Penske Automotive Group reported higher third-quarter revenue, alongside $302 million in pretax income and $221 million in net income. The company also reiterated details of its planned sale to an investor group led by Penske Corporation and Mitsui, which would take the retailer private if completed.
Key details
- The proposed buyout: Under the agreement announced October 15, shareholders other than Penske Corporation, Mitsui and other members of the investor group are to receive $212 per share in cash. The deal values Penske Automotive at about $16.3 billion, including debt.
- Ownership after the deal: Penske Corporation is expected to own about 64% of the company, with Mitsui holding the remaining 36%. The transaction is expected to close in the first quarter of 2027, subject to closing conditions.
- Third-quarter results: Revenue rose 5% to $8.4 billion, from $8.1 billion a year earlier. Pretax income was $302 million, net income attributable to common shareholders was $220.8 million, and earnings per share were $3.36.
- Deal-related costs: Third-quarter results included $6.3 million of costs related to the proposed transaction, equal to $4.6 million after tax, or 7 cents per share.
- Nine-month results: Revenue for the nine months ended September 30 was $24.8 billion, compared with $24.0 billion a year earlier. Net income was $715.7 million, down from $749.1 million, while earnings per share declined to $10.89 from $11.30. The 2026 figure includes the transaction costs noted above; the company also said the nine-month results for both years include a dealership-sale gain, certain disposals and other charges.
- Other factors affecting reported results: For the quarter, foreign exchange reduced revenue by $2.3 million but added $0.7 million to net income and 1 cent to earnings per share. For the first nine months, currency added $272.4 million to revenue, $5.7 million to net income and 9 cents to earnings per share.
- Penske Motor Group in the comparisons: The reported results include the full quarterly results of Penske Motor Group in both periods, which the company said is required for this common-control transaction. That affects how the year-over-year comparisons should be read.
- No earnings call: The company said it would not hold a conference call for the quarter in light of the proposed take-private transaction.
Plain-English implications
If the deal closes, eligible public shareholders will receive cash at the agreed $212-per-share price, and Penske Automotive will become privately held under Penske Corporation and Mitsui’s ownership. Until then, the transaction remains subject to its closing conditions.