PAG NYSE Russell 1000 Earnings call
Penske Automotive Group (PAG) · Q2 2026 results and valuation
Share price: $214.23 · 2026-11-11
Results Q2 2026 vs Q1 2026 · previous quarter · published 29 Jul 2026 and 29 Apr 2026
Net income up 11.0% on the previous quarter, guidance cut. Management sounded about as positive as a typical company call, in its script and in answers to analysts.
Only a basic analysis is available for this company at the moment.
1 · Numbers
+11.0%
Net income vs Q1 2026
Guidance cut
Net income 260.4M vs 234.5M
Revenue +8.3%
Against the same quarter last year (Q2 2025) it is −2.3%, so the move on last quarter looks seasonal or timing-related rather than a trend.
2 · How management spoke
Typical
More upbeat than 58% of company calls
Answers to analysts: typical, in line with the script.
Similar to last call.
3 · What stood out
Key theme
The second quarter of 2026 performance was supported by a relatively strong charter market.
Valuation
Is Penske Automotive Group undervalued?
Reverse DCF. Free cash flow from the last full fiscal year (2025-12-31), grown for 10 years, discounted back, plus a terminal value. “Implied growth” is the rate the current price assumes.
At 4.6% growth a year (3-year revenue growth), the model's fair value is $120.48 a share — the stock trades 78% above it. Today's price assumes 10.9% growth a year.
Current price
$214.23
close of 2026-11-11
Market implies growth of iThe yearly free-cash-flow growth, for the next 10 years, that today’s share price already assumes. If you believe the company grows faster than this, the stock is cheap under this model; slower, and it is expensive.
+10.9% for 10 yrs
Fair value / share
$120.48
Buy below
$90.36
Price vs fair value
Overvalued 78%
Price vs buy-below price
Overvalued 137%
Management expects
Growth +3% · from the Q2 2026 report: “As previously communicated, we have reduced growth rate guidance of 2% to 4%, which is a reflection of our confidence in pursuing value-accretive M&A and…”
A guidance figure for growth, usually one year ahead, not a 10-year free-cash-flow rate.
Read between the lines
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Guidance ↓
Penske Automotive lowered growth guidance to pursue mergers, acquisitions, and development that adds value.
Source quote
“As previously communicated, we have reduced growth rate guidance of 2% to 4%, which is a reflection of our confidence in pursuing value-accretive M&A and development.”
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Guidance
Based on its performance year-to-date and its outlook for the balance of the year, Penske Automotive is reaffirming its 2026 guidance ranges.
-
Figure
The company identified approximately $1 billion of annual EBITDA upside embedded in its business as of December.
Source quote
“In December, we outlined approximately $1 billion of annual EBITDA upside embedded in our business.”
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Fading
New truck orders increased and PTS equity income rose 24%, reflecting encouraging commercial truck trends even as delivery timing received less focus.
Source quote
“In recent months, we've seen an increase in new truck orders and expect the timing of these deliveries to take... However, we are encouraged today with the trends we are seeing across the commercial truck market. PTS equity income increased 24%.”
Tone
How upbeat the language was, compared with other companiesiTone counts positive minus negative finance words, adjusted for length. Executives mostly speak positively, so the labels compare each call with every company's latest call: “typical” is the middle third, “very upbeat” the top tenth, “cautious” the bottom tenth.. Dot: Q2 2026. Ring: Q1 2026.
Script and answers carried a similar tone, so the script's message held up under questioning.
Sentences that drove the tone
“During the second quarter of 2026, we operated in an improved charter market environment compared to the same period in 2025, with increased revenues due to higher charter hires and...”
“As we emphasized last year at our Investor Day and continue to discuss with our investors at large, our portfolio offers upside with limited capital in addition to expansion opportunities...”
“That growth has been driven by disciplined capital allocation with more than $12 billion invested across organic growth and M&A opportunities.”
Full figures
USD · SEC EDGAR XBRL (10-Q, period end 2026-06-30)
| Metric | Q2 2026period end 2026-06-30 | Q1 2026period end 2026-03-31 | Change | Q2 2025 | YoY |
|---|---|---|---|---|---|
| Revenue | 8.51B | 7.86B | +8.3% | 8.03B | +6.0% |
| Gross profit | 1.36B | 1.30B | +4.4% | 1.35B | +0.4% |
| Operating income | 337.6M | 289.0M | +16.8% | 365.3M | −7.6% |
| Net income | 260.4M | 234.5M | +11.0% | 266.6M | −2.3% |
| EPS | 3.96 | 3.56 | +11.2% | 4.03 | −1.7% |
| P/E today 14.6 | 13.0 | 10.8 | +2.2 | 11.0 | +2.0 |
Topics
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Faded since Q1 2026
- Fading Same-store service and parts revenue increased 3.2% and gross profit increased 3.4%.
- Dropped In the U.K., Penske Automotive has its Sytner Select, which is its big box used car retail.
- Fading Same-store revenue increased 4.6 and related gross profit increased 5.7%.
- Dropped Penske Automotive expects to increase new truck orders to benefit the second half of the year and its retail truck dealerships...
Latest announcements
Official filings, newest first.
- Other events · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Other events · SEC 8-K
- Other events · SEC 8-K
- Shareholder vote results; Other events · SEC 8-K
- Results of operations; Regulation FD disclosure · SEC 8-K
- Results of operations; Regulation FD disclosure; Other events · SEC 8-K
- Material agreement; Regulation FD disclosure · SEC 8-K