Lithia Motors Q2 2026 Results

Lithia & Driveway (NYSE:LAD) announced second‑quarter 2026 adjusted earnings per share of $10.03, comfortably beating analyst expectations of $8.81. The earnings surprise helped the stock climb 4.77% in pre‑market trading.

Revenue for the quarter reached $9.8 billion, representing a 2% year‑over‑year increase from $9.6 billion and surpassing the consensus estimate of $9.64 billion. The company’s Financing Operations delivered a record $37 million of income, an 82% rise from the prior year, driven by $884 million of originations and a 17.5% penetration rate.

Used‑vehicle retail gross profit per unit (GPU) rose $339, a 20% sequential improvement, while after‑sales gross profit grew 3.1% on a same‑store basis, lifting the gross margin by 120 basis points to 59.2%. New‑vehicle gross profit per unit fell 11.8% to $2,728, and used‑vehicle retail GPU increased 5.4% to $2,014. Finance and insurance GPU remained essentially flat at $1,808.

Adjusted SG&A expense as a percentage of gross profit improved by 290 basis points sequentially to 68.6%. The company repurchased $242 million of its own shares during the quarter, representing 3.7% of outstanding shares, and announced a 23% increase in its quarterly dividend to $0.70 per share.

"Our team delivered differentiated growth across the platform, with record quarterly revenues, stable new vehicle margins, improved used vehicle profitability, and meaningful sequential SG&A improvement," said Bryan DeBoer, President and CEO. "Financing Operations delivered 80% income growth, with expanding margins and increasing penetration."

For the first half of 2026, adjusted diluted EPS rose 1% to $17.32 from $17.12 a year earlier, while revenues increased 2% to $19.1 billion.

The retailer acquired five stores expected to generate $340 million of annualized revenue and divested three stores representing $120 million of annualized revenue during the quarter.

Lithia ended the quarter with approximately $1.3 billion in cash, marketable securities, and available revolving credit facilities.