Lithia & Driveway increases share repurchase authorization by $750 million

Published 26/08/2025, 10:40
Lithia & Driveway increases share repurchase authorization by $750 million

MEDFORD, Ore. - Lithia & Driveway (NYSE:LAD) announced Tuesday its Board of Directors has approved a $750 million increase to its share repurchase authorization, bringing the company’s total repurchase capacity to $1.08 billion.

The automotive retailer has already invested $242 million to repurchase approximately 812,000 shares at an average price of $298 per share in the third quarter to date. The company’s total share repurchases in 2025 amount to $492 million, representing 6.1% of shares outstanding. Trading at a P/E ratio of 9.55, the stock has shown resilience, maintaining a 1-year return of 8.1%.

"Today’s increase underscores our long-term conviction in LAD’s strategy and the cash generation of our omnichannel model," said Bryan DeBoer, Lithia & Driveway President and CEO, in a press release statement.

Lithia & Driveway describes itself as the largest global automotive retailer, offering products and services throughout the vehicle ownership lifecycle through its network of physical locations, e-commerce platforms, and captive finance solutions.

The company noted that with its shares trading below what it considers intrinsic value, repurchases complement its continued investments in growth, guided by disciplined return on invested capital principles.

The announcement comes as part of the company’s ongoing capital allocation strategy, which balances growth investments with shareholder returns.

In other recent news, Lithia Motors Inc reported strong earnings for the second quarter of 2025, with adjusted earnings per share reaching $10.24, exceeding analysts’ projections of $9.14. However, the company’s revenue slightly missed expectations, totaling $9.58 billion compared to the forecasted $9.59 billion. Despite the earnings beat, the stock experienced a decline, though specific stock price movements are not detailed here. These developments highlight the importance of both earnings and revenue figures in investor assessments. Analyst reactions to these results are not specified, but such earnings outcomes often influence market perceptions. The company’s financial performance continues to be a focal point for investors. As these are recent developments, stakeholders are likely to keep a close watch on Lithia Motors’ future financial announcements.

This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.

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