Lithia & Driveway (LAD) Reports Fourth Quarter Results and Full Year Results

MEDFORD, Ore., Feb. 11, 2026 /PRNewswire/ -- Lithia & Driveway (NYSE: LAD), largest global automotive retailer, today reported financial results for the fourth quarter and full year 2025.

"Our team delivered strong growth in used vehicles and aftersales, despite headwinds in new vehicles and continued margin pressures. This resulted in industry-leading same store gross profits declines of only 1%. Driveway Finance Corporation delivered record quarterly income while achieving strong penetration with excellent credit quality." said Bryan DeBoer, President and CEO. "We remained disciplined in capital allocation, repurchasing over 11% of outstanding shares in 2025 while maintaining balance sheet strength. As we look ahead, our diversified platform and operational discipline position us to navigate a dynamic market and capitalize on opportunities."

Fourth Quarter 2025 Operational Summary
Fourth quarter 2025 revenue increased 0.3% to $9.20 billion from $9.17 billion in the fourth quarter of 2024.

Fourth quarter 2025 diluted earnings per share attributable to LAD was $5.72, a 28% decrease from $7.98 per share reported in the fourth quarter of 2024. Fourth quarter 2025 adjusted diluted earnings per share attributable to LAD was $6.74, a 12% decrease compared to $7.62 per share in the same period of 2024. 

Fourth quarter 2025 net income was $137.9 million, a 35.5% decrease compared to net income of $213.7 million in the same period of 2024. Adjusted fourth quarter 2025 net income was $162.2 million, a 21% decrease compared to adjusted net income of $204.2 million for the same period of 2024.

The financial measures discussed include both GAAP and non-GAAP measures. See "Reconciliation of Certain Non-GAAP Measures".

Full Year 2025 Operational Summary
Full year 2025 revenue increased 4.0% to a record $37.63 billion from $36.19 billion in 2024.

Full year 2025 diluted earnings per share attributable to LAD was $32.32, a 10% increase from $29.45 per share reported in 2024. Full year 2025 adjusted diluted earnings per share attributable to LAD was $33.46, a 16% increase from $28.92 per share reported in 2024. Full year 2025 net income increased 1% to $825.9 million from $816.3 million for 2024. Adjusted net income increased 8% to $854.7 million for 2025 from $790.4 million for 2024.

Corporate Development
During the fourth quarter, LAD acquired a total of eleven stores across North America and the United Kingdom, which are expected to generate $1.6 billion in annualized revenues. For the full year 2025, LAD acquired $2.4 billion of expected annualized revenues, while divesting $1.3 billion.

Balance Sheet Update
LAD ended the fourth quarter with approximately $1.5 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit.

Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of $0.55 per share related to fourth quarter 2025 financial results. The dividend is expected to be paid on March 20, 2026 to shareholders of record on March 6, 2026.

During the fourth quarter 2025, we repurchased approximately 917,427 shares at a weighted average price of $314. In 2025, we have repurchased approximately 3,020,000 shares at a weighed average price of $314. Under the current share repurchase authorization approximately $621.6 million remains available.

Fourth Quarter Earnings Conference Call and Updated Presentation
The fourth quarter 2025 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the fourth quarter 2025 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.com and click on quarterly earnings.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

Sites
www.lithia.com
investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com

Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ

Lithia & Driveway on X
https://x.com/lithiamotors
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ

Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/

Lithia & Driveway on YouTube
https://www.youtube.com/@Lithia_Motors/featured

Forward-Looking Statements
Certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as "project," "outlook," "target," "may," "will," "would," "should," "seek," "expect," "plan," "intend," "forecast," "anticipate," "believe," "estimate," "predict," "potential," "likely," "ensure," "goal," "strategy," "future," "maintain," and "continue" or the negative of these terms or other comparable terms. Examples of forward-looking statements in this presentation include, among others, statements regarding:

Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this presentation. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation:

Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.

Non-GAAP Financial Measures
This presentation contains non-GAAP financial measures, which may include adjusted net income, adjusted net income attributable to LAD, adjusted net income attributable to non-controlling interests, adjusted net income attributable to redeemable non-controlling interest, adjusted diluted earnings per share attributable to LAD, adjusted SG&A, adjusted SG&A as a percentage of revenue and gross profit, adjusted operating income, adjusted net cash provided by operating activities, adjusted income before income taxes, adjusted income tax (provision) benefit, adjusted operating profit as a percentage of revenue and gross profit, adjusted pre-tax margin and net profit margin, EBITDA, adjusted EBITDA and net debt. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.

Consolidated Statements of Operations (Unaudited)

(In millions except per share data)

interests

controlling interest

to LAD:

Key Performance Metrics (Unaudited)

Same Store Operating Highlights (Unaudited)

Other Highlights (Unaudited)

Condensed Consolidated Balance Sheets (Unaudited)

(In millions)

Condensed Consolidated Statements of Cash Flows (Unaudited)

(In millions)

activities

Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)

(In millions)

Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)

(In millions, except for per share data)

disposal of

stores

impairment

loss

reserves

expenses

administrative

(expense), net

income taxes

(provision) benefit

attributable to non-

controlling interests

attributable to LAD

share attributable to

LAD

disposal of

stores

gain

expenses

controlling interest

Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)

(In millions, except for per share data)

administrative

(expense), net

income taxes

(provision) benefit

attributable to non-

controlling interests

attributable to LAD

share attributable to

LAD

stores

gain

reserves

expenses

redeemable

NCI buyout

administrative

(expense), net

income taxes

provision) benefit

attributable to non-

controlling interests

attributable to

redeemable non-

controlling interest

attributable to LAD

share attributable to

LAD

Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)

(In millions)

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SOURCE Lithia Motors, Inc.