Lithia Motors Stock Earnings Reports

Lithia Motors reported a strong first quarter 2026 highlighted by record revenues of $9.3 billion and adjusted diluted EPS of $7.34. Results reflected resilience from its diversified, omnichannel ecosystem: used vehicle revenue and aftersales grew (used same-store revenue +4.6%, aftersales gross profit +5.7%) and Driveway Finance Corporation (DFC) scaled rapidly (record originations, portfolio reached $5 billion). New vehicle revenue declined due to a tough year-ago comparison and unit softness (new revenue -7.1%), while total vehicle GPU held roughly flat sequentially at $3,928. Inventory days improved modestly. Management emphasized ongoing cost discipline (adjusted SG&A as a % of gross 71.5% held flat sequentially), structural efficiency initiatives (vendor consolidation, back-office automation, Pinewood AI rollout) and a capital allocation bias to buybacks: roughly $259–$300 million repurchased in the quarter (~4% of shares). Acquisition activity was selective and disciplined (targeting 3–6x normalized EBITDA or 15–30% of revenue). DFC penetration hit a record ~18% with originations of $840 million and improving NIM (4.8%); management reiterated a long-term DFC penetration target of 20%+. Management continues to drive store-level productivity, digital reach, DFC scaling and SG&A improvements as the path to durable EPS and free cash flow expansion.