Lithia Motors (NYSE:LAD) Announces Quarterly Earnings Results

Lithia Motors (NYSE:LAD) posted its quarterly earnings results on Wednesday. The company reported $6.74 EPS for the quarter, missing analysts’ consensus estimates of $8.09 by ($1.35), FiscalAI reports. Lithia Motors had a return on equity of 13.42% and a net margin of 2.39%.The company had revenue of $9.20 billion during the quarter, compared to the consensus estimate of $9.19 billion. During the same period in the previous year, the business earned $7.79 earnings per share. Lithia Motors’s revenue was up .3% on a year-over-year basis.

Here are the key takeaways from Lithia Motors’ conference call:

• Record results — Q4 revenue of $9.2 billion and full-year revenue of $37.6 billion (+4%), with full-year adjusted diluted EPS of $33.46 (+16%), reflecting durable top-line and EPS growth.
• Driveway Finance (DFC) scaling — DFC delivered record income ($75M for 2025), managed receivables grew to $4.8 billion (+23%), penetration rose to ~17%–17.5% (target 20%), and management expects continued high-growth contribution to recurring, countercyclical income.
• Used and after‑sales strength — Used revenue +6.1% (units +4.7%) with Value Auto units +10.9%, while after‑sales revenue rose 10.9% and gross profit +9.8% (57.3% margin), supporting diversification versus new‑vehicle cycles.
• Margin and cost pressure — Total vehicle GPU compressed to $39.46 (down $258 YoY) and new vehicle GPU fell ~$300, while adjusted SG&A as a % of gross profit widened to 71.4% (from 66.3%), creating near‑term earnings pressure and requiring further cost/efficiency actions.
• Capital allocation — Management repurchased 11.4% of shares in 2025 (3.8% in Q4 at an average $314), acquired ~$2.4 billion of expected annualized revenue last year, and intends to balance opportunistic buybacks with $2–$4 billion of annual acquired revenue to accelerate shareholder returns.

Lithia Motors Price Performance

NYSE:LAD traded down $16.82 during trading hours on Thursday, reaching $303.59. The stock had a trading volume of 410,704 shares, compared to its average volume of 275,935. The stock has a market capitalization of $7.36 billion, a PE ratio of 8.79 and a beta of 1.20. The company has a 50 day moving average price of $334.42 and a two-hundred day moving average price of $320.94. The company has a debt-to-equity ratio of 1.35, a quick ratio of 0.30 and a current ratio of 1.21. Lithia Motors has a 52 week low of $262.10 and a 52 week high of $389.61.

Lithia Motors Announces Dividend

The firm also recently disclosed a quarterly dividend, which will be paid on Friday, March 20th. Stockholders of record on Friday, March 6th will be paid a $0.55 dividend. The ex-dividend date of this dividend is Friday, March 6th. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.7%. Lithia Motors’s dividend payout ratio is 6.37%.

More Lithia Motors News

Here are the key news stories impacting Lithia Motors this week:

• Positive Sentiment: Record full‑year revenue, strong buybacks and improving segments — Lithia reported record 2025 revenue of $37.63B, repurchased $947M of stock (11.4% of shares outstanding in 2025) and showed used‑car and aftersales growth, plus stronger Driveway Finance results. These support long‑term cash generation and shareholder returns. PR Newswire: Q4 & Full‑Year Results
• Positive Sentiment: Dividend declared — Lithia announced a quarterly dividend of $0.55 per share (payable March 20; ex‑dividend March 6), adding to cash return to shareholders and partly offsetting investor concerns from the quarter.
• Neutral Sentiment: Analysts trimmed price targets but kept constructive ratings — JPMorgan lowered its PT to $350 and kept an Overweight rating (~14.9% upside from recent levels), and Wells Fargo cut its PT to $355 while maintaining an Equal Weight rating. The changes temper upside but preserve analyst support. Benzinga: Analyst Notes
• Neutral Sentiment: Market commentary and transcripts available — Multiple outlets published the earnings transcript, slide deck and valuation takes (Seeking Alpha, Yahoo Finance, MSN) that investors can use to dig into same‑store trends and margins. Yahoo Finance: Valuation After Pullback
• Negative Sentiment: Q4 earnings miss pressured the stock — Lithia reported Q4 EPS of $6.74 versus consensus near $8.10 and revenue roughly flat year‑over‑year at $9.20B; same‑store sales were nearly flat. The EPS shortfall, despite stable revenue and pockets of strength (used and aftersales), is the primary driver of today’s selloff. Zacks: Q4 Earnings Miss
• Negative Sentiment: Near‑term outlook and valuation pressure — The EPS miss increases near‑term execution risk and makes the stock’s valuation more sensitive to further margin or sales weakness, which likely explains increased selling pressure despite buybacks and the dividend.

Insider Buying and Selling

In related news, Director Congdon Stacy Loretz sold 75 shares of the firm’s stock in a transaction that occurred on Friday, December 12th. The stock was sold at an average price of $360.00, for a total transaction of $27,000.00. Following the completion of the sale, the director directly owned 1,810 shares of the company’s stock, valued at approximately $651,600. This trade represents a 3.98% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. 0.87% of the stock is owned by insiders.

Institutional Inflows and Outflows

Several hedge funds and other institutional investors have recently added to or reduced their stakes in the business. Hook Mill Capital Partners LP acquired a new stake in Lithia Motors during the 3rd quarter valued at approximately $29,130,000. Bank of America Corp DE raised its holdings in shares of Lithia Motors by 57.5% during the second quarter. Bank of America Corp DE now owns 197,417 shares of the company’s stock worth $66,691,000 after purchasing an additional 72,061 shares during the last quarter. Marshall Wace LLP lifted its position in Lithia Motors by 6,341.6% during the third quarter. Marshall Wace LLP now owns 57,459 shares of the company’s stock valued at $18,157,000 after purchasing an additional 56,567 shares during the period. Ameriprise Financial Inc. boosted its holdings in Lithia Motors by 42.0% in the second quarter. Ameriprise Financial Inc. now owns 187,997 shares of the company’s stock valued at $63,514,000 after purchasing an additional 55,631 shares during the last quarter. Finally, Voloridge Investment Management LLC grew its position in Lithia Motors by 175.6% during the 3rd quarter. Voloridge Investment Management LLC now owns 81,416 shares of the company’s stock worth $25,727,000 after purchasing an additional 51,873 shares during the period.

Analyst Ratings Changes

A number of analysts have recently weighed in on LAD shares. Weiss Ratings restated a “hold (c+)” rating on shares of Lithia Motors in a report on Thursday, January 22nd. Citigroup increased their price target on shares of Lithia Motors from $385.00 to $399.00 and gave the stock a “buy” rating in a research note on Tuesday, October 28th. Barclays lowered their price objective on shares of Lithia Motors from $410.00 to $390.00 and set an “overweight” rating for the company in a report on Wednesday, January 21st. Evercore upped their target price on Lithia Motors from $440.00 to $500.00 and gave the stock an “outperform” rating in a report on Monday, November 24th. Finally, Benchmark restated a “buy” rating on shares of Lithia Motors in a research note on Thursday, October 23rd. Eight analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company’s stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and a consensus price target of $389.90.

Lithia Motors Company Profile

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.