#United States #Lithia Driveway #Medford, Oregon #Automotive Retail #LAD

Lithia Driveway Achieves Record-Breaking First Quarter Performance

Overview

Lithia Driveway (NYSE: LAD) has announced remarkable financial results for the first quarter of 2025, highlighting their growth trajectory with a record revenue of $9.2 billion. This achievement marks a significant increase of 7% from $8.6 billion during the same period in 2024. Moreover, the company achieved a 35% leap in diluted earnings per share (EPS), reaching $7.94 compared to $5.89 a year prior, alongside a 25% rise in adjusted diluted EPS.

Financial Highlights

Lithia Driveway's first quarter reports showcase:

• - Revenue Growth: Total revenues increased to $9.2 billion, a 7% growth compared to the first quarter of 2024.
• - Earnings Performance: Net income surged by 28% to $211 million, contrasting with $165 million in the previous year. Adjusted net income hit $204 million, reflecting a 20% improvement.
• - Strong Vehicle Sales: New retail unit sales saw an uptick of 3.6%, while used retail unit growth showed significant recovery.

Strategic Growth Initiatives

In the quest for sustainable growth, Lithia Driveway has expanded its presence in the Mid-Atlantic and Southwest regions with recent acquisitions, including the Stohlman Subaru store in Sterling, Virginia, and Elk Grove Subaru in Elk Grove, California. These strategic moves bring in projected annualized revenues of $80 million and $100 million respectively.

Operational Efficiency

Lithia Driveway's robust operating model has facilitated an agile approach to market dynamics, steeping their ability to capitalize on rising market share. President and CEO Bryan DeBoer commented on the company’s disciplined execution, emphasizing a focus on delivering consistent high-quality customer experiences across all operational channels. This foresight is aimed at propelling the company’s growth into the remainder of 2025 and beyond.

Financial Management and Investor Return

The Board of Directors has sanctioned an increased dividend of $0.55 per share for the first quarter’s financial performance—up 4% from previous levels. Share repurchases have also been prioritized; the company bought back approximately 403,000 shares at an average price of $326, with authorization for an additional $669.2 million under its stock repurchase program.

Future Outlook

In light of these positive results, Lithia Driveway aims to continue leveraging its integrated ecosystem, which includes retail locations, e-commerce channels, and financial services, to enhance profitability while catering to the evolving needs of customers. As the automotive retail landscape continues to change, Lithia Driveway's diversified strategy positions it well for sustained success.

Conclusion

Overall, Lithia Driveway's strong financial results for the first quarter of 2025 underscore its operational excellence and strategic growth in the automotive retail sector. With plans for continued expansion and a focus on delivering superior customer experiences, Lithia Driveway is well-prepared to navigate the dynamic market landscape ahead.