Penske Automotive Group, Inc. reported a total revenue of $30.5 billion for the fiscal year 2024, marking a 3.1% increase from the previous year. The revenue breakdown includes approximately $26.2 billion from retail automotive dealerships, $3.5 billion from retail commercial truck dealerships, and $777.9 million from commercial vehicle distribution and other operations. The company generated a gross profit of $5.0 billion, with $4.3 billion from retail automotive, $584.5 million from retail commercial trucks, and $178.2 million from other operations. This reflects a slight increase in gross profit of 1.6% compared to 2023.
In terms of operational changes, Penske Automotive expanded its dealership network by acquiring 16 retail automotive franchises and opening one in the U.K. during 2024. The company also acquired two franchises in the U.S. and two in Italy, while transitioning its U.K. CarShop locations to Sytner Select dealerships. However, it closed several franchises, including two Jaguar and two Land Rover locations in the U.K. The retail automotive sector remains a significant contributor to the company’s revenue, accounting for 85.9% of total revenues and 84.8% of gross profit.
Penske Automotive's retail commercial truck operations, primarily through Premier Truck Group, faced a decrease in new retail unit sales, down 7.2% to 17,000 units. This decline was attributed to a high volume of deliveries in the previous year and ongoing challenges in the freight market. Despite this, the company reported a gross profit increase in its used truck sales, which rose by 15.6% to 3,600 units. The commercial vehicle distribution segment in Australia and New Zealand also saw revenue growth of 22.7%, driven by increased service and parts sales.
The company’s equity in earnings from its investment in Penske Transportation Solutions decreased to $198.0 million in 2024 from $289.5 million in 2023, primarily due to lower rental revenues and higher operational costs. Penske Automotive continues to navigate a complex market environment characterized by fluctuating consumer demand, supply chain challenges, and regulatory changes impacting vehicle emissions and sales models. The company anticipates that these factors will continue to influence its operations and financial performance in the coming year.
Looking ahead, Penske Automotive expects continued strong demand for its service and parts operations, driven by increasing vehicle sales and complexity. However, it also acknowledges potential challenges, including the impact of inflation on vehicle affordability, interest rate fluctuations, and evolving consumer preferences towards electric vehicles. The company remains committed to leveraging its diversified revenue streams and geographic presence to mitigate risks associated with market cyclicality and economic uncertainties.
About PENSKE AUTOMOTIVE GROUP, INC.
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