PAG PENSKE AUTOMOTIVE GROUP, INC.

Overview and Growth

In fiscal 2025, PENSKE AUTOMOTIVE GROUP, INC. recorded $31.81B of revenue, net income of $935.40M, and an operating cash inflow of $975.10M. At $31.81B, the top line establishes the operating scale supporting the company’s profit and cash-flow profile. Revenue was 0.2% below fiscal 2024 revenue of $31.86B, marking a top-line contraction. On a per-share basis, diluted EPS was $14.13, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 2.5% decrease from fiscal 2024 diluted EPS of $14.49. Asset turnover was 1.81x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

After reported cost of revenue, the company retained $5.22B as gross profit before recognizing operating expenses and other items. The gross-profit relationship equaled 16.4% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $1.28B of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 4.0% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $935.40M, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 2.9% margin after operating costs and the remaining recognized items. The earnings statement records $1.26B of pretax income, the profit base against which the reported tax provision can be assessed. Measured against revenue, pretax income equaled 4.0%, adding a pre-tax profitability layer between revenue and net income. Income tax expense totaled $325.80M, providing the reported tax component that separates pretax and after-tax earnings. Relative to pretax income, the tax provision measured 25.8%, quantifying the portion of pre-tax earnings paid in income tax.

Liquidity and Capital Structure

Total assets were $17.60B, supported by $12.02B of liabilities and $5.58B of shareholder equity. The near-term balance sheet paired $6.19B of current assets with $6.28B of current liabilities at the reporting date. The current ratio was 0.99x; current liabilities exceeded current assets, leaving a short-term liquidity deficit. Cash and equivalents totaled $64.70M, identifying the most liquid reported component available within the broader current-asset balance. Measured only with cash and equivalents, coverage of current liabilities was 1.0%, excluding receivables and other current assets. The company carried $2.17B of total debt at period end, which frames its leverage and debt-service burden. The debt-to-equity relationship was 0.39x, showing how much debt the company carried for each unit of book equity. Relative to total assets, debt measured 12.3%, showing how much of the asset base was matched by borrowing. The liabilities-to-assets relationship was 68.3%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 0.4% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Cash flow from operations was $975.10M, a reported cash inflow that can be compared directly with net income and capital spending. Against net income, operating cash flow measured 1.04x, showing the relationship between accrual earnings and operating cash. Capital spending was $324.60M, absorbing part of the cash generated from operations before free cash flow. Capital spending absorbed 33.3% of operating cash flow, quantifying the share of cash from operations directed to investment. Free cash flow came to $650.50M, leaving a positive amount after capital expenditures. Relative to revenue, free cash flow equaled 2.0%, showing how much sales converted into cash after investment. Free cash flow equaled 3.7% of total assets, relating post-investment cash generation to the company’s resource base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.