Penske Automotive Group, Inc. (NYSE:PAG) shares rose on Wednesday after the dealership giant posted mixed quarterly results, with strong revenue failing to offset softer profitability.

Investors focused on management’s growth strategy and capital return moves as the company navigates a challenging truck freight market and uneven global demand.

Quarterly Metrics

Penske Automotive reported Q4 adjusted EPS of $2.91, below the $3.10 consensus. Yet, sales rose to $7.769 billion, beating estimates of $7.604 billion.

Net income attributable to common stockholders fell to $186.1 million from $249.3 million a year earlier; adjusted net income declined 23% to $191.5 million.

New vehicle deliveries dropped 10% overall, with U.S. units down 8% and international units down 14%. Retail commercial truck dealerships sold 3,789 units, generating $725.4 million in revenue and $33.8 million in pre-tax earnings.

For 2025, Penske delivered over 504,000 units, with nearly $32 billion in revenue and $1.3 billion in pre-tax earnings. Challenges included pull-forward sales, weakness in the commercial truck market, and macroeconomic headwinds in the U.K.

The company has divested 23 non-strategic dealerships over two years and added two Toyota and four Lexus stores to bolster growth. Liquidity stood at $1.6 billion, including $65 million in cash and $1.5 billion available under credit agreements.

Dividend

Penske Automotive approved an increase in the quarterly dividend of 1.4%, or 2 cents per share, to $1.40 per share representing a forward dividend yield of 3.4%. This represents the company’s 21st consecutive quarterly increase.

PAG Price Action: Penske Automotive shares are trading higher by 5.13% to $173.50 at last check on Wednesday.

Image: Shutterstock