Lithia Motors

LAD

Market cap $6.78B

LAD posts Q4 EPS of $6.74 on $9.2B revenues, with new vehicle sales down but used cars and aftersales up.

Lithia Motors, Inc. (LAD) Q4 2025 Earnings Call Transcript

Although the revenue and EPS for Lithia Motors (LAD) give a sense of how its business performed in the quarter ended December 2025, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Lithia Motors (LAD) came out with quarterly earnings of $6.74 per share, missing the Zacks Consensus Estimate of $8.09 per share. This compares to earnings of $7.79 per share a year ago.

Record full year revenues of $37.63 billion, a 4.0% increase; Record fourth quarter revenue of $9.20 billion Full year diluted earnings per share increased 9.7% and adjusted diluted earnings per share increased 15.7% Same-store sales nearly flat in the quarter Used revenue increased 6.1% and used retail units increased 4.7% on a same store basis in the quarter Aftersales revenue increased 10.9% and gross profit increased by 9.8% on a same store basis in the quarter Financing operations delivered record quarterly income of $23 million, a $19 million increase from the prior year Driveway Finance Corporation achieved a 15.0% penetration rate with an average FICO of 751 in the quarter Fourth quarter diluted earnings per share of $5.72 and adjusted diluted earnings per share of $6.74. Repurchased $947 million of shares, 11.4% of shares outstanding in 2025, including 3.8% of outstanding shares in the quarter Strategic acquisitions totaling $2.4 billion of annual revenue MEDFORD, Ore.

IRVING, Texas--(BUSINESS WIRE)--TraXtion, a leading provider of automated tire and vehicle inspection solutions, today announced it has been awarded Core Preferred Partner status by Lithia Motors, Inc. (NYSE: LAD) as part of the Lithia & Driveway Preferred Partner Program. This designation from one of the largest dealer groups in North America reinforces TraXtion's role in modernizing the service-lane experience for dealerships. The selection identifies TraXtion as a preferred provider of t.

Lithia Motors (LAD) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

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Lithia Motors shifts capital allocation from acquisitions toward dividends and aggressive share repurchases, signaling a transition to a more mature capital strategy. LAD's Q3-2025 results show 5% revenue growth and a 17% increase in adjusted EPS, with buybacks totaling 5.1% of shares at $312 average price. I see LAD as undervalued, with a low PEG ratio (0.51) and a one-year price target of $356.75, justifying a Buy rating (down from Strong Buy).

MEDFORD, Ore., Jan. 22, 2026 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) today announced its fourth quarter 2025 earnings and full year results will be released before the market opens on Wednesday, February 11, 2026.