Lithia & Driveway Reports Impressive Fourth Quarter and Annual Financial Performance

On February 11, 2026, Lithia & Driveway, the largest global automotive retailer, released its financial results for both the fourth quarter and the entire year of 2025. The company achieved record revenues of $37.63 billion for the year, marking a 4% increase from the previous year, thanks in part to robust performance in the used vehicle and aftersales sectors.

Fourth Quarter Highlights

In the fourth quarter alone, Lithia & Driveway reported revenues of $9.20 billion, a slight increase of 0.3% from $9.17 billion in the same quarter of 2024. However, diluted earnings per share fell by 28%, from $7.98 in 2024 to $5.72 in 2025. Adjusted diluted earnings per share also experienced a decline of 12%, dropping to $6.74 from $7.62.

The company's net income for the quarter was $137.9 million, a notable decrease of 35.5% compared to $213.7 million in the previous year. Likewise, adjusted net income for the fourth quarter was reported at $162.2 million, down 21% from $204.2 million a year earlier.

Despite these decreases, Lithia & Driveway managed to increase used revenue by 6.1%, alongside a 10.9% rise in aftersales revenue. The company noted that its financing operations achieved record quarterly income of $23 million, representing a $19 million increase from the prior year. Driveway Finance Corporation maintained an impressive penetration rate of 15% within the quarter with a commendable average FICO score of 751.

A Look at Full Year Performance

For the full year of 2025, Lithia & Driveway's figures were equally impressive. The diluted earnings per share increased by 10%, moving from $29.45 in 2024 to $32.32, while adjusted diluted earnings per share rose by 16%, up from $28.92 to $33.46. Full-year net income experienced a modest increase of 1%, totaling $825.9 million compared to $816.3 million in the previous year. Adjusted net income increased by 8%, reaching $854.7 million in 2025.

Strategic growth was evidenced through the acquisition of eleven stores in North America and the UK in the fourth quarter, expected to generate $1.6 billion in annualized revenues. Over the entire year, Lithia & Driveway acquired businesses with a total of $2.4 billion in expected annual revenues while divesting $1.3 billion.

Strong Capital Management and Share Repurchase

Lithia & Driveway demonstrated prudent capital management, completing a significant share repurchase program, where approximately $947 million of shares were bought back in 2025. This accounted for 11.4% of the outstanding shares, including 3.8% in the fourth quarter alone. The board also declared a dividend of $0.55 per share, expected to be paid on March 20, 2026.

Ending 2025, the company’s balance sheet was strong, reporting about $1.5 billion in cash and cash equivalents, alongside marketable securities and available credit on revolving lines.

Conclusion

Bryan DeBoer, President and CEO of Lithia & Driveway, commented on the results, emphasizing the company’s ability to navigate challenges within the new vehicle market while simultaneously capitalizing on growth opportunities within the used vehicle and aftersales sectors. As they look forward, the diversified platform and operational discipline are set to position Lithia & Driveway for success even under dynamic market conditions.

With these results, Lithia & Driveway not only demonstrates resilience but also maintains its lead as a premier automotive retailer, committed to modernizing transportation solutions that meet consumer needs swiftly and effectively.