Lithia & Driveway (LAD) Reports Record First Quarter Revenue of $9.2 billion, Achieves 35% Increase in Diluted Earnings Per Share, 25% Increase in Adjusted Diluted Earnings Per Share

Core Insights - Lithia & Driveway reported the highest first quarter revenue in company history, with a 7% increase to $9.2 billion compared to $8.6 billion in Q1 2024 [2][21] - Diluted earnings per share increased by 35% to $7.94 from $5.89 in the same period last year [3][23] - The company announced an increased dividend of $0.55 per share, a 4% increase, to be paid on May 23, 2025 [11] Financial Performance - First quarter 2025 net income was $211 million, a 28% increase from $165 million in Q1 2024 [4][22] - Adjusted net income for Q1 2025 was $204 million, a 20% increase compared to $171 million in Q1 2024 [4][38] - The company achieved a gross profit of $1.41 billion, reflecting a 5.6% increase from $1.34 billion in the previous year [21][22] Operational Highlights - The company acquired two stores in 2025, adding an expected annualized revenue of $180 million [8][9] - New retail units increased by 3.6% on a same-store basis compared to Q1 2024 [15] - Used retail unit growth improved from -4.3% to -0.4% on a sequential same-store basis [15] Balance Sheet and Cash Flow - Lithia & Driveway ended Q1 2025 with approximately $1.4 billion in cash and cash equivalents, along with marketable securities [10] - The company repurchased approximately 403,000 shares at a weighted average price of $326 during the first quarter [12] - Net cash provided by operating activities was $322.1 million, an increase from $294 million in Q1 2024 [35] Strategic Outlook - The company emphasized its integrated ecosystem and disciplined execution of strategy, focusing on profitable growth and market share expansion [7] - Lithia & Driveway aims to deliver consistent, high-quality experiences across all channels throughout 2025 and beyond [7]