$PAG · PENSKE AUTOMOTIVE GROUP, INC.
Penske Automotive Group reported Q3 2026 results with revenue of $8.4 billion (+5% YoY), net income of $221.2 million, and GAAP EPS of $3.36. The filing was issued in the shadow of the October 15, 2026, take-private merger agreement under which Penske Corporation and Mitsui will acquire the company for $212.00 per share in cash, valuing PAG at approximately $16.3 billion in enterprise value. The company will not host an earnings call, citing the pending transaction, which is expected to close in Q1 2027.
- Q3 revenue rose 5% YoY to $8.4 billion, with net income of $221.2 million and GAAP EPS of $3.36.
- Retail automotive new units fell 2% YoY; used units rose 2%; same-store service/parts revenue and gross profit both grew 3%.
- Retail commercial truck segment delivered $1.1 billion in revenue and $59.6 million in pre-tax income, up from $918.6 million and $41.5 million YoY.
- Penske Transportation Solutions (28.9% stake) contributed $68.5 million in equity earnings for the quarter.
- The pending take-private by Penske Corp. and Mitsui at $212.00/share values the company at ~$16.3 billion enterprise value; closing expected Q1 2027.
Markets closed — no regular-session reaction yet; extended-hours move not captured here. The $212.00 take-private offer price is just $0.16 below the last regular-session close of $212.16, effectively capping upside unless a competing bid emerges.
A Fortune 500 auto retailer reports solid earnings while simultaneously navigating a $16.3 billion take-private — the deal price effectively anchors the stock, making operational results secondary to merger completion risk.
The take-private at ~$16.3 billion enterprise value reflects ongoing consolidation in auto retail, following peers like Lithia and AutoNation pursuing scale. PAG's commercial truck segment outperformed, with revenue up ~20% YoY, contrasting with softness in retail automotive new-unit volumes.
The Merger Agreement includes a $383 million termination fee payable to Buyer under certain circumstances. If the deal fails, the stock could fall significantly below the $212 offer price. The agreement also restricts share repurchases and limits the company's ability to pursue alternative transactions.