“`html
Announces Dividend of $0.55 per Share for Third Quarter
MEDFORD, Ore., Oct. 22, 2025 /PRNewswire/ — Lithia & Driveway (NYSE: LAD) announced today its third-quarter earnings, marked by record revenue and an uptick in diluted earnings per share (EPS). The company reported a 5% year-over-year revenue increase, reaching $9.7 billion, while diluted EPS rose by 11% compared to the same period in 2024, signaling operational efficiency and strategic execution.
Diving deeper into the financials, Lithia & Driveway posted diluted EPS of $8.61, up from $7.73 in Q3 2024. On an adjusted basis, diluted EPS stood at $9.50, reflecting a 17% increase from $8.14 per share in the prior year. Net income, however, presented a mixed picture. While net income saw a slight dip of 1.1% to $219 million, adjusted net income climbed by 9% to $241 million, underscoring the impact of non-core items on the company’s overall performance.
The company’s adjusted results for Q3 2025 exclude a $0.89 per diluted share impact from items such as a net investment loss in Pinewood Technologies Group PLC, acquisition expenses, and insurance reserves. These were partially offset by a net gain on store disposals and tax attributes. Similarly, Q3 2024’s adjusted results excluded a $0.41 per diluted share impact due to items like the premium paid for the redemption of the remaining non-controlling interest in Pfaff Automotive and a net investment loss in Pinewood Technologies Group PLC.
Key Third Quarter 2025 Highlights:
- Total revenue increased 7.7% on a same store basis, compared to third quarter 2024
- Used retail revenue increased 11.8% on a same store basis, compared to third quarter 2024
- Aftersales gross profit increased by 9.1% on a same store basis, compared to third quarter 2024
- Repurchased 5.1% of outstanding shares in the quarter, 8.0% of outstanding shares in the first nine months of 2025
- Total adjusted SG&A as a % of gross profit of 64.8% in North America
“Our third-quarter performance underscores our commitment to operational excellence. This resulted in strong growth in same-store sales and earnings per share,” stated Bryan DeBoer, President and CEO. “Strategic execution continues to drive solid profitability gains. We’re focused on scaling our omnichannel ecosystem while maintaining a disciplined approach to capital allocation.”
Lithia & Driveway has demonstrated strategic prowess in capital allocation, opportunistically repurchasing shares while maintaining a robust balance sheet. This approach strategically positions the company to capitalize on the growing trend of online car buying, positioning itself to meet consumer demand effectively in the evolving market.
The first nine months of 2025 witnessed a 5% revenue growth, reaching $28.4 billion compared to $27.0 billion in 2024. Diluted EPS attributable to LAD stood at $26.42, a 23% increase from $21.47 per share in 2024. Adjusted diluted EPS attributable to LAD for the same period rose by 25% to $26.60 from $21.29 in 2024.
Corporate Development
September 2025 saw LAD further expand its network in the Southeast with the acquisition of Palm Beach Acura, West Palm Beach Hyundai, and West Palm Beach Genesis, collectively adding $220 million of expected annualized revenue. As of late September 2025, LAD has acquired $620 million of expected annualized revenues year-to-date.
Balance Sheet Update
LAD concluded the third quarter with approximately $1.9 billion in cash and cash equivalents, marketable securities, and available credit lines.
Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of $0.55 per share for Q3 2025, payable on November 21, 2025, to shareholders of record on November 7, 2025. During Q3 2025, the company repurchased approximately 1,312,000 shares at a weighted average price of $312. Year-to-date in 2025, approximately 2,168,000 shares have been repurchased at a weighted average price of $313. Approximately $889.3 million remains available under the current share repurchase authorization.
|
LAD Consolidated Statements of Operations (Unaudited) (In millions except per share data) |
|||||||||||
|
Three months ended September 30, |
% |
Nine months ended September 30, |
% |
||||||||
|
Increase |
Increase |
||||||||||
|
2025 |
2024 |
(Decrease) |
2025 |
2024 |
(Decrease) |
||||||
|
Revenues: |
|||||||||||
|
New vehicle retail |
$ 4,630.3 |
$ 4,430.0 |
4.5 % |
$ 13,508.9 |
$ 12,847.9 |
5.1 % |
|||||
|
Used vehicle retail |
3,096.3 |
2,843.3 |
8.9 |
9,110.2 |
8,630.1 |
5.6 |
|||||
|
Used vehicle wholesale |
367.0 |
390.9 |
(6.1) |
1,081.1 |
1,018.1 |
6.2 |
|||||
|
Finance and insurance |
378.6 |
360.4 |
5.0 |
1,116.8 |
1,061.9 |
5.2 |
|||||
|
Aftersales |
1,037.1 |
1,012.8 |
2.4 |
3,039.6 |
2,876.3 |
5.7 |
|||||
|
Fleet and other |
166.5 |
183.6 |
(9.3) |
580.5 |
580.4 |
— |
|||||
|
Total revenues |
9,675.8 |
9,221.0 |
4.9 % |
28,437.1 |
27,014.7 |
5.3 % |
|||||
|
Cost of sales: |
|||||||||||
|
New vehicle retail |
4,353.6 |
4,123.6 |
5.6 |
12,655.3 |
11,925.4 |
6.1 |
|||||
|
Used vehicle retail |
2,902.9 |
2,654.4 |
9.4 |
8,518.6 |
8,062.9 |
5.7 |
|||||
|
Used vehicle wholesale |
371.5 |
393.0 |
(5.5) |
1,090.6 |
1,020.7 |
6.8 |
|||||
|
Aftersales |
432.6 |
453.0 |
|||||||||
