Revenue Performance - Fourth quarter 2025 revenue increased 0.3% to $9.20 billion from $9.17 billion in the fourth quarter of 2024[4] - Full year 2025 revenue reached a record $37.63 billion, a 4.0% increase from $36.19 billion in 2024[6] - Total revenues for Q4 2025 were $9,197.8 million, a slight increase of 0.3% compared to $9,173.5 million in Q4 2024[22] - Total revenues for the three months ended December 31, 2025, were $8,839.8 million, a decrease of 0.5% compared to $8,884.4 million in 2024[24] Earnings and Profitability - Fourth quarter 2025 diluted earnings per share decreased 28% to $5.72 from $7.98 per share in the fourth quarter of 2024[4] - Full year 2025 net income increased 1% to $825.9 million from $816.3 million in 2024[7] - Net income attributable to LAD for Q4 2025 was $136.8 million, down 35.7% from $212.7 million in Q4 2024[22] - Net income for the twelve months ended December 31, 2025, was $854.7 million, compared to $790.4 million in 2024, representing an increase of 8.1%[31] - Net income for the three months ended December 31, 2025, was $137.9 million, a decrease of 35.5% compared to $213.7 million in 2024[32] Vehicle Sales - Used vehicle revenue increased 6.1% and used retail units increased 4.7% on a same-store basis in the fourth quarter[8] - New vehicle revenues decreased by 5.7% to $4,626.7 million in Q4 2025, while used vehicle revenues increased by 6.7% to $3,179.2 million[22] - Unit sales of new vehicles fell by 8.1% to 97,424 in Q4 2025, while used vehicle retail sales increased by 4.8% to 99,905[23] Expenses and Margins - SG&A expenses as a percentage of revenue increased to 10.7% in Q4 2025 from 9.9% in Q4 2024[23] - The net profit margin for Q4 2025 was 1.8%, down from 2.2% in Q4 2024[23] - Total selling, general and administrative expenses for the twelve months ended December 31, 2025, were $3,941.3 million, an increase of 5.0% from $3,747.3 million in 2024[31] Cash Flow and Assets - Cash, restricted cash, and cash equivalents at the end of the period were $341.8 million, down from $402.2 million in 2024[27] - Total assets increased to $25,107.2 million as of December 31, 2025, compared to $23,122.6 million in 2024[27] - Adjusted cash flow from operations for the twelve months ended December 31, 2025, was $1,291.3 million, compared to $1,246.8 million in 2024[29] Debt and Financing - Total debt rose by 11.7% to $14,821.9 million as of December 31, 2025, compared to $13,265.7 million in 2024[33] - Net debt increased by 17.4% to $4,864.1 million from $4,142.1 million in 2024[33] - Net debt to Adjusted EBITDA ratio was 2.92x for the twelve months ended December 31, 2025, compared to 2.71x in 2024[33] Other Financial Metrics - The company repurchased $947 million of shares, representing 11.4% of shares outstanding in 2025[8] - The Board of Directors approved a dividend of $0.55 per share related to fourth quarter 2025 financial results[11] - Adjusted EBITDA for the twelve months ended December 31, 2025, increased by 9.0% to $1,666.4 million from $1,528.2 million in 2024[32]

Core Viewpoint - Lithia Motors reported quarterly earnings of $6.74 per share, missing the Zacks Consensus Estimate of $8.09 per share, representing a year-over-year decline from $7.79 per share and an earnings surprise of -16.69% [1] Financial Performance - The company posted revenues of $9.2 billion for the quarter ended December 2025, missing the Zacks Consensus Estimate by 3.44%, and showing a slight decrease from year-ago revenues of $9.22 billion [2] - Over the last four quarters, Lithia Motors has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance - Lithia Motors shares have declined approximately 1.7% since the beginning of the year, while the S&P 500 has gained 1.4% [3] - The current Zacks Rank for Lithia Motors is 3 (Hold), indicating expected performance in line with the market in the near future [6] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $8.47 on revenues of $9.34 billion, and for the current fiscal year, it is $38.39 on revenues of $39.56 billion [7] - The estimate revisions trend for Lithia Motors was mixed ahead of the earnings release, which could change following the recent report [6] Industry Context - The Automotive - Retail and Whole Sales industry is currently in the top 36% of over 250 Zacks industries, suggesting that stocks in the top 50% outperform those in the bottom 50% by more than 2 to 1 [8]

Financial Performance - The company reported record full year revenues of $37.63 billion, representing a 4.0% increase [1] - Fourth quarter revenue reached $9.20 billion, marking a strong performance [1] - Full year diluted earnings per share increased by 9.7%, while adjusted diluted earnings per share rose by 15.7% [1] Sales and Revenue Breakdown - Same-store sales were nearly flat during the quarter [1] - Used revenue increased by 6.1%, and used retail units grew by 4.7% on a same-store basis [1] - Aftersales revenue saw a significant increase of 10.9%, with gross profit up by 9.8% on a same-store basis [1] Financing Operations - Financing operations achieved record quarterly income of $23 million, an increase of $19 million from the previous year [1] - Driveway Finance Corporation attained a penetration rate of 15.0% with an average FICO score of 751 during the quarter [1] Shareholder Returns - The company reported fourth quarter diluted earnings per share of $5.72 and adjusted diluted earnings per share of $6.74 [1] - A total of $947 million in shares were repurchased, accounting for 11.4% of shares outstanding in 2025, including 3.8% of outstanding shares in the quarter [1] Strategic Acquisitions - The company made strategic acquisitions totaling $2.4 billion in annual revenue [1]

Core Viewpoint - Lithia Motors, Inc. is a significant player in the U.S. automotive retail industry, offering a wide range of services and maintaining a strong online presence [1] Price Target and Analyst Sentiment - The consensus price target for Lithia Motors has fluctuated, with the current average at $374, down from $414.5 last quarter and $390.17 a year ago, indicating changing analyst sentiment [2] - Wells Fargo has set a price target of $350, reflecting confidence in the company's growth potential despite the recent decrease in the average price target [3] Financial Performance - In Q3 2025, Lithia Motors reported a 5% increase in revenue and a 17% rise in adjusted earnings per share (EPS) [4] - The company executed share buybacks amounting to 5.1% of its shares at an average price of $312, indicating a shift towards a more mature capital strategy [4] Stock Performance - Lithia Motors' stock has declined by 11.5% since the last earnings report 30 days ago, yet the price target set by Wells Fargo remains at $350, suggesting potential long-term confidence in the company's performance [5]

TraXtion Awarded Core Preferred Partner Status By Lithia & DrivewayFeb 10, 2026 2:07 PM Eastern Standard Time# TraXtion Awarded Core Preferred Partner Status By Lithia & DrivewayShare---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 deale ...

Group 1 - Lithia Motors Inc. is recognized as one of the best used-car stocks to buy, with a Buy rating and a price target of $400 from Benchmark analysts [1][2] - The company is experiencing growth through its acquisition of Fine Ford in the Greater Toronto Area, which is expected to increase annualized revenue by $100 million [3][4] - Despite a bullish outlook, the research firm has adjusted forecasts, predicting reductions in new-vehicle volumes and gross profit per unit, with an estimated adjusted EBITDA of $409 million for the fourth quarter [2][3] Group 2 - Lithia Motors operates over 470 locations across the U.S., Canada, and the UK, providing a full spectrum of transportation solutions, including vehicle sales, financing, and repair services [4] - The company's omnichannel approach, including Driveway.com, facilitates both online and in-store purchasing, enhancing customer experience [4]

Lithia Motors, Inc. ( LAD ), the auto dealership aggregator, has changed its capital allocation over the past two years. It has reduced the proportion that goes to acquisitions and increased the proportion for shareholder rewards.Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund inve ...

Lithia Motors, Inc. ( LAD ), the auto dealership aggregator, has changed its capital allocation over the past two years. It has reduced the proportion that goes to acquisitions and increased the proportion for shareholder rewards.Robert F. Abbott has been investing his family’s accounts since 1995, and in 2010 added options, mainly covered calls and collars with long stocks. He is a freelance writer, and his projects include a website that provides information for new and intermediate-level mutual fund inve ...

Group 1 - Lithia & Driveway (NYSE: LAD) will release its fourth quarter 2025 earnings and full year results on February 11, 2026, before the market opens [1] - A conference call to discuss the earnings results is scheduled for the same day at 10:00 a.m. Eastern Time [1] - The conference call can be accessed by telephone or via the company's website for live listening and replay [2] Group 2 - Lithia & Driveway is the largest global automotive retailer, offering a wide range of products and services throughout the vehicle ownership lifecycle [3] - The company emphasizes simple, convenient, and transparent experiences through its extensive network of physical locations and e-commerce platforms [3] - Lithia & Driveway aims for consistent, profitable growth in a large and unconsolidated industry, leveraging its diversified and competitively differentiated design [3]

Core Viewpoint - Lithia Motors, Inc. (NYSE:LAD) is identified as an undervalued cyclical stock with positive ratings from Benchmark and Evercore ISI, indicating potential investment opportunities [1][2]. Group 1: Analyst Ratings and Price Targets - Benchmark has reiterated a Buy rating on Lithia Motors with a price target of $400 [1]. - Evercore ISI has also maintained a Buy rating, setting a higher price target of $500 [1]. Group 2: Performance Forecasts - Benchmark's updated forecasts indicate a reduction in production volumes and gross profit per unit, expecting a deleveraging to 67% of sales for Lithia Motors [2]. - The firm anticipates Lithia Motors to generate $409 million in EBITDA for the fourth quarter, with an adjusted EPS of $8.21 [2]. - Evercore ISI expects the company to perform in line with market expectations during the fiscal fourth quarter, with projected revenue of approximately $9.30 billion and a GAAP EPS of $8.41 [3]. Group 3: Company Overview - Lithia Motors is the largest auto dealer in the United States, involved in the retail of new and used vehicles along with related services [4].