Lithia Motors Inc Q1 Revenue Hits Record $9.3B

By Chris Stiles • Wednesday, April 29 12:32 • Permanent Link

Lithia & Driveway said first-quarter revenue rose 1% from a year earlier to a record $9.3 billion, up from $9.2 billion in the first quarter of 2025.

Net income fell 51.7% to $102.0 million from $211.2 million a year earlier. Diluted earnings per share dropped to $4.28 from $7.94, a decline of 46%. Adjusted diluted earnings per share came in at $7.34, down 7% from $7.93.

The company said used vehicle revenue increased 4.6% on a same-store basis in the quarter. Used retail gross profit per unit rose 9%, or $133, sequentially.

Aftersales revenue increased 3.8% on a same-store basis, while gross profit in that business rose 5.7%. Gross margin in aftersales improved to 58.7%, up 100 basis points.

Driveway Finance Corp. posted record originations of $840 million in the quarter, with penetration at 18.0% and an average FICO score of 750.

Lithia repurchased $259 million of shares during the quarter, equal to about 4.0% of outstanding shares, buying roughly 942,000 shares at a weighted average price of $274.62. About $362.9 million remained under the company’s repurchase authorization at quarter-end.

The board approved a quarterly dividend of $0.57 per share, to be paid on May 22 to shareholders of record on May 8.

The company ended the quarter with about $1.4 billion in cash and cash equivalents, marketable securities, and availability on its revolving credit lines. Stores acquired in the quarter are expected to generate $425 million in annualized revenue. Following these announcements, the company's shares moved -0.53%, and are now trading at a price of $274.92. Check out the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.