Penske Automotive Group closed a $519.4 million transaction on November 19, 2025 that adds four high‑volume Toyota and Lexus dealerships to its portfolio. The deal includes Longo Toyota and Longo Lexus in El Monte, California; Lexus of Stevens Creek in San Jose, California; and Longo Toyota of Prosper in Texas. The acquisition was completed through a combination of existing credit and a seller note, and it expands Penske’s footprint in Southern California and the Dallas‑area market.
The four dealerships are expected to contribute roughly $1.5 billion in annualized revenue to Penske’s automotive operations. Longo Toyota has been the largest Toyota dealer in the United States by volume for 58 consecutive years, and the addition of these high‑volume sites gives Penske immediate scale and market leadership in key growth regions. The revenue boost represents a significant top‑line expansion for a company that reported $7.7 billion in revenue for Q3 2025.
Penske’s Q3 2025 earnings provide context for the acquisition. Net income attributable to common stockholders fell 6% to $213 million, and earnings per share dropped 5% to $3.23, missing analyst estimates of $3.42. The decline was driven by challenges in the North American freight market and issues in the UK auto retail market, including a cybersecurity incident and higher social program costs. Despite the earnings miss, the company’s retail automotive same‑store revenue grew 5%, with new‑vehicle sales up 4% and used‑vehicle sales up 8%, and service and parts revenue hit a record $818.3 million.
Strategically, the deal strengthens Penske’s relationship with Toyota and Lexus and positions the company to capture growth in two of the country’s most dynamic automotive markets. By acquiring long‑standing, high‑volume dealerships, Penske gains operational efficiencies, cross‑selling opportunities, and a stronger distribution network that can support future electrification and hybrid vehicle demand. The acquisition also aligns with Penske’s broader strategy of expanding its retail footprint while leveraging its existing service and parts capabilities.
Rich Shearing, North American Operations Officer, said the transaction “strengthens our relationship with the Toyota and Lexus brands and expands the Company’s presence in southern California to the Los Angeles area, complements the Company’s existing presence in northern California and expands our operations in Texas to the fast‑growing Dallas market.”
The deal increases Penske’s leverage, as the purchase was funded through existing credit and a seller note. Successful integration of the four dealerships will be critical to realizing the projected revenue and margin gains, and the company will need to manage the additional debt load while maintaining its focus on service and parts profitability.
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