Lithia & Driveway third-quarter diluted earnings rise 54% to $13.22 per share

Lithia & Driveway (LAD) said Wednesday that third-quarter diluted earnings per share rose 54% to $13.22, while revenue increased 3% to a record $9.9 billion. The company said in a regulatory filing that the results were released in a press release issued the same day.

Here's how the company did:

• Diluted earnings per share: $13.22 vs. $8.61 a year earlier
• Adjusted diluted earnings per share: $10.34 vs. $9.50 a year earlier
• Revenue: $9.9 billion vs. $9.7 billion a year earlier
• Net income: $292.9 million vs. $218.6 million a year earlier
• Adjusted net income: $229.3 million vs. $240.9 million a year earlier

The gap between reported and adjusted results reflects an unrealized gain on the company's investment in Pinewood Technologies Group PLC. The company excluded that gain, which was $88.8 million before taxes, from its adjusted figures.

Used vehicle revenue rose 4.8% to $3.63 billion. Used retail gross profit per unit increased $197, or 11%, year over year, the company said.

Aftersales gross profit increased 2.4% on a same-store basis. Aftersales gross margin was 59.5%, a 100-basis-point increase, or one percentage point.

Finance operations income rose 69% to $32.3 million. Originations reached a record $937 million, and the penetration rate was 18.3%.

"Our people and our ecosystem set Lithia & Driveway apart again this quarter, delivering record quarterly revenues and continued growth in earnings per share," President and CEO Bryan DeBoer said in the release. "The capital decisions of the past year are reflected in our financial results, with a meaningfully lower share count magnifying every dollar we earn."

Diluted shares outstanding fell 12.7% to 22.0 million from 25.2 million a year earlier. The company repurchased about 246,000 shares during the quarter at a weighted average price of $345. About $535 million remains under its share repurchase authorization as of Sept. 30, 2026.

In the third quarter, the company acquired two stores expected to generate $150 million in annualized revenue and divested two stores representing $115 million in annualized revenue. In October, it acquired two Hyundai and two Kia stores in Memphis, TN, which add $250 million of expected annualized revenue.

Year to date, the company has acquired $1.17 billion in expected annualized revenue. It ended the quarter with about $1.4 billion in cash and cash equivalents, marketable securities, and availability on its revolving lines of credit.

For the first nine months of 2026, revenue rose 2% to $29.0 billion from $28.4 billion. Diluted earnings per share were $28.77, up 9% from $26.42, and adjusted diluted earnings per share rose 4% to $27.61 from $26.60.

Selling, general and administrative expense rose 3.8% to $1,036.3 million. It equaled 68.8% of gross profit, compared with 67.9% a year earlier.

Net debt was $4,992.2 million, or 3.07 times trailing adjusted EBITDA, which is earnings before interest, taxes, depreciation and amortization, adjusted for certain items. A year earlier the ratio was 2.63 times.

The release did not include new financial guidance.

Dividend increase

The board approved a $0.75 per share dividend related to third-quarter 2026 results. The company said the quarterly dividend rose 7%.

The dividend is payable Nov. 20 to shareholders of record on Nov. 6.

Board chairman appointed

The board appointed President and CEO Bryan B. DeBoer as Chairman of the Board, effective Oct. 19, 2026, the company said. He will serve as both Chairman and Chief Executive Officer.

Sidney B. DeBoer will become Vice Chairman and will continue to serve on the board. Louis P. Miramontes will continue as Lead Independent Director.