Auto retailer reported second-quarter diluted EPS of $11.54, repurchased $242 million of stock and said financing operations delivered record income and originations.
Lithia & Driveway reported record second-quarter 2026 revenue of $9.8 billion, up 2% from $9.6 billion a year earlier, as the automotive retailer combined modest top-line growth with stronger earnings per share and higher shareholder returns. Diluted earnings per share attributable to LAD rose 17% to $11.54 from $9.87, while adjusted diluted earnings per share increased 9% to $10.03 from $9.20 after excluding an unrealized gain on its investment in Pinewood Technologies Group PLC and other non-core items. Net income increased 1.3% to $261.6 million, though adjusted net income fell 6% to $227.6 million from $240.9 million. The company highlighted improved used vehicle profitability, stable new vehicle margins and better cost control. Used retail average selling price increased $339, or 20%, sequentially, aftersales gross profit rose 3.1% on a same-store basis, and same-store aftersales gross margin improved 120 basis points to 59.2%. Adjusted SG&A (selling, general and administrative expenses) as a percentage of gross profit was 68.6%, a sequential improvement of 290 basis points. Financing operations also strengthened, with record income of $37 million and record originations of $884 million, alongside a 17.5% penetration rate. For the first six months of 2026, revenue increased 2% to $19.1 billion from $18.8 billion. Diluted earnings per share attributable to LAD fell 12% to $15.68 from $17.80, while adjusted diluted earnings per share rose 1% to $17.32 from $17.12. During the quarter, LAD acquired five stores expected to generate $340 million in annualized revenue and divested three stores representing $120 million in annualized revenue. Lithia ended the quarter with about $1.3 billion in cash and cash equivalents, marketable securities and available revolving credit. Its board approved a $0.70 per share dividend tied to second-quarter results, payable on August 21, 2026, to shareholders of record on August 7, 2026. The company repurchased about 854,000 shares at a weighted average price of $284 during the quarter, and said approximately $620 million remained under its current authorization as of June 30, 2026. Bryan DeBoer, President and CEO, said the company carries strong momentum into the second half of the year.