Penske Automotive reports its most profitable quarter to date

Penske Automotive Group has reported its quarterly earnings for Q2 2022. According to a recent press release, Penske produced an all-time record for earnings this quarter. Earnings per share increased 17% to $4.93.The gross profit per unit increased by at least $841 per unit or 16%.

While Penske Automotive Group did well overall, it did decline in a few key areas. The overall revenue did decrease by 1% as they ended the second quarter with a revenue of $6.9 billion. Retail same-store revenue decreased by about 8%, while same-store gross profit overall reduced by 3%.

However, they made up for it with an 11% increase in retail commercial truck same-store revenue. Same-store gross profit for new vehicles specifically was up at least 7%, while used vehicle profits decreased nearly a quarter to 23%. Commercial trucks did well, with same-store revenue increasing 11%. 

Chairman and CEO Roger Penske commented on the results by stating, “Despite the supply constraints that continue to impact inventory availability, demand remains strong, and we continue to benefit from the diversification of our operations.” 

Used vehicle sales are in demand as they are more affordable compared to new vehicles. Because of this, the company’s 21 CarShop used vehicle locations retail unit sales increased by 7%, boosting the revenue by 15%.