Core Insights - Lithia Motors (LAD) reported second-quarter 2025 adjusted earnings per share of $10.24, an increase from $7.87 in the prior-year quarter, exceeding the Zacks Consensus Estimate of $9.78 [1] - The company's revenues reached $9.58 billion, marking a 3.7% year-over-year increase and surpassing the Zacks Consensus Estimate of $9.53 billion [1] Segmental Performance - New vehicle retail revenues rose 2.2% year over year to $4.5 billion, although it fell short of the estimate of $4.75 billion; new vehicle units sold increased 1.8% to 94,144 units, missing the estimate of 100,205 units [2] - The average selling price (ASP) of new vehicles increased to $47,782 from $47,603 in the prior-year quarter, exceeding the estimate of $47,431; gross margin in this segment contracted by 60 basis points to 6.7% due to a 2.8% rise in cost of sales to $4.2 billion [2] - Used vehicle retail revenues grew 3.6% year over year to $3.1 billion, surpassing the estimate of $2.9 billion, driven by a higher-than-expected ASP; used vehicle units sold declined 0.2% to 109,053 units, missing the expectation of 111,328 units [3] - The ASP of used vehicles increased by 3.8% year over year to $28,379, exceeding the estimate of $26,135; gross margin in this segment increased by 20 basis points to 6.7% [3] - Revenues from used vehicle wholesale surged 32.3% to $383 million, outpacing the estimate of $340 million; finance and insurance revenues rose 3.6% to $373.8 million but fell short of the estimate of $398.9 million [4] - Aftersales revenues reached $1.02 billion, a 7.6% year-over-year increase, surpassing the estimate of $985 million; revenues from fleet and others contracted 13.1% year over year to $209.5 million, missing the expectation of $244 million [4] Financial Highlights - Cost of sales increased by 3.7% year over year in Q2 2025; SG&A expenses were reported at $1.01 billion, with adjusted SG&A as a percentage of gross profit decreasing to 67.7% from 67.9% in the prior-year quarter [6] - Both pretax and net profit margins improved compared to the previous year [6] Shareholder Actions - The company announced a dividend of 55 cents to be paid on August 22, 2025, to shareholders of record as of August 8, 2025; in Q2 2025, LAD repurchased nearly 387,000 shares at an average price of $306 [7] - Lithia has approximately $568.8 million shares remaining under its buyback authorization [7] Cash and Debt Position - As of June 30, 2025, Lithia had cash and cash equivalents of $404.4 million, up from $402.2 million as of December 31, 2024; long-term debt increased to $6.7 billion from $6.1 billion during the same period [8]