Penske Automotive Group released third-quarter financial results that aligned with broader trends in the auto retail industry, showing gains in core dealership operations alongside improved performance in service and parts. The report came shortly before the company’s planned shift to private ownership.
The Oct. 28 announcement marked one of Penske Automotive Group’s final earnings reports as a publicly traded company. That’s because parent company Penske Corp. and minority shareholder Mitsui & Co. Ltd. plan to buy the rest of Penske Automotive Group and take it private. That proposed transaction for $3.9 billion worth of stock is expected to close in the first quarter of 2027, pending shareholder and regulatory approvals. The proposed transaction is for the 27.8% of Penske Automotive Group the partners didn’t already own. The value of the buyout implies a $16.3 billion valuation for Penske Automotive Group as a whole.
The buyers are already Penske Automotive Group’s biggest shareholders, by far. Before the transaction, Chairman Roger Penske, Penske Corp., and its Penske Automotive Holdings Corp., together owned about 52% of the dealership group, based in Bloomfield Hills, Michigan. Tokyo-based Mitsui & Co. and its U.S. subsidiary, Mitsui & Co. (U.S.A.), between them owned another 20.3% of Penske Automotive Group before the deal, according to Mitsui’s announcement of the proposed transaction. After the transaction, Penske would own about 64%, and Mitsui 36%. The proposed deal to take the group private was first announced on July 22. A special committee of independent Penske Automotive Group board members later said it had endorsed the offer, in an announcement Oct. 15.
As of September 30, the group operated 369 franchised dealerships, including 146 in the U.S. and 223 abroad, with a strong presence in the U.K. It also manages used-vehicle-only locations and holds a leading position in commercial vehicle sales, leasing, and service operations.
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Third-quarter revenue reached $8.4 billion, a 5% increase from the same period last year. Retail automotive dealerships generated $7 billion, up $98 million year-over-year, with used vehicle sales driving most of the growth, rising by $85 million. New vehicle and service revenue showed more modest increases.
Profitability metrics presented a mixed picture. While retail automotive revenue grew, gross profits in that segment declined across nearly all categories—new vehicles, used vehicles, and finance and insurance—except for service and parts, which rose by 3%. The retail segment’s gross profit totaled $1.1 billion, down 1.3% from the prior year. However, the broader group’s gross profit increased by 1.8% to $1.3 billion.
Unlike standard earnings reports, Penske Automotive Group did not host a conference call or analyst Q&A due to the pending transaction. Instead, the company filed standard third-quarter financial results and securities disclosures. In its earnings release, it confirmed it would continue reporting financial performance until the deal’s completion.