Lithia & Driveway (LAD) Boosts Share Repurchase Program by $750 Million

Lithia & Driveway Expands Share Repurchase Program

In a strategic move to enhance shareholder value, Lithia & Driveway (NYSE: LAD) has announced a significant increase to its share repurchase authorization. The Board of Directors has approved an additional $750 million, raising the total repurchase capacity to an impressive $1.08 billion. This decision reflects the strong confidence the leadership holds in the company's future growth and cash generation capabilities.

Bryan DeBoer, President and CEO of Lithia & Driveway, emphasized the rationale behind this repurchase increase: "Today's increase underscores our long-term conviction in LAD's strategy and the cash generation of our omnichannel model. With the strength of our business and our shares trading below intrinsic value, repurchases are an attractive and value-accretive complement to our continued investments in growth, all guided by disciplined return on invested capital and our commitment to maximizing shareholder returns."

Financial Overview

As part of its ongoing repurchase program, Lithia & Driveway has made substantial investments in buying back its shares. In the current third quarter alone, the company has allocated $242 million to repurchase approximately 812,000 shares at an average price of $298 per share. Cumulatively, within the year 2025, the company’s total repurchases have climbed to $492 million, representing a notable 6.1% of its outstanding shares.

The robust share repurchase activity not only signals the Board's confidence in the company’s valuation but also serves to reallocate excess cash effectively, reaffirming the company’s commitment to fostering shareholder returns.

About Lithia & Driveway

Lithia & Driveway stands as the largest global automotive retailer, striving to deliver a comprehensive spectrum of products and services throughout the vehicle ownership lifecycle. The company emphasizes simplicity, convenience, and transparency across its diverse array of physical locations and e-commerce platforms. This includes the provision of captive financing solutions and fleet management offerings.

Lithia's commitment to consistent, profitable growth positions it favorably within the vast, unconsolidated automotive industry. By leveraging its differentiated business model, Lithia aims to modernize personal transportation solutions, aligning with the evolving demands and expectations of modern consumers.

Furthermore, the company's omnichannel approach allows it to engage customers seamlessly, whether via in-person dealership interactions or online platforms. This flexibility not only enhances the customer experience but also enables Lithia to adapt swiftly to market changes and customer preferences.

The Future Ahead

Looking ahead, Lithia & Driveway remains focused on its strategic initiatives, aiming to maintain its growth trajectory even amidst changing market conditions. The increased share repurchase authorization serves as a testament to Lithia’s proactive approach in reinforcing shareholder value while investing in future opportunities. The company is poised to continue exploring avenues for expansion, profitability, and innovation within the automotive sector.

As Lithia advances its mission, stakeholders can look forward to its efforts in maximizing efficiency and adapting to industry changes, ensuring it remains a frontrunner in the automotive retail landscape.

For further updates on Lithia's operations and strategic direction, interested parties can visit Lithia's Official Website.