PENSKE AUTOMOTIVE GROUP EXPANDS PRESENCE IN FLORIDA

Rhea-AI Summary

Penske Automotive Group (NYSE: PAG) completed the acquisition of Lexus of Orlando and Lexus of Winter Park on Feb. 24, 2026, expanding its Florida footprint. The dealerships are expected to add an estimated $450 million in annualized revenue, bringing acquired annualized revenue since Nov. 2025 to $2 billion. The company said the deal increases its Florida-derived revenue by almost 50% and was funded with cash flow from operations and availability under its U.S. credit agreement.

Positive

• Estimated annualized revenue of $450 million from the two Lexus dealerships
• Acquired revenue totals approximately $2 billion since November 2025
• Florida footprint revenue to rise by almost 50% following the acquisition

Negative

• None.

Key Figures

New Lexus revenue: $450 million Total acquired revenue: $2 billion Florida revenue growth: 50% +5 more

8 metrics

New Lexus revenue $450 million Estimated annualized revenue from Orlando and Winter Park Lexus dealerships

Total acquired revenue $2 billion Estimated annualized acquired revenue since November 2025

Florida revenue growth 50% Approximate increase in PAG revenue derived from Florida market

Recent dealerships acquired 6 dealerships Two Toyota and four Lexus dealerships acquired since November 2025

PAG employees over 27,700 Worldwide employees at Penske Automotive Group

PTS ownership stake 28.9% PAG ownership of Penske Transportation Solutions

PTS employees over 42,000 Worldwide employees at Penske Transportation Solutions

PTS fleet size over 396,600 vehicles Trucks, tractors, and trailers under PTS contracts

Market Reality Check

Price: $161.81 Vol: Volume 282,795 is below t...

normal vol

$161.81 Last Close

Volume Volume 282,795 is below the 20-day average of 325,126 (relative volume 0.87x). normal

Technical Trading below 200-day MA at 169.11, 13.9% under the 52-week high of 189.51 and above the 52-week low of 134.0517.

Peers on Argus

PAG fell 2.47% with sector peers LAD (-3.78%), AN (-1.39%), KMX (-4.12%), CVNA (...

PAG fell 2.47% with sector peers LAD (-3.78%), AN (-1.39%), KMX (-4.12%), CVNA (-2.66%), and GPI (-2.81%) also down, though the momentum scanner did not flag a coordinated sector move.

Historical Context

5 past events · Latest: Feb 11 (Negative)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 11	Q4/FY2025 earnings	Negative	+5.4%	Reported softer Q4 and flat FY2025 results with dividend increase and deals.
Jan 26	Florida Lexus agreement	Positive	+0.6%	Signed agreement to acquire two Lexus dealerships adding $450M revenue.
Jan 21	Earnings call scheduled	Neutral	+2.6%	Scheduled Q4 and full-year 2025 results release and conference call.
Nov 19	CA/TX acquisitions	Positive	+0.5%	Closed four Toyota/Lexus dealerships expected to add $1.5B revenue.
Oct 29	Q3 2025 results	Negative	-1.4%	Q3 revenue up slightly but earnings down and truck unit sales weaker.

Pattern Detected

Acquisition announcements have generally seen modest positive reactions, while earnings have produced mixed responses, including one notable divergence where softer Q4/FY2025 results coincided with a positive move. Expansion-focused news, such as Lexus/Toyota dealership deals, has typically aligned with slight gains.

Recent Company History

This announcement finalizes the Central Florida Lexus acquisition first outlined in late January 2026, which was expected to add $450 million in annualized revenue. Since November 2025, PAG has highlighted multiple strategic dealership acquisitions totaling about $2 billion in expected annualized revenue, alongside Q3 and Q4/FY2025 results that showed flat to softer earnings but ongoing capital returns. Historically, these acquisition updates have generated modestly positive price reactions, while earnings have produced mixed moves.

Regulatory & Risk Context

Active S-3 Shelf

Shelf Active

Active S-3 Shelf Registration 2025-10-30

An automatic shelf registration on Form S-3ASR dated 2025-10-30 is effective, allowing PAG and certain selling securityholders to offer debt securities, preferred stock, common stock, warrants, and subscription rights, with company proceeds designated for general corporate purposes including acquisitions and capital investments.

Market Pulse Summary

This announcement highlights completion of the Orlando-area Lexus acquisitions, expected to add abou...

Analysis

This announcement highlights completion of the Orlando-area Lexus acquisitions, expected to add about $450 million in annualized revenue and bringing estimated acquired annualized revenue since November to roughly $2 billion. It continues PAG’s strategy of expanding its luxury footprint in high-growth regions. Investors may watch how quickly these stores integrate, the impact on margins and cash generation, and how this acquisition pipeline interacts with the company’s existing S-3ASR financing flexibility and capital allocation plans.

Key Terms

forward-looking statements, Form 10-K, Form 10-Q, credit agreement

4 terms

forward-looking statements regulatory

"Statements in this press release may involve forward-looking statements, including forward-looking"

Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.

Form 10-K regulatory

"addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2024"

A Form 10-K is a comprehensive report that publicly traded companies are required to file annually with regulators. It provides a detailed overview of a company's financial health, operations, and risks, similar to a detailed health report. Investors use this information to assess the company's performance and make informed decisions about buying or selling its stock.

Form 10-Q regulatory

"its Form 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025"

A Form 10-Q is a detailed report that publicly traded companies are required to file with regulators three times a year, providing an update on their financial health and business activities. It is important for investors because it offers timely insights into a company's performance, helping them make informed decisions about buying or selling stocks. Think of it as a regular check-up report that shows how well a company is doing.

credit agreement financial

"using cash flow from operations and availability under its U.S. credit agreement."

A credit agreement is a written loan contract between a borrower and a bank or other lender that lays out how much money can be borrowed, the interest rate, repayment schedule, fees, and the rules the borrower must follow. For investors, it matters because those terms affect a company’s cash costs, borrowing flexibility and risk of default — similar to how a mortgage’s rules determine a homeowner’s monthly budget and freedom to make changes.

AI-generated analysis. Not financial advice.

Completes Acquisition of Two Lexus Dealerships in Central Florida

Expected to Add $450 Million in Annualized Revenue

Brings Estimated Annualized Acquired Revenue to $2 Billion Since November

BLOOMFIELD HILLS, Mich., Feb. 24, 2026 /PRNewswire/ -- Penske Automotive Group, Inc. (NYSE: PAG), a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers with operations across four continents and eight countries, announced today that it has completed the acquisition of Lexus of Orlando and Lexus of Winter Park, two high-performing Lexus dealerships serving the fast-growing Central Florida market.

The acquisition strengthens Penske Automotive Group's premium luxury portfolio, expands its footprint in Florida, one of the nation's fastest growing states, and strengthens its relationship with the Lexus brand.  The acquired dealerships are expected to add estimated annualized revenue of $450 million, increasing the Company's revenue derived in the fast-growing Florida market by almost 50%.  Since November 2025, the Company has acquired two Toyota and four Lexus dealerships which are expected to generate approximately $2 billion in estimated annualized revenues.

Commenting on the acquisition, North American Operations Officer Rich Shearing said, "We are excited to welcome the teams at Lexus of Orlando and Lexus of Winter Park to the Penske Automotive Group family and are proud to expand our partnership with Lexus in a market with a long-term growth potential. These premier dealerships have built a strong reputation for exceptional customer service and operational excellence.  We look forward to continuing that legacy while leveraging the Company's existing infrastructure in Central Florida."

The Company funded the purchase price for the dealerships and associated real estate using cash flow from operations and availability under its U.S. credit agreement.

About Penske Automotive

Penske Automotive Group, Inc., (NYSE: PAG) headquartered in Bloomfield Hills, Michigan, is a diversified international transportation services company and one of the world's premier automotive and commercial truck retailers. PAG operates dealerships in the United States, the United Kingdom, Canada, Germany, Italy, Japan, and Australia and is one of the largest retailers of commercial trucks in North America for Freightliner. PAG also distributes and retails commercial vehicles, diesel and gas engines, power systems, and related parts and services principally in Australia and New Zealand. PAG employs over 27,700 people worldwide. Additionally, PAG owns 28.9% of Penske Transportation Solutions ("PTS"), a business that employs over 42,000 people worldwide, manages one of the largest, most comprehensive and modern trucking fleets in North America with over 396,600 trucks, tractors, and trailers under lease, rental, and/or maintenance contracts and provides innovative transportation, supply chain, and technology solutions to its customers. PAG is a member of the S&P Mid Cap 400, Fortune 500, Russell 1000, and Russell 3000 indexes. For additional information, visit the Company's website at www.penskeautomotive.com.

Caution Concerning Forward Looking Statements

Statements in this press release may involve forward-looking statements, including forward-looking statements regarding Penske Automotive Group, Inc.'s financial performance, expectations, acquisition activity, future plans, and future revenues. Actual results may vary materially because of risks and uncertainties that are difficult to predict. These risks and uncertainties include, among others, our ability to successfully integrate the acquired dealerships into our existing operations, obtain contemplated synergies and realize returns related to these acquisitions, those related to macro-economic, geo-political and industry conditions and events, including their impact on sales of new and used vehicles, service and parts, and repair and maintenance services, the availability of consumer credit, changes in consumer demand, consumer confidence levels, fuel prices, demand for trucks to move freight with respect to Penske Transportation Solutions ("PTS") and Premier Truck Group, and other freight metrics such as spot rates or miles driven, personal discretionary spending levels, interest rates, foreign currency exchange rates, and unemployment rates; our ability to obtain vehicles and parts from our manufacturers, especially in light of supply chain disruptions due to natural disasters, tariffs and non-tariff trade barriers, any shortages of vehicle components, international conflicts, challenges in sourcing labor, labor strikes, work stoppages, or other disruptions; the control our manufacturer partners can exert over our operations and our reliance on them for various aspects of our business; risks to our reputation and those of our manufacturer partners; changes in the retail model from direct sales by manufacturers, a transition to an agency model of sales, sales by online competitors, or from the expansion of electric vehicles; disruptions to the security and availability of our information technology systems and those of our third party providers, which systems are increasingly threatened by ransomware and other cyber-attacks; the effects of a pandemic on the global economy, including our ability to react effectively to changing business conditions in light of any pandemic; the impact of tariffs targeting imported vehicles and parts, as well as changes or increases in tariffs, trade restrictions, trade disputes, or non-tariff trade barriers; the rate of inflation, including its impact on vehicle affordability; changes in interest rates and foreign currency exchange rates; our ability to consummate, integrate, and realize returns on our acquisitions; with respect to PTS, changes in the financial health of its customers, labor strikes, or work stoppages by its employees, a reduction in PTS' asset utilization rates, the cost of acquiring and the continued availability from truck manufacturers and suppliers of vehicles and parts for its fleet, including with respect to the effect of various regulations concerning its vehicle fleet, changes in values of used trucks which affects PTS' profitability on truck sales and regulatory risks and related compliance costs, our ability to realize returns on our significant capital investments in new and upgraded dealership facilities; our ability to navigate a rapidly changing automotive and truck landscape; our ability to respond to new or enhanced regulations in both our domestic and international markets relating to dealerships and vehicles sales, including those related to the sales process, emissions standards, or electrification; the success of our distribution of commercial vehicles, engines, and power systems; natural disasters; recall initiatives or other disruptions that interrupt the supply of vehicles or parts to us; the outcome of legal and administrative matters and other factors over which management has limited control. These forward-looking statements should be evaluated together with additional information about Penske Automotive Group's business, markets, conditions, risks, and other uncertainties, which could affect Penske Automotive Group's future performance. The risks and uncertainties discussed above are not exhaustive and additional risks and uncertainties are addressed in Penske Automotive Group's Form 10-K for the year ended December 31, 2024, its Form 10-Q for the quarterly periods ended March 31, 2025, June 30, 2025, and September 30, 2025, and its other filings with the Securities and Exchange Commission. This press release speaks only as of its date, and Penske Automotive Group disclaims any duty to update the information herein.

Inquiries should contact:

Shelley Hulgrave	Anthony Pordon
Executive Vice President and	Executive Vice President Investor Relations
Chief Financial Officer	and Corporate Development
Penske Automotive Group, Inc.	Penske Automotive Group, Inc.
248-648-2812	248-648-2540
shulgrave@penskeautomotive.com	tpordon@penskeautomotive.com

 

 

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SOURCE Penske Automotive Group, Inc.

FAQ

What did Penske Automotive (PAG) announce on Feb. 24, 2026 about Lexus dealerships?

They completed purchases of Lexus of Orlando and Lexus of Winter Park, adding $450 million annualized revenue. According to the company, the deals expand PAG's luxury portfolio and increase Florida-derived revenue by almost 50%, funded via cash flow and U.S. credit availability.

How much annualized revenue will the Feb. 24, 2026 acquisitions add for PAG (NYSE: PAG)?

The two Central Florida Lexus dealerships are expected to add about $450 million in annualized revenue. According to the company, these acquisitions raise PAG's acquired annualized revenue to roughly $2 billion since November 2025.

Will the Lexus dealership purchases change Penske Automotive's presence in Florida (PAG)?

Yes. The acquisitions increase the company's Florida-derived revenue by nearly 50%, expanding its premium luxury footprint. According to the company, the move strengthens its relationship with Lexus and leverages existing Central Florida infrastructure.

How did Penske Automotive fund the Lexus of Orlando and Winter Park acquisitions (PAG)?

PAG funded the purchases with cash flow from operations and availability under its U.S. credit agreement. According to the company, no equity issuance was disclosed, and funding relied on existing operational cash and credit capacity.

What broader acquisition impact did Penske Automotive (PAG) report since November 2025?

Since November 2025, PAG has acquired two Toyota and four Lexus dealerships, expected to generate about $2 billion in estimated annualized revenues. According to the company, this series of deals meaningfully expands its luxury and regional retail footprint.