PAGMEDIUM SIGNALFINANCIAL10-K

PAG reported solid revenue growth to $31.8 billion while experiencing a notable decline in operating cash flow generation.

The company demonstrated healthy top-line expansion across its automotive retail segments, with particularly strong performance in commercial vehicle distribution operations. However, the 17% decline in operating cash flow alongside increased debt levels suggests potential working capital pressures or timing issues that warrant monitoring.

Comparing 2026-02-27 vs 2025-02-21View on EDGAR →
FINANCIAL ANALYSIS

PAG's financial position shows mixed signals with total revenue growing from $30.5 billion to $31.8 billion and gross profit expanding from $5.0 billion to $5.2 billion. However, operating cash flow declined notably from $1.2 billion to $975 million, while total debt increased 17% to $2.2 billion and cash reserves decreased modestly to $64.7 million. This combination suggests the company may be managing through working capital challenges or investment timing issues despite solid operational performance.

FINANCIAL STATEMENT CHANGES
Operating Cash Flow
Cash Flow
-17.4%
$1.2B$975.1M

Operating cash flow softened — monitor whether temporary working capital timing or structural deterioration.

Total Debt
Balance Sheet
+16.9%
$1.9B$2.2B

Debt rose 16.9% — additional borrowing for investment or operations; monitor coverage ratios.

Cash & Equivalents
Balance Sheet
-10.6%
$72.4M$64.7M

Cash decreased 10.6% — monitor burn rate and upcoming capital needs.

LANGUAGE CHANGES
NEW — 2026-02-27
PRIOR — 2025-02-21
ADDED
As of February 20, 2026, there were 65,760,087 shares of voting common stock outstanding.
Business Overview In 2025, our business generated $31.8 billion in total revenue, which is comprised of approximately $27.5 billion from retail automotive dealerships, $3.4 billion from retail commercial truck dealerships, and $922.6 million from commercial vehicle distribution and other operations.
We generated $5.2 billion in gross profit, which is comprised of $4.5 billion from retail automotive dealerships, $542.3 million from retail commercial truck dealerships, and $192.3 million from commercial vehicle distribution and other operations.
We are one of the largest global automotive retailers as measured by the $27.5 billion in total retail automotive dealership revenue we generated in 2025.
We are diversified geographically with 61% of our total retail automotive dealership revenues in 2025 generated in the U.S.
We offer over 40 vehicle brands with 71% of our retail automotive franchised dealership revenue generated from premium brands, such as Audi, BMW, Land Rover, Lexus, Mercedes-Benz, and Porsche, and 23% of revenue generated from volume non-U.S.
As of December 31, 2025, we operated 365 retail automotive franchised dealerships, of which 148 are located in the U.S.
and 217 are located outside of the U.S., principally in the U.K.
As of December 31, 2025, we also operated 15 used vehicle dealerships, with six dealerships in the U.S.
operating under the brand name CarShop, eight dealerships in the U.K.
REMOVED
As of February 11, 2025, there were 66,749,222 shares of voting common stock outstanding.
Business Overview In 2024, our business generated $30.5 billion in total revenue, which is comprised of approximately $26.2 billion from retail automotive dealerships, $3.5 billion from retail commercial truck dealerships, and $777.9 million from commercial vehicle distribution and other operations.
We generated $5.0 billion in gross profit, which is comprised of $4.3 billion from retail automotive dealerships, $584.5 million from retail commercial truck dealerships, and $178.2 million from commercial vehicle distribution and other operations.
We are one of the largest global automotive retailers as measured by the $26.2 billion in total retail automotive dealership revenue we generated in 2024.
We are diversified geographically with 56% of our total retail automotive dealership revenues in 2024 generated in the U.S.
We offer over 40 vehicle brands with 72% of our retail automotive franchised dealership revenue in 2024 generated from premium brands, such as Audi, BMW, Land Rover, Mercedes-Benz, and Porsche.
As of December 31, 2024, we operated 353 retail automotive franchised dealerships, of which 148 are located in the U.S.
and 205 are located outside of the U.S., principally in the U.K.
As of December 31, 2024, we also operated 16 used vehicle dealerships, with six dealerships in the U.S.
operating under the brand name CarShop, nine dealerships in the U.K.
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