Lithia & Driveway Reports Record Revenue and Earnings for Q3 2025

Lithia & Driveway Reports Record Revenue and Earnings

Lithia & Driveway (NYSE: LAD) has announced impressive financial results for the third quarter of 2025, marking a record-high revenue of $9.7 billion—a significant growth from $9.2 billion in the same quarter last year. The company also achieved an 11% increase in diluted earnings per share, which stood at $8.61 compared to $7.73 per share in Q3 of 2024. Adjusted diluted earnings per share saw an even more remarkable growth of 17%, rising to $9.50 from $8.14.

Despite a slight decline in net income from $221 million in Q3 2024 to $219 million this quarter, the adjusted net income reflected a healthy upwards trend, with an increase of 9% reaching $241 million. These numbers showcase Lithia's resilience and operational excellence, underlined by its strategic focus on optimizing growth and profitability.

Key Performance Metrics

Lithia's revenue growth was not only supported by strong overall sales but specifically by a remarkable 11.8% increase in used retail revenue and a 9.1% increase in aftersales gross profit compared to Q3 2024. The total revenue increase on a same-store basis was 7.7%. Increased sales in used vehicles and an uptick in aftersales services demonstrate Lithia's effective business strategies and market positioning.

In addition to these financial achievements, Lithia & Driveway has been proactive in its capital management strategies. In the third quarter, Lithia repurchased approximately 5.1% of its outstanding shares, reinforcing its commitment to delivering shareholder value while ensuring a robust balance sheet. The company ended the quarter with about $1.9 billion available in cash and credit facilities.

Corporate Developments

In September 2025, Lithia further expanded its network through strategic acquisitions in the Southeast region, including significant dealerships such as Palm Beach Acura and West Palm Beach Hyundai, which are expected to add approximately $220 million in annual revenue. This expansion aligns with Lithia's long-term objective of becoming a formidable leader in the automotive retail sector, focusing on both digital and physical sales channels to enhance customer experience.

Lithia's diversified portfolio, which includes a mix of physical locations, e-commerce operations, and vendor financing options through Driveway Finance Corporation, positions the company well to adapt to shifting market dynamics, particularly as consumer preferences evolve towards online purchasing solutions.

Looking Forward

The results from Q3 2025 highlight Lithia & Driveway's dedication to operational excellence and growth. President and CEO Bryan DeBoer underscored the significance of maintaining operational efficiency while driving revenue and profit growth through strategic initiatives across their business lines. The company plans to continue focusing on capitalizing on opportunities within the automotive market to leverage its existing strengths and pursue profitable growth goals.

Lithia has also authorized a $0.55 per share dividend as part of its commitment to returning value to shareholders, with payments scheduled for November 21, 2025. Overall, Lithia & Driveway’s strategic positioning, coupled with its disciplined financial management, suggests a pragmatic approach to navigating current economic challenges while laying the foundation for future successes.

Conclusion

In summary, Lithia & Driveway’s remarkable third-quarter performance reaffirms its status as a significant player in the automotive retail industry, showcasing both financial strength and strategic foresight. As it continues to adapt and expand, the company's future looks bright as it strives to meet the changing needs of consumers in a rapidly evolving landscape.