Announces Dividend of $0.55 per Share for Third Quarter
Lithia & Driveway (NYSE: LAD) today reported the highest third quarter revenue in company history, and a 11% increase in diluted earnings per share compared to the same period in 2024.
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Third quarter 2025 revenue increased 5% to $9.7 billion from $9.2 billion in the third quarter of 2024.
Thirdquarter 2025 diluted earnings per share attributable to LAD was $8.61, a 11% increase from $7.73 per share reported in the third quarter of 2024. Third quarter 2025 adjusted diluted earnings per share attributable to LAD was $9.50, a 17% increase compared to $8.14 per share in the same period of 2024.
Third quarter 2025 net income was $219 million, a 1.1% decrease compared to net income of $221 million in the same period of 2024. Adjusted third quarter 2025 net income was $241 million, a 9% increase compared to adjusted net income of $221 million for the same period of 2024.
As shown in the attached non-GAAP reconciliation tables, the 2025 third quarter adjusted results exclude a $0.89 per diluted share impact resulting from non-core items, including a net investment loss in Pinewood Technologies Group PLC, acquisition expenses, and insurance reserves, partially offset by a net gain on the disposal of stores and tax attributes. The 2024 third quarter adjusted results exclude a $0.41 per diluted share impact resulting from non-core items, including a premium paid for the redemption of the remaining non-controlling interest in Pfaff Automotive, a net investment loss in Pinewood Technologies Group PLC, and acquisition expenses, partially offset by a net gain on the disposal of stores and tax attributes.
Key Third Quarter 2025 Highlights:
— Total revenue increased 7.7% on a same store basis, compared to third quarter 2024
— Used retail revenue increased 11.8% on a same store basis, compared to third quarter 2024
— Aftersales gross profit increased by 9.1% on a same store basis, compared to third quarter 2024
— Repurchased 5.1% of outstanding shares in the quarter, 8.0% of outstanding shares in the first nine months of 2025
— Total adjusted SG&A as a % of gross profit of 64.8% in North America
“Our third quarter results demonstrate our focus on operational excellence with strong growth in same store sales and earnings per share and solid profitability gains driven by the continued execution of our strategy” said Bryan DeBoer, President and CEO. “Our teams delivered increases in same-store revenue across our business lines, we achieved improved sequential SG&A performance throughout our North American stores, and Driveway Finance Corporation continues to scale profitably. Our disciplined capital allocation was clear as we opportunistically repurchased shares while maintaining a strong balance sheet, positioning us well to continue unlocking the full potential of our omnichannel ecosystem.”
For the first nine months of 2025 revenues increased 5% to $28.4 billion, compared to $27.0 billion in 2024.
Diluted earnings per share attributable to LAD for the first nine months of 2025 was $26.42, compared to $21.47 per share in 2024, an increase of 23%. Adjusted diluted earnings per share attributable to LAD for the first nine months of 2025 increased 25% to $26.60 from $21.29 in the same period of 2024.
Corporate Development In September 2025, LAD continued to expand its network in the Southeast region with the acquisition of Palm Beach Acura, West Palm Beach Hyundai, and West Palm Beach Genesis. These additions add $220 million of expected annualized revenue.
As of September 30, 2025, LAD acquired $620 million of expected annualized revenues year-to-date.
Balance Sheet Update LAD ended the third quarter with approximately $1.9 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit.
Dividend Payment and Share Repurchases The Board of Directors approved a dividend of $0.55 per share related to third quarter 2025 financial results. The dividend is expected to be paid on November21, 2025 to shareholders of record on November7, 2025.
During the third quarter 2025, we repurchased approximately 1,312,000 shares at a weighted average price of $312. To date in 2025, we have repurchased approximately 2,168,000 shares at a weighed average price of $313. Under the current share repurchase authorization approximately $889.3 million remains available.
Third Quarter Earnings Conference Call and Updated Presentation The third quarter 2025 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the third quarter 2025 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.com and click on quarterly earnings.
About Lithia & Driveway (LAD) Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.
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Forward-Looking Statements Certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as “project,” “outlook,” “target,” “may,” “will,” “would,” “should,” “seek,” “expect,” “plan,” “intend,” “forecast,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “likely,” “ensure,” “goal,” “strategy,” “future,” “maintain,” and “continue” or the negative of these terms or other comparable terms. Examples of forward-looking statements in this presentation include, among others, statements regarding:
— The profitability of our strategy and growth
— Future market conditions, including anticipated car and other sales and gross profit levels and the supply of inventory
— Our business strategy and plans, including our achieving our long-term financial targets
— The growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional stores
— Annualized revenues from acquired stores or achieving target returns
— The growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targets
— The impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution models
— Our capital allocations and uses and levels of capital expenditures in the future
— Expected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projections
— Our anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities,unfinanced real estate and other financing sources
— Our continuing to purchase shares under our share repurchase program
— Our compliance with financial and restrictive covenants in our credit facilities and other debt agreements
— Our programs and initiatives for team member recruitment, training, and retention
— Our strategies and targets for customer retention, growth, market position, operations, financial results and risk management
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this presentation. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation:
— Future national and local economic and financial conditions, including as a result of inflation, tariffs, governmental actions, programs and spending, and public health issues
— The market for dealerships, including the availability of stores to us for an acceptable price
— Changes in customer demand and the electric vehicle landscape and the impact of evolving digital technologies
— Changes in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery models
— Changes in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehicles
— Risks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms
— The adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levels
— Disruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipment
— Government regulations and legislation
— The risks set forth throughout “Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations” and in “Part I, Item 1A. Risk Factors” of our most recent Annual Report on Form 10-K, and in “Part II, Item 1A. Risk Factors” of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC.
Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Non-GAAP Financial Measures This presentation contains non-GAAP financial measures, which may include adjusted net income, adjusted net income attributable to LAD, adjusted net income attributable to non-controlling interests, adjusted net income attributable to redeemable non-controlling interest, adjusted diluted earnings per share attributable to LAD, adjusted SG&A, adjusted SG&A as a percentage of revenue and gross profit, adjusted operating income, adjusted net cash provided by operating activities, adjusted income before income taxes, adjusted income tax (provision) benefit, adjusted operating profit as a percentage of revenue and gross profit, adjusted pre-tax margin and net profit margin, EBITDA, adjusted EBITDA and net debt. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.
LADConsolidated Statements of Operations(Unaudited)(In millions except per share data) Three months ended % Nine months ended % September 30, September 30, Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)Revenues:New vehicle retail $ 4,630.3 $ 4,430.0 4.5% $ 13,508.9 $ 12,847.9 5.1%Used vehicle retail 3,096.3 2,843.3 8.9 9,110.2 8,630.1 5.6Used vehicle wholesale 367.0 390.9 (6.1) 1,081.1 1,018.1 6.2Finance and insurance 378.6 360.4 5.0 1,116.8 1,061.9 5.2Aftersales 1,037.1 1,012.8 2.4 3,039.6 2,876.3 5.7Fleet and other 166.5 183.6 (9.3) 580.5 580.4 -Total revenues 9,675.8 9,221.0 4.9% 28,437.1 27,014.7 5.3%Cost of sales:New vehicle retail 4,353.6 4,123.6 5.6 12,655.3 11,925.4 6.1Used vehicle retail 2,902.9 2,654.4 9.4 8,518.6 8,062.9 5.7Used vehicle wholesale 371.5 393.0 (5.5) 1,090.6 1,020.7 6.8Aftersales 432.6 453.0 (4.5) 1,283.3 1,285.1 (0.1)Fleet and other 149.2 166.6 (10.4) 527.8 531.1 (0.6)Total cost of sales 8,209.8 7,790.6 5.4 24,075.6 22,825.2 5.5Gross profit 1,466.0 1,430.4 2.5% 4,361.5 4,189.5 4.1%Finance operations income (loss) 19.1 (1.4) NM 51.7 4.1 1,161.0%SG&A expense 998.0 943.6 5.8 2,965.3 2,853.0 3.9Depreciation and amortization 65.5 63.5 3.1 194.6 183.6 6.0Income from operations 421.6 421.9 (0.1)% 1,253.3 1,157.0 8.3%Floor plan interest expense (57.8) (76.6) (24.5) (169.8) (214.0) (20.7)Other interest expense (68.3) (64.5) 5.9 (200.5) (189.3) 5.9Other (expense) income (13.3) 5.1 (360.8) 35.9 35.4 1.4Income before income taxes 282.2 285.9 (1.3)% 918.9 789.1 16.4%Income tax expense (63.6) (64.8) (1.9) (230.9) (186.5) 23.8Income tax rate 22.5% 22.7% 25.1% 23.6%Net income $ 218.6 $ 221.1 (1.1)% $ 688.0 $ 602.6 14.2%Net income attributable to non-controlling (1.5) (1.2) 25.0% (5.3) (3.8) 39.5%interestsNet income attributable to redeemable non- – (12.6) (100.0)% – (14.8) (100.0)%controlling interestNet income attributable to LAD $ 217.1 $ 207.3 4.7% $ 682.7 $ 584.0 16.9%Diluted earnings per share attributableto LAD:Net income per share $ 8.61 $ 7.73 11.4% $ 26.42 $ 21.47 23.1%Diluted shares outstanding 25.2 26.8 (6.0)% 25.8 27.2 (5.1)%NM – not meaningful
LADKey Performance Metrics(Unaudited) Three months ended % Nine months ended % September 30, September 30, Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)Gross marginNew vehicle retail 6.0% 6.9% (90) bps 6.3% 7.2% (90) bpsUsed vehicle retail 6.2 6.6 (40) 6.5 6.6 (10)Finance and insurance 100.0 100.0 – 100.0 100.0 -Aftersales 58.3 55.3 300 57.8 55.3 250Gross profit margin 15.2 15.5 (30) 15.3 15.5 (20)Unit salesNew vehicle retail 96,639 94,964 1.8% 282,773 273,154 3.5%Used vehicle retail 109,097 104,898 4.0 325,476 316,583 2.8Average selling priceNew vehicle retail $ 47,913 $ 46,649 2.7% $ 47,773 $ 47,035 1.6%Used vehicle retail 28,381 27,105 4.7 27,990 27,260 2.7Average gross profit per unitNew vehicle retail $ 2,864 $ 3,226 (11.2)% $ 3,019 $ 3,377 (10.6)%Used vehicle retail 1,773 1,801 (1.6) 1,818 1,792 1.5Finance and insurance 1,840 1,803 2.1 1,836 1,801 1.9Total vehicle(1) 4,104 4,271 (3.9) 4,196 4,322 (2.9)Revenue mixNew vehicle retail 47.9% 48.0% 47.5% 47.6%Used vehicle retail 32.0 30.8 32.0 31.9Used vehicle wholesale 3.8 4.2 3.8 3.8Finance and insurance, net 3.9 3.9 3.9 3.9Aftersales 10.7 11.0 10.7 10.6Fleet and other 1.7 2.1 2.1 2.2Gross Profit MixNew vehicle retail 18.9% 21.4% 19.6% 22.0%Used vehicle retail 13.2 13.2 13.6 13.5Used vehicle wholesale (0.3) (0.1) (0.2) (0.1)Finance and insurance, net 25.8 25.2 25.6 25.3Aftersales 41.2 39.1 40.2 38.1Fleet and other 1.2 1.2 1.2 1.2
Adjusted As reported Adjusted As reported Three months Three months Nine months Nine months endedSeptember endedSeptember ended September ended September 30, 30, 30, 30,Other metrics 2025 2024 2025 2024 2025 2024 2025 2024SG&A as a % of revenue 10.3% 10.2% 10.3% 10.2% 10.4% 10.5% 10.4% 10.6%SG&A as a % of gross profit 67.9 66.0 68.1 66.0 67.9 67.7 68.0 68.1Operating profit as a % of revenue 4.4 4.6 4.4 4.6 4.4 4.3 4.4 4.3Operating profit as a % of gross profit 29.0 29.5 28.8 29.5 28.8 28.0 28.7 27.6Pretax margin 3.2 3.1 2.9 3.1 3.2 2.9 3.2 2.9Net profit margin 2.5 2.4 2.3 2.4 2.4 2.2 2.4 2.2(1) Includes the sales and gross profit related to new, used retail, used wholesale and finance and insurance and unit sales for new and used retail
LADSame Store Operating Highlights (Unaudited) Three months ended % Nine months ended % September 30, September 30, Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)RevenuesNew vehicle retail $ 4,521.3 $ 4,284.6 5.5% $ 12,942.5 $ 12,400.3 4.4%Used vehicle retail 3,024.4 2,705.6 11.8 8,621.0 8,156.4 5.7Finance and insurance 371.5 351.6 5.7 1,076.8 1,031.4 4.4Aftersales 1,009.9 971.9 3.9 2,892.8 2,758.7 4.9Total revenues 9,453.4 8,781.1 7.7 27,100.8 25,869.8 4.8Gross profitNew vehicle retail $ 270.9 $ 296.4 (8.6)% $ 819.2 $ 889.5 (7.9)%Used vehicle retail 188.4 186.2 1.2 568.7 559.1 1.7Finance and insurance 371.5 351.6 5.7 1,076.8 1,031.4 4.4Aftersales 589.9 540.9 9.1 1,680.3 1,534.6 9.5Total gross profit 1,433.5 1,389.1 3.2 4,185.6 4,059.7 3.1Gross marginNew vehicle retail 6.0% 6.9% (90)bps 6.3% 7.2% (90)bpsUsed vehicle retail 6.2 6.9 (70) 6.6 6.9 (30)Finance and insurance 100.0 100.0 – 100.0 100.0 -Aftersales 58.4 55.6 280 58.1 55.6 250Gross profit margin 15.2 15.8 (60) 15.4 15.7 (30)Unit salesNew vehicle retail 94,480 92,204 2.5% 271,512 264,685 2.6%Used vehicle retail 106,637 100,280 6.3 308,333 298,661 3.2Average selling priceNew vehicle retail $ 47,855 $ 46,469 3.0% $ 47,668 $ 46,849 1.7%Used vehicle retail 28,362 26,981 5.1 27,960 27,310 2.4Average gross profit per unitNew vehicle retail $ 2,867 $ 3,215 (10.8)% $ 3,017 $ 3,361 (10.2)%Used vehicle retail 1,767 1,857 (4.8) 1,844 1,872 (1.5)Finance and insurance 1,847 1,827 1.1 1,857 1,831 1.4Total vehicle(1) 4,109 4,325 (5.0) 4,235 4,400 (3.8)(1) Includes the sales and gross profit related to new, used retail, used wholesale and finance and insurance and unit sales for new and used retail
LADOther Highlights (Unaudited) Three months ended September 30, Nine months ended September 30, 2025 2025Key Performance by Country Total Revenue Total Gross Profit Total Revenue Total Gross ProfitUnited States 79.4% 83.1% 78.2% 83.2%United Kingdom 17.7% 14.4% 18.7% 14.2%Canada 2.9% 2.5% 3.1% 2.6%
As of September 30, December 31, September 30,Days' Supply(1) 2025 2024 2024New vehicle inventory 52 59 53Used vehicle inventory 46 53 46(1)Days' supply in inventory is calculated using on-ground inventory unit levels and a 30-day total unit sales volumes, both at the end of each reporting period.
Selected Financing Operations Financial Information Three months ended September 30, Nine months ended September 30,($ in millions) 2025 % (1) 2024 % (1) 2025 % (1) 2024 % (1)Interest and fee income $ 104.9 9.2 $ 88.8 9.2 $ 298.0 9.2 $ 249.9 9.2Interest expense (52.1) (4.6) (51.2) (5.3) (150.0) (4.6) (146.0) (5.4)Total interest margin $ 52.8 4.6 $ 37.6 3.9 $ 148.0 4.6 $ 103.9 3.8Lease income 23.4 25.6 67.7 61.2Lease costs (18.6) (21.6) (54.0) (51.0)Lease income, net 4.8 4.0 13.7 10.2Provision expense (25.8) (2.3) (31.8) (3.3) (72.5) (2.2) (77.0) (2.8)Other financing operations expenses (12.7) (1.1) (11.2) (1.2) (37.5) (1.2) (33.0) (1.2)Finance operations income (loss) $ 19.1 $ (1.4) $ 51.7 $ 4.1Total average managed finance receivables $ 4,541.8 $ 3,813.0 $ 4,316.3 $ 3,617.5(1) Annualized percentage of total average managed finance receivables
LADCondensed Consolidated Balance Sheets (Unaudited)(In millions) September 30, 2025 December 31, 2024Cash, restricted cash, and cash equivalents $ 417.1 $ 402.2Trade receivables, net 1,212.8 1,237.0Inventories, net 5,941.7 5,911.7Other current assets 354.3 223.0Total current assets $ 7,925.9 $ 7,773.9Property and equipment, net 4,784.0 4,629.9Finance receivables, net 4,544.9 3,868.2Intangibles 5,211.9 4,665.8Other non-current assets 2,052.4 2,184.8Total assets $ 24,519.1 $ 23,122.6Floor plan notes payable 4,868.9 4,903.1Other current liabilities 1,657.1 1,648.0Total current liabilities $ 6,526.0 $ 6,551.1Long-term debt, less current maturities 6,965.8 6,119.3Non-recourse notes payable, less current maturities 2,195.9 2,051.2Other long-term liabilities and deferred revenue 2,037.8 1,726.9Total liabilities $ 17,725.5 $ 16,448.5Equity 6,793.6 6,674.1Total liabilities and equity $ 24,519.1 $ 23,122.6
LADCondensed Consolidated Statements of Cash Flows (Unaudited)(In millions) Nine months ended September 30,Cash flows from operating activities: 2025 2024Net income $ 688.0 $ 602.6Adjustments to reconcile net income to net cash provided by operating 428.5 397.2activitiesChanges in:Inventories 44.8 (324.3)Finance receivables (671.3) (524.2)Floor plan notes payable (151.0) 325.0Other operating activities (106.0) (113.0)Net cash provided by operating activities 233.0 363.3Cash flows from investing activities:Capital expenditures (257.7) (271.9)Cash paid for acquisitions, net of cash acquired (417.6) (1,247.0)Proceeds from sales of stores 178.1 21.9Other investing activities 17.8 (323.8)Net cash used in investing activities (479.4) (1,820.8)Cash flows from financing activities:Net borrowings on floor plan notes payable, non-trade 73.3 280.1Net borrowings on non-recourse notes payable 136.3 77.4Net borrowings on other debt and finance lease liabilities 827.7 900.7Proceeds from issuance of common stock 21.0 21.2Repurchase of common stock (662.3) (273.2)Dividends paid (42.1) (42.4)Other financing activity (89.4) (83.6)Net cash provided by financing activities 264.5 880.2Effect of exchange rate changes on cash and restricted cash 4.7 3.9Change in cash, restricted cash, and cash equivalents 22.8 (573.4)Cash, restricted cash, and cash equivalents at beginning of period 445.8 972.0Cash, restricted cash, and cash equivalents at end of period 468.6 398.6
LADReconciliation of Non-GAAP Cash Flow from Operations (Unaudited)(In millions) Nine months ended September 30,Net cash provided by operating activities 2025 2024As reported $ 233.0 $ 363.3Floor plan notes payable, non-trade, net 73.3 280.1Adjust: finance receivables activity 671.3 524.2Less: Borrowings on floor plan notes payable, non-trade associated with (62.9) (105.5)acquired new vehicle inventoryAdjusted $ 914.7 $ 1,062.1
LADReconciliation of Certain Non-GAAP Financial Measures(Unaudited)(In millions, except for per share data) Three Months Ended September 30, 2025 As reported Net gain on Investment Insurance Acquisition Tax attribute Adjusted disposal of loss(1) reserves expenses storesSelling, general and $ 998.0 $ 15.4 $ – $ (2.5) $ (15.9) $ – $ 995.0administrativeOperating income 421.6 (15.4) – 2.5 15.9 – 424.6Other income (expense), net (13.3) – 22.7 – – – 9.4Income before income taxes 282.2 (15.4) 22.7 2.5 15.9 – 307.9Income tax (provision) benefit (63.6) 7.2 (6.0) (0.5) (0.6) (3.5) (67.0)Net income $ 218.6 $ (8.2) $ 16.7 $ 2.0 $ 15.3 $ (3.5) $ 240.9Net income attributable to non- (1.5) – – – – – (1.5)controlling interestsNet income attributable to LAD $ 217.1 $ (8.2) $ 16.7 $ 2.0 $ 15.3 $ (3.5) $ 239.4Diluted earnings per share $ 8.61 $ (0.32) $ 0.66 $ 0.08 $ 0.61 $ (0.14) $ 9.50attributable to LADDiluted share count 25.2
Three Months Ended September 30, 2024 As reported Net gain on Investment Acquisition Premium on Tax attribute Adjusted disposal of loss(1) expenses redeemable stores NCI buyoutSelling, general and $ 943.6 $ 0.3 $ – $ (0.2) $ – $ – $ 943.7administrativeOperating income 421.9 (0.3) – 0.2 – – 421.8Other income (expense), net 5.1 – 0.4 – – – 5.5Income before income taxes 285.9 (0.3) 0.4 0.2 – – 286.2Income tax (provision) benefit (64.8) 0.1 (0.4) (0.1) – (0.5) (65.7)Net income $ 221.1 $ (0.2) $ – $ 0.1 $ – $ (0.5) $ 220.5Net income attributable to non- $ (1.2) $ – $ – $ – $ – $ – $ (1.2)controlling interestsNet income attributable to $ (12.6) $ – $ – $ – $ 11.6 $ – $ (1.0)redeemable non-controlling interestNet income attributable to LAD $ 207.3 $ (0.2) $ – $ 0.1 $ 11.6 $ (0.5) $ 218.3Diluted earnings per share $ 7.73 $ (0.01) $ – $ – $ 0.43 $ (0.01) $ 8.14attributable to LADDiluted share count 26.8
LADReconciliation of Certain Non-GAAP Financial Measures (Unaudited)(In millions, except for per share data) Nine Months Ended September 30, 2025 As reported Net gain on Investment Insurance Acquisition Tax attribute Adjusted disposal of gain(1) reserves expenses storesSelling, general and $ 2,965.3 $ 17.7 $ – $ (5.4) $ (16.1) $ – $ 2,961.5administrativeOperating income 1,253.3 (17.7) – 5.4 16.1 – 1,257.1Other income (expense), net 35.9 – (4.1) – – – 31.8Income before income taxes 918.9 (17.7) (4.1) 5.4 16.1 – 918.6Income tax (provision) benefit (230.9) 11.6 1.0 (1.4) (0.6) (5.7) (226.0)Net income $ 688.0 $ (6.1) $ (3.1) $ 4.0 $ 15.5 $ (5.7) $ 692.6Net income attributable to non- (5.3) – – – – – (5.3)controlling interestsNet income attributable to LAD $ 682.7 $ (6.1) $ (3.1) $ 4.0 $ 15.5 $ (5.7) $ 687.3Diluted earnings per share $ 26.42 $ (0.24) $ (0.12) $ 0.16 $ 0.60 $ (0.22) $ 26.60attributable to LADDiluted share count 25.8
Nine Months Ended September 30, 2024 As reported Net gain on Investment Insurance Acquisition Premium on Tax attribute Adjusted disposal of gain(1) reserves expenses redeemable stores NCI buyoutSelling, general $ 2,853.0 $ 0.3 $ – $ (6.0) $ (9.7) $ – $ – $ 2,837.6and administrativeOperating income 1,157.0 (0.3) – 6.0 9.7 – – 1,172.4Other income 35.4 – (29.1) – – – – 6.3(expense), netIncome before 789.1 (0.3) (29.1) 6.0 9.7 – – 775.4income taxesIncome tax (186.5) 0.1 7.1 (1.5) (0.5) – (8.0) (189.3)(provision) benefitNet income $ 602.6 $ (0.2) $ (22.0) $ 4.5 $ 9.2 $ – $ (8.0) $ 586.1Net income (3.8) – – – – – – (3.8)attributable to non-controllinginterestsNet income (14.8) – – – – 11.6 – (3.2)attributable toredeemable non-controlling interestNet income $ 584.0 $ (0.2) $ (22.0) $ 4.5 $ 9.2 $ 11.6 $ (8.0) $ 579.1attributable to LADDiluted earnings $ 21.47 $ (0.01) $ (0.81) $ 0.17 $ 0.34 $ 0.43 $ (0.30) $ 21.29per shareattributable to LADDiluted share count 27.2
LADAdjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)(In millions) Three months ended % Nine months ended % September 30, September 30, Increase Increase 2025 2024 (Decrease) 2025 2024 (Decrease)EBITDA and Adjusted EBITDANet income $ 218.6 $ 221.1 (1.1)% $ 688.0 $ 602.6 14.2%Flooring interest expense 57.8 76.6 (24.5) 169.8 214.0 (20.7)Other interest expense 68.3 64.5 5.9 200.5 189.3 5.9Financing operations interest expense 52.1 51.2 1.8 150.0 146.0 2.7Income tax expense 63.6 64.8 (1.9) 230.9 186.5 23.8Depreciation and amortization 65.5 63.5 3.1 194.6 183.6 6.0EBITDA $ 525.9 $ 541.7 (2.9)% $ 1,633.8 $ 1,522.0 7.3%Other adjustments:Less: flooring interest expense $ (57.8) $ (76.6) (24.5) $ (169.8) $ (214.0) (20.7)Less: financing operations interest expense (52.1) (51.2) 1.8 (150.0) (146.0) 2.7Less: used vehicle line of credit interest (3.7) (7.4) (50.0) (11.2) (19.5) (42.6)Add: acquisition expenses 15.9 0.2 7,850.0 16.1 9.7 66.0Add: loss (gain) on disposal of stores (15.4) (0.3) NM (17.7) (0.3) NMAdd: investment loss (gain)(1) 22.7 0.4 5,575.0 (4.1) (29.1) 85.9Add: insurance reserves 2.5 – NM 5.4 6.0 NMAdjusted EBITDA $ 438.0 $ 406.8 7.7% $ 1,302.5 $ 1,128.8 15.4%NM – not meaningful(1)Investment losses (gains) retrospectively included in adjusted non-GAAP financial measures presented
As of % September 30, IncreaseNet Debt to Adjusted EBITDA 2025 2024 (Decrease)Floor plan notes payable $ 4,868.9 $ 5,119.6 (4.9)%Used and service loaner vehicle inventory financing facility 1,020.8 925.7 10.3Revolving lines of credit 1,310.6 1,848.2 (29.1)Warehouse facilities 1,252.0 1,035.0 21.0Non-recourse notes payable 2,245.7 1,783.1 25.94.625% Senior notes due 2027 400.0 400.0 -4.375% Senior notes due 2031 550.0 550.0 -3.875% Senior notes due 2029 800.0 800.0 -5.500% Senior notes due 2030 600.0 – -Finance leases and other debt 1,117.3 980.5 14.0Unamortized debt issuance costs (26.8) (26.4) 1.5Total debt $ 14,138.5 $ 13,415.7 5.4%Less: Floor plan related debt $ (5,889.7) $ (6,045.3) (2.6)%Less: Financing operations related debt (3,497.7) (2,818.1) 24.1Less: Unrestricted cash and cash equivalents (206.5) (209.8) (1.6)Less: Marketable securities (54.9) (53.9) 1.9Less: Availability on used vehicle and service loaner financing facilities (18.8) (9.8) 91.8Net Debt $ 4,470.9 $ 4,278.8 4.5%TTM Adjusted EBITDA $ 1,701.9 $ 1,524.3 11.7%Net debt to Adjusted EBITDA 2.63 x 2.81 xNM – not meaningful
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