Lithia Motors

LAD

Market cap $7.73B

Lithia Motors (LAD) reported earnings 30 days ago. What's next for the stock?

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BEVERLY HILLS, Calif. , Nov. 12, 2025 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD), the largest publicly traded automotive retailer in the world, today announced the acquisition of Porsche Beverly Hills and Santa Monica Audi.

MEDFORD, Ore. , Nov. 11, 2025 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today announced the acquisition of Porsche Beverly Hills and Audi Santa Monica.

Lithia Motors remains a "Buy" due to strong growth, attractive valuation, and continued expansion via acquisitions despite recent share underperformance. LAD reported robust revenue and profit growth, driven by higher vehicle sales and strategic dealership acquisitions, though gross profit per unit declined as industry conditions normalized. Significant leverage from acquisition-driven growth keeps LAD's EV/EBITDA valuation above peers, raising concerns about debt levels versus market cap.

Lithia Motors is rated neutral due to strong aftersales and used vehicle segments, but new vehicle profitability and consumer affordability remain key concerns. Aftersales revenue and gross profit are robust, providing recurring, macro-resistant earnings, while used vehicle demand benefits from consumer 'trade down' behavior. New and used vehicle gross profit per unit are at multi-year lows, with industry-wide headwinds and uncertainty around when the cycle will improve.

MEDFORD, Ore. , Oct. 28, 2025 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today announced two milestones that underscore its continued growth and commitment to excellence across its dealership network.

LAD posts stronger Q3 results with EPS and revenues topping estimates, driven by higher new and used vehicle sales.

Lithia Motors, Inc. (NYSE:LAD ) Q3 2025 Earnings Call October 22, 2025 10:00 AM EDT Company Participants Jardon Jaramillo - Senior Director of Finance & Investor Relations Bryan DeBoer - CEO, President & Director Tina Miller - Senior VP & CFO Charles Lietz - Senior Vice President of Finance Conference Call Participants Ryan Sigdahl - Craig-Hallum Capital Group LLC, Research Division Federico Merendi - BofA Securities, Research Division Michael Ward - Citigroup Inc., Research Division Rajat Gupta - JPMorgan Chase & Co, Research Division Glenn Chin - Seaport Research Partners Christopher Bottiglieri - BNP Paribas Exane, Research Division Jeffrey Lick - Stephens Inc., Research Division Bret Jordan - Jefferies LLC, Research Division Daniela Haigian - Morgan Stanley, Research Division Michael Albanese - The Benchmark Company, LLC, Research Division Mark Jordan - Goldman Sachs Group, Inc., Research Division Colin Langan - Wells Fargo Securities, LLC, Research Division Presentation Operator Greetings, and welcome to the Lithia & Driveway's 2025 Third Quarter Earnings Call. [Operator Instructions] It is my now my pleasure to introduce your host, Jardon Jaramillo.

The headline numbers for Lithia Motors (LAD) give insight into how the company performed in the quarter ended September 2025, but it may be worthwhile to compare some of its key metrics to Wall Street estimates and the year-ago actuals.