Lithia & Driveway (NYSE:LAD) Sets New Financial Milestones Amidst Industry Challenges

Core Viewpoint - Lithia & Driveway is the largest global automotive retailer, focusing on new and used vehicle sales and aftersales services, while pursuing strategic growth and acquisitions to maintain its leadership position [1] Financial Performance - The company reported record full-year revenues of $37.63 billion, representing a 4% increase from the previous year [2][6] - In the fourth quarter, revenues reached $9.20 billion, with a 6.1% growth in used vehicle revenue and a 4.7% increase in used retail units on a same-store basis [3] - Aftersales revenue increased by 10.9%, contributing to a 9.8% rise in gross profit on a same-store basis [3] Earnings and Shareholder Returns - The fourth quarter diluted earnings per share were reported at $5.72, with adjusted diluted earnings per share at $6.74 [4] - In 2025, the company repurchased $947 million worth of shares, accounting for 11.4% of outstanding shares, including 3.8% in the fourth quarter [5] Strategic Initiatives - Lithia & Driveway made strategic acquisitions totaling $2.4 billion in annual revenue, emphasizing strong growth in used vehicles and aftersales despite challenges in new vehicle sales [5][6] - The financing operations achieved a record quarterly income of $23 million, a significant increase of $19 million from the previous year, with a penetration rate of 15% and an average FICO score of 751 [4]