68% | 33.24% | 39.1% | 49% | 9.25% | 3548.93% | 92.14% | -438% | 185.71% |
| Net Income (Continuing) | 926.9M | 937.9M | 973.4M | 1.11B | 1.39B | 1.19B | 544.9M | 434.8M | 469.8M | 613M | 347.4M | 333.9M | 304.8M | 248.5M | 196.2M | 176.46M | 112.26M | 84.04M | -402.49M | 129.77M | 132.77M | 120.95M | 114.6M | 85.69M | 59.7M | 42.02M | 33.87M | 26.71M | 13.38M | -7.94M | 8.9M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 1.3M | 400K | 300K | 500K | -200K | -1M | -3.5M | -14.7M | -2.8M | 0 | 0 | -2.91M | 0 | 0 | -2.81M | -1.11M | -2.46M | -5.5M | 0 | 2.54M | 2.73M | 0 | 0 | -12.94M | -2.2M | -900K |
| Minority Interest | 18.5M | 18.5M | 17.5M | 29.4M | 26.8M | 25M | 23.6M | 18.2M | 25.6M | 32.8M | 28.6M | 44.7M | 28.4M | 17.7M | 12.11M | 4.43M | 4.3M | 3.58M | 3.62M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 14.07 | 14.13 | 14.49 | 15.50 | 18.55 | 14.89 | 6.74 | 5.28 | 5.53 | 7.14 | 3.99 | 3.63 | 3.17 | 2.70 | 2.05 | 1.94 | 1.18 | 0.83 | -4.47 | 1.35 | 1.32 | 1.29 | 1.24 | 1.01 | 0.76 | 0.31 | 0.51 | 0.52 | -0.02 | -0.27 | 0.07 |
| EPS Growth % | -5.57% | -2.48% | -6.52% | -16.44% | 24.58% | 120.92% | 27.65% | -4.52% | -22.55% | 78.95% | 9.92% | 14.51% | 17.41% | 31.71% | 5.67% | 64.41% | 42.17% | 118.57% | -431.11% | 2.27% | 2.33% | 4.03% | 22.77% | 32.89% | 145.16% | -39.22% | -1.92% | 2674.26% | 92.52% | -485.71% | 141.18% |
| EPS (Basic) | - | 14.13 | 14.49 | 15.50 | 18.55 | 14.89 | 6.74 | 5.28 | 5.53 | 7.14 | 3.99 | 3.63 | 3.17 | 2.70 | 2.05 | 1.94 | 1.18 | 0.83 | -4.47 | 1.36 | 1.34 | 1.30 | 0.64 | 0.48 | 0.36 | 0.44 | 0.63 | 0.57 | -0.02 | -0.28 | 0.08 |
| Diluted Shares Outstanding | 65.8M | 66.2M | 66.9M | 68M | 74.39M | 79.75M | 80.59M | 82.5M | 85.2M | 85.88M | 86M | 89.76M | 90.35M | 90.33M | 90.34M | 91.27M | 92.09M | 91.65M | 93.21M | 94.56M | 94.18M | 93.93M | 91.23M | 82.45M | 82.34M | 145.45M | 58.83M | 53.05M | 39.85M | 37.91M | 42.86M |
| Basic Shares Outstanding | 65.8M | 66.2M | 66.9M | 68M | 74.39M | 79.7M | 80.59M | 82.5M | 85.2M | 85.88M | 85.75M | 88.86M | 85.91M | 89.45M | 90.32M | 91.27M | 92.09M | 91.56M | 93.21M | 94.1M | 93.39M | 92.83M | 174.52M | 174.52M | 174.52M | 101.95M | 40.41M | 43.9M | 39.38M | 36.58M | 40M |
| Dividend Payout Ratio | - | 36.75% | 28.32% | 17.05% | 11.17% | 12% | 12.53% | 30.01% | 25.73% | 17.67% | 27.73% | 26% | 24.59% | 22.93% | 22.37% | 12.43% | - | 44.34% | - | 22.27% | 20.22% | 17.52% | 16.48% | 4.97% | - | - | - | - | - | - | - |
Cyclical Margin Compression
According to quarterly financial disclosures, PAG's revenue growth has exhibited significant volatility, peaking at 14.6% in 2025Q4 before moderating to 3.4% in 2026Q1, reflecting the broader industry transition from supply-constrained pricing environments toward a more normalized, volume-driven retail landscape across its global automotive footprint.
The inconsistent top-line performance suggests that the company is struggling to maintain the elevated growth rates observed during the post-pandemic inventory shortage. Investors should monitor whether the recent deceleration indicates a structural softening in consumer demand or merely a temporary adjustment as vehicle availability improves.
Based on reported income statements, PAG's gross margin has fluctuated within a narrow band, reaching 16.5% in 2026Q1, which highlights the ongoing difficulty in sustaining the high gross profit per unit levels that characterized the previous two years of constrained vehicle supply.
The compression of margins appears to be a direct consequence of increased promotional activity as inventory levels normalize across the industry. This trend warrants further investigation into whether the company can offset these declines through its higher-margin fixed operations and commercial truck segments.
As indicated by the latest quarterly data, PAG's operating margin of 3.7% in 2026Q1 demonstrates limited scalability, as the company continues to grapple with fixed cost burdens that do not contract in lockstep with the recent volatility in top-line revenue growth.
The inability to significantly expand operating margins during periods of revenue growth suggests that the dealership model remains highly sensitive to personnel and facility-related overhead. This lack of operating leverage may imply that future profitability gains will be difficult to achieve without substantial cost-cutting measures.
Financial statements reveal that PAG's net income remains sensitive to non-operating items and equity-method contributions, with EPS growth showing a 2.7% decline in 2026Q1, suggesting that the core retail business may be facing headwinds that are currently masked by diversified investment income.
Short-sellers may focus on the reliance on equity-method income from Penske Transportation Solutions to bolster the bottom line, which may obscure the underlying performance of the core retail franchises. Investors should be cautious of the potential for margin compression if the commercial truck segment experiences a cyclical downturn.
Quick answers to the most common questions about buying PAG stock.
For fiscal year 2025, Penske Automotive Group, Inc. (PAG) reported total revenue of $31.81B. This represents a 2339.7% increase compared to $1.30B in 1996.
Penske Automotive Group, Inc. (PAG) is profitable, generating $935.4M in net income for the fiscal year ending 2025 with a net profit margin of 2.9%.
Penske Automotive Group, Inc. (PAG) reported an operating income of $1.28B, resulting in an operating profit margin of 4.0%. This margin reflects the operational efficiency of the business before interest and taxes.
Penske Automotive Group, Inc. (PAG) generated $5.22B in gross profit for the year, representing a gross profit margin of 16.4%. This demonstrates the company's core pricing power and production efficiency.