Lithia Motors, Inc. (NYSE:LAD) delivered better-than-expected third-quarter results on Wednesday before the market opened, topping Wall Street estimates on both earnings and revenue.
The company posted adjusted earnings of $9.50 per share, up 17% from $8.14 a year ago and ahead of the $8.52 consensus estimate.
Quarterly revenue rose 4.9% year-over-year to a record $9.68 billion, surpassing projections of $9.46 billion, driven by steady growth in vehicle sales.
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The company reported solid same-store growth, with total revenue up 7.7% compared to the prior year. Used retail revenue climbed 11.8%, while after-sales gross profit rose 9.1% from the third quarter of 2024.
Bryan DeBoer, president and CEO, stated, “Our third quarter results demonstrate our focus on operational excellence with strong growth in same store sales and earnings per share and solid profitability gains driven by the continued execution of our strategy.”
Shareholder Returns and Capital Allocation
The Board of Directors declared a dividend of 55 cents per share for the third quarter of 2025, payable on November 21, 2025, to shareholders of record as of November 7, 2025.
During the quarter, the company repurchased approximately 1.31 million shares at a weighted average price of $312.
“Our disciplined capital allocation was clear as we opportunistically repurchased shares while maintaining a strong balance sheet, positioning us well to continue unlocking the full potential of our omnichannel ecosystem,” DeBoer said.
The company ended the third quarter with approximately $1.9 billion in cash and cash equivalents, marketable securities, and availability on revolving lines of credit.
Strategic Acquisitions and Footprint Expansion
In September 2025, Lithia Motors strengthened its Southeast footprint with new dealership acquisitions expected to add $220 million in annualized revenue, bringing its year-to-date acquisition total to about $620 million as of September 30, 2025.
Price Action: LAD shares were trading lower by 0.85% to $309.22 premarket at last check Wednesday.
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Photo by T. Schneider via Shutterstock
