Lithia Motors (NYSE:LAD) Q3 2025 Earnings Call October 22, 2025 10:00 AM ET Company ParticipantsBryan DeBoer - President and CEOTina Miller - SVP and CFORajat Gupta - Executive Director of Equity ResearchJardon Jaramillo - Senior Director of Finance and Investor RelationChuck Lietz - Senior Vice President of Driveway FinanceDaniela Haigian - VP of Equity ResearchConference Call ParticipantsMichael Ward - VP and Senior AnalystMark Jordan - AnalystGlenn Chin - Senior AnalystJeff Francis - MD and Research Anal ...

Lithia Motors (NYSE:LAD) Q3 2025 Earnings Call October 22, 2025 10:00 AM ET Speaker0Greetings, and welcome to the Lithia and Driveway's twenty twenty five Third Quarter Earnings Call. At this time, all participants are in a listen only mode. A question and answer session will follow the formal presentation. It is now my pleasure to introduce your host, Jardan Hamadillo. Thank you.You may begin.Speaker1Good morning. Thank you for joining us for our third quarter earnings call. With me today are Brian DuBour, ...

Lithia Motors (NYSE:LAD) Q3 2025 Earnings Call October 22, 2025 10:00 AM ET Speaker1Good evening and welcome to the Lithia Motors and Driveway 2025 third quarter earnings call. At this time, all participants are in a listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance, please press star zero on your telephone keypad. It is now my pleasure to introduce your host, Jardon Jaramillo. Thank you. You may begin.Speaker2Good morning. Than ...

Financial Performance & Growth - Lithia & Driveway (LAD) achieved a 10-year Revenue Compound Annual Growth Rate (CAGR) of 16%[10, 14] - LAD's Adjusted Earnings Per Share (EPS) increased by 494% from 2015 to YTD 2025[10] - Revenue per share grew by 507% from 2015 to YTD 2025[10] - Total Shareholder Return increased by 273% from 2015 to YTD 2025[12] - The company aims for $2 EPS per $1 billion of Revenue[15] Strategic Goals & Market Position - LAD targets 100% national coverage[11] - The company operates within a $3 trillion+ market[14, 21] - LAD's platform provides access to a 70% larger market than traditional franchise auto dealers[22] - Driveway Finance Corporation (DFC) portfolio size is projected to reach $17 billion in the long-term[50] Operational Efficiency & Capital Allocation - LAD is improving operating efficiency, targeting SG&A as a percentage of gross profit in the mid-50% range in the long term[17, 27] - In the first nine months of 2025, the company allocated $662 million to share repurchases at an average price of $313 per share[36] - LAD's capital allocation strategy directs capital towards growth and expansion[36]

Lithia Motors beat Q3 revenue and EPS estimates, driven by strong used sales and expanding high-margin after-sales growth. ...

Lithia & Driveway (LAD) Reports Record Third Quarter Revenue of $9.7 billion, Achieves 11% Increase in Diluted Earnings Per Share, 17% Increase in Adjusted Diluted Earnings Per Share ________________________________________________ Announces Dividend of $0.55 per Share for Third Quarter Medford, Oregon, October 22, 2025 - Lithia & Driveway (NYSE: LAD) today reported the highest third quarter revenue in company history, and a 11% increase in diluted earnings per share compared to the same period in 2024. Thi ...

Lithia Motors (LAD) came out with quarterly earnings of $9.5 per share, beating the Zacks Consensus Estimate of $8.53 per share. This compares to earnings of $8.21 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of +11.37%. A quarter ago, it was expected that this auto dealership chain would post earnings of $9.78 per share when it actually produced earnings of $10.24, delivering a surprise of +4.7%.Over the last four quarters, t ...

Core Insights - Lithia & Driveway (LAD) reported the highest third quarter revenue in company history, with a revenue increase of 5% to $9.7 billion compared to $9.2 billion in Q3 2024, and a diluted earnings per share increase of 11% to $8.61 from $7.73 in the same period [1][2] Financial Performance - Third quarter 2025 net income was $219 million, a slight decrease of 1.1% from $221 million in Q3 2024. However, adjusted net income increased by 9% to $241 million from $221 million in the same period [2] - For the first nine months of 2025, revenues increased by 5% to $28.4 billion compared to $27.0 billion in 2024. Diluted earnings per share for the same period rose by 23% to $26.42 from $21.47 [4][5] Operational Highlights - The company achieved a 7.7% increase in total revenue on a same-store basis compared to Q3 2024, with used retail revenue increasing by 11.8% [13] - The company repurchased approximately 1,312,000 shares at a weighted average price of $312 during Q3 2025, with a total of 2,168,000 shares repurchased year-to-date at an average price of $313 [9] Corporate Development - In September 2025, LAD expanded its network in the Southeast region by acquiring Palm Beach Acura, West Palm Beach Hyundai, and West Palm Beach Genesis, which are expected to add $220 million in annualized revenue [6] - As of September 30, 2025, LAD had acquired $620 million of expected annualized revenues year-to-date [7] Dividend and Shareholder Returns - The Board of Directors approved a dividend of $0.55 per share related to Q3 2025 financial results, expected to be paid on November 21, 2025 [8]

Core Viewpoint - Lithia Motors, Inc. is experiencing a shift in analyst price targets, reflecting a more conservative outlook despite strong financial performance and positive investor sentiment [2][4][6] Financial Performance - Lithia Motors reported a 19.2% increase in net income and a 25.4% growth in earnings per share (EPS) in Q2, indicating robust financial health [4][6] - The stock has risen by 18.9% since the last earnings report, suggesting positive investor sentiment [3] Price Target Adjustments - The average price target for Lithia Motors has decreased from $373.6 to $327 over the past year, indicating a more cautious perspective from analysts [2][6] - Wells Fargo and JPMorgan have set higher price targets of $350, reflecting optimism about Lithia's future growth [2][5][6] Market Outlook - Analysts are anticipating growth in earnings for the upcoming earnings report, although there are concerns that the company may not meet expectations [3] - JPMorgan's price target adjustment from $320 to $350 considers the mix of electric vehicles and challenges in the UK market, suggesting a balanced medium-term outlook [5]

Core Insights - Lithia & Driveway (NYSE: LAD) has 20 U.S. dealerships recognized among Automotive News' 2025 Best Dealerships To Work For, highlighting exceptional employee work environments [1][2] - The recognition is based on confidential management information and employee surveys measuring engagement, satisfaction, and workplace culture [1] Company Achievements - Bryan DeBoer, President and CEO, emphasized the importance of a people-first culture that empowers employees to provide exceptional customer experiences [2] - Two LAD stores received special category distinctions, showcasing the company's commitment to employee satisfaction [2] Company Overview - Lithia & Driveway is the largest global automotive retailer, offering a wide range of products and services throughout the vehicle ownership lifecycle [4] - The company aims to modernize personal transportation solutions through a comprehensive network of physical locations, e-commerce platforms, and finance solutions [4]