Penske Automotive Group Reveals the Secret Behind Its 54% EBT Surge in Germany—What’s Next?

Penske Automotive Group’s third-quarter earnings report for 2025 presented a nuanced picture of the company’s performance amid a challenging environment. For the quarter, revenue reached $7.7 billion, which reflects a modest 1% year-over-year increase. Net income was reported at $213 million with earnings per share at $3.23, indicating a 5% growth in same-store revenue led by service and parts, albeit offset by strategic divestitures and dealership closures amounting to an approximate $200 million annualized revenue impact. One remarkable aspect from the quarter was the increased penetration of battery electric vehicle (BEV) sales in the U.S., representing over 10% of total sales, a rise from 6-7% in previous quarters. However, this shift also presented a challenge as the higher percentage of BEV sales reduced the total new vehicle gross profit per unit by approximately $100, influenced by the $7,100 average discount from MSRP on BEVs sold in the U.S.