Lithia Motors(US:LAD)2025-07-29 15:00Company Strategy & Performance - Lithia & Driveway (LAD) aims for 100% national coverage and high profitability, targeting $2 EPS per $1 billion of revenue[10] - The company's 10-year Revenue CAGR is 16%, and Adjusted EPS CAGR is also 16%[10] - LAD's platform expands access to a 70% larger market compared to traditional franchise auto dealers[17] Financial Highlights & Capital Allocation - In the first six months of 2025, LAD allocated $266 million to share repurchases at an average price of $316 per share[35] - LAD targets leverage ratios in the range of 2-3X, aiming for an investment-grade rating over time[35] - LAD's EBITDA for YTD 2025 is $11078 million, and Adjusted EBITDA is $8913 million[88] Driveway Finance Corporation (DFC) - DFC targets a portfolio size of $7 billion in 2025E and $17 billion in the mid-term[49] - DFC aims for finance operations income of $50-$60 million in 2025E and $150-$200 million in the mid-term[49] - DFC's originations in Q2 2025 reached $731 million with an APR of 87%[54] Operational Efficiency & Growth - Larger stores operate more efficiently, with the smallest 3rd of stores having SG&A as a % of Gross Profit at 88%, compared to 56% for the largest 3rd[26] - The company's M&A strategy targets a 5-year return of 15% CAGR[41] - Driveway generated an average of 13 million unique visitors per month in Q2 2025[82]