0001019849 December 31 2025 Q1 false http://fasb.org/us-gaap/2024#AccruedLiabilitiesCurrent xbrli:shares iso4217:USD iso4217:USD xbrli:shares xbrli:pure pag:franchise pag:dealership pag:state pag:location iso4217:GBP pag:segment 0001019849 2025-01-01 2025-03-31 0001019849 2025-04-25 0001019849 2025-03-31 0001019849 2024-12-31 0001019849 us-gaap:NonvotingCommonStockMember 2024-12-31 0001019849 us-gaap:NonvotingCommonStockMember 2025-03-31 0001019849 us-gaap:CommonClassCMember 2024-12-31 0001019849 us-gaap:CommonClassCMember 2025-03-31 0001019849 pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:RetailAutomotiveDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:RetailCommercialTruckDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:RetailCommercialTruckDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:CommercialVehicleDistributionAndOtherMember 2025-01-01 2025-03-31 0001019849 pag:CommercialVehicleDistributionAndOtherMember 2024-01-01 2024-03-31 0001019849 2024-01-01 2024-03-31 0001019849 2023-12-31 0001019849 2024-03-31 0001019849 us-gaap:CommonStockMember 2024-12-31 0001019849 us-gaap:AdditionalPaidInCapitalMember 2024-12-31 0001019849 us-gaap:RetainedEarningsMember 2024-12-31 0001019849 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-12-31 0001019849 us-gaap:ParentMember 2024-12-31 0001019849 us-gaap:NoncontrollingInterestMember 2024-12-31 0001019849 us-gaap:CommonStockMember 2025-01-01 2025-03-31 0001019849 us-gaap:AdditionalPaidInCapitalMember 2025-01-01 2025-03-31 0001019849 us-gaap:ParentMember 2025-01-01 2025-03-31 0001019849 us-gaap:RetainedEarningsMember 2025-01-01 2025-03-31 0001019849 us-gaap:NoncontrollingInterestMember 2025-01-01 2025-03-31 0001019849 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-01-01 2025-03-31 0001019849 us-gaap:CommonStockMember 2025-03-31 0001019849 us-gaap:AdditionalPaidInCapitalMember 2025-03-31 0001019849 us-gaap:RetainedEarningsMember 2025-03-31 0001019849 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2025-03-31 0001019849 us-gaap:ParentMember 2025-03-31 0001019849 us-gaap:NoncontrollingInterestMember 2025-03-31 0001019849 us-gaap:CommonStockMember 2023-12-31 0001019849 us-gaap:AdditionalPaidInCapitalMember 2023-12-31 0001019849 us-gaap:RetainedEarningsMember 2023-12-31 0001019849 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2023-12-31 0001019849 us-gaap:ParentMember 2023-12-31 0001019849 us-gaap:NoncontrollingInterestMember 2023-12-31 0001019849 us-gaap:CommonStockMember 2024-01-01 2024-03-31 0001019849 us-gaap:AdditionalPaidInCapitalMember 2024-01-01 2024-03-31 0001019849 us-gaap:ParentMember 2024-01-01 2024-03-31 0001019849 us-gaap:RetainedEarningsMember 2024-01-01 2024-03-31 0001019849 us-gaap:NoncontrollingInterestMember 2024-01-01 2024-03-31 0001019849 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-01-01 2024-03-31 0001019849 us-gaap:CommonStockMember 2024-03-31 0001019849 us-gaap:AdditionalPaidInCapitalMember 2024-03-31 0001019849 us-gaap:RetainedEarningsMember 2024-03-31 0001019849 us-gaap:AccumulatedOtherComprehensiveIncomeMember 2024-03-31 0001019849 us-gaap:ParentMember 2024-03-31 0001019849 us-gaap:NoncontrollingInterestMember 2024-03-31 0001019849 pag:PenskeTruckLeasingCoLPMember 2025-03-31 0001019849 pag:RetailAutomotiveDealershipSegmentMember 2025-03-31 0001019849 country:US pag:RetailAutomotiveDealershipSegmentMember 2025-03-31 0001019849 pag:OutsideUSMember pag:RetailAutomotiveDealershipSegmentMember 2025-03-31 0001019849 pag:UnitedStatesAndUnitedKingdomMember pag:RetailAutomotiveDealershipSegmentMember 2025-03-31 0001019849 country:US pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 country:GB pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 country:AU pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:UnitedStatesAndOntarioCanadaMember pag:RetailCommercialTruckDealershipSegmentMember 2025-03-31 0001019849 pag:RetailCommercialTruckDealershipSegmentMember 2025-03-31 0001019849 pag:PenskeTruckLeasingCoLPMember pag:PenskeCorporationMember 2025-01-01 2025-03-31 0001019849 pag:PenskeTruckLeasingCoLPMember pag:MitsuiAndCoMember 2025-01-01 2025-03-31 0001019849 pag:SeniorSubordinatedNotes3.50PercentDue2025Member 2025-03-31 0001019849 pag:SeniorSubordinatedNotes3.50PercentDue2025Member 2024-12-31 0001019849 pag:A375SeniorSubordinatedNotesDue2029Member 2024-12-31 0001019849 pag:A375SeniorSubordinatedNotesDue2029Member 2025-03-31 0001019849 us-gaap:MortgagesMember 2025-03-31 0001019849 us-gaap:MortgagesMember 2024-12-31 0001019849 pag:VehicleSalesMember pag:RetailAutomotiveAndRetailCommercialTruckDealershipMember 2025-01-01 2025-03-31 0001019849 pag:ServiceAndPartsMember pag:RetailAutomotiveAndRetailCommercialTruckDealershipMember 2025-01-01 2025-03-31 0001019849 pag:FinanceAndInsuranceNetMember pag:RetailAutomotiveAndRetailCommercialTruckDealershipMember 2025-01-01 2025-03-31 0001019849 pag:FinanceAndInsuranceNetMember pag:RetailAutomotiveAndRetailCommercialTruckDealershipMember 2025-03-31 0001019849 pag:FinanceAndInsuranceNetMember pag:RetailAutomotiveAndRetailCommercialTruckDealershipMember 2024-12-31 0001019849 pag:NewVehicleMember pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:NewVehicleMember pag:RetailAutomotiveDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:UsedVehicleMember pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:UsedVehicleMember pag:RetailAutomotiveDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:FinanceAndInsuranceNetMember pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:FinanceAndInsuranceNetMember pag:RetailAutomotiveDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:ServiceAndPartsMember pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:ServiceAndPartsMember pag:RetailAutomotiveDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:AgencyFleetAndWholesaleMember pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:AgencyFleetAndWholesaleMember pag:RetailAutomotiveDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 country:US pag:RetailAutomotiveDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 country:GB pag:RetailAutomotiveDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:GermanyItalyAndJapanMember pag:RetailAutomotiveDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:GermanyItalyAndJapanMember pag:RetailAutomotiveDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:NewTruckMember pag:RetailCommercialTruckDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:NewTruckMember pag:RetailCommercialTruckDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:UsedTruckMember pag:RetailCommercialTruckDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:UsedTruckMember pag:RetailCommercialTruckDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:FinanceAndInsuranceNetMember pag:RetailCommercialTruckDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:FinanceAndInsuranceNetMember pag:RetailCommercialTruckDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:ServiceAndPartsMember pag:RetailCommercialTruckDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 pag:ServiceAndPartsMember pag:RetailCommercialTruckDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 us-gaap:ProductAndServiceOtherMember pag:RetailCommercialTruckDealershipSegmentMember 2025-01-01 2025-03-31 0001019849 us-gaap:ProductAndServiceOtherMember pag:RetailCommercialTruckDealershipSegmentMember 2024-01-01 2024-03-31 0001019849 pag:ServiceAndPartsMember pag:CommercialVehicleDistributionAndOtherMember 2025-01-01 2025-03-31 0001019849 pag:ServiceAndPartsMember pag:CommercialVehicleDistributionAndOtherMember 2024-01-01 2024-03-31 0001019849 pag:ContractsInTransitMember 2025-03-31 0001019849 pag:ContractsInTransitMember 2024-12-31 0001019849 pag:VehicleReceivablesMember 2025-03-31 0001019849 pag:VehicleReceivablesMember 2024-12-31 0001019849 pag:ManufacturerReceivablesMember 2025-03-31 0001019849 pag:ManufacturerReceivablesMember 2024-12-31 0001019849 us-gaap:TradeAccountsReceivableMember 2025-03-31 0001019849 us-gaap:TradeAccountsReceivableMember 2024-12-31 0001019849 srt:MinimumMember pag:OperatingLeasesPropertyLeasesMember 2025-03-31 0001019849 srt:MaximumMember pag:OperatingLeasesPropertyLeasesMember 2025-03-31 0001019849 srt:MaximumMember pag:OperatingLeasesEquipmentLeasesMember 2025-03-31 0001019849 pag:AutomotiveInventoryNewVehiclesNetMember 2025-03-31 0001019849 pag:AutomotiveInventoryNewVehiclesNetMember 2024-12-31 0001019849 pag:AutomotiveInventoryUsedVehiclesNetMember 2025-03-31 0001019849 pag:AutomotiveInventoryUsedVehiclesNetMember 2024-12-31 0001019849 pag:AutomotiveInventoryPartsAccessoriesAndOtherNetMember 2025-03-31 0001019849 pag:AutomotiveInventoryPartsAccessoriesAndOtherNetMember 2024-12-31 0001019849 pag:AutomotiveInventoryCommercialVehiclesNetMember 2025-03-31 0001019849 pag:AutomotiveInventoryCommercialVehiclesNetMember 2024-12-31 0001019849 pag:AutomotiveInventoryCommercialDistributionVehiclesNetMember 2025-03-31 0001019849 pag:AutomotiveInventoryCommercialDistributionVehiclesNetMember 2024-12-31 0001019849 country:GB pag:RetailAutomotiveDealershipSegmentMember pag:FranchisedDealershipsMember 2024-01-01 2024-03-31 0001019849 country:IT pag:RetailAutomotiveDealershipSegmentMember pag:FranchisedDealershipsMember 2024-01-01 2024-03-31 0001019849 us-gaap:AllOtherSegmentsMember 2025-03-31 0001019849 pag:NonAutomotiveInvestmentsSegmentMember 2025-03-31 0001019849 pag:USCreditAgreementRevolvingCreditLineMember 2025-03-31 0001019849 pag:USCreditAgreementRevolvingCreditLineMember 2024-12-31 0001019849 pag:UKCreditAgreementRevolvingCreditLineMember 2025-03-31 0001019849 pag:UKCreditAgreementRevolvingCreditLineMember 2024-12-31 0001019849 pag:OtherDebtMember 2025-03-31 0001019849 pag:OtherDebtMember 2024-12-31 0001019849 us-gaap:SubsequentEventMember pag:USCreditAgreementRevolvingCreditLineMember 2025-04-29 0001019849 us-gaap:LetterOfCreditMember pag:USCreditAgreementRevolvingCreditLineMember us-gaap:SubsequentEventMember 2025-04-29 0001019849 us-gaap:SubsequentEventMember pag:USCreditAgreementRevolvingCreditLineMember 2025-04-29 2025-04-29 0001019849 pag:UncollateralizedBorrowingsInExcessOfDefinedBorrowingsMember us-gaap:SubsequentEventMember srt:MinimumMember 2025-04-29 2025-04-29 0001019849 pag:UncollateralizedBorrowingsInExcessOfDefinedBorrowingsMember us-gaap:SubsequentEventMember srt:MaximumMember 2025-04-29 2025-04-29 0001019849 pag:UncollateralizedBorrowingsInExcessOfDefinedBorrowingsMember 2025-01-01 2025-03-31 0001019849 srt:MinimumMember pag:UKCreditAgreementRevolvingCreditLineMember 2025-01-01 2025-03-31 0001019849 srt:MaximumMember pag:UKCreditAgreementRevolvingCreditLineMember 2025-01-01 2025-03-31 0001019849 us-gaap:SeniorSubordinatedNotesMember 2025-03-31 0001019849 us-gaap:SeniorSubordinatedNotesMember 2025-01-01 2025-03-31 0001019849 pag:RevolvingMortgageFacilityMember 2025-03-31 0001019849 pag:RevolvingMortgageFacilityMember 2025-01-01 2025-03-31 0001019849 pag:BoardAuthorizedRepurchaseProgramMember 2025-01-01 2025-03-31 0001019849 pag:BoardAuthorizedRepurchaseProgramMember 2024-01-01 2024-03-31 0001019849 pag:ShareRepurchaseEmployeeEquityAwardsMember 2025-01-01 2025-03-31 0001019849 pag:ShareRepurchaseEmployeeEquityAwardsMember 2024-01-01 2024-03-31 0001019849 pag:BoardAuthorizedRepurchaseProgramMember 2025-03-31 0001019849 us-gaap:AccumulatedTranslationAdjustmentMember 2024-12-31 0001019849 pag:AccumulatedOtherComprehensiveIncomeOtherAdjustmentAttributableToParentMember 2024-12-31 0001019849 us-gaap:AccumulatedTranslationAdjustmentMember 2025-01-01 2025-03-31 0001019849 pag:AccumulatedOtherComprehensiveIncomeOtherAdjustmentAttributableToParentMember 2025-01-01 2025-03-31 0001019849 us-gaap:AccumulatedTranslationAdjustmentMember 2025-03-31 0001019849 pag:AccumulatedOtherComprehensiveIncomeOtherAdjustmentAttributableToParentMember 2025-03-31 0001019849 us-gaap:AccumulatedTranslationAdjustmentMember 2023-12-31 0001019849 pag:AccumulatedOtherComprehensiveIncomeOtherAdjustmentAttributableToParentMember 2023-12-31 0001019849 us-gaap:AccumulatedTranslationAdjustmentMember 2024-01-01 2024-03-31 0001019849 pag:AccumulatedOtherComprehensiveIncomeOtherAdjustmentAttributableToParentMember 2024-01-01 2024-03-31 0001019849 us-gaap:AccumulatedTranslationAdjustmentMember 2024-03-31 0001019849 pag:AccumulatedOtherComprehensiveIncomeOtherAdjustmentAttributableToParentMember 2024-03-31 0001019849 us-gaap:AllOtherSegmentsMember 2025-01-01 2025-03-31 0001019849 pag:NonAutomotiveInvestmentsMember 2025-01-01 2025-03-31 0001019849 us-gaap:AllOtherSegmentsMember 2024-01-01 2024-03-31 0001019849 pag:NonAutomotiveInvestmentsMember 2024-01-01 2024-03-31
Table of Contents
4

UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-Q

x | QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2025
or

o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to
Commission file number 1-12297
Penske Automotive Group, Inc.
(Exact name of registrant as specified in its charter)

Delaware | 22-3086739
(State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.)
2555 Telegraph Road |
Bloomfield Hills, Michigan | 48302-0954
(Address of principal executive offices) | (Zip Code)

Registrant's telephone number, including area code:
(248) 648-2500
Securities registered pursuant to Section 12(b) of the Act:

Title of each class | Trading symbol(s) | Name of each exchange on which registered
Voting Common Stock, par value $0.0001 per share | PAG | New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes x No o
Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes x No o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer | x | Accelerated filer | o | Non-accelerated filer | o | Smaller reporting company | o | Emerging growth company | o

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No x
As of April 25, 2025, there were 66,168,443 shares of voting common stock outstanding.

Table of Contents
TABLE OF CONTENTS

| Page
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements |
Consolidated Condensed Balance Sheets as of March 31, 2025, and December 31, 2024 | 3
Consolidated Condensed Statements of Income for the three months ended March 31, 2025 and 2024 | 4
Consolidated Condensed Statements of Comprehensive Income for the three months ended March 31, 2025 and 2024 | 5
Consolidated Condensed Statements of Cash Flows for the three months ended March 31, 2025 and 2024 | 6
Consolidated Condensed Statement of Equity for the three months ended March 31, 2025 and 2024 | 7
Notes to Consolidated Condensed Financial Statements | 8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations | 23
Item 3. Quantitative & Qualitative Disclosures About Market Risk | 46
Item 4. Controls and Procedures | 47
PART II — OTHER INFORMATION
Item 1. Legal Proceedings | 48
Item 1A. Risk Factors | 48
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds | 50
Item 5. Other Information | 50
Item 6. Exhibits | 52

2

Table of Contents
PART I — FINANCIAL INFORMATION
Item 1. Financial Statements
PENSKE AUTOMOTIVE GROUP, INC.
CONSOLIDATED CONDENSED BALANCE SHEETS

| March 31, 2025 |  | December 31, 2024
| (Unaudited)
| (In millions, except share and per share amounts)
ASSETS |  |  |
Cash and cash equivalents | $ | 118.4 |  |  | $ | 72.4 |
Accounts receivable, net of allowance for doubtful accounts of $6.9 and $6.3 | 1,201.6 |  |  | 1,002.1 |
Inventories | 4,500.3 |  |  | 4,640.2 |
Other current assets | 233.3 |  |  | 213.1 |
Total current assets | 6,053.6 |  |  | 5,927.8 |
Property and equipment, net | 3,075.9 |  |  | 3,006.2 |
Operating lease right-of-use assets | 2,443.3 |  |  | 2,467.2 |
Goodwill | 2,383.3 |  |  | 2,371.3 |
Other indefinite-lived intangible assets | 1,006.3 |  |  | 1,011.6 |
Equity method investments | 1,857.3 |  |  | 1,827.0 |
Other long-term assets | 112.2 |  |  | 109.8 |
Total assets | $ | 16,931.9 |  |  | $ | 16,720.9 |
LIABILITIES AND EQUITY |  |  |
Floor plan notes payable | $ | 2,481.6 |  |  | $ | 2,535.8 |
Floor plan notes payable — non-trade | 1,482.3 |  |  | 1,488.2 |
Accounts payable | 976.1 |  |  | 851.7 |
Accrued expenses and other current liabilities | 983.6 |  |  | 889.0 |
Current portion of long-term debt | 778.5 |  |  | 721.2 |
Total current liabilities | 6,702.1 |  |  | 6,485.9 |
Long-term debt | 993.0 |  |  | 1,130.8 |
Long-term operating lease liabilities | 2,363.7 |  |  | 2,392.6 |
Deferred tax liabilities | 1,212.8 |  |  | 1,231.0 |
Other long-term liabilities | 247.6 |  |  | 253.3 |
Total liabilities | 11,519.2 |  |  | 11,493.6 |
Commitments and contingent liabilities (Note 10) |  |  |
Equity |  |  |
Penske Automotive Group stockholders' equity: |  |  |
Preferred Stock, $0.0001 par value; 100,000 shares authorized; none issued and outstanding | — |  |  | — |
Common Stock, $0.0001 par value, 240,000,000 shares authorized; 66,664,013 shares issued and outstanding at March 31, 2025; 66,774,651 shares issued and outstanding at December 31, 2024 | — |  |  | — |
Non-voting Common Stock, $0.0001 par value; 7,125,000 shares authorized; none issued and outstanding | — |  |  | — |
Class C Common Stock, $0.0001 par value; 20,000,000 shares authorized; none issued and outstanding | — |  |  | — |
Additional paid-in capital | — |  |  | 9.1 |
Retained earnings | 5,704.3 |  |  | 5,565.2 |
Accumulated other comprehensive loss | (309.6) |  |  | (364.5) |
Total Penske Automotive Group stockholders' equity | 5,394.7 |  |  | 5,209.8 |
Non-controlling interest | 18.0 |  |  | 17.5 |
Total equity | 5,412.7 |  |  | 5,227.3 |
Total liabilities and equity | $ | 16,931.9 |  |  | $ | 16,720.9 |

See Notes to Consolidated Condensed Financial Statements.
3

Table of Contents
PENSKE AUTOMOTIVE GROUP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF INCOME

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
| (Unaudited)
| (In millions, except per share amounts)
Revenue: |  |  |  |  |  |  |
Retail automotive dealership | $ | 6,569.3 |  |  | $ | 6,478.0 |  |  |  |  |
Retail commercial truck dealership | 823.7 |  |  | 791.8 |  |  |  |  |
Commercial vehicle distribution and other | 211.5 |  |  | 178.0 |  |  |  |  |
Total revenues | 7,604.5 |  |  | 7,447.8 |  |  |  |  |
Cost of sales: |  |  |  |  |  |  |
Retail automotive dealership | 5,485.5 |  |  | 5,420.8 |  |  |  |  |
Retail commercial truck dealership | 682.7 |  |  | 647.0 |  |  |  |  |
Commercial vehicle distribution and other | 167.3 |  |  | 134.8 |  |  |  |  |
Total cost of sales | 6,335.5 |  |  | 6,202.6 |  |  |  |  |
Gross profit | 1,269.0 |  |  | 1,245.2 |  |  |  |  |
Selling, general, and administrative expenses | 913.6 |  |  | 879.8 |  |  |  |  |
Depreciation | 39.9 |  |  | 37.8 |  |  |  |  |
Operating income | 315.5 |  |  | 327.6 |  |  |  |  |
Floor plan interest expense | (41.5) |  |  | (44.8) |  |  |  |  |
Other interest expense | (22.5) |  |  | (21.3) |  |  |  |  |
Gain on sale of dealership | 52.3 |  |  | — |  |  |  |  |
Equity in earnings of affiliates | 33.3 |  |  | 33.3 |  |  |  |  |
Income before income taxes | 337.1 |  |  | 294.8 |  |  |  |  |
Income taxes | (92.1) |  |  | (78.6) |  |  |  |  |
Net income | 245.0 |  |  | 216.2 |  |  |  |  |
Less: Income attributable to non-controlling interests | 0.7 |  |  | 1.0 |  |  |  |  |
Net income attributable to Penske Automotive Group common stockholders | $ | 244.3 |  |  | $ | 215.2 |  |  |  |  |
Basic earnings per share attributable to Penske Automotive Group common stockholders: |  |  |  |  |  |  |
Net income attributable to Penske Automotive Group common stockholders | $ | 3.66 |  |  | $ | 3.21 |  |  |  |  |
Shares used in determining basic earnings per share | 66.8 |  |  | 67.1 |  |  |  |  |
Diluted earnings per share attributable to Penske Automotive Group common stockholders: |  |  |  |  |  |  |
Net income attributable to Penske Automotive Group common stockholders | $ | 3.66 |  |  | $ | 3.21 |  |  |  |  |
Shares used in determining diluted earnings per share | 66.8 |  |  | 67.1 |  |  |  |  |
Amounts attributable to Penske Automotive Group common stockholders: |  |  |  |  |  |  |
Net income | $ | 245.0 |  |  | $ | 216.2 |  |  |  |  |
Less: Income attributable to non-controlling interests | 0.7 |  |  | 1.0 |  |  |  |  |
Net income attributable to Penske Automotive Group common stockholders | $ | 244.3 |  |  | $ | 215.2 |  |  |  |  |
Cash dividends per share | $ | 1.22 |  |  | $ | 0.87 |  |  |  |  |

See Notes to Consolidated Condensed Financial Statements.
4

Table of Contents
PENSKE AUTOMOTIVE GROUP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF COMPREHENSIVE INCOME

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
| (Unaudited)
| (In millions)
Net income | $ | 245.0 |  |  | $ | 216.2 |  |  |  |  |
Other comprehensive income (loss), net of tax: |  |  |  |  |  |  |
Foreign currency translation adjustment | 55.3 |  |  | (36.6) |  |  |  |  |
Other adjustments to comprehensive income, net of tax | (0.3) |  |  | 3.6 |  |  |  |  |
Other comprehensive income (loss), net of tax: | 55.0 |  |  | (33.0) |  |  |  |  |
Comprehensive income | 300.0 |  |  | 183.2 |  |  |  |  |
Less: Comprehensive income attributable to non-controlling interests | 0.8 |  |  | 1.2 |  |  |  |  |
Comprehensive income attributable to Penske Automotive Group common stockholders | $ | 299.2 |  |  | $ | 182.0 |  |  |  |  |

See Notes to Consolidated Condensed Financial Statements.
5

Table of Contents
PENSKE AUTOMOTIVE GROUP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF CASH FLOWS

| Three Months Ended March 31,
| 2025 |  | 2024
| (Unaudited)
| (In millions)
Operating Activities: |  |  |
Net income | $ | 245.0 |  |  | $ | 216.2 |
Adjustments to reconcile net income to net cash from operating activities: |  |  |
Depreciation | 39.9 |  |  | 37.8 |
Earnings of equity method investments | (33.3) |  |  | (33.3) |
Deferred income taxes | (23.2) |  |  | 14.6 |
Stock-based compensation | 8.0 |  |  | 7.5 |
Gain on sale of dealership | (52.3) |  |  | — |
Changes in operating assets and liabilities: |  |  |
Accounts receivable | (188.9) |  |  | 75.9 |
Inventories | 191.7 |  |  | (77.2) |
Other current assets | (16.1) |  |  | (33.8) |
Floor plan notes payable | (73.0) |  |  | 134.8 |
Accounts payable and accrued expenses | 187.4 |  |  | 130.5 |
Other | (2.5) |  |  | (17.0) |
Net cash provided by operating activities | 282.7 |  |  | 456.0 |
Investing Activities: |  |  |
Purchases of property, equipment, and improvements | (76.6) |  |  | (102.5) |
Proceeds from sale of dealerships | 77.8 |  |  | — |
Proceeds from sale of property and equipment | 4.0 |  |  | — |
Acquisitions net, including repayment of sellers' floor plan notes payable of $0.0 and $83.1, respectively | — |  |  | (243.6) |
Other | (1.7) |  |  | (6.3) |
Net cash provided by (used in) investing activities | 3.5 |  |  | (352.4) |
Financing Activities: |  |  |
Proceeds from borrowings under revolving U.S. credit agreement and mortgage facilities | 1,098.6 |  |  | 668.7 |
Repayments under revolving U.S. credit agreement and mortgage facilities | (1,143.1) |  |  | (700.2) |
Net cash (repayments) borrowings of other debt | (47.5) |  |  | 80.2 |
Net repayments of floor plan notes payable — non-trade | (27.6) |  |  | (30.7) |
Repurchases of common stock | (39.9) |  |  | (32.9) |
Payments of tax withholding for stock-based compensation | (0.1) |  |  | — |
Dividends | (81.8) |  |  | (58.6) |
Payment of debt issuance costs | (0.3) |  |  | (0.5) |
Other | — |  |  | (8.1) |
Net cash used in financing activities | (241.7) |  |  | (82.1) |
Effect of exchange rate changes on cash and cash equivalents | 1.5 |  |  | (1.0) |
Net change in cash and cash equivalents | 46.0 |  |  | 20.5 |
Cash and cash equivalents, beginning of period | 72.4 |  |  | 96.4 |
Cash and cash equivalents, end of period | $ | 118.4 |  |  | $ | 116.9 |
Supplemental disclosures of cash flow information: |  |  |
Cash paid for: |  |  |
Interest | $ | 69.2 |  |  | $ | 68.6 |
Income taxes | 23.5 |  |  | 22.5 |

See Notes to Consolidated Condensed Financial Statements.
6

Table of Contents
PENSKE AUTOMOTIVE GROUP, INC.
CONSOLIDATED CONDENSED STATEMENTS OF EQUITY

| Three Months Ended March 31, 2025
| Voting and Non-voting Common Stock |  | Additional Paid-in Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Income (Loss) |  | Total Penske Automotive Group Stockholders' Equity |  | Non-controlling Interest |  | Total Equity
| Issued Shares |  | Amount |  |  |  |  |  |
| (Unaudited)
| (Dollars in millions)
Balance, December 31, 2024 | 66,774,651 |  |  | $ | — |  |  | $ | 9.1 |  |  | $ | 5,565.2 |  |  | $ | (364.5) |  |  | $ | 5,209.8 |  |  | $ | 17.5 |  |  | $ | 5,227.3 |
Equity compensation | 144,590 |  |  | — |  |  | 8.0 |  |  | — |  |  | — |  |  | 8.0 |  |  | — |  |  | 8.0 |
Repurchases of common stock | (255,228) |  |  | — |  |  | (17.1) |  |  | (23.4) |  |  | — |  |  | (40.5) |  |  | — |  |  | (40.5) |
Dividends | — |  |  | — |  |  | — |  |  | (81.8) |  |  | — |  |  | (81.8) |  |  | — |  |  | (81.8) |
Distributions to non-controlling interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (0.3) |  |  | (0.3) |
Foreign currency translation | — |  |  | — |  |  | — |  |  | — |  |  | 55.2 |  |  | 55.2 |  |  | 0.1 |  |  | 55.3 |
Other | — |  |  | — |  |  | — |  |  | — |  |  | (0.3) |  |  | (0.3) |  |  | — |  |  | (0.3) |
Net income | — |  |  | — |  |  | — |  |  | 244.3 |  |  | — |  |  | 244.3 |  |  | 0.7 |  |  | 245.0 |
Balance, March 31, 2025 | 66,664,013 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,704.3 |  |  | $ | (309.6) |  |  | $ | 5,394.7 |  |  | $ | 18.0 |  |  | $ | 5,412.7 |

| Three Months Ended March 31, 2024
| Voting and Non-voting Common Stock |  | Additional Paid-in Capital |  | Retained Earnings |  | Accumulated Other Comprehensive Income (Loss) |  | Total Penske Automotive Group Stockholders' Equity |  | Non-controlling Interest |  | Total Equity
| Issued Shares |  | Amount |  |  |  |  |  |
| (Unaudited)
| (Dollars in millions)
Balance, December 31, 2023 | 67,111,181 |  |  | $ | — |  |  | $ | — |  |  | $ | 4,990.3 |  |  | $ | (264.1) |  |  | $ | 4,726.2 |  |  | $ | 29.4 |  |  | $ | 4,755.6 |
Equity compensation | 159,507 |  |  | — |  |  | 7.5 |  |  | — |  |  | — |  |  | 7.5 |  |  | — |  |  | 7.5 |
Repurchases of common stock | (221,329) |  |  | — |  |  | (7.5) |  |  | (25.7) |  |  | — |  |  | (33.2) |  |  | — |  |  | (33.2) |
Dividends | — |  |  | — |  |  | — |  |  | (58.6) |  |  | — |  |  | (58.6) |  |  | — |  |  | (58.6) |
Distributions to non-controlling interest | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | (0.3) |  |  | (0.3) |
Foreign currency translation | — |  |  | — |  |  | — |  |  | — |  |  | (36.8) |  |  | (36.8) |  |  | 0.2 |  |  | (36.6) |
Other | — |  |  | — |  |  | — |  |  | (8.1) |  |  | 3.6 |  |  | (4.5) |  |  | — |  |  | (4.5) |
Net income | — |  |  | — |  |  | — |  |  | 215.2 |  |  | — |  |  | 215.2 |  |  | 1.0 |  |  | 216.2 |
Balance, March 31, 2024 | 67,049,359 |  |  | $ | — |  |  | $ | — |  |  | $ | 5,113.1 |  |  | $ | (297.3) |  |  | $ | 4,815.8 |  |  | $ | 30.3 |  |  | $ | 4,846.1 |

See Notes to Consolidated Condensed Financial Statements.
7

Table of Contents
PENSKE AUTOMOTIVE GROUP, INC.
NOTES TO CONSOLIDATED CONDENSED FINANCIAL STATEMENTS
(Unaudited)
(In millions, except share and per share amounts)
1. Interim Financial Statements
Unless the context otherwise requires, the use of the terms "PAG," "we," "us," and "our" in these Notes to the Consolidated Condensed Financial Statements refers to Penske Automotive Group, Inc. and its consolidated subsidiaries.
Business Overview and Concentrations
We are a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. We operate dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia, and we are one of the largest retailers of commercial trucks in North America for Freightliner. We also distribute and retail commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. Additionally, we own 28.9% of Penske Transportation Solutions, a business that manages one of the largest, most comprehensive and modern trucking fleets in North America with trucks, tractors, and trailers under lease, rental, and/or maintenance contracts, and provides innovative transportation, supply chain, and technology solutions to its customers.
Retail Automotive. As of March 31, 2025, we operated 352 retail automotive franchised dealerships, of which 147 are located in the U.S. and 205 are located outside of the U.S., principally in the U.K. As of March 31, 2025, we also operated 16 used vehicle dealerships, with six dealerships in the U.S. operating under the brand name CarShop, nine dealerships in the U.K. operating under the brand name Sytner Select, and one dealership in Australia operating under the brand name Penske Select. During the three months ended March 31, 2025, we sold one retail automotive franchise in the U.S.
In addition to selling new and used vehicles, we generate higher-margin revenue at each of our dealerships through maintenance and repair services, the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, and at certain of our locations, collision repair services. We operate our franchised dealerships under franchise agreements with a number of automotive manufacturers and distributors that are subject to certain rights and restrictions typical of the industry. Some of our dealerships in the U.K. and Europe operate under an agency model where we receive a fee for facilitating the sale by the manufacturer of a new vehicle but do not hold the vehicle in inventory. Vehicles sold under this agency model are counted as new agency units sold instead of new retail units sold by us, and only the fee we receive from the manufacturer, not the price of the vehicle, is reported as new revenue with no corresponding cost of sale.
Retail Commercial Truck Dealership. We operate Premier Truck Group ("PTG"), a heavy- and medium-duty truck dealership group offering primarily Freightliner and Western Star trucks (both Daimler brands), with locations across 10 U.S. states and the Canadian provinces of Ontario and Manitoba. As of March 31, 2025, PTG operated 45 locations selling new and/or used trucks, performing service and parts operations, or offering collision repair services.
Penske Australia. Penske Australia is the exclusive importer and distributor of Western Star heavy-duty trucks (a Daimler brand), MAN heavy- and medium-duty trucks and buses (a VW Group brand), and Dennis Eagle refuse collection vehicles, together with associated parts, across Australia, New Zealand, and portions of the Pacific. In most of these same markets, we are also a leading distributor of diesel and gas engines and power systems, principally representing MTU (a Rolls-Royce solution), Detroit Diesel, Allison Transmission, and Bergen Engines. Penske Australia offers products across the on- and off-highway markets, including in the trucking, mining, power generation, energy solutions, defense, marine, rail, and construction sectors and supports full parts and aftersales service through a network of branches, field service locations, and dealers across the region.
Penske Transportation Solutions. We hold a 28.9% ownership interest in Penske Truck Leasing Co., L.P. ("PTL"). PTL is owned 41.1% by Penske Corporation, 28.9% by us, and 30.0% by Mitsui & Co., Ltd. ("Mitsui"). We account for our investment in PTL under the equity method, and we therefore record our share of PTL's earnings on our statements of income under the caption "Equity in earnings of affiliates," which also includes the results of our other equity method investments. Penske Transportation Solutions ("PTS") is the universal brand name for PTL's various business lines through which it is capable of meeting customers' needs across the supply chain with a broad product offering that includes full-service truck leasing, truck rental, and contract maintenance along with logistics services, such as dedicated contract carriage, distribution center management, freight management, and dry van truckload carrier services.
8

Table of Contents
Basis of Presentation
The accompanying unaudited consolidated condensed financial statements of PAG have been prepared pursuant to the rules and regulations of the Securities and Exchange Commission ("SEC"). Certain information and disclosures normally included in our annual financial statements prepared in accordance with accounting principles generally accepted in the United States ("U.S. GAAP") have been condensed or omitted pursuant to the SEC rules and regulations. The information presented as of March 31, 2025 and for the three months ended March 31, 2025 and 2024 is unaudited but includes all adjustments which our management believes to be necessary for the fair presentation of results for the periods presented. Results for interim periods are not necessarily indicative of results to be expected for the year. These consolidated condensed financial statements should be read in conjunction with our audited financial statements for the year ended December 31, 2024, which are included as part of our Annual Report on Form 10-K.
Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, the disclosure of contingent assets and liabilities at the date of the financial statements, and the reported amounts of revenues and expenses during the reporting period. Actual results could differ from those estimates. The accounts requiring the use of estimates include accounts receivable, inventories, income taxes, intangible assets, leases, and certain reserves.
Fair Value of Financial Instruments
Accounting standards define fair value as the price that would be received from selling an asset, or paid to transfer a liability in the principal or most advantageous market for the asset or liability, in an orderly transaction between market participants at the measurement date. Accounting standards establish a fair value hierarchy which requires an entity to maximize the use of observable inputs and minimize the use of unobservable inputs when measuring fair value and also establishes the following three levels of inputs that may be used to measure fair value:

Level 1 | Quoted prices in active markets for identical assets or liabilities
Level 2 | Observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted market prices in markets that are not active, or model-derived valuations or other inputs that are observable or can be corroborated by observable market data for substantially the full term of the assets or liabilities
Level 3 | Unobservable inputs that are supported by little or no market activity and that are significant to the fair value of the assets or liabilities

Our financial instruments consist of cash and cash equivalents, debt, floor plan notes payable, and forward exchange contracts used to hedge future cash flows. Other than our fixed rate debt, the carrying amount of all significant financial instruments approximates fair value due either to length of maturity, the existence of variable interest rates that approximate prevailing market rates, or as a result of mark to market accounting.
Our fixed rate debt consists of amounts outstanding under our senior subordinated notes and mortgage facilities. We estimate the fair value of our senior unsecured notes using quoted prices for the identical liability (Level 2), and we estimate the fair value of our mortgage facilities using a present value technique based on our current market interest rates for similar types of financial instruments (Level 2). A summary of our fixed rate debt is as follows:

| March 31, 2025 |  | December 31, 2024
| Carrying Value |  | Fair Value |  | Carrying Value |  | Fair Value
3.50% senior subordinated notes due 2025 | 549.5 |  |  | 545.5 |  |  | 549.1 |  |  | $ | 543.0 |
3.75% senior subordinated notes due 2029 | 496.8 |  |  | 456.6 |  |  | 496.6 |  |  | 451.8 |
Mortgage facilities (1) | 428.4 |  |  | 407.9 |  |  | 474.8 |  |  | 450.6 |
_____________________ |  |  |  |  |  |  |
(1)In addition to fixed rate debt, our mortgage facilities also include a revolving mortgage facility with Toyota Motor Credit Corporation in the U.S. and other revolving mortgage facilities that bear interest at variable rates. The fair value equals the carrying value.

9

Table of Contents
Income Taxes
Tax regulations may require items to be included in our tax return at different times than when those items are reflected in our financial statements. Some of the differences are permanent, such as expenses that are not deductible on our tax return, and some are temporary differences, such as the timing of depreciation expense. Temporary differences create deferred tax assets and liabilities. Deferred tax assets generally represent items that will be used as a tax deduction or credit in our tax return in future years which we have already recorded in our financial statements. Deferred tax liabilities generally represent deductions taken on our tax return that have not yet been recognized as an expense in our financial statements. We establish valuation allowances for our deferred tax assets if the amount of expected future taxable income is not more likely than not to allow for the use of the deduction or credit.
Recent Accounting Pronouncements
Segment Reporting
In November 2023, the FASB issued ASU 2023-07, "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures." This ASU expands public entities’ segment disclosures by requiring disclosure of significant segment expenses that are regularly provided to the chief operating decision maker and included within each reported measure of segment profit or loss and also requires that public entities provide all annual disclosures about a reportable segment’s profit or loss and assets in interim periods. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2023, and interim periods within fiscal years beginning after December 15, 2024. Early adoption was permitted. The amendments should be applied retrospectively to all prior periods presented in the financial statements. We adopted this ASU on the effective date for our first annual period beginning on January 1, 2024. In response to this ASU, we revised our presentation of our “Segment Information” footnote. The adoption of this accounting standard update has not had a material impact on our consolidated financial statements and disclosures.
Income Taxes
In December 2023, the FASB issued ASU 2023-09, "Income Taxes (Topic 740): Improvements to Income Tax Disclosures." This ASU expands public entities’ annual income tax disclosures by requiring disclosure of specific categories in the rate reconciliation and disclosure of additional information for reconciling items that meet a quantitative threshold. This ASU is effective for financial statements issued for annual periods beginning after December 15, 2024, with early adoption permitted. The amendments should be applied on a prospective basis with retrospective application permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.
Disaggregation of Income Statement Expenses
In November 2024, the FASB issued ASU 2024-03, "Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses." This ASU requires public business entities to disclose in the notes to financial statements specific categories within relevant expense captions presented on the face of the income statement. The ASU is effective for annual reporting periods beginning after December 15, 2026, and interim reporting periods beginning after December 15, 2027. Early adoption is permitted. The amendments should be applied on a prospective basis with retrospective application permitted. We are currently evaluating the impact of adopting this ASU on our consolidated financial statements and disclosures.
2. Revenues
Automotive and commercial truck dealerships generate the majority of our revenues. New and used vehicle revenues typically include sales to retail customers, to fleet customers, and to leasing companies providing consumer leasing. We generate finance and insurance revenues from sales of third-party extended service contracts, sales of third-party insurance policies, commissions relating to the sale of finance and lease contracts to third parties, and the sales of certain other products. Service and parts revenues include fees paid by customers for repair, maintenance and collision services, and the sale of replacement parts and other aftermarket accessories as well as warranty repairs that are reimbursed directly by various vehicle manufacturers. Revenues are recognized upon satisfaction of our performance obligations under contracts
10

Table of Contents
with our customers and are measured at the amount of consideration we expect to be entitled to in exchange for transferring goods or providing services. A discussion of revenue recognition by reportable segment is included below.
Retail Automotive and Retail Commercial Truck Dealership Revenue Recognition
Dealership Vehicle Sales. We record revenue for vehicle sales at a point in time when vehicles are delivered, which is when the transfer of title, risks and rewards of ownership, and control are considered passed to the customer. The amount of consideration we receive for vehicle sales, including any non-cash consideration representing the fair value of trade-in vehicles if applicable, is stated within the executed contract with our customer. Payment is typically due and collected within 30 days subsequent to transfer of control of the vehicle. For dealerships operating under an agency model, we receive a commission for each vehicle sale that we facilitate under the terms of the agency agreement with the manufacturer, which is recorded as new vehicle revenue.
Dealership Parts and Service Sales. We record revenue for vehicle service and collision work over time as work is completed and when parts are delivered to our customers. For service and parts revenues recorded over time, we utilize a method that considers total costs incurred to date and the applicable margin in relation to total expected efforts to complete our performance obligation in order to determine the appropriate amount of revenue to recognize over time. Recognition of this revenue over time reflects the amount of consideration we expect to be entitled to for the transfer of goods and services performed to date, representative of the amount for which we have a right to payment. The amount of consideration we receive for parts and service sales, including collision repair work, is based upon labor hours expended and parts utilized to perform and complete the necessary services to our customers. Payment is typically due upon delivery or within a period of time shortly thereafter. We receive payment from our customers upon transfer of control or within a period typically less than 30 days subsequent to the completion of services for the customer. We allow for customer returns of parts sales up to 30 days after the sale.
Dealership Finance and Insurance Sales. Subsequent to the sale of a vehicle to a customer, we sell installment sale contracts to various financial institutions on a non-recourse basis (with specified exceptions). We receive a commission from the lender equal to either the difference between the interest rate charged to the customer and the interest rate set by the financing institution or a flat fee. We also receive commissions for facilitating the sale of various products to customers, including vehicle protection products, vehicle theft protection, and extended service contracts. These commissions are recorded as revenue at a point in time when the customer enters into the contract. Payment is typically due and collected within 30 days subsequent to the execution of the contract with the customer.
In the case of finance contracts, a customer may prepay or fail to pay their contract, thereby terminating the contract. Customers may also terminate extended service contracts and other insurance products, which are fully paid at purchase, and become eligible for refunds of unused premiums. In these circumstances, a portion of the commissions we received may be charged back based on the terms of the contracts. The revenue we record relating to these transactions is net of an estimate of the amount of chargebacks we will be required to pay. Our estimate is based upon our historical experience with similar contracts, including the impact of refinance and default rates on retail finance contracts and cancellation rates on extended service contracts and other insurance products. Aggregate reserves relating to chargeback activity were $50.5 million and $48.2 million as of March 31, 2025, and December 31, 2024, respectively.
Commercial Vehicle Distribution and Other Revenue Recognition
Penske Australia. We record revenue from the distribution of vehicles and other products at a point in time when delivered, which is when the transfer of title, risks and rewards of ownership, and control are considered passed to the customer. We record revenue for service or repair work over time as work is completed and when parts are delivered to our customers. For service and parts revenues recorded over time, we utilize a method that considers total costs incurred to date and the applicable margin in relation to total expected efforts to complete our performance obligation in order to determine the appropriate amount of revenue to recognize over time. Recognition of this revenue over time reflects the amount of consideration we expect to be entitled to for the transfer of goods and services performed to date, representative of the amount for which we have a right to payment.
The amount of consideration we receive for vehicle and product sales is stated within the executed contract with our customer. The amount of consideration we receive for parts and service sales is based upon labor hours expended and parts utilized to perform and complete the necessary services to our customers. Payment is typically due upon delivery, upon invoice, or within a period of time shortly thereafter. We receive payment from our customers upon transfer of control or within a period typically within 45 days subsequent to transfer of control or invoice.
11

Table of Contents
We record revenue from the distribution of engines and other products at a point in time when delivered, which is when the transfer of title, risks and rewards of ownership, and control are considered passed to the customer. We record revenue for service or repair work over time as work is completed and when parts are delivered to our customers. For service and parts revenues recorded over time, we utilize a method that considers total costs incurred to date and the applicable margin in relation to total expected efforts to complete our performance obligation in order to determine the appropriate amount of revenue to recognize over time. Recognition of revenue over time reflects the amount of consideration we expect to be entitled to for the transfer of goods and services performed to date, representative of the amount for which we have a right to payment.
For our long-term power generation contracts, we record revenue over time as services are provided in accordance with contract milestones, which is considered an output method that requires judgment to determine our progress towards contract completion and the corresponding amount of revenue to recognize. Any revisions to estimates related to revenues or costs to complete contracts are recorded in the period in which the revisions to estimates are identified and the amounts can be reasonably estimated.
The amount of consideration we receive for engine, product, and power generation sales is stated within the executed contract with our customer. The amount of consideration we receive for service sales is based upon labor hours expended and parts utilized to perform and complete the necessary services to our customers. Payment is typically due upon delivery, upon invoice, or within a period of time shortly thereafter. We receive payment from our customers upon transfer of control or within a period typically within 45 days subsequent to transfer of control or invoice.
Retail Automotive Dealership
The following tables disaggregate our retail automotive segment revenue by product type and geographic location for the three months ended March 31, 2025 and 2024:

| Three Months Ended March 31, |  |
Retail Automotive Dealership Revenue | 2025 |  | 2024 |  |  |  |
New vehicle | $ | 3,022.1 |  |  | $ | 2,802.6 |  |  |  |  |
Used vehicle | 2,200.5 |  |  | 2,336.2 |  |  |  |  |
Finance and insurance, net | 198.2 |  |  | 206.0 |  |  |  |  |
Service and parts | 789.4 |  |  | 746.1 |  |  |  |  |
Fleet and wholesale | 359.1 |  |  | 387.1 |  |  |  |  |
Total retail automotive dealership revenue | $ | 6,569.3 |  |  | $ | 6,478.0 |  |  |  |  |

| Three Months Ended March 31, |  |
Retail Automotive Dealership Revenue | 2025 |  | 2024 |  |  |  |
U.S. | $ | 3,691.0 |  |  | $ | 3,415.0 |  |  |  |  |
U.K. | 2,323.2 |  |  | 2,546.5 |  |  |  |  |
Germany, Italy, Japan, and Australia | 555.1 |  |  | 516.5 |  |  |  |  |
Total retail automotive dealership revenue | $ | 6,569.3 |  |  | $ | 6,478.0 |  |  |  |  |

12

Table of Contents
Retail Commercial Truck Dealership
The following table disaggregates our retail commercial truck segment revenue by product type for the three months ended March 31, 2025 and 2024:

| Three Months Ended March 31, |  |
Retail Commercial Truck Dealership Revenue | 2025 |  | 2024 |  |  |  |
New truck | $ | 527.2 |  |  | $ | 494.2 |  |  |  |  |
Used truck | 63.8 |  |  | 62.4 |  |  |  |  |
Finance and insurance, net | 4.5 |  |  | 5.3 |  |  |  |  |
Service and parts | 222.0 |  |  | 223.6 |  |  |  |  |
Other | 6.2 |  |  | 6.3 |  |  |  |  |
Total retail commercial truck dealership revenue | $ | 823.7 |  |  | $ | 791.8 |  |  |  |  |

Commercial Vehicle Distribution and Other
Our other reportable segment relates to our Penske Australia business. Commercial vehicle distribution and other revenue was $211.5 million, including $62.9 million of service and parts revenue, during the three months ended March 31, 2025, and $178.0 million, including $67.0 million of service and parts revenue, during the three months ended March 31, 2024.
Contract Balances
The following table summarizes our accounts receivable and unearned revenues as of March 31, 2025, and December 31, 2024:

| March 31, 2025 |  | December 31, 2024
Accounts receivable |  |  |
Contracts in transit | $ | 343.3 |  |  | $ | 281.7 |
Vehicle receivables | 205.9 |  |  | 136.3 |
Manufacturer receivables | 244.5 |  |  | 233.3 |
Trade receivables | 385.1 |  |  | 326.9 |
Accrued expenses |  |  |
Unearned revenues | $ | 290.1 |  |  | $ | 266.8 |

Contracts in transit represent receivables from unaffiliated finance companies relating to the sale of customers' installment sales and lease contracts arising in connection with the sale of a vehicle by us. Vehicle receivables represent receivables for any portion of the vehicle sales price not paid by the finance company. Manufacturer receivables represent amounts due from manufacturers, including incentives, holdbacks, rebates, warranty claims, and other receivables due from the factory. Trade receivables represent receivables due from customers, including amounts due for parts and service sales as well as receivables due from finance companies and others for the commissions earned on financing, as well as commissions earned on insurance and extended service products provided by third parties. We evaluate collectability of receivables and estimate an allowance for doubtful accounts based on the age of the receivable, contractual life, historical collection experience, current conditions, and forecasts of future economic conditions, which is recorded within "Accounts receivable" on our consolidated balance sheets with our receivables presented net of the allowance.
Unearned revenues primarily relate to payments received from customers prior to satisfaction of our performance obligations, such as refundable customer deposits, non-refundable customer deposits, and deferred revenues from operating leases. These amounts are presented within "Accrued expenses and other current liabilities" on our consolidated balance sheets. Of the amounts recorded as unearned revenues as of December 31, 2024, $121.7 million was recognized as revenue during the three months ended March 31, 2025.
13

Table of Contents
Additional Revenue Recognition Related Policies
We do not have any material significant payment terms associated with contracts with our customers. Payment is due and collected as previously detailed for each reportable segment. We do not offer material rights of return or service-type warranties.
Taxes collected from customers and remitted to governmental authorities are recorded on a net basis (excluded from revenue). Shipping costs incurred subsequent to transfer of control to our customers are recognized as cost of sales. Sales promotions that we offer to customers are accounted for as a reduction of revenues at the time of sale.
3. Leases
We lease land and facilities, including certain dealerships and office space. Our property leases are generally for an initial period between 5 and 20 years and are typically structured to include renewal options at our election. We include renewal options that we are reasonably certain to exercise in the measurement of our lease liabilities and right-of-use assets. We also have equipment leases that primarily relate to office and computer equipment, service and shop equipment, company vehicles, and other miscellaneous items. These leases are generally for a period of less than 5 years. We do not have any material leases, individually or in the aggregate, classified as a finance leasing arrangement.
We estimate the total undiscounted rent obligations under these leases, including any extension periods that we are reasonably certain to exercise, to be $5.3 billion as of March 31, 2025. Some of our lease arrangements include rental payments that are adjusted based on an index or rate, such as the Consumer Price Index (CPI). As the rate implicit in the lease is generally not readily determinable for our operating leases, the discount rates used to determine the present value of our lease liability are based on our incremental borrowing rate at the lease commencement date and commensurate with the remaining lease term. Our incremental borrowing rate for a lease is the rate of interest we would have to pay to borrow on a collateralized basis over a similar term for an amount equal to the lease payments in a similar economic environment. Leases with an initial term of 12 months or less are not recorded on the balance sheet.
Pursuant to the leases for some of our larger facilities, we are required to comply with specified financial ratios, including a "rent coverage" ratio and a ratio of debt to earnings before interest, taxes, depreciation, and amortization ("EBITDA"), each as defined. For these leases, non-compliance with the ratios may require us to post collateral in the form of a letter of credit. A breach of the other lease covenants gives rise to certain remedies by the landlord, the most severe of which include the termination of the applicable lease and acceleration of the total rent payments due under the lease.
In connection with the sale, relocation, and closure of certain of our dealerships, we have entered into a number of third-party sublease agreements. The rent paid by our sub-tenants on such properties for the three months ended March 31, 2025 and 2024 was $4.4 million and $3.9 million, respectively. We have in the past and may in the future enter into sale-leaseback transactions to finance certain property acquisitions and capital expenditures, pursuant to which we sell property to third parties and agree to lease those assets back for a certain period of time. Such sales generate proceeds that vary from period to period. We do not have any material leases that have not yet commenced as of March 31, 2025.
14

Table of Contents
The following table summarizes our net operating lease cost during the three months ended March 31, 2025 and 2024:

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Lease Cost |  |  |  |  |  |  |
Operating lease cost (1) | $ | 69.0 |  |  | $ | 67.3 |  |  |  |  |
Sublease income | (4.4) |  |  | (3.9) |  |  |  |  |
Total lease cost | $ | 64.6 |  |  | $ | 63.4 |  |  |  |  |
_________________ |  |  |  |  |  |  |
(1)Includes short-term leases and variable lease costs, which are immaterial.

The following table summarizes supplemental cash flow information related to our operating leases:

| Three Months Ended March 31, 2025 |  | Three Months Ended March 31, 2024
Other Information |  |  |
Cash paid for amounts included in the measurement of lease liabilities |  |  |
Operating cash flows from operating leases | $ | 69.9 |  |  | $ | 66.5 |
Right-of-use assets modified or obtained in exchange for operating lease liabilities, net | $ | (28.5) |  |  | $ | 102.1 |

Supplemental balance sheet information related to the weighted average remaining lease term and discount rate of our leases is as follows:

| March 31, 2025 |  | December 31, 2024
Lease Term and Discount Rate |  |  |
Weighted-average remaining lease term - operating leases | 23 years |  | 24 years
Weighted-average discount rate - operating leases | 6.7 | % |  | 6.7 | %

The following table summarizes the maturity of our lease liabilities on an undiscounted cash flow basis and a reconciliation to the operating lease liabilities recognized on our consolidated condensed balance sheet as of March 31, 2025:

Maturity of Lease Liabilities | March 31, 2025
2025 (1) | $ | 196.1 |
2026 | 254.2 |
2027 | 243.2 |
2028 | 239.2 |
2029 | 231.4 |
2030 | 227.8 |
2031 and thereafter | 3,884.1 |
Total future minimum lease payments | $ | 5,276.0 |
Less: Imputed interest | (2,814.2) |
Present value of future minimum lease payments | $ | 2,461.8 |
Current operating lease liabilities (2) | $ | 98.1 |
Long-term operating lease liabilities | 2,363.7 |
Total operating lease liabilities | $ | 2,461.8 |
____________________ |
(1)Excludes the three months ended March 31, 2025.
(2)Included within "Accrued expenses and other current liabilities" on Consolidated Condensed Balance Sheet as of March 31, 2025.

15

Table of Contents
4. Inventories
Inventories consisted of the following:

| March 31, 2025 |  | December 31, 2024
Retail automotive dealership new vehicles | $ | 2,076.8 |  |  | $ | 2,345.7 |
Retail automotive dealership used vehicles | 1,144.1 |  |  | 1,119.2 |
Retail automotive parts, accessories, and other | 172.8 |  |  | 167.8 |
Retail commercial truck dealership vehicles and parts | 601.8 |  |  | 518.4 |
Commercial vehicle distribution vehicles, parts, and engines | 504.8 |  |  | 489.1 |
Total inventories | $ | 4,500.3 |  |  | $ | 4,640.2 |

We receive credits from certain vehicle manufacturers that reduce the cost of sales when the vehicles are sold. Such credits amounted to $16.7 million and $14.4 million during the three months ended March 31, 2025 and 2024, respectively.
5. Business Combinations
During the three months ended March 31, 2025, we made no acquisitions. During the three months ended March 31, 2024, we acquired 16 retail automotive franchises in the U.K. and acquired two retail automotive franchises in Italy. Our financial statements include the results of operations of the acquired entities from the date of acquisition. The fair value of the assets acquired and liabilities assumed have been recorded in our consolidated condensed financial statements and may be subject to adjustment pending completion of final valuation. The following table summarizes the aggregate consideration paid and the aggregate amounts of the assets acquired and liabilities assumed for the three months ended March 31, 2024:

|  |  | Three Months Ended March 31,
|  |  | 2024
Accounts receivable |  |  | $ | 33.6 |
Inventories |  |  | 90.3 |
Other current assets |  |  | — |
Property and equipment |  |  | 14.9 |
Indefinite-lived intangibles |  |  | 185.8 |
Other noncurrent assets |  |  | — |
Current liabilities |  |  | (55.1) |
Noncurrent liabilities |  |  | (25.9) |
Total cash used in acquisitions |  |  | $ | 243.6 |

Our following unaudited consolidated pro forma results of operations for the three months ended March 31, 2024 give effect to acquisitions consummated during 2024 as if they had occurred on January 1, 2024. This pro forma information is based on historical results of operations, adjusted for the income statement effects of incremental interest expense directly resulting from the acquisitions and the related tax effects. The pro forma information is not necessarily indicative of the results that would have been achieved had the transactions occurred on the first day of each of the periods presented or that may be achieved in the future:

|  |  | Three Months Ended March 31, |  |
|  |  | 2024 |  |  |  |
Revenues |  |  | $ | 7,742.4 |  |  |  |  |
Net income attributable to Penske Automotive Group common stockholders |  |  | 220.2 |  |  |  |  |
Net income per diluted common share |  |  | $ | 3.28 |  |  |  |  |

16

Table of Contents
6. Intangible Assets
The following is a summary of the changes in the carrying amount of goodwill and other indefinite-lived intangible assets during the three months ended March 31, 2025:

| Goodwill |  | Other Indefinite- Lived Intangible Assets
Balance, January 1, 2025 | $ | 2,371.3 |  |  | $ | 1,011.6 |
Additions | — |  |  | — |
Disposals | (7.7) |  |  | (9.9) |
Impairment | — |  |  | (3.4) |
Foreign currency translation | 19.7 |  |  | 8.0 |
Balance, March 31, 2025 | $ | 2,383.3 |  |  | $ | 1,006.3 |

As of March 31, 2025, the goodwill balance for reporting units within our Retail Automotive, Retail Commercial Truck, and Other reportable segments was $1,815.2 million, $497.5 million, and $70.6 million, respectively. There is no goodwill recorded in our Non-Automotive Investments reportable segment.
7. Vehicle Financing
We finance substantially all of the commercial vehicles we purchase for distribution, new vehicles for retail sale, and a portion of our used vehicle inventories for retail sale under floor plan and other revolving arrangements with various lenders, including the captive finance companies associated with automotive manufacturers. In the U.S., the floor plan arrangements are due on demand; however, we have not historically been required to repay floor plan advances prior to the sale of the vehicles that have been financed. We typically make monthly interest payments on the amount financed. Outside of the U.S., substantially all of the floor plan arrangements are payable on demand or have an original maturity of 90 days or less, and we are generally required to repay floor plan advances at the earlier of the sale of the vehicles that have been financed or the stated maturity.
The agreements typically grant a security interest in substantially all of the assets of our dealership and distribution subsidiaries and in the U.S., Australia, and New Zealand and in some cases are guaranteed or partially guaranteed by us. Interest rates under the arrangements are variable and increase or decrease based on changes in the prevailing benchmark interest rates in our various markets. To date, we have not experienced any material limitation with respect to the amount or availability of financing from any institution providing us with vehicle financing. We also receive non-refundable credits from certain of our vehicle manufacturers, which are treated as a reduction in the cost of sales as vehicles are sold.
The weighted average interest rate on floor plan borrowings was 4.3% and 4.9% for the three months ended March 31, 2025 and 2024, respectively. We classify floor plan notes payable to a party other than the manufacturer of a particular new vehicle and all floor plan notes payable relating to pre-owned vehicles as "Floor plan notes payable — non-trade" on our consolidated balance sheets and classify related cash flows as a financing activity on our consolidated statements of cash flows.
8. Earnings Per Share
Basic earnings per share is computed by dividing net income attributable to common stockholders by the number of weighted average shares of voting common stock outstanding, including unvested restricted stock awards which contain rights to non-forfeitable dividends. Diluted earnings per share is computed by dividing net income attributable to common stockholders by the number of weighted average shares of voting common stock outstanding, adjusted for the dilutive
17

Table of Contents
impact of unissued shares paid to directors during the year as compensation. A reconciliation of the number of shares used in the calculation of basic and diluted earnings per share for the three months ended March 31, 2025 and 2024 follows:

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Weighted average number of common shares outstanding | 66,772,412 |  |  | 67,061,968 |  |  |  |  |
Effect of non-participatory equity compensation | 17,364 |  |  | 15,433 |  |  |  |  |
Weighted average number of common shares outstanding, including effect of dilutive securities | 66,789,776 |  |  | 67,077,401 |  |  |  |  |

9. Long-Term Debt
Long-term debt consisted of the following:

|  | March 31, 2025 |  | December 31, 2024
U.S. credit agreement — revolving credit line |  | $ | — |  |  | $ | — |
U.K. credit agreement — revolving credit line |  | 82.7 |  |  | 171.4 |
3.50% senior subordinated notes due 2025 |  | 549.5 |  |  | 549.1 |
3.75% senior subordinated notes due 2029 |  | 496.8 |  |  | 496.6 |
Mortgage facilities |  | 428.4 |  |  | 474.8 |
Other debt |  | 214.1 |  |  | 160.1 |
Total long-term debt |  | 1,771.5 |  |  | 1,852.0 |
Less: current portion |  | (778.5) |  |  | (721.2) |
Net long-term debt |  | $ | 993.0 |  |  | $ | 1,130.8 |

U.S. Credit Agreement
On April 29, 2025, we entered into the Twelfth Amendment (the "Amendment") to our U.S. credit agreement with Mercedes-Benz Financial Services USA LLC, Toyota Motor Credit Corporation, and Daimler Truck Financial Services USA LLC (as amended, the “U.S. credit agreement”) principally to lower the applicable interest rate on revolving loans exceeding a defined borrowing base. As amended, the U.S. credit agreement provides for up to $1.5 billion in revolving loans for working capital, acquisitions, capital expenditures, investments, and other general corporate purposes and provides up to an additional $75 million of letters of credit. The U.S. credit agreement provides for a maximum of $400 million of borrowings for foreign acquisitions and expires on September 30, 2027.
The interest rate on outstanding borrowings is based on an adjusted Secured Overnight Financing Rate ("SOFR") plus 1.50%, with uncollateralized borrowings in excess of a defined borrowing base bearing interest at adjusted SOFR plus a margin ranging from 1.50% to 2.00%, based on a ratio of consolidated non-vehicle debt to adjusted earnings before interest, taxes, depreciation, and amortization. The previous interest rate for uncollateralized borrowings in excess of the defined borrowing base was adjusted SOFR plus 2.00%.
The U.S. credit agreement is fully and unconditionally guaranteed on a joint and several basis by substantially all of our U.S. subsidiaries and contains a number of significant operating covenants that, among other things, restrict our ability to dispose of assets, incur additional indebtedness, repay certain other indebtedness, pay dividends, create liens on assets, make investments or acquisitions, and engage in mergers or consolidations. We are also required to comply with specified financial and other tests and ratios, each as defined in the U.S. credit agreement, including a ratio of current assets to current liabilities, a fixed charge coverage ratio, a ratio of debt to stockholders' equity, and a ratio of debt to earnings before interest, taxes, depreciation, and amortization ("EBITDA"). A breach of these requirements would give rise to certain remedies under the agreement, the most severe of which is the termination of the agreement and acceleration of the amounts owed.
The U.S. credit agreement also contains typical events of default, including change of control, non-payment of obligations, and cross-defaults to our other material indebtedness. Substantially all of our U.S. assets are subject to security interests granted to the lenders under the U.S. credit agreement. As of March 31, 2025, we had no revolver borrowings under the U.S. credit agreement.
18

Table of Contents
U.K. Credit Agreement
Our U.K. credit agreement with National Westminster Bank Plc and BMW Financial Services (GB) Limited provides up to a £200.0 million revolving line of credit to be used for working capital, acquisitions, capital expenditures, investments, and general corporate purposes. The revolving loans bear interest between defined Sterling Overnight Index Average (“SONIA”) plus 1.10% and defined SONIA plus 2.10%. In addition, the U.K. credit agreement includes a £100.0 million “accordion” feature which allows the U.K. subsidiaries to request up to an additional £100.0 million of facility capacity, subject to certain limitations. The lenders may agree to provide additional capacity, and, if not, the U.K. subsidiaries may add an additional lender, if available, to the facility to provide such additional capacity. Our U.K. credit agreement expires in January 2028. As of March 31, 2025, we had £64.0 million ($82.7 million) revolver borrowings under the U.K. credit agreement.
The U.K. credit agreement is fully and unconditionally guaranteed on a joint and several basis by the holding company of a majority of our international subsidiaries, PAG International Ltd. and our U.K. subsidiaries, and contains a number of significant covenants that, among other things, limit the ability of our U.K. subsidiaries to pay dividends, dispose of assets, incur additional indebtedness, repay other indebtedness, create liens on assets, make investments or acquisitions and engage in mergers or consolidations. In addition, our U.K. subsidiaries are required to comply with defined ratios and tests, including: a ratio of earnings before interest, taxes, amortization, and rental payments (“EBITAR”) to interest plus rental payments, a measurement of maximum capital expenditures, and a debt to EBITDA ratio. A breach of these requirements would give rise to certain remedies under the U.K. credit agreement, the most severe of which is the termination of the agreement and acceleration of any amounts owed.
The U.K. credit agreement also contains typical events of default, including change of control and non-payment of obligations and cross-defaults to other material indebtedness of our U.K. subsidiaries. Substantially all of our U.K. subsidiaries’ assets are subject to security interests granted to the lenders under the U.K. credit agreement.
Senior Subordinated Notes
We have issued the following senior subordinated notes:

Description |  | Maturity Date |  | Interest Payment Dates |  | Principal Amount
3.50% Notes |  | September 1, 2025 |  | February 15, August 15 |  | $550 million
3.75% Notes |  | June 15, 2029 |  | June 15, December 15 |  | $500 million

Each of these notes are our unsecured, senior subordinated obligations and are guaranteed on an unsecured senior subordinated basis by our 100% owned U.S. subsidiaries. Each also contains customary negative covenants and events of default. If we experience certain "change of control" events specified in the indentures, holders of these notes will have the option to require us to purchase for cash all or a portion of their notes at a price equal to 101% of the principal amount of the notes, plus accrued and unpaid interest. In addition, if we make certain asset sales and do not reinvest the proceeds thereof or use such proceeds to repay certain debt, we will be required to use the proceeds of such asset sales to make an offer to purchase the notes at a price equal to 100% of the principal amount of the notes, plus accrued and unpaid interest. We may redeem the 3.50% Notes and the 3.75% Notes at the redemption prices noted in the respective indentures. Our 3.50% Notes that mature on September 1, 2025, were reclassified as current liabilities during the third quarter of 2024.
Mortgage Facilities
We are party to mortgages that bear interest at defined rates and require monthly principal and interest payments. We also have a revolving mortgage facility with Toyota Motor Credit Corporation in the U.S. Our maximum borrowing capacity under the mortgage facility is $500.0 million, contingent on property values. Our actual borrowing capacity as of March 31, 2025, was $360.9 million. The facility bears interest at the prime rate minus 1.68% and expires in December 2028. As of March 31, 2025, we had $90.0 million outstanding borrowings under this mortgage facility. Our mortgage facilities also contain typical events of default, including non-payment of obligations, cross-defaults to our other material indebtedness, certain change of control events, and the loss or sale of certain dealerships operated at the properties. Substantially all of the buildings and improvements on the properties financed pursuant to the mortgage facilities are subject to security interests granted to the lender. As of March 31, 2025, we owed $428.4 million of principal under all of our mortgage facilities.
19

Table of Contents
Other Debt
Our other debt consists primarily of various credit agreements and working capital loans in connection with local operations outside of the U.S. and the U.K.
10. Commitments and Contingent Liabilities
We are involved in litigation which may relate to claims brought by governmental authorities, issues with customers, and employment related matters, including class action claims and purported class action claims. As of March 31, 2025, we were not party to any legal proceedings, including class action lawsuits that, individually or in the aggregate, are reasonably expected to have a material adverse effect on our results of operations, financial condition, or cash flows. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect on our results of operations, financial condition, or cash flows.
We lease land and facilities, including certain dealerships and office space. Pursuant to the leases for some of our larger facilities, we are required to comply with specified financial ratios, including a "rent coverage" ratio and a debt to EBITDA ratio, each as defined. For these leases, non-compliance with the ratios may require us to post collateral in the form of a letter of credit. A breach of the other lease covenants gives rise to certain remedies by the landlord, the most severe of which include the termination of the applicable lease and acceleration of the total rent payments due under the lease. Refer to the disclosures provided in Note 3 for further description of our leases.
We have sold a number of dealerships to third parties and as a condition to certain of those sales, remain liable for the lease payments relating to the properties on which those businesses operate in the event of non-payment by the buyer. We are also party to lease agreements on properties that we no longer use in our retail operations that we have sublet to third parties. We rely on subtenants to pay the rent and maintain the property at these locations. In the event the subtenant does not perform as expected, we may not be able to recover amounts owed to us, and we could be required to fulfill these obligations. We believe we have made appropriate reserves relating to these locations.
Our floor plan credit agreements with Daimler Truck Financial Services Australia and Mercedes-Benz Financial Services New Zealand ("MBA") provide us revolving loans for the acquisition of commercial vehicles for distribution to our retail network. These facilities include a commitment to repurchase dealer vehicles in the event the dealer's floor plan agreement with MBA is terminated.
We have $13.0 million of letters of credit outstanding and $23.2 million of bank guarantees as of March 31, 2025, and have posted $25.0 million of surety bonds in the ordinary course of business.
11. Equity
A summary of shares repurchased under our securities repurchase program, and shares acquired, is as follows:

| Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |
Shares repurchased (1) | 254,406 |  |  | 221,329 |  |  |  |  |
Aggregate purchase price | $ | 39.9 |  |  | $ | 32.9 |  |  |  |  |
Average purchase price per share | $ | 156.93 |  |  | $ | 148.72 |  |  |  |  |
Shares acquired (2) | 822 |  |  | — |  |  |  |  |
Aggregate purchase price | $ | 0.1 |  |  | $ | — |  |  |  |  |
Average purchase price per share | $ | 160.88 |  |  | $ | — |  |  |  |  |
________________________ |  |  |  |
(1)Shares were repurchased under our securities repurchase program. We had $117.0 million in repurchase authorization remaining under the repurchase program as of March 31, 2025.
(2)Shares were acquired from employees in connection with a net share settlement feature of employee equity awards.

12. Accumulated Other Comprehensive Loss
Changes in accumulated other comprehensive loss by component during the three months ended March 31, 2025 and 2024, respectively, attributable to Penske Automotive Group common stockholders follows:
20

Table of Contents
Three Months Ended March 31, 2025

| Foreign Currency Translation |  |  |  | Other |  | Accumulated Other Comprehensive Loss
Balance at December 31, 2024 | $ | (354.0) |  |  |  |  | $ | (10.5) |  |  | $ | (364.5) |
Other comprehensive income (loss), net of tax | 55.2 |  |  |  |  | (0.3) |  |  | 54.9 |
Balance at March 31, 2025 | $ | (298.8) |  |  |  |  | $ | (10.8) |  |  | $ | (309.6) |

Three Months Ended March 31, 2024

| Foreign Currency Translation |  |  |  | Other |  | Accumulated Other Comprehensive Loss
Balance at December 31, 2023 | $ | (262.6) |  |  |  |  | $ | (1.5) |  |  | $ | (264.1) |
Other comprehensive income (loss), net of tax | (36.8) |  |  |  |  | 3.6 |  |  | (33.2) |
Balance at March 31, 2024 | $ | (299.4) |  |  |  |  | $ | 2.1 |  |  | $ | (297.3) |

13. Segment Information
We have determined that we have four reportable segments as defined in generally accepted accounting principles for segment reporting: (i) Retail Automotive, consisting of our retail automotive dealership operations; (ii) Retail Commercial Truck, consisting of our retail commercial truck dealership operations in the U.S. and Canada; (iii) Other, consisting of our commercial vehicle and power systems distribution operations; and (iv) Non-Automotive Investments, consisting of our equity method investments in non-automotive operations which includes our investment in PTS and other various investments. The Retail Automotive reportable segment includes all automotive dealerships and all departments relevant to the operation of the dealerships and our retail automotive joint ventures. The individual dealership operations included in the Retail Automotive reportable segment represent two operating segments: United States Retail Automotive and International Retail Automotive. These operating segments have been aggregated into one reportable segment as their operations (A) have similar economic characteristics (all are automotive dealerships having similar margins), (B) offer similar products and services (all sell new and/or used vehicles, service, parts, and third-party finance and insurance products), (C) have similar target markets and customers (generally individuals), and (D) have similar distribution and marketing practices (all distribute products and services through dealership facilities that market to customers in similar fashions).
The following table summarizes revenues; cost of sales; selling, general, and administrative expenses; depreciation; floor plan interest expense; other interest expense; equity in earnings of affiliates; and income before income taxes ("EBT"). EBT is the measure of segment performance by which management allocates resources to its segments and which we refer to as segment income, for each of our reportable segments. Our company's Chief Operating Decision Maker ("CODM") is our Chief Executive Officer. Our CODM uses segment income to evaluate the profitability of our reportable segments, which helps guide decisions on resource allocation. Segment income is also used to analyze budget versus actual results and actual results versus the comparable prior period. This analysis is utilized in assessing the performance of our reportable segments.

Three Months Ended March 31, |  |  |  |  |  |  |  |  |  |  |
| Retail Automotive |  | Retail Commercial Truck |  | Other |  | Non-Automotive Investments |  |  |  | Total
Revenues |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 6,569.3 |  |  | $ | 823.7 |  |  | $ | 211.5 |  |  | $ | — |  |  |  |  | $ | 7,604.5 |
2024 | 6,478.0 |  |  | 791.8 |  |  | 178.0 |  |  | — |  |  |  |  | 7,447.8 |
Cost of sales |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 5,485.5 |  |  | $ | 682.7 |  |  | $ | 167.3 |  |  | $ | — |  |  |  |  | $ | 6,335.5 |
2024 | 5,420.8 |  |  | 647.0 |  |  | 134.8 |  |  | — |  |  |  |  | 6,202.6 |

21

Table of Contents

Selling, general, and administrative expenses: |  |  |  |  |  |  |  |  |  |  |
Personnel expenses |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 446.8 |  |  | $ | 65.9 |  |  | $ | 18.8 |  |  | $ | — |  |  |  |  | $ | 531.5 |
2024 | 437.4 |  |  | 66.2 |  |  | 17.5 |  |  | — |  |  |  |  | 521.1 |
Advertising expenses |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 28.8 |  |  | $ | 0.9 |  |  | $ | 0.3 |  |  | $ | — |  |  |  |  | $ | 30.0 |
2024 | 32.0 |  |  | 0.7 |  |  | 0.4 |  |  | — |  |  |  |  | 33.1 |
Rent & related expenses |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 95.1 |  |  | $ | 6.6 |  |  | $ | 3.6 |  |  | $ | — |  |  |  |  | $ | 105.3 |
2024 | 93.4 |  |  | 6.5 |  |  | 3.6 |  |  | — |  |  |  |  | 103.5 |
Other expenses (1) |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 225.4 |  |  | $ | 14.9 |  |  | $ | 6.5 |  |  | $ | — |  |  |  |  | $ | 246.8 |
2024 | 204.1 |  |  | 13.3 |  |  | 4.7 |  |  | — |  |  |  |  | 222.1 |
Depreciation |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 34.6 |  |  | $ | 3.9 |  |  | $ | 1.4 |  |  | $ | — |  |  |  |  | $ | 39.9 |
2024 | 32.9 |  |  | 3.6 |  |  | 1.3 |  |  | — |  |  |  |  | 37.8 |
Floor plan interest expense |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 35.5 |  |  | $ | 3.7 |  |  | $ | 2.3 |  |  | $ | — |  |  |  |  | $ | 41.5 |
2024 | 38.8 |  |  | 4.0 |  |  | 2.0 |  |  | — |  |  |  |  | 44.8 |
Other interest expense |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 18.0 |  |  | $ | — |  |  | $ | 4.5 |  |  | $ | — |  |  |  |  | $ | 22.5 |
2024 | 21.2 |  |  | — |  |  | 0.1 |  |  | — |  |  |  |  | 21.3 |
Equity in earnings of affiliates |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 0.3 |  |  | $ | — |  |  | $ | — |  |  | $ | 33.0 |  |  |  |  | $ | 33.3 |
2024 | 1.0 |  |  | — |  |  | — |  |  | 32.3 |  |  |  |  | 33.3 |
Segment income |  |  |  |  |  |  |  |  |  |  |
2025 (2) | $ | 252.2 |  |  | $ | 45.1 |  |  | $ | 6.8 |  |  | $ | 33.0 |  |  |  |  | $ | 337.1 |
2024 | 198.4 |  |  | 50.5 |  |  | 13.6 |  |  | 32.3 |  |  |  |  | 294.8 |
__________________________
(1)Other expenses within SG&A primarily consist of information technology expenses, customer service vehicle loaner expenses, vehicle delivery and preparation expenses, utility expenses, and various other miscellaneous expenses. These expenses are individually not significant to the performance of our segments and are not regularly used by the CODM on a disaggregated basis for purposes of evaluating segment profit or loss.
(2)Retail automotive segment income includes a gain of $52.3 million from the sale of one retail automotive franchise in the U.S.

Total capital expenditures by reportable segment are set forth in the table below. As segment assets are not regularly provided to or used by the CODM to measure business performance or allocate resources, total segment assets are not presented.

Three Months Ended March 31, |  |  |  |  |  |  |  |  |  |  |
| Retail Automotive |  | Retail Commercial Truck |  | Other |  | Non-Automotive Investments |  |  |  | Total
Capital expenditures |  |  |  |  |  |  |  |  |  |  |
2025 | $ | 57.9 |  |  | $ | 17.8 |  |  | $ | 0.9 |  |  | $ | — |  |  |  |  | $ | 76.6 |
2024 | 84.0 |  |  | 16.1 |  |  | 2.4 |  |  | — |  |  |  |  | 102.5 |

22

Table of Contents
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations
This Management's Discussion and Analysis of Financial Condition and Results of Operations contains forward-looking statements that involve risks and uncertainties. Our actual results may differ materially from those discussed in the forward-looking statements as a result of various factors, including those discussed in Part I, Item 1A. "Risk Factors" in our Annual Report on Form 10-K for the year ended December 31, 2024, and Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q, and those in our other periodic reports filed with the Securities and Exchange Commission, and "Forward-Looking Statements." We have acquired and initiated a number of businesses during the periods presented and addressed in this Management's Discussion and Analysis of Financial Condition and Results of Operations. Our financial statements include the results of operations of those businesses from the date acquired or when they commenced operations. Our period-to-period results of operations may vary depending on the dates of acquisitions or disposals.
Overview
We are a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. We operate dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia, and we are one of the largest retailers of commercial trucks in North America for Freightliner. We also distribute and retail commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. We employ over 28,700 people worldwide. Additionally, we own 28.9% of Penske Transportation Solutions, a business that employs over 44,500 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 428,000 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts, and provides innovative transportation, supply chain, and technology solutions to its customers.
Business Overview
During the three months ended March 31, 2025, our business generated $7.6 billion in total revenue, which is comprised of approximately $6.6 billion from retail automotive dealerships, $0.8 billion from retail commercial truck dealerships, and $211.5 million from commercial vehicle distribution and other operations. We generated $1.3 billion in gross profit, which is comprised of $1.1 billion from retail automotive dealerships, $141.0 million from retail commercial truck dealerships, and $44.2 million from commercial vehicle distribution and other operations.
Retail Automotive. We are one of the largest global automotive retailers as measured by the $26.2 billion in total retail automotive dealership revenue we generated in 2024. We are diversified geographically with 56% of our total retail automotive dealership revenues in the three months ended March 31, 2025, generated in the U.S. and Puerto Rico and 44% generated outside of the U.S. We offer over 40 vehicle brands with 74% of our retail automotive franchised dealership revenue generated from premium brands, such as Audi, BMW, Land Rover, Mercedes-Benz, and Porsche, and 20% of revenue generated from volume non-U.S. brands such as Toyota and Honda in the three months ended March 31, 2025. As of March 31, 2025, we operated 352 retail automotive franchised dealerships, of which 147 are located in the U.S. and 205 are located outside of the U.S., principally in the U.K. As of March 31, 2025, we also operated 16 used vehicle dealerships, with six dealerships in the U.S. operating under the brand name CarShop, nine dealerships in the U.K. operating under the brand name Sytner Select, and one dealership in Australia operating under the brand name Penske Select. We retailed and wholesaled, including agency units, more than 144,000 vehicles in the three months ended March 31, 2025.
In addition to selling new and used vehicles, we generate higher-margin revenue at each of our dealerships through maintenance and repair services, the sale and placement of third-party finance and insurance products, third-party extended service and maintenance contracts, replacement and aftermarket automotive products, and at certain of our locations, collision repair services. We operate our franchised dealerships under franchise agreements with a number of automotive manufacturers and distributors that are subject to certain rights and restrictions typical of the industry. Some of our dealerships in the U.K. and Europe operate under an agency model where we receive a fee for facilitating the sale by the manufacturer of a new vehicle but do not hold the vehicle in inventory. Vehicles sold under this agency model are counted as new agency units sold instead of new retail units sold by us, and only the fee we receive from the manufacturer, not the price of the vehicle, is reported as new revenue with no corresponding cost of sale.
During the three months ended March 31, 2025, we sold one retail automotive franchise in the U.S. Retail automotive dealerships represented 86.4% of our total revenues and 85.4% of our total gross profit in the three months ended March 31, 2025.
23

Table of Contents
Retail Commercial Truck Dealership. We operate Premier Truck Group ("PTG"), a heavy- and medium-duty truck dealership group offering primarily Freightliner and Western Star trucks (both Daimler brands), with locations across 10 U.S. states and the Canadian provinces of Ontario and Manitoba. As of March 31, 2025, PTG operated 45 locations selling new and/or used trucks, performing service and parts operations, or offering collision repair services. We retailed and wholesaled 4,801 new and used trucks in the three months ended March 31, 2025. This business represented 10.8% of our total revenues and 11.1% of our total gross profit in the three months ended March 31, 2025.
Penske Australia. Penske Australia is the exclusive importer and distributor of Western Star heavy-duty trucks (a Daimler brand), MAN heavy- and medium-duty trucks and buses (a VW Group brand), and Dennis Eagle refuse collection vehicles, together with associated parts, across Australia, New Zealand, and portions of the Pacific. In most of these same markets, we are also a leading distributor of diesel and gas engines and power systems, principally representing MTU (a Rolls-Royce solution), Detroit Diesel, Allison Transmission, and Bergen Engines. Penske Australia offers products across the on- and off-highway markets, including in the trucking, mining, power generation, energy solutions, defense, marine, rail, and construction sectors and supports full parts and aftersales service through a network of branches, field service locations, and dealers across the region. These businesses represented 2.8% of our total revenues and 3.5% of our total gross profit in the three months ended March 31, 2025.
Penske Transportation Solutions. We hold a 28.9% ownership interest in Penske Truck Leasing Co., L.P. ("PTL"). PTL is owned 41.1% by Penske Corporation, 28.9% by us, and 30.0% by Mitsui & Co., Ltd. ("Mitsui"). We account for our investment in PTL under the equity method, and we therefore record our share of PTL's earnings on our statements of income under the caption "Equity in earnings of affiliates," which also includes the results of our other equity method investments. Penske Transportation Solutions ("PTS") is the universal brand name for PTL's various business lines through which it is capable of meeting customers' needs across the supply chain with a broad product offering that includes full-service truck leasing, truck rental, and contract maintenance along with logistics services, such as dedicated contract carriage, distribution center management, freight management, and dry van truckload carrier services. We recorded $33.2 million and $32.5 million in equity earnings from this investment for the three months ended March 31, 2025 and 2024, respectively.
Outlook/Recent Developments
Tariffs. On March 26, 2025, U.S. President Trump announced the imposition of a 25% tariff on imports of automobiles and certain automobile parts (the “Automotive Tariffs”). The 25% tariff applies to imported fully-assembled passenger vehicles including sedans, SUVs, crossovers, minivans, and cargo vans as well as light trucks, and became effective on April 3, 2025. The 25% tariff also applies to many imported automotive parts, with tariffs on certain imported parts beginning no later than May 3, 2025. In addition to the Automotive Tariffs, on April 2, 2025, U.S. President Trump announced a minimum 10% tariff applied to imports from most countries, with limited country and product exceptions, and elevated tariff rates imposed on more than 60 specific countries (the “Reciprocal Tariffs”), although, on April 9, 2025, the elevated Reciprocal Tariffs on certain countries were temporarily paused, notably excluding significant Reciprocal Tariffs on China. The vehicles and parts subject to the Automotive Tariffs are not subject to the Reciprocal Tariffs, and on April 29, 2025, U.S. President Trump announced further actions to reduce the compounding effects of other tariffs on vehicles and parts subject to the Automotive Tariffs and provide a partial reimbursement for tariffs imposed on foreign parts included in certain domestically assembled vehicles. The Automotive Tariffs and Reciprocal Tariffs represent a significant change to recent U.S. trade policies and tariff regimes and were announced following a series of previously implemented tariffs, including a 25% tariff on imported steel and aluminum and additional tariffs on products imported from Mexico, Canada, and China. In response to these tariffs, certain trade partners of the U.S. have announced or implemented responsive or retaliatory tariffs on U.S. goods or otherwise implemented non-tariff trade barriers, while various countries and individual companies, including certain of our manufacturing partners, have engaged in bilateral discussions with the U.S. regarding new trade agreements. The nature and scope of any new trade agreements remains uncertain.
It is difficult to assess the impact of the Automotive Tariffs, Reciprocal Tariffs, other recently announced tariffs, and non-tariff trade barriers on our business and results of operations, although these tariffs and retaliatory actions, if sustained in their current or similar forms, are expected to broadly impact the automotive industry and supply chain and will affect a substantial portion of the retail automotive and commercial truck vehicles and parts we sell. In March 2025, our U.S. retail automotive dealerships experienced increased demand as consumers sought to acquire vehicles prior to the implementation of the Automotive Tariffs on April 3, 2025. However, the Automotive Tariffs and other tariffs are likely to increase our cost of acquiring vehicles and parts, as well as our inventory carrying costs going forward. While it is difficult to predict the effects of these tariffs on our business, we believe increased prices could lead to lower consumer demand for new vehicles and related finance and insurance products, while potentially increasing demand for used vehicles and our service and parts operations. These tariffs and related non-tariff trade barriers, including an announcement by China to limit the
24

Table of Contents
exportation of certain rare earth elements, may also limit the availability of certain new vehicles and parts we sell and negatively impact our gross profit with respect to affected vehicles and parts. The new trucks sold by Premier Truck Group (“PTG”), while not subject to the Automotive Tariffs, are subject to the Reciprocal Tariffs and other tariffs which have been or may be announced. We believe that, like our retail automotive business discussed above, PTG may experience increased demand for its service and parts operations and used trucks as a result of the tariffs, depending on the general freight environment. See Part II, Item 1A. Risk Factors, "Tariffs and Trade Risk."
Electric Vehicle Regulation. Federal and state governments and regulators in our markets have placed restrictions on new vehicles in an effort to combat perceived negative environmental effects, in many cases requiring vehicle manufacturers to achieve progressively lower emissions for new vehicles. For example, the EPA has allowed the State of California Air Resource Board (“CARB”) to adopt its Advanced Clean Cars II (“ACCII”) program which requires that new vehicle sales by vehicle manufacturers to be 35% Zero Emissions Vehicles (ZEVs) for model year 2026 which increases to 100% ZEVs by model year 2035 (with certain allowances for hybrid gas/EVs). Certain states have also adopted California’s mandate, in whole or in part.
Earlier this year, U.S. President Trump signed Executive Order "Unleashing American Energy", which may have direct implications on the policies and regulations that impact the automotive and transportation industries. The Executive Order seeks to rescind waivers granted by the EPA for California's ZEV regulations with a focus on eliminating any "electric vehicle mandates" and terminating "state emission waivers that function to limit sales of gasoline-powered vehicles" although the status of the emission regulations targeted by the Executive Order remain uncertain. This focus on reconsidering existing environmental regulations and electrification mandates has extended through the U.S. Congress and certain domestic and international regulatory agencies. A recent senate bill with more than 20 co-sponsors was introduced to revoke the EPA’s waiver granted to California for its ACCII program, although congressional action is subject to certain procedural challenges and may require independent regulatory action. Representatives from the U.S. Congress have also proposed legislation to terminate existing electric vehicle tax credits and, in certain cases, impose taxes on electric vehicles to fund road repairs. Further, the EPA has recently stated it would reconsider the agency’s 2024 rules that would require a reduction in passenger vehicle fleetwide tailpipe emissions by nearly 50% by 2032 compared with 2027 projected levels, as well as the agency’s “Clean Trucks Plan” regulation adopted in 2022, which aims to significantly reduce certain smog- and soot-forming emissions from heavy-duty vehicles beginning in model year 2027. In addition, although representatives of the U.K. government have proposed a ban on the sale of internal combustion engines in new cars and new vans beginning in 2030, the phase out has been recently moderated to allow hybrid cars to be sold until 2035, with limited exceptions to the ZEV mandate for certain lower volume manufacturers. The status of, and any impact to our business from, these executive, legislative, and regulatory efforts remains uncertain.
For an additional discussion of certain risks associated with our business related to the environmental regulations, see Item 1A. Risk Factors, "Vehicle Emissions and Other Environmental Regulations" in our Annual Report on Form 10-K for the year ended December 31, 2024.
Retail Automotive. During the three months ended March 31, 2025, U.S. industry new light vehicle sales increased 4.3%, to 3.9 million units, including a 6.8% increase in retail sales, partially offset by a 3.9% decrease in fleet sales, as compared to the same period last year. U.K. new vehicle registrations increased 6.4% to 0.6 million registrations, including a 4.6% increase in fleet sales and a 9.5% increase in retail sales, as compared to the same period last year. New vehicle sales were positively impacted by continued strong consumer demand in the U.S., particularly in March 2025 in response to recently announced tariffs. Our new vehicle days' supply is 39 as of March 31, 2025, compared to 49 as of December 31, 2024. Our used vehicle days' supply is 36 as of March 31, 2025, compared to 47 as of December 31, 2024. As discussed above, the Automotive Tariffs and other tariffs are likely to increase our cost of acquiring vehicles and parts, as well as our inventory carrying costs. While it is difficult to predict the effects of these tariffs on our business, we believe increased prices could lead to lower consumer demand for new vehicles and related finance and insurance products, while potentially increasing demand for used vehicles and our service and parts operations. These tariffs may also limit the availability of certain new vehicles and parts we sell and negatively impact our gross profit with respect to affected vehicles and parts. See Part II, Item 1A. Risk Factors, "Tariffs and Trade Risk." New vehicle sales levels could also be impacted by changes to existing electrification mandates, emissions regulations and incentives regarding EVs, as discussed above, as well as vehicle affordability challenges, inflation, interest rates, or a reduction in consumer spending resulting in decreased demand. We continue to expect strong demand for our service and parts operations driven by increased vehicle sales in recent years, increased average age of vehicles, recall campaigns, increased miles driven (including in response to affordability concerns as a result of the Automotive Tariffs), and vehicle complexity.
Retail Commercial Truck Dealership. During the three months ended March 31, 2025, North American sales of Class 6-8 medium- and heavy-duty trucks, the vehicles sold by our PTG business, decreased 3.0% from the same period last year
25

Table of Contents
to 473,159 units. The Class 6-7 medium-duty truck market increased 0.5% from the same period last year to 157,260 units, and Class 8 heavy-duty trucks, the largest North American market, decreased 4.7% from the same period last year to 315,899 units. As discussed above, the new trucks sold by PTG, while not subject to the Automotive Tariffs, are subject to the Reciprocal Tariffs and other tariffs which have been or may be announced. We believe that PTG may experience increased demand for its service and parts operations and used trucks as a result of the tariffs, depending on the general freight environment (which also could be impacted by increased cross border tariffs). As of March 31, 2025, the Class 6-8 medium- and heavy-duty truck backlog is 194,073 units according to data published by ACT Research compared to 262,572 as of March 31, 2024.
Commercial Vehicle Distribution and Other. During the three months ended March 31, 2025, the Australian heavy-duty truck market reported sales of 3,380 units, representing a decrease of 10.8% from the same period last year, while the New Zealand market reported sales of 606 units, representing a decrease of 41.1% from the same period last year. Our power system operations continue to grow through sales in the off-highway segments such as energy solutions, which provide power systems for large data centers, mining, and military applications.
Penske Transportation Solutions. A majority of PTS' revenue is generated by multi-year contracts for full-service leasing, contract maintenance, and logistics services. PTS also rents additional trucks to commercial customers in response to demand for freight as well as consumer customers. With a managed fleet of over 428,000 vehicles at March 31, 2025, PTS regularly sells trucks in order to maintain a low fleet age as well as in response to changes in demand for truck leasing and records a gain or loss on those sales. While PTS has experienced an increase in revenue from its leasing and maintenance business, it has also experienced a decline in truck rental revenue and lower gain on sale of used trucks associated with weakness in the freight market. PTS could also be negatively impacted by the tariffs discussed above, which could increase their costs of acquiring vehicles and parts as well as negatively impact the general freight environment. PTS has decreased, and expects to continue to decrease, the size of its consumer and commercial rental fleets in connection with this lower demand, aimed at improving the utilization rate of the fleet.
As described in "Forward-Looking Statements," there are a number of factors that could cause actual results to differ materially from our expectations, including those discussed in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q, and our other periodic reports filed with the Securities and Exchange Commission.
Operating Overview
Automotive and commercial truck dealerships represent 97.2% of our revenue and 88.2% of our earnings before taxes during the three months ended March 31, 2025. Income from our PTS investment represents 9.8% of our earnings before taxes during the three months ended March 31, 2025. New and used vehicle revenues typically include sales to retail customers, agency customers, fleet customers, and leasing companies providing consumer leasing. We generate finance and insurance revenues from sales of third-party extended service contracts, sales of third-party insurance policies, commissions relating to the sale of finance and lease contracts to third parties, and the sales of certain other products. Service and parts revenues include fees paid by customers for repair, maintenance and collision services, and the sale of replacement parts and other aftermarket accessories as well as warranty repairs that are reimbursed directly by vehicle manufacturers.
Our gross profit tends to vary with the mix of revenues we derive from the sale of new vehicles, used vehicles, finance and insurance products, and service and parts transactions. Our gross profit varies across product lines with vehicle sales usually resulting in lower gross profit margins and our other revenues resulting in higher gross profit margins. Factors such as inventory and vehicle availability, customer demand, consumer confidence, unemployment, general economic conditions, seasonality, weather, credit availability, the impact of tariffs and non-tariff trade barriers, fuel prices, and manufacturers' advertising and incentives also impact the mix of our revenues and therefore, influence our gross profit margin. The results of our commercial vehicle distribution and other business in Australia and New Zealand are principally driven by the number and types of products and vehicles ordered by our customers. Aggregate revenue and gross profit increased $156.7 million, or 2.1%, and increased $23.8 million, or 1.9%, respectively, during the three months ended March 31, 2025, compared to the same period in 2024.
As exchange rates fluctuate, our revenue and results of operations as reported in U.S. Dollars fluctuate. For example, if the British Pound were to weaken against the U.S. Dollar, our U.K. results of operations would translate into less U.S. Dollar reported results. Foreign currency average rate fluctuations decreased revenue and gross profit by $40.3 million and $6.9 million, respectively, for the three months ended March 31, 2025, compared to the same period in 2024. Foreign currency average rate fluctuations decreased earnings per share by approximately $0.01 per share for the three months
26

Table of Contents
ended March 31, 2025, compared to the same period in 2024. Excluding the impact of foreign currency average rate fluctuations, aggregate revenue and gross profit increased 2.6% and increased 2.5%, respectively, for the three months ended March 31, 2025, compared to the same period in 2024.
Our selling expenses consist of advertising and compensation for sales personnel, including commissions and related bonuses. General and administrative expenses include compensation, finance, legal and management personnel costs, rent, insurance, information technology expenses, service vehicle loaner expenses, vehicle delivery and preparation expenses, utilities, and other expenses. As the majority of our selling expenses are variable and a significant portion of our general and administrative expenses are subject to our control, we believe our expenses can be adjusted over time to reflect economic trends.
Equity in earnings of affiliates principally represents our share of the earnings from PTS, along with our investments in other joint ventures and other non-consolidated investments.
Floor plan interest expense relates to financing incurred in connection with the acquisition of new and used vehicle inventories that are secured by those vehicles. Other interest expense consists of interest charges on all of our interest-bearing debt, other than interest relating to floor plan financing. The cost of our variable rate indebtedness is based on the prevailing benchmark interest rates in our various markets.
The future success of our business is dependent upon, among other things, macro-economic, geo-political, and industry conditions and events, including their impact on sales of new and used vehicles, service and parts, and repair and maintenance services, the availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, demand for trucks to move freight with respect to PTS and PTG and other freight metrics such as spot rates or miles driven, personal discretionary spending levels, interest rates, foreign currency exchange rates, and unemployment rates; our ability to obtain vehicles and parts from our manufacturers, especially in light of supply chain disruptions due to natural disasters, any shortages of vehicle components, international conflicts, challenges in sourcing labor or labor strikes or work stoppages, or other disruptions; the control our manufacturer partners can exert over our operations and our reliance on them for various aspects of our business; risks to our reputation and those of our manufacturer partners; changes in the retail model either from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of EVs; disruptions to the security and availability of our information technology systems and those of our third party providers, which systems are increasingly threatened by ransomware and other cyber attacks; the effects of a pandemic on the global economy, including our ability to react effectively to changing business conditions in light of any pandemic; the impact of tariffs targeting imported vehicles and parts, as well as changes or increases in tariffs, trade restrictions, trade disputes, or non-tariff trade barriers; the rate of inflation, including its impact on vehicle affordability; changes in interest rates and foreign currency exchange rates; our ability to consummate, integrate, and realize returns on our acquisitions; with respect to PTS, changes in the financial health of its customers, labor strikes, or work stoppages by its employees, a reduction in PTS' asset utilization rates, continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, including with respect to the effect of various government mandates concerning the electrification of its vehicle fleet, changes in values of used trucks which affects PTS' profitability on truck sales and regulatory risks and related compliance costs; our ability to realize returns on our significant capital investments in new and upgraded dealership facilities; our ability to navigate a rapidly changing automotive and truck landscape; our ability to respond to new or enhanced regulations in both our domestic and international markets relating to dealerships and vehicles sales, including those related to the sales process, emissions standards or electrification, as well as changes in consumer sentiment relating to commercial truck sales that may hinder our or PTS' ability to maintain, acquire, sell, or operate trucks; the success of our distribution of commercial vehicles, engines, and power systems; natural disasters; recall initiatives or other disruptions that interrupt the supply of vehicles or parts to us; the outcome of legal and administrative matters, and other factors over which management has limited control. See Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q, and our other periodic reports filed with the Securities and Exchange Commission.
Critical Accounting Policies and Estimates
The preparation of financial statements in accordance with accounting principles generally accepted in the United States of America requires the application of accounting policies that often involve making estimates and employing judgments. Such judgments influence the assets, liabilities, revenues, and expenses recognized in our financial statements. Management, on an ongoing basis, reviews these estimates and assumptions. Management may determine that modifications in assumptions and estimates are required, which may result in a material change in our results of operations or financial position.
27

Table of Contents
The accounting policies and estimates that we believe to be most dependent upon the use of estimates and assumptions are revenue recognition, goodwill and other indefinite-lived intangible assets, investments, income taxes, and lease recognition. Refer to "Management's Discussion and Analysis of Financial Condition and Results of Operations" in our 2024 Annual Report on Form 10-K for additional detail and discussion of these critical accounting policies and estimates. There have been no material changes in critical accounting policies and estimates as described in our most recent Annual Report.
Refer to Part I, Item 1, Note 1 and Note 3 of the Notes to our Consolidated Condensed Financial Statements for disclosures regarding estimates and judgments related to lease recognition. Refer to Part I, Item 1, Note 2 of the Notes to our Consolidated Condensed Financial Statements for disclosures regarding estimates and judgments related to revenue recognition. Refer to "Income Taxes" within Part I, Item 1, Note 1 of the Notes to our Consolidated Condensed Financial Statements for disclosures regarding estimates and judgments related to income taxes.
Results of Operations
The following tables present comparative financial data relating to our operating performance in the aggregate and on a "same-store" basis. Dealership results are included in same-store comparisons when we have consolidated the acquired entity during the entirety of both periods being compared. As an example, if a dealership were acquired on January 15, 2023, the results of the acquired entity would be included in annual same-store comparisons beginning with the year ended December 31, 2025, and in quarterly same-store comparisons beginning with the quarter ended June 30, 2024.
Some of our dealerships in the U.K. and Europe operate under an agency model where we receive a fee for facilitating the sale by the manufacturer of a new vehicle but do not hold the vehicle in inventory. Vehicles sold under this agency model are counted as new agency units sold instead of new retail units sold by us, and only the fee we receive from the manufacturer, not the price of the vehicle, is reported as new revenue with no corresponding cost of sale. We have presented below units sold under this agency model as "Agency units". Moreover, our retail automotive revenue per unit retailed and related gross profit per unit retailed for new vehicles excludes agency unit sales and associated revenue.
Our results for the three months ended March 31, 2025, include a gain of $52.3 million from the sale of one retail automotive franchise in the U.S., resulting in an after-tax gain of $38.9 million, or $0.58 per share. This gain was partially offset by impairments and other charges of $25.2 million (none of which was individually material), resulting in an after-tax expense of $20.9 million, or $0.31 per share. This resulted in a net after-tax gain of $18.0 million, or $0.27 per share.
Three Months Ended March 31, 2025, Compared to Three Months Ended March 31, 2024
Retail Automotive Dealership New Vehicle Data
(In millions, except unit and per unit amounts)

|  |  |  |  |  | 2025 vs. 2024
New Vehicle Data |  | 2025 |  | 2024 |  | Change |  | % Change
New retail unit sales (excluding agency) |  | 50,602 |  |  | 48,667 |  |  | 1,935 |  |  | 4.0 | %
Same-store new retail unit sales (excluding agency) |  | 49,076 |  |  | 47,296 |  |  | 1,780 |  |  | 3.8 | %
New agency unit sales |  | 10,686 |  |  | 8,932 |  |  | 1,754 |  |  | 19.6 | %
Same-store new agency unit sales |  | 10,686 |  |  | 8,069 |  |  | 2,617 |  |  | 32.4 | %
New sales revenue |  | $ | 3,022.1 |  |  | $ | 2,802.6 |  |  | $ | 219.5 |  |  | 7.8 | %
Same-store new sales revenue |  | $ | 2,923.3 |  |  | $ | 2,727.3 |  |  | $ | 196.0 |  |  | 7.2 | %
New retail sales revenue per unit (excluding agency) |  | $ | 59,202 |  |  | $ | 57,176 |  |  | $ | 2,026 |  |  | 3.5 | %
Same-store new retail sales revenue per unit (excluding agency) |  | $ | 59,029 |  |  | $ | 57,266 |  |  | $ | 1,763 |  |  | 3.1 | %
Gross profit — new |  | $ | 280.0 |  |  | $ | 272.4 |  |  | $ | 7.6 |  |  | 2.8 | %
Same-store gross profit — new |  | $ | 269.1 |  |  | $ | 265.4 |  |  | $ | 3.7 |  |  | 1.4 | %
Average gross profit per new vehicle (excluding agency) |  | $ | 5,059 |  |  | $ | 5,229 |  |  | $ | (170) |  |  | (3.3) | %
Same-store average gross profit per new vehicle (excluding agency) |  | $ | 4,991 |  |  | $ | 5,260 |  |  | $ | (269) |  |  | (5.1) | %
Gross margin % — new |  | 9.3 | % |  | 9.7 | % |  | (0.4) | % |  | (4.1) | %
Same-store gross margin % — new |  | 9.2 | % |  | 9.7 | % |  | (0.5) | % |  | (5.2) | %

28

Table of Contents
Units
Retail unit deliveries of new vehicles increased from 2024 to 2025 due to a 4,397 unit, or 7.9%, increase in same-store new retail unit deliveries, partially offset by a 708 unit decrease from net dealership acquisitions/dispositions throughout 2024. Same-store retail units delivered increased 7.6% in the U.S. and increased 8.4% internationally. Overall, new retail unit deliveries increased 8.0% in the U.S. and increased 4.6% internationally. We believe the increase in same-store retail unit sales in the U.S. is primarily due to increased inventory availability and continued strong consumer demand, coupled with demand from consumers in the U.S. who sought to acquire vehicles prior to the implementation of the automotive tariffs discussed above.
Revenues
New vehicle sales revenue increased from 2024 to 2025 due to a $196.0 million, or 7.2%, increase in same-store revenues, coupled with a $23.5 million increase from net dealership acquisitions/dispositions. Excluding $5.0 million of unfavorable foreign currency fluctuations, same-store new revenue increased 7.4%. Same-store revenue (excluding agency) increased due to the increase in same-store new retail unit sales, which increased revenue by $105.1 million, coupled with a $1,763 per unit increase in same-store comparative average retail selling price (despite a $98 per retail unit decrease attributable to unfavorable foreign currency fluctuations), which increased revenue by $83.4 million. We believe the increase in same-store comparative average retail selling price (excluding agency) is primarily due to changes in the mix of higher-priced units sold.
Gross Profit
Retail gross profit from new vehicle sales increased from 2024 to 2025 due to a $3.9 million increase from net dealership acquisitions/dispositions, coupled with a $3.7 million, or 1.4%, increase in same-store gross profit. Excluding $0.6 million of unfavorable foreign currency fluctuations, same-store gross profit increased 1.6%. Same-store gross profit (excluding agency) decreased due to a $269 per unit decrease in same-store comparative average gross profit (including a $9 per retail unit decrease attributable to unfavorable foreign currency fluctuations), which decreased gross profit by $12.7 million, partially offset by the increase in same-store new retail sales, which increased retail gross profit by $8.9 million. We believe the decrease in same-store comparative average retail gross profit per unit (excluding agency) is primarily due to an increasing supply of new vehicles leading to a more competitive selling environment, coupled with vehicle affordability considerations.
Retail Automotive Dealership Used Vehicle Data
(In millions, except unit and per unit amounts)

|  |  |  |  |  | 2025 vs. 2024
Used Vehicle Data |  | 2025 |  | 2024 |  | Change |  | % Change
Used retail unit sales |  | 58,486 |  |  | 69,265 |  |  | (10,779) |  |  | (15.6) | %
Same-store used retail unit sales |  | 57,175 |  |  | 63,955 |  |  | (6,780) |  |  | (10.6) | %
Used retail sales revenue |  | $ | 2,200.5 |  |  | $ | 2,336.2 |  |  | $ | (135.7) |  |  | (5.8) | %
Same-store used retail sales revenue |  | $ | 2,136.8 |  |  | $ | 2,205.2 |  |  | $ | (68.4) |  |  | (3.1) | %
Used retail sales revenue per unit |  | $ | 37,624 |  |  | $ | 33,729 |  |  | $ | 3,895 |  |  | 11.5 | %
Same-store used retail sales revenue per unit |  | $ | 37,372 |  |  | $ | 34,480 |  |  | $ | 2,892 |  |  | 8.4 | %
Gross profit — used |  | $ | 125.7 |  |  | $ | 129.9 |  |  | $ | (4.2) |  |  | (3.2) | %
Same-store gross profit — used |  | $ | 122.0 |  |  | $ | 124.1 |  |  | $ | (2.1) |  |  | (1.7) | %
Average gross profit per used vehicle retailed |  | $ | 2,149 |  |  | $ | 1,876 |  |  | $ | 273 |  |  | 14.6 | %
Same-store average gross profit per used vehicle retailed |  | $ | 2,133 |  |  | $ | 1,941 |  |  | $ | 192 |  |  | 9.9 | %
Gross margin % — used |  | 5.7 | % |  | 5.6 | % |  | 0.1 | % |  | 1.8 | %
Same-store gross margin % — used |  | 5.7 | % |  | 5.6 | % |  | 0.1 | % |  | 1.8 | %

Units
Retail unit sales of used vehicles decreased from 2024 to 2025 due to a 6,780 unit, or 10.6%, decrease in same-store used retail unit sales, coupled with a 3,999 unit decrease from net dealership dispositions. Our same-store units increased 2.1% in the U.S. and decreased 20.1% internationally. Overall, our used units increased 1.9% in the U.S. and decreased
29

Table of Contents
27.5% internationally. Excluding the decrease of 6,789 units across the U.K. Sytner Select dealerships, same-store used retail unit sales of used vehicles increased by 9 units. Same-store unit sales were impacted by the transition of our U.K. CarShop locations to Sytner Select dealerships which sell fewer units. Excluding the U.K. Sytner Select dealerships from both periods, used vehicles retailed decreased 3.7% internationally and decreased 0.8% overall and same-store used units decreased 2.3% internationally and were flat overall.
Revenues
Used vehicle retail sales revenue decreased from 2024 to 2025 due to a $68.4 million, or 3.1%, decrease in same-store revenues, coupled with a $67.3 million decrease from net dealership dispositions. Excluding $9.1 million of unfavorable foreign currency fluctuations, same-store used retail revenue decreased 2.7%. The decrease in same-store revenue is due to the decrease in same-store used retail unit sales discussed above, which decreased revenue by $233.8 million, partially offset by a $2,892 per unit increase in same-store comparative average selling price (despite a $159 per unit decrease attributable to unfavorable foreign currency fluctuations), which increased revenue by $165.4 million. We believe the increase in same-store comparative average selling price is primarily due to the transition of our former U.K. CarShop locations to Sytner Select dealerships which focus on lower volume, higher margin inventory, resulting in sales of more premium branded vehicles.
Gross Profit
Retail gross profit from used vehicle sales decreased from 2024 to 2025 due to a $2.1 million decrease from net dealership dispositions, coupled with a $2.1 million, or 1.7%, decrease in same-store gross profit. Excluding $0.4 million of unfavorable foreign currency fluctuations, same-store gross profit decreased 1.4%. The decrease in same-store gross profit is due to the decrease in same-store used retail unit sales, which decreased gross profit by $13.1 million, partially offset by a $192 per unit increase in same-store comparative average gross profit (despite a $7 per unit decrease attributable to unfavorable foreign currency fluctuations), which increased gross profit by $11.0 million. We believe the increase in same-store comparative average gross profit per unit is primarily due to improved inventory management and the transition of our U.K. CarShop locations to Sytner Select dealerships which has resulted in sales of more premium branded vehicles, coupled with the relative stabilization of gross profit per unit for used vehicles across the broader market compared to the same period last year.
Retail Automotive Dealership Finance and Insurance Data
(In millions, except unit and per unit amounts)

|  |  |  |  |  | 2025 vs. 2024
Finance and Insurance Data |  | 2025 |  | 2024 |  | Change |  | % Change
Total retail unit sales |  | 109,088 |  |  | 117,932 |  |  | (8,844) |  |  | (7.5) | %
Total same-store retail unit sales |  | 106,251 |  |  | 111,251 |  |  | (5,000) |  |  | (4.5) | %
Total agency unit sales |  | 10,686 |  |  | 8,932 |  |  | 1,754 |  |  | 19.6 | %
Total same-store agency unit sales |  | 10,686 |  |  | 8,069 |  |  | 2,617 |  |  | 32.4 | %
Finance and insurance revenue |  | $ | 198.2 |  |  | $ | 206.0 |  |  | $ | (7.8) |  |  | (3.8) | %
Same-store finance and insurance revenue |  | $ | 195.0 |  |  | $ | 196.8 |  |  | $ | (1.8) |  |  | (0.9) | %
Finance and insurance revenue per unit (excluding agency) |  | $ | 1,782 |  |  | $ | 1,719 |  |  | $ | 63 |  |  | 3.7 | %
Same-store finance and insurance revenue per unit (excluding agency) |  | $ | 1,808 |  |  | $ | 1,749 |  |  | $ | 59 |  |  | 3.4 | %

Finance and insurance revenue decreased from 2024 to 2025 due to a $6.0 million decrease from net dealership dispositions, coupled with a $1.8 million, or 0.9%, decrease in same-store revenue. Excluding $0.4 million of unfavorable foreign currency fluctuations, same-store finance and insurance revenue decreased 0.7%. Same-store revenue (excluding agency) decreased due to the decrease in combined same-store new and used retail unit sales, which decreased revenue by $8.7 million, partially offset by a $59 per unit increase in same-store comparative average finance and insurance retail revenue (despite a $4 per retail unit decrease attributable to unfavorable foreign currency fluctuations), which increased revenue by $6.3 million. Same-store finance and insurance revenue per unit (excluding agency) increased 0.7% in the U.S. and increased 2.3% in the U.K. We believe the increase in same-store finance and insurance revenue per unit (excluding agency) is primarily due to the increase in average selling price of both new and used vehicles, as well as changes in the availability of certain products in the U.K. compared to the prior year.
30

Table of Contents
Retail Automotive Dealership Service and Parts Data
(In millions)

|  |  |  |  |  | 2025 vs. 2024
Service and Parts Data |  | 2025 |  | 2024 |  | Change |  | % Change
Service and parts revenue |  | $ | 789.4 |  |  | $ | 746.1 |  |  | $ | 43.3 |  |  | 5.8 | %
Same-store service and parts revenue |  | $ | 764.6 |  |  | $ | 734.1 |  |  | $ | 30.5 |  |  | 4.2 | %
Gross profit — service and parts |  | $ | 462.7 |  |  | $ | 432.4 |  |  | $ | 30.3 |  |  | 7.0 | %
Same-store service and parts gross profit |  | $ | 450.2 |  |  | $ | 423.6 |  |  | $ | 26.6 |  |  | 6.3 | %
Gross margin % — service and parts |  | 58.6 | % |  | 58.0 | % |  | 0.6 | % |  | 1.0 | %
Same-store service and parts gross margin % |  | 58.9 | % |  | 57.7 | % |  | 1.2 | % |  | 2.1 | %

Revenues
Service and parts revenue increased from 2024 to 2025, with an increase of 6.6% in the U.S. and an increase of 4.6% internationally. The increase in service and parts revenue is due to a $30.5 million, or 4.2%, increase in same-store revenues, coupled with a $12.8 million increase from net dealership acquisitions. Excluding $3.2 million of unfavorable foreign currency fluctuations, same-store revenue increased 4.6%. The increase in same-store revenue is due to a $26.3 million, or 17.0%, increase in warranty revenue and a $4.7 million, or 0.9%, increase in customer pay revenue, partially offset by a $0.5 million, or 1.1%, decrease in vehicle preparation and body shop revenue. We believe the increase in same-store revenue is primarily due to additional warranty opportunities due to manufacturer recalls, vehicles remaining on the road longer due to affordability considerations, and increasing vehicle complexity, as well as increases in labor rates, repair orders, the price of parts.
Gross Profit
Service and parts gross profit increased from 2024 to 2025 due to a $26.6 million, or 6.3%, increase in same-store gross profit, coupled with a $3.7 million increase from net dealership acquisitions. Excluding $1.4 million of unfavorable foreign currency fluctuations, same-store gross profit increased 6.6%. The increase in same-store gross profit is due to the increase in same-store revenues, which increased gross profit by $18.0 million, coupled with a 1.2% increase in same-store gross margin, which increased gross profit by $8.6 million. The increase in same-store gross profit is due to a $15.8 million, or 19.3%, increase in warranty gross profit, a $6.4 million, or 2.6%, increase in customer pay gross profit, and a $4.4 million, or 4.9%, increase in vehicle preparation and body shop gross profit. We believe the increase in gross margin is primarily due to a change in the mix of warranty and customer pay, particularly in the U.S.
31

Table of Contents
Retail Commercial Truck Dealership Data
(In millions, except unit and per unit amounts)

|  |  |  |  |  | 2025 vs. 2024
New Commercial Truck Data |  | 2025 |  | 2024 |  | Change |  | % Change
New retail unit sales |  | 3,739 |  |  | 3,491 |  |  | 248 |  |  | 7.1 | %
Same-store new retail unit sales |  | 3,419 |  |  | 3,491 |  |  | (72) |  |  | (2.1) | %
New retail sales revenue |  | $ | 527.2 |  |  | $ | 494.2 |  |  | $ | 33.0 |  |  | 6.7 | %
Same-store new retail sales revenue |  | $ | 478.2 |  |  | $ | 494.2 |  |  | $ | (16.0) |  |  | (3.2) | %
New retail sales revenue per unit |  | $ | 140,988 |  |  | $ | 141,564 |  |  | $ | (576) |  |  | (0.4) | %
Same-store new retail sales revenue per unit |  | $ | 139,867 |  |  | $ | 141,564 |  |  | $ | (1,697) |  |  | (1.2) | %
Gross profit — new |  | $ | 33.5 |  |  | $ | 34.6 |  |  | $ | (1.1) |  |  | (3.2) | %
Same-store gross profit — new |  | $ | 30.2 |  |  | $ | 34.6 |  |  | $ | (4.4) |  |  | (12.7) | %
Average gross profit per new truck retailed |  | $ | 8,960 |  |  | $ | 9,909 |  |  | $ | (949) |  |  | (9.6) | %
Same-store average gross profit per new truck retailed |  | $ | 8,822 |  |  | $ | 9,909 |  |  | $ | (1,087) |  |  | (11.0) | %
Gross margin % — new |  | 6.4 | % |  | 7.0 | % |  | (0.6) | % |  | (8.6) | %
Same-store gross margin % — new |  | 6.3 | % |  | 7.0 | % |  | (0.7) | % |  | (10.0) | %

Units
Retail unit sales of new trucks increased from 2024 to 2025 due to a 320 unit increase from net dealership acquisitions, partially offset by a 72 unit, or 2.1%, decrease in same-store new retail unit sales. We believe the decrease in same-store unit sales is primarily due to replacement demand cycles, coupled with a prolonged recessionary freight rate environment.
Revenues
New commercial truck retail sales revenue increased from 2024 to 2025 due to a $49.0 million increase from net dealership acquisitions, partially offset by a $16.0 million, or 3.2%, decrease in same-store revenues. The decrease in same-store revenue is due to the decrease in same-store new retail unit sales, which decreased revenue by $10.2 million, coupled with a $1,697 per unit decrease in same-store comparative average selling price, which decreased revenue by $5.8 million. We believe the decrease in same-store comparative average selling price is primarily due to a shift in the sales mix toward lower-priced units sold, coupled with a prolonged recessionary freight rate environment.
Gross Profit
New commercial truck retail gross profit decreased from 2024 to 2025 due to a $4.4 million, or 12.7%, decrease in same-store gross profit, partially offset by a $3.3 million increase from net dealership acquisitions. The decrease in same-store gross profit is due to a $1,087 per unit decrease in same-store comparative average gross profit, which decreased gross profit by $3.7 million, coupled with the decrease in same-store new retail unit sales, which decreased gross profit by $0.7 million. We believe the decrease in same-store comparative average gross profit per unit is primarily due to a shift in the sales mix, coupled with a prolonged recessionary freight rate environment.
32

Table of Contents

|  |  |  |  |  | 2025 vs. 2024
Used Commercial Truck Data |  | 2025 |  | 2024 |  | Change |  | % Change
Used retail unit sales |  | 975 |  |  | 1,049 |  |  | (74) |  |  | (7.1) | %
Same-store used retail unit sales |  | 954 |  |  | 1,049 |  |  | (95) |  |  | (9.1) | %
Used retail sales revenue |  | $ | 63.8 |  |  | $ | 62.4 |  |  | $ | 1.4 |  |  | 2.2 | %
Same-store used retail sales revenue |  | $ | 62.5 |  |  | $ | 62.4 |  |  | $ | 0.1 |  |  | 0.2 | %
Used retail sales revenue per unit |  | $ | 65,468 |  |  | $ | 59,517 |  |  | $ | 5,951 |  |  | 10.0 | %
Same-store used retail sales revenue per unit |  | $ | 65,548 |  |  | $ | 59,517 |  |  | $ | 6,031 |  |  | 10.1 | %
Gross profit — used |  | $ | 7.3 |  |  | $ | 3.3 |  |  | $ | 4.0 |  |  | 121.2 | %
Same-store gross profit — used |  | $ | 7.2 |  |  | $ | 3.3 |  |  | $ | 3.9 |  |  | 118.2 | %
Average gross profit per used truck retailed |  | $ | 7,451 |  |  | $ | 3,187 |  |  | $ | 4,264 |  |  | 133.8 | %
Same-store average gross profit per used truck retailed |  | $ | 7,541 |  |  | $ | 3,187 |  |  | $ | 4,354 |  |  | 136.6 | %
Gross margin % — used |  | 11.4 | % |  | 5.3 | % |  | 6.1 | % |  | 115.1 | %
Same-store gross margin % — used |  | 11.5 | % |  | 5.3 | % |  | 6.2 | % |  | 117.0 | %

Units
Retail unit sales of used trucks decreased from 2024 to 2025 due to a 95 unit, or 9.1%, decrease in same-store retail unit sales, partially offset by a 21 unit increase from net dealership acquisitions. We believe the decrease in same-store unit sales is primarily due to challenges in sourcing lower mileage, higher quality used trucks for sale.
Revenues
Used commercial truck retail sales revenue increased from 2024 to 2025 due to a $1.3 million increase from net dealership acquisitions, coupled with a $0.1 million, or 0.2%, increase in same-store revenues. The increase in same-store revenue is due to a $6,031 per unit increase in same-store comparative average selling price, which increased revenue by $5.8 million, partially offset by the decrease in same-store used retail unit sales, which decreased revenue by $5.7 million. We believe the increase in same-store comparative average selling price is primarily due to the limited availability of lower mileage, higher quality used trucks available for sale.
Gross Profit
Used commercial truck retail gross profit increased from 2024 to 2025 primarily due to a $3.9 million, or 118.2%, increase in same-store gross profit, coupled with a $0.1 million increase from net dealership acquisitions. Same-store gross profit remained flat due to a $4,354 per unit increase in same-store comparative average gross profit, which increased gross profit by $4.2 million, partially offset by the decrease in same-store used retail unit sales, which decreased gross profit by $0.3 million. We believe the increase in same-store comparative average gross profit per unit is primarily due to the limited availability of lower mileage, higher quality used trucks available for sale and resulting sales mix of higher priced used units sold.

|  |  |  |  |  | 2025 vs. 2024
Service and Parts Data |  | 2025 |  | 2024 |  | Change |  | % Change
Service and parts revenue |  | $ | 222.0 |  |  | $ | 223.6 |  |  | $ | (1.6) |  |  | (0.7) | %
Same-store service and parts revenue |  | $ | 214.2 |  |  | $ | 222.7 |  |  | $ | (8.5) |  |  | (3.8) | %
Gross profit — service and parts |  | $ | 92.6 |  |  | $ | 98.1 |  |  | $ | (5.5) |  |  | (5.6) | %
Same-store service and parts gross profit |  | $ | 88.9 |  |  | $ | 97.6 |  |  | $ | (8.7) |  |  | (8.9) | %
Gross margin % — service and parts |  | 41.7 | % |  | 43.9 | % |  | (2.2) | % |  | (5.0) | %
Same-store service and parts gross margin % |  | 41.5 | % |  | 43.8 | % |  | (2.3) | % |  | (5.3) | %

Revenues
Service and parts revenue decreased from 2024 to 2025 due to an $8.5 million, or 3.8%, decrease in same-store revenues, partially offset by a $6.9 million increase from net dealership acquisitions. Customer pay work represented approximately 78.3% of PTG's service and parts revenue, largely due to the significant amount of retail sales of parts and accessories. The decrease in same-store revenue is due to a $5.8 million, or 3.3%, decrease in customer pay revenue, a
33

Table of Contents
$2.6 million, or 6.1%, decrease in warranty revenue, and a $0.1 million, or 0.5%, decrease in body shop revenue. We believe the decrease in same-store service and parts revenue is due to customers delaying maintenance costs due to the continued weak freight market, coupled with lower freight spot rates.
Gross Profit
Service and parts gross profit decreased from 2024 to 2025 due to an $8.7 million, or 8.9%, decrease in same-store gross profit, partially offset by a $3.2 million increase from net dealership acquisitions. The decrease in same-store gross profit is due to a 2.3% decrease in same-store gross margin, which decreased gross profit by $5.2 million, coupled with the decrease in same-store revenues, which decreased gross profit by $3.5 million. The decrease in same-store gross profit is primarily due to a $7.2 million, or 10.8%, decrease in customer pay gross profit, a $1.1 million, or 4.7%, decrease in warranty gross profit, and a $0.4 million, or 5.5%, decrease in body shop gross profit.
Commercial Vehicle Distribution and Other Data
(In millions, except unit amounts)

|  |  |  |  |  | 2025 vs. 2024
Penske Australia Data |  | 2025 |  | 2024 |  | Change |  | % Change
Commercial vehicle units (wholesale and retail) |  | 302 |  |  | 298 |  |  | 4 |  |  | 1.3 | %
Power system units |  | 331 |  |  | 313 |  |  | 18 |  |  | 5.8 | %
Sales revenue |  | $ | 211.5 |  |  | $ | 178.0 |  |  | $ | 33.5 |  |  | 18.8 | %
Gross profit |  | $ | 44.2 |  |  | $ | 43.2 |  |  | $ | 1.0 |  |  | 2.3 | %

Penske Australia primarily distributes and services commercial vehicles, engines, and power systems. This business generated $211.5 million of revenue during the three months ended March 31, 2025, compared to $178.0 million of revenue in the prior year, an increase of 18.8%. This business also generated $44.2 million of gross profit during the three months ended March 31, 2025, compared to $43.2 million of gross profit in the prior year, an increase of 2.3%.
Excluding $9.5 million of unfavorable foreign currency fluctuations, revenue increased 24.1% primarily due to an increase in higher value power generation units sold, coupled with an increase in units sold. Excluding $2.1 million of unfavorable foreign currency fluctuations, gross profit increased 6.7% primarily due to an increase in units sold, coupled with higher value power generation units sold.
Selling, General, and Administrative Data
(In millions)

|  |  |  |  |  | 2025 vs. 2024
Selling, General, and Administrative Data |  | 2025 |  | 2024 |  | Change |  | % Change
Personnel expense |  | $ | 531.5 |  |  | $ | 521.1 |  |  | $ | 10.4 |  |  | 2.0 | %
Advertising expense |  | $ | 30.0 |  |  | $ | 33.1 |  |  | $ | (3.1) |  |  | (9.4) | %
Rent & related expense |  | $ | 105.3 |  |  | $ | 103.5 |  |  | $ | 1.8 |  |  | 1.7 | %
Other expense |  | $ | 246.8 |  |  | $ | 222.1 |  |  | $ | 24.7 |  |  | 11.1 | %
Total SG&A expenses |  | $ | 913.6 |  |  | $ | 879.8 |  |  | $ | 33.8 |  |  | 3.8 | %
Same-store SG&A expenses |  | $ | 886.1 |  |  | $ | 856.0 |  |  | $ | 30.1 |  |  | 3.5 | %
Personnel expense as % of gross profit |  | 41.9 | % |  | 41.8 | % |  | 0.1 | % |  | 0.2 | %
Advertising expense as % of gross profit |  | 2.4 | % |  | 2.7 | % |  | (0.3) | % |  | (11.1) | %
Rent & related expense as % of gross profit |  | 8.3 | % |  | 8.3 | % |  | — | % |  | — | %
Other expense as % of gross profit |  | 19.4 | % |  | 17.9 | % |  | 1.5 | % |  | 8.4 | %
Total SG&A expenses as % of gross profit |  | 72.0 | % |  | 70.7 | % |  | 1.3 | % |  | 1.8 | %
Same-store SG&A expenses as % of same-store gross profit |  | 72.0 | % |  | 70.5 | % |  | 1.5 | % |  | 2.1 | %

Selling, general, and administrative expenses ("SG&A") increased from 2024 to 2025 due to a $30.1 million, or 3.5%, increase in same-store SG&A, coupled with a $3.7 million increase from net acquisitions. Excluding $4.9 million of favorable foreign currency fluctuations, same-store SG&A increased 4.1%. SG&A as a percentage of gross profit was
34

Table of Contents
72.0%, an increase of 130 basis points compared to 70.7% in the prior year. SG&A expenses as a percentage of total revenue were 12.0% and 11.8% in the three months ended March 31, 2025 and 2024, respectively. We believe the increase in SG&A expenses is primarily due to impairments and other charges (none of which was individually material).
Depreciation
(In millions)

|  |  |  |  | 2025 vs. 2024
| 2025 |  | 2024 |  | Change |  | % Change
Depreciation | $ | 39.9 |  |  | $ | 37.8 |  |  | 2.1 |  |  | 5.6 | %

Depreciation increased from 2024 to 2025 due to a $1.7 million, or 4.6%, increase in same-store depreciation due to capital expenditures, coupled with a $0.4 million increase from net dealership acquisitions.
Floor Plan Interest Expense
(In millions)

|  |  |  |  | 2025 vs. 2024
| 2025 |  | 2024 |  | Change |  | % Change
Floor plan interest expense | $ | 41.5 |  |  | $ | 44.8 |  |  | (3.3) |  |  | (7.4) | %

Floor plan interest expense decreased from 2024 to 2025 due to a $5.1 million, or 11.7%, decrease in same-store floor plan interest expense, partially offset by a $1.8 million increase from net acquisitions. The overall decrease is due to decreases in applicable rates throughout the year, partially offset by increases in average amounts outstanding under floor plan arrangements due to increasing levels of inventory.
Other Interest Expense
(In millions)

|  |  |  |  | 2025 vs. 2024
| 2025 |  | 2024 |  | Change |  | % Change
Other interest expense | $ | 22.5 |  |  | $ | 21.3 |  |  | 1.2 |  |  | 5.6 | %

Other interest expense increased from 2024 to 2025 due to increases in average revolver borrowing amounts outstanding under our credit agreements, partially offset by decreases in applicable rates throughout the year.
Equity in Earnings of Affiliates
(In millions)

|  |  |  |  | 2025 vs. 2024
| 2025 |  | 2024 |  | Change |  | % Change
Equity in earnings of affiliates | $ | 33.3 |  |  | $ | 33.3 |  |  | — |  |  | — | %

Equity in earnings of affiliates was flat from 2024 to 2025 due to a $0.7 million, or 2.2%, increase in earnings from our investment in PTS, offset by the decrease in earnings from our other joint ventures primarily due to the sale of our 50% interest in certain German dealerships in the fourth quarter of 2024. We believe the increase in our PTS equity earnings is primarily due to an increase in revenue from PTS' leasing and maintenance business, partially offset by the continued decline in truck rental revenue and lower gain on sale of used trucks associated with weakness in the freight market.
35

Table of Contents
Income Taxes
(In millions)

|  |  |  |  | 2025 vs. 2024
| 2025 |  | 2024 |  | Change |  | % Change
Income taxes | $ | 92.1 |  |  | $ | 78.6 |  |  | 13.5 |  |  | 17.2 | %

Income taxes increased from 2024 to 2025 primarily due to a $42.3 million increase in our pre-tax income compared to the prior year. Our effective tax rate was 27.3% during the three months ended March 31, 2025, compared to 26.7% during the three months ended March 31, 2024, primarily due to fluctuations in our geographic pre-tax income mix and non-recurring tax adjustments.
Liquidity and Capital Resources
Our cash requirements are primarily for working capital, inventory financing, the acquisition of new businesses, the improvement and expansion of existing facilities, the purchase or construction of new facilities, debt service and repayments, dividends, and potential repurchases of our outstanding securities under the program discussed below. Historically, these cash requirements have been met through cash flow from operations, borrowings under our credit agreements and floor plan arrangements, the issuance of debt securities, sale-leaseback transactions, real estate financings, and dividends and distributions from joint venture investments.
We have historically expanded our operations through organic growth and the acquisition of dealerships and other businesses. We believe that cash flow from operations, dividends and distributions from PTS and our joint venture investments, and our existing capital resources, including the liquidity provided by our credit agreements and floor plan financing arrangements, will be sufficient to fund our existing operations and current commitments for at least the next twelve months. In the event that economic conditions are more severely impacted than we expect due to proposed tariffs, geo-political conditions, the impact of tariffs and non-tariff trade barriers, any pandemic or vehicle shortages resulting from supply chain difficulties, we pursue significant acquisitions or other expansion opportunities, pursue significant repurchases of our outstanding securities, or refinance or repay existing debt, we may need to raise additional capital either through the public or private issuance of equity or debt securities or through additional borrowings, which sources of funds may not necessarily be available on terms acceptable to us, if at all. In addition, our liquidity could be negatively impacted in the event we fail to comply with the covenants under our various financing and operating agreements or in the event our floor plan financing is withdrawn. Future events, including acquisitions, divestitures, new or revised operating lease agreements, borrowings or repayments under our credit agreements and our floor plan arrangements, raising capital, and purchases or refinancing of our securities, may also impact our liquidity.
We expect that scheduled payments of our debt instruments will be funded through cash flows from operations or borrowings under our credit agreements. Upon the maturity of our $550 million of 3.50% senior subordinated notes due September 1, 2025, we currently expect to either repay those notes from cash flows from operations or borrowings under our U.S. credit agreement or refinance those notes in whole or in part with other similar notes, depending on the prevailing interest rates. In the case of payments upon the maturity or termination dates of our other debt instruments, we currently expect to be able to repay or refinance such instruments from cash flows from operations or borrowings under our credit agreements. Refer to the disclosures provided in Part I, Item 1, Note 9 of the Notes to our Consolidated Financial Statements set forth below for a detailed description of our long-term debt obligations and scheduled interest payments.
Floor plan notes payable are revolving inventory-secured financing arrangements. Refer to the disclosures provided in Part I, Item 1, Note 7 of the Notes to our Consolidated Financial Statements for a detailed description of financing for the vehicles we purchase, including discussion of our floor plan and other revolving arrangements.
Refer to the disclosures provided in Part I, Item 1, Note 10 of the Notes to our Consolidated Financial Statements for a description of our off-balance sheet arrangements which includes a repurchase commitment related to our floor plan credit agreement with Daimler Truck Financial Services Australia and Mercedes-Benz Financial Services New Zealand.
As of March 31, 2025, we had $118.4 million of cash available to fund our operations and capital commitments. In addition, we had an aggregate of approximately $2.0 billion available for borrowing under our U.S. credit agreement, U.K. credit agreement, the revolving mortgage facility through Toyota Motor Credit Corporation in the U.S., and other various credit facilities.
36

Table of Contents
Securities Repurchases
From time to time, our Board of Directors has authorized securities repurchase programs pursuant to which we may, as market conditions warrant, purchase our outstanding common stock or debt on the open market, in privately negotiated transactions, via a tender offer, through a pre-arranged trading plan, pursuant to the terms of an accelerated share repurchase program, or by other means. We have historically implemented pre-arranged trading plans as part of our securities repurchase programs. These plans authorize share repurchases based on parameters outlined in the specific plan during periods when we otherwise would not trade in our securities, such as the period approaching the end of a quarter through our public announcement of earnings. We have historically funded any such repurchases using cash flow from operations, borrowings under our U.S. credit agreement, and borrowings under our U.S. floor plan arrangements. The decision to make repurchases will be based on factors such as general economic and industry conditions, the market price of the relevant security versus our view of its intrinsic value, the potential impact of such repurchases on our capital structure, and our consideration of any alternative uses of our capital, such as for acquisitions, dividends, the repayment of our existing indebtedness, and strategic investments in our current businesses, in addition to any then-existing limits imposed by our finance agreements and securities trading policy. As of March 31, 2025, $117.0 million remained outstanding and available for repurchases under our securities repurchase program approved by our Board of Directors. As of April 25, 2025, $45.8 million remained outstanding and available for repurchases. This authority has no expiration. Refer to the disclosures provided in Part I, Item 1, Note 11 of the Notes to our Consolidated Condensed Financial Statements for a summary of shares repurchased during the three months ended March 31, 2025.
Dividends
We paid the following cash dividends on our common stock in 2024 and 2025:
Per Share Dividends

2024 |
First Quarter | $ | 0.87 |
Second Quarter | $ | 0.96 |
Third Quarter | $ | 1.07 |
Fourth Quarter | $ | 1.19 |

2025 |
First Quarter | $ | 1.22 |

While future quarterly or other cash dividends will depend upon a variety of factors considered relevant by our Board of Directors, which may include our expectations regarding vehicle availability, the impact of recently announced tariffs discussed above under "Outlook/Recent Developments - Tariffs" and in Part II, Item 1A. Risk Factors, "Tariffs and Trade Risk", the rate of inflation, earnings, cash flow, capital requirements, restrictions relating to any then-existing indebtedness, financial condition, alternative uses of capital, and other factors, we currently expect to continue to pay comparable dividends in the future.
Vehicle Financing
Refer to the disclosures provided in Part I, Item I, Note 7 of the Notes to our Consolidated Condensed Financial Statements for a detailed description of financing for the vehicles we purchase, including discussion of our floor plan and other revolving arrangements.
37

Table of Contents
Long-Term Debt Obligations
As of March 31, 2025, we had the following long-term debt obligations outstanding:

(In millions) | March 31, 2025
U.S. credit agreement — revolving credit line | $ | — |
U.K. credit agreement — revolving credit line | 82.7 |
3.50% senior subordinated notes due 2025 | 549.5 |
3.75% senior subordinated notes due 2029 | 496.8 |
Mortgage facilities | 428.4 |
Other debt | 214.1 |
Total long-term debt | $ | 1,771.5 |
Less: current portion | (778.5) |
Net long-term debt | $ | 993.0 |

As of March 31, 2025, we were in compliance with all financial covenants under our credit agreements, and we believe we will remain in compliance with such covenants for the next twelve months. Refer to the disclosures provided in Part I, Item 1, Note 9 of the Notes to our Consolidated Condensed Financial Statements for a detailed description of our long-term debt obligations.
Short-Term Borrowings
As of March 31, 2025, we had five principal sources of short-term borrowings: our U.S. credit agreement, U.K. credit agreement, other local country credit agreements, the revolving mortgage facility through Toyota Motor Credit Corporation, and the floor plan agreements that we utilize to finance our vehicle inventories. We are also able to access availability under the floor plan agreements to fund our cash needs. Our borrowings vary over time based on our cash flows, capital requirements and investment activities. The amounts outstanding under our floor plan agreements varied based on the timing of the receipt and expenditure of cash in our operations, driven principally by the levels of our vehicle inventories. Of our approximately $2.0 billion available for borrowing under our various credit facilities, our U.S. credit facility provides for up to $1.5 billion in borrowing capacity. During the three months ended March 31, 2025, our outstanding revolving commitments under the U.S. credit agreement varied between $0.0 million and $166.0 million.
PTS Dividends
We hold a 28.9% ownership interest in PTS as noted above. Their partnership agreement requires PTS, subject to applicable law and the terms of its credit agreements, to make quarterly distributions to the partners with respect to each fiscal year by no later than 45 days after the end of each of the first three quarters of the year and by April 15 of the following year. PTS' partnership agreement and certain of its debt agreements allow partner distributions only as long as it is not in default under those agreements and the amount it pays does not exceed 50% of its consolidated net income, unless its debt-to-equity ratio is less than 3.0 to 1.0, in which case its distributions may not exceed 80% of its consolidated net income. We receive pro rata cash distributions relating to this investment, typically in April, May, August, and November of each year. In April 2025, we received $26.2 million of pro rata cash distributions relating to this investment. During 2024, we received $98.4 million of pro rata cash distributions relating to this investment. We currently expect to continue to receive future distributions from PTS, subject to its financial performance.
Operating Leases
We estimate the total rent obligations under our operating leases, including any extension periods that we are reasonably certain to exercise at our discretion and assuming constant consumer price indices, to be $5.3 billion. As of March 31, 2025, we were in compliance with all financial covenants under these leases consisting principally of leases for dealerships and other properties, and we believe we will remain in compliance with such covenants for the next twelve months. Refer to the disclosures provided in Part I, Item 1, Note 3 and Note 10 of the Notes to our Consolidated Condensed Financial Statements for a description of our operating leases.
38

Table of Contents
Supplemental Guarantor Financial Information
The following is a description of the terms and conditions of the guarantees with respect to senior subordinated notes of Penske Automotive Group, Inc. ("PAG") as the issuer of the 3.50% Notes and the 3.75% Notes (collectively the "Senior Subordinated Notes").
Each of the Senior Subordinated Notes are unsecured, senior subordinated obligations and are guaranteed on an unsecured senior subordinated basis by our 100% owned U.S. subsidiaries ("Guarantor subsidiaries"). Each of the Senior Subordinated Notes also contains customary negative covenants and events of default. If we experience certain "change of control" events specified in their respective indentures, holders of these Senior Subordinated Notes will have the option to require us to purchase for cash all or a portion of their Senior Subordinated Notes at a price equal to 101% of the principal amount of the Senior Subordinated Notes, plus accrued and unpaid interest. In addition, if we make certain asset sales and do not reinvest the proceeds thereof or use such proceeds to repay certain debt, we will be required to use the proceeds of such asset sales to make an offer to purchase the Senior Subordinated Notes at a price equal to 100% of the principal amount of the Senior Subordinated Notes, plus accrued and unpaid interest.
Guarantor subsidiaries are directly or indirectly 100% owned by PAG, and the guarantees are full and unconditional and joint and several. The guarantees may be released under certain circumstances upon resale or transfer by us of the stock of the related guarantor or all or substantially all of the assets of the guarantor to a non-affiliate. Non-wholly owned and foreign subsidiaries of PAG do not guarantee the Senior Subordinated Notes ("Non-Guarantor subsidiaries"). The following tables present summarized financial information for PAG and the Guarantor subsidiaries on a combined basis. The financial information of PAG and Guarantor subsidiaries is presented on a combined basis; intercompany balances and transactions between PAG and Guarantor subsidiaries have been eliminated; PAG's or Guarantor subsidiaries' amounts due from, amounts due to, and transactions with non-issuer and Non-Guarantor subsidiaries and related parties are disclosed separately.
Condensed income statement information:

| PAG and Guarantor Subsidiaries
| Three Months Ended March 31, 2025 |  | Twelve Months Ended December 31, 2024
Revenues | $ | 4,207.7 |  |  | $ | 17,008.9 |
Gross profit | 738.9 |  |  | 2,960.3 |
Equity in earnings of affiliates | 33.2 |  |  | 198.0 |
Net income | 177.4 |  |  | 716.7 |
Net income attributable to Penske Automotive Group | 177.4 |  |  | 716.7 |

Condensed balance sheet information:

| PAG and Guarantor Subsidiaries
| March 31, 2025 |  | December 31, 2024
Current assets (1) | $ | 3,324.6 |  |  | $ | 3,334.8 |
Property and equipment, net | 1,623.0 |  |  | 1,611.6 |
Equity method investments | 1,840.2 |  |  | 1,806.4 |
Other noncurrent assets | 3,809.5 |  |  | 3,870.3 |
Current liabilities | 3,381.0 |  |  | 3,343.6 |
Noncurrent liabilities | 3,314.2 |  |  | 3,443.7 |

__________
(1)Includes $535.0 million and $535.4 million as of March 31, 2025, and December 31, 2024, respectively, due from Non-Guarantor subsidiaries.
During the three months ended March 31, 2025, PAG received $5.1 million from Non-Guarantor subsidiaries. During the twelve months ended December 31, 2024, PAG received $110.3 million from Non-Guarantor subsidiaries.
39

Table of Contents
Cash Flows
The following table summarizes the changes in our cash provided by (used in) operating, investing, and financing activities. The major components of these changes are discussed below.

| Three Months Ended March 31,
(In millions) | 2025 |  | 2024
Net cash provided by operating activities | $ | 282.7 |  |  | $ | 456.0 |
Net cash provided by (used in) investing activities | 3.5 |  |  | (352.4) |
Net cash used in financing activities | (241.7) |  |  | (82.1) |
Effect of exchange rate changes on cash and cash equivalents | 1.5 |  |  | (1.0) |
Net change in cash and cash equivalents | $ | 46.0 |  |  | $ | 20.5 |

Cash Flows from Operating Activities
Cash flows from operating activities include net income, as adjusted for non-cash items and the effects of changes in working capital.
We finance substantially all of the commercial vehicles we purchase for distribution, new vehicles for retail sale (however, see Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations, "Overview" for a discussion of the agency model of distribution), and a portion of our used vehicle inventories for retail sale under floor plan and other revolving arrangements with various lenders, including the captive finance companies associated with automotive manufacturers. We retain the right to select which, if any, financing source to utilize in connection with the procurement of vehicle inventories. Many vehicle manufacturers provide vehicle financing for the dealers representing their brands; however, it is not a requirement that we utilize this financing. Historically, our floor plan finance source has been based on aggregate pricing considerations.
In accordance with generally accepted accounting principles relating to the statement of cash flows, we report all cash flows arising in connection with floor plan notes payable with the manufacturer of a particular new vehicle as an operating activity in our statement of cash flows, and we report all cash flows arising in connection with floor plan notes payable to a party other than the manufacturer of a particular new vehicle and all floor plan notes payable relating to pre-owned vehicles as a financing activity in our statement of cash flows. Currently, the majority of our non-trade vehicle financing is with other manufacturer captive lenders. To date, we have not experienced any material limitation with respect to the amount or availability of financing from any institution providing us with vehicle financing.
We believe that changes in aggregate floor plan liabilities are typically linked to changes in vehicle inventory and therefore, are an integral part of understanding changes in our working capital and operating cash flow. As a result, we have prepared the following reconciliation to highlight our operating cash flows with all changes in vehicle floor plan being classified as an operating activity for informational purposes:

| Three Months Ended March 31,
(In millions) | 2025 |  | 2024
Net cash provided by operating activities as reported | $ | 282.7 |  |  | $ | 456.0 |
Floor plan notes payable — non-trade as reported | (27.6) |  |  | (30.7) |
Net cash provided by operating activities including all floor plan notes payable | $ | 255.1 |  |  | $ | 425.3 |

Cash Flows from Investing Activities
Cash flows from investing activities consist primarily of cash used for capital expenditures, proceeds from the sale of dealerships, and proceeds from the sale of property and equipment. Capital expenditures were $76.6 million and $102.5 million during the three months ended March 31, 2025 and 2024, respectively. Capital expenditures relate primarily to improvements to our existing dealership facilities, the construction of new facilities, the acquisition of the property or buildings associated with existing leased facilities, and the acquisition of land for future development. We currently expect to finance our capital expenditures with operating cash flows or borrowings under our credit agreements. Proceeds from the sale of dealerships were $77.8 million during the three months ended March 31, 2025, compared to no proceeds during the three months ended March 31, 2024. Proceeds from the sale of property and equipment were $4.0 million during the three months ended March 31, 2025, compared to no proceeds during the three months ended 2024. We had no cash used in
40

Table of Contents
acquisitions and other investments, net of cash acquired, during the three months ended March 31, 2025, compared to $243.6 million during the three months ended March 31, 2024, and included cash used to repay sellers' floor plan liabilities in such business acquisitions of $83.1 million.
Cash Flows from Financing Activities
Cash flows from financing activities include net repayments and borrowings of debt, net repayments of floor plan notes payable non-trade, repurchases of common stock, dividends, and payments for debt issuance costs.
We had net repayments of debt of $92.0 million and net borrowings of $48.7 million during the three months ended March 31, 2025 and 2024, respectively. We had net repayments of floor plan notes payable non-trade of $27.6 million and $30.7 million during the three months ended March 31, 2025 and 2024, respectively. We repurchased 0.3 million and 0.2 million shares of common stock under our securities repurchase program for $39.9 million and $32.9 million during the three months ended March 31, 2025 and 2024, respectively. We also paid cash dividends to our stockholders of $81.8 million and $58.6 million during the three months ended March 31, 2025 and 2024, respectively. We made payments for debt issuance costs of $0.3 million and $0.5 million during the three months ended March 31, 2025, and 2024, respectively.
Tax Developments
Global Minimum Tax
The Organization for Economic Co-operation and Development (“OECD”), an international association of thirty-eight countries including the United States, has proposed reform of international taxation known as Pillar Two, which imposes a global minimum corporate income tax rate of 15% on multinational companies. In December 2022, the European Union (“EU”) Member States formally adopted a directive that implements the OECD Pillar Two framework, which is expected to be enacted into the national laws of the EU member states. Certain countries in which we operate have enacted legislation to adopt the Pillar Two framework effective for the Company for the calendar year 2024. Several other countries are also considering changes to their local tax laws to implement this framework in the future. We expect the enacted Pillar Two legislation to increase tax compliance obligations; however, we do not anticipate any monetary impact from any Pillar Two legislation as all of the jurisdictions in which we operate are expected to have an effective tax rate greater than the minimum threshold of 15%. We will continue to monitor new guidance in this area including proposed and enacted legislative changes as further information becomes available.
Related Party Transactions
Stockholders Agreement
Several of our directors and officers are affiliated with Penske Corporation or related entities. Roger Penske, our Chair of the Board and Chief Executive Officer, is also Chair of the Board and Chief Executive Officer of Penske Corporation and through entities affiliated with Penske Corporation is our largest stockholder owning approximately 52.1% of our outstanding common stock. Mitsui & Co., Ltd. and Mitsui & Co. (USA), Inc. (collectively, "Mitsui") own approximately 20.1% of our outstanding common stock. Mitsui, Penske Corporation and Penske Automotive Holdings Corp. (together with Penske Corporation, the "Penske companies") are parties to a stockholders agreement which expires March 26, 2030 (the "Stockholders Agreement"). Pursuant to the Stockholders Agreement, in connection with any shareholder election of directors, the Penske companies agreed to vote their shares for two directors who are representatives of Mitsui as long as Mitsui owns in excess of 20% of our outstanding common stock, and for one director as long as Mitsui owns in excess of 10% of our outstanding common stock. Mitsui agreed to vote its shares for up to fourteen directors voted for by the Penske companies.
Voting Agreement
Penske Corporation (“PC”) and the Company entered into a voting agreement (the “Voting Agreement”) pursuant to which PC agreed, on each matter brought to a vote at any annual or special meeting of our stockholders and in connection with any action proposed to be taken by consent of our stockholders in lieu of a meeting, to vote all shares of Voting Common Stock, or other voting or equity securities of ours which could be issued (together with the Voting Common Stock, the “Voting Securities”) beneficially owned by PC, that, together with the Voting Securities held by Roger S. Penske, our Chair and Chief Executive Officer, and any entity that Roger S. Penske controls, exceed 43.57% of the outstanding Voting Securities (the “Excess Voting Securities”), in the same proportion as all votes cast by stockholders other than PC, Roger S. Penske or any entity that Roger S. Penske controls (except as otherwise required by the existing
41

Table of Contents
Stockholders Agreement). Any Voting Securities that are not Excess Voting Securities may be voted at the discretion of PC. The Voting Agreement will terminate per its terms at the time that PC ceases to beneficially own 30% or more of the Voting Securities then outstanding. Notwithstanding the foregoing, the Voting Agreement does not impact the provisions of the Stockholders Agreement noted above as currently in effect.
Other Related Party Interests and Transactions
Robert Kurnick, Jr., our President and a director, is also the Vice Chair and a director of Penske Corporation and an Advisory Board member of PTS. Bud Denker, our Executive Vice President, Human Resources, is also the President of Penske Corporation. Greg Penske, the Vice Chair of our Board of Directors, is the son of our Chair and is also a director of Penske Corporation. Michael Eisenson, one of our directors, is also a director of Penske Corporation. Kota Odagiri, one of our directors, is also an employee of Mitsui & Co.
We sometimes pay to and/or receive fees from Penske Corporation, its subsidiaries, and its affiliates for services rendered in the ordinary course of business or to reimburse payments made to third parties on each other's behalf. These transactions are reviewed periodically by our Audit Committee and reflect the provider's cost or an amount mutually agreed upon by both parties.
We own a 28.9% interest in PTS. PTS, discussed previously, is owned 41.1% by Penske Corporation, 28.9% by us, and 30.0% by Mitsui. The PTS partnership agreement, among other things, provides us with specified partner distribution and governance rights and restricts our ability to transfer our interest. The partnership has an eleven-member Advisory Board. We have the right to appoint one Advisory Board member and appointed Robert H. Kurnick, Jr., our President. Lisa Davis and Michael Eisenson, our directors, are also members of the Advisory Board. We have the right to pro rata quarterly distributions equal to at least 50% of PTS' consolidated net income, as well as specified minority rights which require our and/or Mitsui's consent for certain actions taken by PTS as specified in the PTS partnership agreement.
Joint Venture Relationships
From time to time, we enter into joint venture relationships in the ordinary course of business, pursuant to which we own and operate automotive dealerships together with other investors. We may also provide these dealerships with working capital and other debt financing at costs that are based on our incremental borrowing rate. As of March 31, 2025, our automotive joint venture relationships were as follows:

Location |  | Dealerships |  | Ownership Interest
Fairfield, Connecticut |  | Audi, Mercedes-Benz, Sprinter, Porsche |  | 80.00% (A)
Greenwich, Connecticut |  | Mercedes-Benz |  | 80.00% (A)
Northern Italy |  | BMW, MINI, Maserati, Porsche, Audi, Jaguar, Land Rover, Volvo, Mercedes-Benz, smart, Lamborghini |  | 95.00% (A)
Barcelona, Spain |  | BMW, MINI, Dongfeng, Xpeng |  | 50.00% (B)
__________________
(A) Entity is consolidated in our financial statements.
(B) Entity is accounted for using the equity method of accounting.

Additionally, we are party to non-automotive joint ventures representing our investments in PTS (28.9%) and Penske Commercial Leasing Australia (28%) that are accounted for under the equity method.
Cyclicality
Unit sales of motor vehicles, particularly new vehicles, have been cyclical historically, fluctuating with general economic cycles. During economic downturns, the automotive and truck retailing industries tend to experience periods of decline and recession similar to those experienced by the general economy. We believe that these industries are influenced by general economic conditions and particularly, by consumer confidence, the level of personal discretionary spending, the rate of inflation, including its impact on vehicle affordability, fuel prices, utility prices, interest rates, and credit availability.
U.S. light vehicle sales have ranged from a low of 10.4 million units in 2009 to a high of 17.5 million units in 2016. Unit sales of new commercial vehicles have historically been subject to substantial cyclical variation based on these general economic conditions. According to data published by ACT Research, in recent years, total U.S. retail sales of new
42

Table of Contents
Class 8 commercial vehicles have ranged from a low of approximately 97,000 in 2009 to a high of approximately 334,000 in 2019. Through geographic diversification, concentration on higher margin regular service and parts revenues, and diversification of our customer base, we have attempted to reduce the negative impact of adverse general economic conditions or cyclical trends affecting any one industry or geographic area on our earnings.
Seasonality
Retail Automotive Dealership. Our business is modestly seasonal overall. Our U.S. operations generally experience higher volumes of vehicle sales in the second and third quarters of each year due in part to consumer buying trends and the introduction of new vehicle models. Also, vehicle demand, and to a lesser extent demand for service and parts, is generally lower during the winter months than in other seasons, particularly in regions of the U.S. where dealerships may be subject to severe winters. Our U.K. operations generally experience higher volumes of new vehicle sales in the first and third quarters of each year, due primarily to new vehicle registration practices in the U.K.
Inflation
Many of the markets in which we operate have recently experienced higher rates of inflation when compared to historical norms. Inflation, which may include inflationary effects caused by tariffs and non-tariff trade barriers, affects the price of vehicles, the price of parts, the rate of pay of our employees, consumer credit availability, and consumer demand. Higher rates of inflation may adversely affect consumer demand and increase our costs, which may materially and adversely affect us.
Forward-Looking Statements
Certain statements and information set forth herein, as well as other written or oral statements made from time to time by us or by our authorized officers on our behalf, constitute "forward-looking statements" within the meaning of the Federal Private Securities Litigation Reform Act of 1995. Words such as "anticipate," "believe," "estimate," "expect," "intend," "may," "goal," "plan," "seek," "project," "continue," "will," "would," and variations of such words and similar expressions are intended to identify such forward-looking statements. We intend for our forward-looking statements to be covered by the safe harbor provisions for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995, and we set forth this statement in order to comply with such safe harbor provisions. You should note that our forward-looking statements speak only as of the date of this report or when made, and we undertake no duty or obligation to update or revise our forward-looking statements, whether as a result of new information, future events, or otherwise. Forward-looking statements include, without limitation, statements with respect to:
•the impact of macro-economic and geo-political conditions and events, including their impact on new and used vehicle sales, availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, the rate of inflation, personal discretionary spending levels, consumer credit availability, interest rates, and unemployment rates;
•the impact of recently announced tariffs, including tariffs targeting imported vehicles and parts, as well as trade restrictions, trade disputes, non-tariff trade barriers and other foreign trade risks, on our acquisition costs, consumer demand, vehicle affordability, the supply of vehicles and parts, and our gross profit with respect to affected vehicles and parts;
•our future financial and operating performance;
•future dealership openings, acquisitions, and dispositions;
•future potential capital expenditures and securities repurchases;
•our ability to realize cost savings and synergies;
•our ability to respond to economic cycles;
•our expectations regarding new vehicle availability and the renewal of our existing franchise agreements and arrangements;
•trends and sales levels in the automotive retail industry, commercial vehicles industries, and in the general economy in the various countries in which we operate;
43

Table of Contents
•the rate of adoption of EVs and their effect on our business;
•our liquidity and ability to access the remaining availability under our credit agreements;
•the performance of our joint ventures, including PTS;
•future foreign currency exchange rates;
•the outcome of various regulatory matters and legal proceedings;
•results of self-insurance plans or other insured matters;
•trends affecting the automotive or trucking industries generally, such as changes to an agency model of distribution, and our future financial condition or results of operations; and
•our business strategy.
Forward-looking statements involve known and unknown risks and uncertainties and are not assurances of future performance. Actual results may differ materially from anticipated results due to a variety of factors, including the factors identified in Part I, Item 1A. Risk Factors in our Annual Report on Form 10-K for the year ended December 31, 2024, Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q, and our other periodic reports filed with the Securities and Exchange Commission. Important factors that could also cause actual results to differ materially from our expectations include the following:
•our business and the automotive retail and commercial vehicles industries in general are susceptible to adverse macro-economic and geo-political conditions, including their impact on new and used vehicle sales, the availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, demand for trucks to move freight with respect to PTS and PTG, personal discretionary spending levels, interest rates, foreign currency exchange rates, customer confidence, the rate of inflation, including its impact on vehicle affordability, fuel and utility prices and unemployment rates;
•many of the vehicles and parts we sell are subject to recently announced tariffs, including tariffs targeting imported vehicles and parts, which tariffs and related trade restrictions, trade disputes, non-tariff trade barriers and other foreign trade risks may increase the cost of vehicles and parts to us and consumers, limit the supply of certain vehicles and parts we sell, reduce consumer demand due to affordability challenges, and negatively impact our gross profit with respect to affected vehicles and parts;
•we depend on the success, popularity and availability of the brands we sell, and adverse conditions affecting one or more of these vehicle manufacturers, including the adverse impact on the vehicle and parts supply chain due to natural disasters, the shortage of vehicle components, international conflicts, challenges in sourcing labor, labor strikes, or work stoppages, or other disruptions that interrupt the supply of vehicles and parts to us may negatively impact our revenues and profitability;
•the number of new and used vehicles sold in our markets, which impacts our ability to generate new and used vehicle gross profit and future service and parts operations;
•the effect on our businesses of the changing retail environment due to certain manufacturers selling direct to consumers outside the franchise system, changes to an agency model of distribution, and the growing number of EVs;
•the effect on our businesses of mobility technologies, such as Uber and Lyft, and the eventual availability of driverless vehicles;
•vehicle manufacturers exercise significant control over our operations, and we depend on them and the continuation of our franchise and distribution agreements in order to operate our business;
•we are subject to the risk that a substantial number of our new or used inventory may be unavailable due to inventory shortages, recalls, or other reasons;
•the success of our commercial vehicle distribution operations and engine and power systems distribution operations depends upon continued availability of the vehicles, engines, power systems, and other parts we
44

Table of Contents
distribute, demand for those vehicles, engines, power systems, and parts and general economic conditions in those markets;
•a restructuring of any significant vehicle manufacturer or supplier;
•our operations may be affected by severe weather or other periodic business interruptions;
•with respect to PTS, changes in the financial health of its customers, compliance costs, labor strikes or work stoppages with respect to its employees, a reduction in PTS' asset utilization rates, continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, including with respect to the effect of various government mandates concerning the electrification of its vehicle fleet, potential decreases in the resale value of used vehicles which may affect PTS' ability to sell its used vehicles after the expiration of its customers' leases or at the end of its holding period for rental vehicles, which may affect PTS' profitability, compliance costs in regard to its trucking fleet and truck drivers, its ability to retain qualified drivers and technicians, risks associated with its participation in multi-employer pension plans, conditions in the capital markets to assure PTS' continued availability of capital to purchase trucks, the effect of changes in lease accounting rules on PTS customers' purchase/lease decisions, industry competition, new or enhanced regulatory requirements, emissions standards, vehicle mandates, changes in consumer sentiment regarding the transportation industry, and vulnerabilities with respect to its centralized information systems, each of which could impact equity earnings and distributions to us;
•we have substantial risk of loss not covered by insurance;
•we may not be able to satisfy our capital requirements for acquisitions, facility renovation projects, financing the purchase of our inventory, or refinancing of our debt when it becomes due;
•our level of indebtedness and cash required for lease obligations may limit our ability to obtain financing generally and may require that a significant portion of our cash flow be used for debt service;
•non-compliance with the financial ratios and other covenants under our credit agreements and operating leases;
•higher interest rates may significantly increase our variable rate interest costs and because many customers finance their vehicle purchases, adversely impact vehicle affordability, and decrease vehicle sales;
•our operations outside of the U.S. subject our profitability to fluctuations relating to changes in foreign currency values;
•we are dependent on the continued security and availability of our information technology systems and those of certain third-party providers to avoid significant business interruptions, which systems are increasingly threatened by ransomware and other cyber-attacks;
•we may be subject to significant litigation, fines, penalties, and other costs under applicable privacy laws and regulations if we do not maintain our confidential customer and employee information properly;
•if we lose key personnel, especially our Chief Executive Officer, or are unable to attract additional qualified personnel;
•new or enhanced regulations in both our domestic and international markets relating to automobile dealerships and vehicle sales, including those enacted in certain European countries and various U.S. states banning or taking actions to ban the sale of new vehicles with gasoline engines;
•new or enhanced regulations, including those related to emissions standards, or changes in consumer sentiment relating to commercial truck sales that may hinder our or PTS' ability to maintain, acquire, sell, or operate trucks;
•changes in tax, financial or regulatory rules, or requirements, including new regulations proposed by the governments and agencies that regulate retail automotive transactions may lead to additional transaction times for the sale of vehicles, complicate the transaction process, decrease customer satisfaction, and increase compliance costs and risk, among other effects;
•we could be subject to legal and administrative proceedings which, if the outcomes are adverse to us, could have a material adverse effect on our business, including the result of the U.K. Financial Conduct Authority’s investigation of discretionary commission arrangements and potential remediation measures amid concerns these
45

Table of Contents
arrangements were unfair to customers as well as the resulting impact of a recent U.K. court judgment requiring the lenders in that case to repay the customers in that case the commissions paid to the dealers for their vehicle finance agreements;
•if state dealer laws in the U.S. are repealed or weakened or new manufacturers such as those selling EVs are able to conduct significant vehicle sales outside of the franchised automotive system, our automotive dealerships may be subject to increased competition and may be more susceptible to termination, non-renewal, or renegotiation of their franchise agreements;
•we are subject to a wide range of environmental laws and regulations governing the use, generation, and disposal of materials used in our ordinary course of operations, and we face potentially significant costs relating to claims, penalties, and remediation efforts in the event of non-compliance with existing and future laws and regulations which may become more stringent in the face of climate change;
•some of our directors and officers may have conflicts of interest with respect to certain related party transactions and other business interests; and
•shares of our common stock eligible for future sale may cause the market price of our common stock to drop significantly, even if our business is doing well.
We urge you to carefully consider these risk factors and further information identified in our Annual Report on Form 10-K for the year ended December 31, 2024, Part II, Item 1A. "Risk Factors" in this Quarterly Report on Form 10-Q, and our other periodic reports filed with the Securities and Exchange Commission in evaluating all forward-looking statements regarding our business. Readers of this report are cautioned not to place undue reliance on the forward-looking statements contained in this report. All forward-looking statements attributable to us are qualified in their entirety by this cautionary statement. Except to the extent required by the federal securities laws and the Securities and Exchange Commission's rules and regulations, we have no intention or obligation to update publicly any forward-looking statements whether as a result of new information, future events, or otherwise.
Item 3. Quantitative and Qualitative Disclosures About Market Risk
Interest Rates. We are exposed to market risk from changes in the interest rates on a significant portion of our outstanding debt. Outstanding revolving balances under our credit agreements bear interest at the prevailing benchmark interest rates in our various markets. Based on an average of the aggregate amounts outstanding under these facilities during the three months ended March 31, 2025, a 100-basis-point change in interest rates would result in an approximate $5.1 million change to our annual other interest expense.
Similarly, amounts outstanding under floor plan financing arrangements also bear interest at the prevailing benchmark interest rates in our various markets. Based on an average of the aggregate amounts outstanding under our floor plan financing arrangements subject to variable interest payments during the three months ended March 31, 2025, a 100-basis-point change in interest rates would result in an approximate $37.9 million change to our annual floor plan interest expense.
We evaluate our exposure to interest rate fluctuations and follow established policies and procedures to implement strategies designed to manage the amount of variable rate indebtedness outstanding at any point in time in an effort to mitigate the effect of interest rate fluctuations on our earnings and cash flows. These policies include:
•the maintenance of our overall debt portfolio with fixed and variable rate components;
•the use of authorized derivative instruments;
•the prohibition of using derivatives for trading or other speculative purposes; and
•the prohibition of highly leveraged derivatives, derivatives which we are unable to reliably value, or derivatives which we are unable to obtain a market quotation.
Interest rate fluctuations affect the fair market value of our fixed rate debt, including our mortgages and certain seller financed promissory notes, but with respect to such fixed rate debt instruments, do not impact our earnings or cash flows.
Foreign Currency Exchange Rates. As of March 31, 2025, we had consolidated operations in the U.K., Germany, Italy, Japan, Canada, Australia, and New Zealand. In each of these markets, the local currency is the functional currency. In the event we change our intent with respect to the investment in any of our international operations, we would expect to
46

Table of Contents
implement strategies designed to manage those risks in an effort to mitigate the effect of foreign currency fluctuations on our earnings and cash flows. A ten percent change in average exchange rates versus the U.S. Dollar would have resulted in an approximate $320.9 million change to our revenues for the three months ended March 31, 2025.
We purchase certain of our new vehicles, parts, and other products from non-U.S. manufacturers. Although we purchase the majority of our inventories in the local functional currency, our business is subject to certain risks, including, but not limited to, differing economic conditions, changes in political climate, differing tax structures, changes in tax and tariff rates, other regulations and restrictions, and foreign currency exchange rate volatility, which may influence such manufacturers' ability to provide their products at competitive prices in the local jurisdictions. Our future results could be materially and adversely impacted by changes in these or other factors.
Item 4. Controls and Procedures
Under the supervision and with the participation of our management, including our principal executive officer and principal financial officer, we conducted an evaluation of the effectiveness of our disclosure controls and procedures (as such term is defined in Rules 13a-15(e) and 15d-15(e) under the Securities Exchange Act of 1934, as amended (the "Exchange Act")) as of the end of the period covered by this report. Our disclosure controls and procedures are designed to ensure that information required to be disclosed by us in the reports we file under the Exchange Act is recorded, processed, summarized, and reported within the time periods specified in the SEC's rules and forms and that such information is accumulated and communicated to management, including our principal executive officer and principal financial officer, to allow timely discussions regarding required disclosure.
Based upon this evaluation, our principal executive officer and principal financial officer concluded that our disclosure controls and procedures were effective as of the end of the period covered by this report. In addition, we maintain internal controls designed to provide us with the information required for accounting and financial reporting purposes. There were no changes in our internal control over financial reporting that occurred during the most recent quarter that materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.
47

Table of Contents
PART II — OTHER INFORMATION
Item 1. Legal Proceedings
From time to time, we are a party to litigation and other legal proceedings, including class action claims and purported class action claims, in the ordinary course of business. Such claims may be brought by governmental authorities, customers, vendors, stockholders, or employees. We are not a party to any legal proceedings, including class action lawsuits, that individually or in the aggregate are reasonably expected to have a material effect on us. However, the results of these matters cannot be predicted with certainty, and an unfavorable resolution of one or more of these matters could have a material adverse effect.
Item 1A. Risk Factors
In addition to the information set forth in this Form 10-Q, you should carefully consider the risk factors discussed in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2024, along with our other periodic reports filed with the Securities and Exchange Commission, which could materially affect our business, financial condition, or future results. The following disclosure further updates the risk factors included in our 2024 Annual Report on Form 10-K:
Legal and Compliance Risks
Other Regulatory Issues. We are subject to a wide variety of regulatory activities and oversight, including:
Governmental regulations, claims, and legal proceedings. Governmental regulations affect almost every aspect of our business, including the fair treatment of our employees, wage and hour issues, and our financing activities with customers. In California, previous judicial decisions have called into question whether long-standing methods for compensating dealership employees comply with the local wage and hour rules and may do so again. We could be susceptible to claims or related actions if we fail to operate our business in accordance with applicable laws or it is determined that long-standing compensation methods did not comply with local laws. Many laws and regulations applicable to our business were adopted prior to the introduction of online vehicle sales, the Internet and certain digital technology, generally. As a result, we are tasked with maintaining compliance in an uncertain regulatory environment. Claims arising out of actual or alleged violations of law which may be asserted against us or any of our dealers by individuals, through class actions, or by governmental entities in civil or criminal investigations and proceedings, may expose us to substantial monetary damages which may adversely affect us.
Our financing activities with customers are subject to truth-in-lending, consumer leasing, equal credit opportunity, and similar regulations as well as motor vehicle finance laws, installment finance laws, insurance laws, usury laws, and other installment sales laws. In the U.K., the Financial Conduct Authority (the "FCA") regulates financial services firms and financial markets, including our activities in acting as broker for the financing of vehicle sales. The FCA is investigating the historic use of discretionary commission arrangements ("DCAs") amid concerns that this practice may have been unfair to customers. The purpose of the investigation is to consider whether the historic use of DCAs caused customers to pay too much for their car loans and, if so, to consider potential remediation measures, including the possible implementation of an industry-wide redress scheme. The investigation is being undertaken after the Financial Ombudsman Service (a public body, which resolves financial complaints) determined that DCAs, in two separate cases which do not involve us, had caused financial losses to customers. The FCA previously announced that it would disclose the results of its investigation in May 2025, but recently stated it will delay any announcement until after a ruling by the U.K. Supreme Court in the matter discussed below.
On October 25, 2024, the U.K. Court of Appeal (the second highest court in the U.K.) issued a judgment in the case Johnson v Firstrand Bank Ltd, Wrench v Firstrand Bank Ltd and Hopcraft v Close Brothers Ltd, which required those lenders to repay those customers the commissions paid to the dealers for their vehicle finance agreements, determining that, in those cases, there was a fiduciary duty to the customers to disclose the amount of the commissions paid to those dealers. In response to this judgment, U.K. consumer lenders now require dealerships (including us) to disclose to customers the commissions dealers receive from financing the purchase of their vehicle. We believe this judgment is contrary to existing guidance issued by the FCA, and in early April, the U.K. Supreme Court (the highest court in the U.K.) heard an appeal of this litigation as part of an expedited review. The outcome of the litigation, the FCA’s response to any judgment, and the ultimate outcome of the FCA’s investigation, remains uncertain.
The FCA has indicated that, subject to the U.K. Supreme Court decision, the FCA may consider an industry-wide redress scheme involving the payment of compensation to customers that are deemed to have suffered harm as a result of
48

Table of Contents
the sale of DCAs. While the focus of the FCA’s potential redress to customers, and the Judgment above, has been on the lenders and not automotive dealers, that outcome is uncertain and we may experience changes to our processes that may affect our business. Further, any regulatory or judicial outcome that ultimately results in the refund of historical commissions paid to us, reduces the commissions paid to us, or that directly or indirectly results in our participation in any FCA-mandated redress scheme or other compensation owed to customers, could materially and adversely affect our business and results of operations.
Tariffs and Trade Risk. On March 26, 2025, U.S. President Trump announced the imposition of a 25% tariff on imports of automobiles and certain automobile parts (the “Automotive Tariffs”). The 25% tariff applies to imported fully-assembled passenger vehicles including sedans, SUVs, crossovers, minivans, and cargo vans as well as light trucks, and became effective on April 3, 2025. The 25% tariff also applies to many imported automotive parts, with tariffs on certain imported parts beginning no later than May 3, 2025. In addition to the Automotive Tariffs, on April 2, 2025, U.S. President Trump announced a minimum 10% tariff applied to imports from most countries, with limited country and product exceptions, and elevated tariff rates imposed on more than 60 specific countries (the “Reciprocal Tariffs”), although, on April 9, 2025, the elevated Reciprocal Tariffs on certain countries were temporarily paused, notably excluding significant Reciprocal Tariffs on China. The vehicles and parts subject to the Automotive Tariffs are not subject to the Reciprocal Tariffs, and on April 29, 2025, U.S. President Trump announced further actions to reduce the compounding effects of other tariffs on vehicles and parts subject to the Automotive Tariffs and provide a partial reimbursement for tariffs imposed on foreign parts included in certain domestically assembled vehicles. The Automotive Tariffs and Reciprocal Tariffs represent a significant change to recent U.S. trade policies and tariff regimes and were announced following a series of previously implemented tariffs, including a 25% tariff on imported steel and aluminum and additional tariffs on products imported from Mexico, Canada, and China. In response to these tariffs, certain trade partners of the U.S. have announced or implemented responsive or retaliatory tariffs on U.S. goods or otherwise implemented non-tariff trade barriers, while various countries and individual companies, including certain of our manufacturing partners, have engaged in bilateral discussions with the U.S. regarding new trade agreements. The nature and scope of any new trade agreements remains uncertain.
It is difficult to assess the impact of the Automotive Tariffs, Reciprocal Tariffs, other recently announced tariffs, and non-tariff trade barriers on our business and results of operations, although these tariffs and retaliatory actions, if sustained in their current or similar forms, are expected to broadly impact the automotive industry and supply chain and will affect a substantial portion of the retail automotive and commercial truck vehicles and parts we sell, particularly as many of our key manufacturing partners produce and assemble certain vehicles and parts outside of the U.S. Additionally, certain manufacturers and suppliers are evaluating the impact of tariffs on their production capabilities and commitments, which may result in temporary or prolonged vehicle and parts supply shortages, and in certain cases our manufacturer partners have publicly announced plans to limit or temporarily suspend selling certain automobiles into the U.S. while they evaluate the impact of tariffs. Although tariffs will affect each manufacturer and vehicle model differently, widely reported estimates suggest that these tariffs are expected to increase the production costs of certain vehicles and parts. Certain of our manufacturing partners have suggested that, in the short term, they will refrain from passing on to consumers the additional costs resulting from these tariffs, but there is no guarantee these commitments will be sustained over time, which may lead to affordability challenges. As a result, the Automotive Tariffs and other tariffs are likely to increase our cost of acquiring vehicles and parts, as well as our inventory carrying costs. While it is difficult to predict the effects of these tariffs on our business, we believe increased prices could lead to lower consumer demand for new vehicles and related finance and insurance products, while potentially increasing demand for used vehicles and our service and parts operations. These tariffs and related non-tariff trade barriers, including an announcement by China to limit the exportation of certain rare earth elements, may also limit the availability of certain new vehicles and parts we sell and negatively impact our gross profit with respect to affected vehicles and parts.
The new trucks sold by Premier Truck Group (“PTG”), while not subject to the Automotive Tariffs, are subject to the Reciprocal Tariffs and other tariffs which have been or may be announced. We believe that, like our retail automotive business discussed above, PTG may experience increased demand for its service and parts operations and used trucks as a result of the tariffs, depending on the general freight environment (which also could be impacted by increased cross border tariffs).
Changes or increases in tariffs, trade restrictions, the negotiation of new trade agreements, non-tariff trade barriers, local content requirements, uncertainty surrounding global trade policies, and the imposition of retaliatory tariffs or trade barriers against certain countries or covering certain products, including vehicles and parts, may affect our competitive position and negatively impact our gross profit with respect to affected vehicles and parts. The extent of the tariffs and the resulting impact on general economic conditions and on our business are uncertain and depend on various factors, such as negotiations between the U.S. and affected countries, the duration of such tariffs, the responses of other countries or
49

Table of Contents
regions to such tariffs, the impact to the global supply chain regarding the availability of critical parts and components, the actual increases in the costs of imported vehicles, parts and raw materials, and exemptions or exclusions that may be granted, including in connection with multilateral and bilateral trade agreements.
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds
The table below sets forth information with respect to shares of common stock repurchased by the Company during the three months ended March 31, 2025.

Period |  | Total Number of Shares Purchased (1) |  | Average Price Paid per Share |  | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) |  | Approximate Dollar Value of Shares that May Yet be Purchased Under the Plans or Program (in millions)
January 1 to January 31, 2025 |  | 25,271 |  |  | $ | 149.95 |  |  | 24,449 |  |  | $153.1
February 1 to February 28, 2025 |  | 91,887 |  |  | $ | 166.01 |  |  | 91,887 |  |  | $137.9
March 1 to March 31, 2025 |  | 138,070 |  |  | $ | 152.18 |  |  | 138,070 |  |  | $117.0
|  | 255,228 |  |  |  |  | 254,406 |  |  |
______________________________
(1) Includes 822 shares acquired from employees in connection with a net share settlement feature of employee equity awards
(2) From time to time, our Board of Directors authorizes the repurchase of Company securities up to a certain monetary limit. As of March 31, 2025, $117.0 million remained outstanding and available for repurchases under our securities repurchase program approved by our Board of Directors. This authority has no expiration. For further information with respect to repurchases of our shares by us, see Part I, Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations — Liquidity and Capital Resources — "Securities Repurchases" and Part I, Item 1, Note 11 of the Notes to our Consolidated Condensed Financial Statements.

Item 5. Other Information
Rule 10b5-1 Trading Plans
During the three months ended March 31, 2025, none of our directors or officers (as defined in Rule 16a-1(f) of the Exchange Act) adopted or terminated a “Rule 10b5-1 trading arrangement” or “non-Rule 10b5-1 trading arrangement,” as each term is defined in Item 408 of Regulation S-K.
Amendment to the U.S. Credit Agreement
On April 29, 2025, we entered into the Twelfth Amendment (the “Amendment”) to our U.S. credit agreement with Mercedes-Benz Financial Services USA LLC, Toyota Motor Credit Corporation, and Daimler Truck Financial Services USA LLC (as amended, the “U.S. credit agreement”) principally to lower the applicable interest rate on revolving loans exceeding a defined borrowing base, as more fully described below. As amended, the U.S. credit agreement provides for up to $1.5 billion in revolving loans for working capital, acquisitions, capital expenditures, investments, and other general corporate purposes and provides up to an additional $75 million of letters of credit. The U.S. credit agreement provides for a maximum of $400 million of borrowings for foreign acquisitions and expires on September 30, 2027.
The interest rate on outstanding borrowings is based on an adjusted Secured Overnight Financing Rate ("SOFR") plus 1.50%, with uncollateralized borrowings in excess of a defined borrowing base bearing interest at adjusted SOFR plus a margin ranging from 1.50% to 2.00%, based on a ratio of consolidated non-vehicle debt to adjusted earnings before interest, taxes, depreciation, and amortization. The previous interest rate for uncollateralized borrowings in excess of the defined borrowing base was adjusted SOFR plus 2.00%.
The U.S. credit agreement is fully and unconditionally guaranteed on a joint and several basis by substantially all of our U.S. subsidiaries and contains a number of significant operating covenants that, among other things, restrict our ability to dispose of assets, incur additional indebtedness, repay certain other indebtedness, pay dividends, create liens on assets, make investments or acquisitions, and engage in mergers or consolidations. We are also required to comply with specified financial and other tests and ratios, each as defined in the U.S. credit agreement, including a ratio of current assets to current liabilities, a fixed charge coverage ratio, a ratio of debt to stockholders' equity, and a ratio of debt to earnings before interest, taxes, depreciation, and amortization ("EBITDA"). A breach of these requirements would give rise to certain remedies under the agreement, the most severe of which is the termination of the agreement and acceleration of the amounts owed.
50

Table of Contents
The U.S. credit agreement also contains typical events of default, including change of control, non-payment of obligations, and cross-defaults to our other material indebtedness. Substantially all of our U.S. assets are subject to security interests granted to the lenders under the U.S. credit agreement. We purchase motor vehicles and parts from affiliates of Mercedes-Benz Financial Services USA LLC, Daimler Truck Financial Services USA LLC and Toyota Motor Credit Corporation for sale at certain of our dealerships. The lenders also provide us and certain of our dealerships with mortgage, “floor-plan”, and consumer financing.
The foregoing description of the Amendment is qualified in its entirety by references to the Amendment, a copy of which is filed as Exhibit 4.1 and incorporated by reference herein.
51

Table of Contents
Item 6. Exhibits
EXHIBIT INDEX

Exhibit No. |  | Description
4.1 |  | Twelfth Amendment dated April 29, 2025, to the Fifth Amended and Restated Credit Agreement dated December 2, 2024, among us, Mercedes-Benz Financial Services USA LLC, Toyota Motor Credit Corporation and Daimler Truck Financial Services USA, LLC, which includes a Conformed Copy of the Fifth Amended and Restated Credit Agreement and all amendments thereto attached as Exhibit A.
22.1 |  | List of Guarantor Subsidiaries under the Company’s Senior Subordinated Notes
31.1 |  | Rule 13(a)-14(a)/15(d)-14(a) Certification
31.2 |  | Rule 13(a)-14(a)/15(d)-14(a) Certification
32 |  | Section 1350 Certification
101.INS |  | XBRL Instance Document - the instance document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document
101.SCH |  | XBRL Taxonomy Extension Schema
101.CAL |  | XBRL Taxonomy Extension Calculation Linkbase
101.DEF |  | XBRL Taxonomy Extension Definition Linkbase
101.LAB |  | XBRL Taxonomy Extension Label Linkbase
101.PRE |  | XBRL Taxonomy Extension Presentation Linkbase
104 |  | Cover Page Interactive Data File – The cover page interactive data file does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document

52

Table of Contents
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

| PENSKE AUTOMOTIVE GROUP, INC.
| By: | /s/ Roger Penske
|  | Roger Penske
Date: May 1, 2025 |  | Chief Executive Officer
| By: | /s/ Michelle Hulgrave
|  | Michelle Hulgrave
Date: May 1, 2025 |  | Chief Financial Officer

53