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Chairman & CEO Roger Penske conceded that the $1.5 billion target is not realistic for 2025 but affirmed the long-term goal of growing through acquisitions. Regarding the Porsche Australia dealerships, COO of International Operations Randall Seymore attributed the doubling of the used-to-new vehicle ratio to internal process improvements in trade-ins, reconditioning, and marketing. Roger Penske added that they are leveraging their existing commercial business infrastructure in Australia to enhance efficiency and support growth.

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Chair and CEO Roger Penske and EVP Rich Shearing attributed the growth in technician productivity to higher labor rates, digital tools that improve shop loading and customer communication, and better technician retention. After explaining the drivers, Roger Penske provided the specific pre-COVID figure, stating it was approximately $26,500 per month, compared to the current $30,000.

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Chair Roger Penske explained that negative equity is not a major issue for the company due to its premium brand mix, high leasing penetration, and low subprime exposure of only 6%. Regarding the potential brand partnership, he confirmed discussions are ongoing but described it as a long-term '24- to 36-month journey' and declined to provide further details at this time.

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Chair and CEO Roger Penske responded that while multiples for premium auto brands remain high, the company's focus is on future profitability and market synergies, not just the initial multiple. Regarding the agency model, an executive noted it's a mixed situation, with BMW planning a 2026 launch while JLR has opted out. Roger Penske added that the Mercedes agency model in the U.K. has been beneficial, driving a 25% increase in agency units for the quarter and allowing PAG to capture approximately 90% of inquiries in its market area.

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COO Daniel Clara stated that while Toyota inventory is lean, it is not abnormally so, and that OEMs have been preparing for the EV tax credit change, mitigating pressure on dealers. President & CEO David Hult firmly stated that California is not a near-term expansion target due to unfavorable franchise laws and economics, emphasizing a focus on optimizing the current footprint and long-term value drivers like TCA and Techeon.

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President & CEO David Hult clarified that while headcount has not yet been reduced, increased productivity from Tekion is expected to enable a flatter organization with a lower headcount over time. On tariffs, he speculated that OEM responses will vary by brand, with incentive cuts being a likely first step. He characterized the March sales increase as a slight uptick in the last 7-10 days of the month, driven by tariff concerns.

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President and CEO David Hult stated it is too early for tariff discussions with OEMs and believes the issue will be worked out given the auto industry's economic importance. SVP of Operations Dan Clara noted that while affordability remains a concern, consumer sentiment improved post-election, releasing pent-up demand. SVP & CFO Michael Welch explained the impairment charge was the result of a standard annual impairment test on the cash flow models for approximately five stores.

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SVP of Operations Dan Clara confirmed that negative equity is a concern and is more heavily weighted toward domestic brands, though it affects all segments. President & CEO David Hult added that consumer credit scores have remained resilient. SVP & CFO Michael Welch stated that while leverage ticked up due to opportunistic share buybacks, the company continues to evaluate capital deployment across all avenues, including deleveraging.

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CEO Daryl Kenningham clarified that the UK Mercedes-Benz store disposals were a strategic consolidation, not a sign of dissatisfaction, as the locations were near other company-owned stores. CFO Daniel McHenry added one site will be redeveloped into a larger store. Regarding inventory, Kenningham confirmed Toyota supply is low but stated the company is comfortable with the tight supply.

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CFO Daniel McHenry explained the U.K. headcount reductions targeted duplicated central office and administrative roles following acquisitions. CEO Daryl Kenningham clarified that customer-facing positions like salespeople and technicians were not reduced and are, in fact, being added. McHenry attributed the low inventory primarily to the cyclical nature of the U.K. market, where March is a major registration and sales month.

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CEO Daryl Kenningham stated that while OEMs are evaluating potential tariff impacts, there have been no specific discussions with retailers about cost sharing. On affordability, Kenningham noted that strong transaction prices and sales growth indicate a healthy consumer, and he sees potential for improvement with changes in tax or interest rates, independent of the election.

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EVP and CFO Enrique Mayor-Mora stated that the pace of future buybacks will depend on valuation, cash flow, and the macro environment, after a sizable increase in Q1. President & CEO Bill Nash assessed that while consumers are not necessarily more stressed, they are 'less positive about the future,' a sentiment the company is monitoring.

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CEO William Nash stated the decision was not pessimistic but prudent, given the high level of uncertainty in the current macro environment. He explained that factors like appreciating prices could accelerate the timeline, while a slowdown could delay it. CFO Enrique Mayor-Mora added that the focus is on driving sales and profitability, and they will revisit the timeline when there is more stability, but the long-term goals themselves remain.

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CEO William Nash explained that the inventory build is a normal, seasonal preparation for the upcoming tax season and noted that inventory turns have improved year-over-year. SVP Jon Daniels confirmed that EPP growth was driven by price increases initiated in Q4 of the prior fiscal year, which the company will begin lapping next quarter.

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SVP Jon Daniels clarified that customers using outside financing are 'definitely our higher-end consumer,' who are rate-sensitive and often have access to cash or low-rate credit union loans. On capital allocation, EVP & CFO Enrique Mayor-Mora stated that he expects the company to continue its share repurchase program at the pace previously communicated for the remainder of the year.

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CEO Mike Manley acknowledged that premium brands typically have more pricing power but emphasized that every customer ultimately has an alternative choice in the market. On the long-term capital strategy, CFO Tom Szlosek stated there is no specific target for the share count and that the focus remains on a balanced allocation approach to drive the best returns, including M&A. Manley concluded that the ultimate goal is maximizing shareholder return, regardless of the specific tool used.

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President and CEO Bryan DeBoer explained the mindset change involves leaders believing in their store's potential and taking action, such as implementing driveway pickup/repair services. He emphasized a new '60 to 90 day' mantra for seeing performance improvements before leadership changes are considered. He explicitly stated that technician or bay shortages are a symptom, not the root cause, and the real issue is a belief that they can't do more with existing resources.

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CEO Michael Happe explained that their approach is not to simply remove features, but to redefine value by focusing on what consumers prioritize most, which is currently interior fit, finish, and comfort. This may involve de-emphasizing some features to enhance others, all while delivering on a key price point, which he noted remains the number one factor for consumers.

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