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MEDFORD, Ore. - On Wednesday, Lithia & Driveway (NYSE:LAD) reported record third quarter revenue and better-than-expected earnings, as the auto retailer saw strong growth in used vehicle sales and after-sales services.
The company’s stock rose 0.68% in pre-market trading following the announcement.
The auto retailer posted adjusted earnings per share of $9.50 for the third quarter, significantly exceeding analyst expectations of $8.70. Revenue reached a record $9.7 billion, up 5% from $9.2 billion in the same period last year and above the consensus estimate of $9.41 billion.
On a same-store basis, total revenue increased 7.7% compared to the third quarter of 2024, with used retail revenue showing particularly strong growth of 11.8%. Aftersales gross profit also performed well, increasing by 9.1% on a same-store basis.
"Our third quarter results demonstrate our focus on operational excellence with strong growth in same store sales and earnings per share and solid profitability gains driven by the continued execution of our strategy," said Bryan DeBoer, President and CEO of Lithia & Driveway.
The company reported that its third quarter 2025 net income was $219 million, a slight decrease of 1.1% compared to $221 million in the same period of 2024. However, adjusted net income increased 9% to $241 million.
Lithia has been actively managing its capital, repurchasing approximately 1,312,000 shares at a weighted average price of $312 during the third quarter, representing about 5.1% of outstanding shares. For the first nine months of 2025, the company has repurchased approximately 8% of its outstanding shares.
The Board of Directors approved a dividend of $0.55 per share for the third quarter, expected to be paid on November 21, 2025, to shareholders of record on November 7, 2025.
As of September 30, 2025, Lithia had approximately $1.9 billion in cash and cash equivalents, marketable securities, and availability on revolving lines of credit, positioning the company for continued growth and potential acquisitions.
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