Lithia & Driveway reported record full-year revenues driven by growth in used vehicles and aftersales, though new vehicle headwinds and margin pressures impacted quarterly performance. The company focused on disciplined capital allocation, including significant share repurchases, while navigating a dynamic market.
Record full year revenues of $37.63 billion, a 4.0% increase year-over-year.
positiveFull year diluted earnings per share increased 9.7% to $32.32.
positiveUsed vehicle revenue increased 6.1% and used retail units increased 4.7% on a same store basis in the quarter.
positiveAftersales revenue increased 10.9% and gross profit increased by 9.8% on a same store basis in the quarter.
positiveFinancing operations delivered record quarterly income of $23 million, a $19 million increase from the prior year.
positiveRepurchased $947 million of shares, representing 11.4% of shares outstanding in 2025.
positiveFourth quarter 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.
negativeFourth quarter 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.
negativeFourth quarter net income was $137.9 million, a 35.5% decrease compared to net income of $213.7 million in the same period of 2024.
negativeAdjusted 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.
negativeNew vehicle revenue decreased 5.7% in the quarter and 6.6% on a same-store basis.
negativeNew vehicle gross profit per unit decreased by 8.9% in the quarter.
negativeGross profit margin decreased by 10 bps to 14.9% in the quarter, with new vehicle gross margin down 80 bps.
negativeInventory levels: New vehicle days' supply increased from 59 to 54, and used vehicle days' supply increased from 53 to 48.
attentionMargin expansion indicates improving profitability and operational efficiency. Measured in basis points (bps): 100 bps = 1.0%.
| Segment | Current | Prior Yr | YoY | % Total |
|---|---|---|---|---|
New vehicle | N/A | — | — | — |
Used vehicle | N/A | — | — | — |
Finance and insurance | N/A | — | — | — |
Aftersales | N/A | — | — | — |
| Total Revenue | $0.00M | — | — | 100.0% |
Segment performance shows business unit health and growth drivers.
Special items are non-recurring events that may distort period-over-period comparisons. Analysts typically adjust for these when calculating normalized earnings.
Our team delivered strong growth in used vehicles and aftersales, despite headwinds in new vehicles and continued margin pressures.
We remained disciplined in capital allocation, repurchasing over 11% of outstanding shares in 2025 while maintaining balance sheet strength.
Our diversified platform and operational discipline position us to navigate a dynamic market and capitalize on opportunities.
Commentary excerpts from earnings call transcripts provide management's perspective on performance, strategy, and outlook. Always review full transcripts for complete context.
Operational metrics provide insight into business drivers and customer engagement beyond traditional financial measures.