LAD

LAD's weakening new-vehicle and F&I performance, rising operating expenses, elevated debt and intense competition threaten profitability and financial flexibility.

Lithia Motors is downgraded from 'buy' to 'hold' due to rising economic risks and elevated auto loan delinquencies. LAD's revenue growth is driven by acquisitions, but per-vehicle profitability is under pressure, especially in new vehicles. Net debt stands at $15.77 billion, making valuation less attractive despite low cash flow multiples; EV/EBITDA is 13.4x.

Lithia Motors, Inc. ( LAD ) Q3 2026 Earnings Call October 21, 2026 10:00 AM EDT Company Participants Jardon Jaramillo - Senior Director of Finance & Investor Relations Bryan DeBoer - CEO, President & Director Tina Miller - Senior VP & CFO Charles Lietz - Senior Vice President of Finance Conference Call Participants Michael Ward - Citigroup Inc., Research Division Ryan Sigdahl - Craig-Hallum Capital Group LLC, Research Division Rajat Gupta - JPMorgan Chase & Co, Research Division Jeffrey Lick - Stephens Inc., Research Division Alexander Perry - BofA Securities, Research Division John Saager - Evercore ISI Institutional Equities, Research Division John Babcock - Barclays Bank PLC, Research Division Bret Jordan - Jefferies LLC, Research Division Daniela Haigian - Morgan Stanley, Research Division Mark Jordan - Goldman Sachs Group, Inc., Research Division Robert Saltzman - UBS Investment Bank, Research Division Presentation Operator Greetings. Welcome to Lithia Motors & Driveway Third Quarter 2026 Results Conference Call.

Driveway Finance Corporation's income rose nearly 70% to $32 million. Used vehicle gross profit per unit increased 13% year over year.

Lithia Motors NYSE: LAD reported third-quarter revenue just below $10 billion and adjusted diluted earnings per share of $10.34, up 9% from a year earlier, as growth in used vehicles, aftersales and financing operations helped offset softer new-vehicle results.

Although the revenue and EPS for Lithia Motors (LAD) give a sense of how its business performed in the quarter ended September 2026, it might be worth considering how some key metrics compare with Wall Street estimates and the year-ago numbers.

Lithia Motors (LAD) came out with quarterly earnings of $10.34 per share, beating the Zacks Consensus Estimate of $9.7 per share. This compares to earnings of $9.5 per share a year ago.

Key Highlights Record third quarter revenues of $9.9 billion Used retail GPUs increased $197, or 11%, year over year Aftersales gross profit increased by 2.4% and gross margin was 59.5%, a 100-basis point increase, on a same-store basis Financing Operations income of $32.3 million, a 69% increase year over year, with record originations of $937 million, and a 18.3% penetration rate Third quarter diluted earnings per share of $13.22, a 54% increase, and adjusted diluted earnings per share of $10.34, a 9% increase Repurchased $85 million of shares, representing 1.1% of outstanding shares in the quarter, and 8.7% of outstanding shares in 2026 Announced a 7% increase to quarterly dividend MEDFORD, Ore., Oct. 21, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD), the largest global automotive retailer, today reported financial results for the third quarter of 2026.

Beyond analysts' top-and-bottom-line estimates for Lithia Motors (LAD), evaluate projections for some of its key metrics to gain a better insight into how the business might have performed for the quarter ended September 2026.

In Q3 2026, 149 dividend-paying stocks announced increases, with an average hike of 7.93% and a median yield of 2.79%. Financials led sector increases, while Health Care posted the highest average increase; larger increases correlated with lower yields. Three companies cut dividends, all flagged as low quality or with weak safety scores prior to the reduction. Six companies declared special dividends.