Lithia & Driveway Diversifies Portfolio with Two Strategic Acquisitions

Rhea-AI Summary

Lithia & Driveway (NYSE: LAD) announced on March 3, 2026 the acquisitions of Toyota of Gallatin (Gallatin, Tenn.) and Mercedes-Benz of Medford (Medford, Ore.).

These deals expand LAD's luxury and core volume footprint, mark entry into the Nashville market, reinforce hometown presence in Medford during the company's 80th year, and bring $225 million of year-to-date annualized U.S. revenue acquired. The acquisitions were financed using existing on-balance sheet capacity.

Positive

• $225 million year-to-date annualized U.S. revenue acquired
• Entry into the Nashville market via Toyota of Gallatin
• Adds a premier luxury dealer: Mercedes-Benz of Medford
• Strengthens hometown presence in Medford during 80th year
• Financed using existing on-balance sheet capacity (no new external financing disclosed)

Negative

• None.

Key Figures

YTD revenue acquired: $225 million Current share price: $273.35 52-week range: $262.10 – $360.56 +5 more

8 metrics

YTD revenue acquired $225 million Year-to-date annualized U.S. revenue from 2026 acquisitions

Current share price $273.35 Price before this news, 24h move -2.23%

52-week range $262.10 – $360.56 Price vs 52-week low/high prior to news

Company age 80 years Anniversary of serving customers as cited in release

Stores acquired 2025 17 stores 2025 acquisitions from 10-K filing

2025 expected revenue added $2.4 billion Expected annualized revenue from 2025 acquisitions (10-K)

2025 capital expenditures $350.9 million Full-year 2025 capex from 10-K

Liquidity $1.5 billion Liquidity as of Dec 31, 2025 (10-K)

Market Reality Check

Price: $273.35 Vol: Volume 379,129 is near th...

normal vol

$273.35 Last Close

Volume Volume 379,129 is near the 369,915 20-day average (relative 1.02x). normal

Technical Trading below 200-day MA, with price at 273.35 vs 320.34 MA.

Peers on Argus

LAD is down 2.23% while key peers are mixed: AN +0.42%, GPI +0.39%, ABG +0.90%, ...

LAD is down 2.23% while key peers are mixed: AN +0.42%, GPI +0.39%, ABG +0.90%, VVV +1.97%, and KMX -0.97%, pointing to a stock-specific move.

Historical Context

5 past events · Latest: Feb 11 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Feb 11	Earnings results	Positive	-1.9%	Record 2025 revenue, EPS growth, and large buybacks reported.
Feb 10	Partnership news	Positive	-1.4%	TraXtion named Core Preferred Partner for diagnostic systems rollout.
Jan 22	Earnings preview	Neutral	-0.7%	Announcement of timing and access details for Q4 and FY 2025 results.
Dec 02	Buybacks & M&A	Positive	-0.9%	Share repurchase update and Canadian dealership acquisition adding revenue.
Nov 12	Acquisition news	Positive	+2.1%	Luxury dealership acquisitions in Beverly Hills and Santa Monica announced.

Pattern Detected

Recent history shows several instances where positive strategic or financial updates were followed by negative 1-day price reactions.

Recent Company History

Over the last few months, Lithia & Driveway has highlighted record 2025 results, major capital returns, and ongoing acquisitions. On Feb 11, 2026, record full-year revenue of $37.63 billion and significant share repurchases still saw a -1.88% reaction. Prior acquisitions in Canada and Los Angeles, adding hundreds of millions in annualized revenue, also drew mixed responses. Today’s acquisition-driven expansion in Tennessee and Oregon continues this strategy of using existing balance sheet capacity to grow in attractive markets.

Market Pulse Summary

This announcement highlights continued portfolio expansion, adding Toyota of Gallatin and Mercedes-B...

Analysis

This announcement highlights continued portfolio expansion, adding Toyota of Gallatin and Mercedes-Benz of Medford and bringing year-to-date annualized U.S. revenue acquired to $225 million. The deals were financed with existing on-balance sheet capacity, consistent with prior acquisitions that leveraged the company’s liquidity. Historically, Lithia & Driveway has combined M&A with buybacks and dividends, so investors may watch integration progress, revenue contribution, and any updated capital allocation commentary in future filings or earnings calls.

Key Terms

on-balance sheet capacity

1 terms

on-balance sheet capacity financial

"The acquisitions were financed using existing on-balance sheet capacity."

On-balance sheet capacity is the amount of financial room a company has within its own accounts to add assets or take on debt without breaching covenants, exhausting cash, or needing to raise outside capital. Think of it like the spare space in a household budget or the empty slots in a backpack: it shows how much the firm can fund growth, make acquisitions, pay dividends, or absorb losses using its current balance-sheet resources. Investors watch it because it signals how easily a company can act or withstand shocks without diluting shareholders or seeking costly external financing.

AI-generated analysis. Not financial advice.

MEDFORD, Ore., March 03, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) today announced the acquisition of Toyota of Gallatin in Gallatin, Tenn. and Mercedes-Benz of Medford in Medford, Ore., strengthening its portfolio across both luxury and core volume brands while expanding its presence in its hometown.

"We are proud to welcome Toyota of Gallatin and Mercedes-Benz of Medford to the Lithia & Driveway family,” said Bryan DeBoer, President and CEO. “Toyota of Gallatin marks our entry in the fast-growing Nashville market, and welcoming a premier luxury store in Medford, where our company was founded, makes this addition especially meaningful as we mark our 80th year serving customers. These acquisitions reflect our continued commitment to growing in our hometown and in high-performing markets.”

These additions bring Lithia & Driveway's total year-to-date annualized U.S. revenue acquired to $225 million. The acquisitions were financed using existing on-balance sheet capacity.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer making Auto Done Easy by providing simple, transparent, and convenient experiences throughout the ownership lifecycle. LAD helps customers take care of any vehicle need through a comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Celebrating 80 years in business in 2026, LAD consistently delivers profitable growth in a massive and unconsolidated industry. Its highly diversified and competitively differentiated design provides LAD with the flexibility and scale to pursue its vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

The 80^th Celebration
https://www.lithiadriveway.com/80-years

Connect with Us!
All Cars: https://www.lithia.com
Driveway.com (Buy, sell, trade, or finance entirely online): https://www.driveway.com
GreenCars (All things sustainable vehicles): https://www.greencars.com
DFC (Auto Financing): https://www.drivewayfinancecorp.com
Investor Relations: https://investors.lithiadriveway.com/
Careers: https://www.lithiacareers.com
Lithia & Driveway on Instagram
https://www.instagram.com/lithiamotors/?hl=en
https://www.instagram.com/driveway_hq/
Lithia & Driveway on Facebook
https://www.facebook.com/lithiaanddriveway/
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiadriveway
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@LithiaDriveway

lithia@skyya.com

FAQ

What did Lithia & Driveway (LAD) acquire on March 3, 2026?

LAD acquired Toyota of Gallatin in Gallatin, Tenn. and Mercedes-Benz of Medford in Medford, Ore. According to the company, both stores join its portfolio to expand luxury and core volume offerings and geographic reach.

How much revenue did Lithia & Driveway (LAD) add with these acquisitions?

The acquisitions bring $225 million of year-to-date annualized U.S. revenue acquired. According to the company, that figure reflects the combined annualized U.S. revenue impact from the two stores.

How were the March 3, 2026 acquisitions by Lithia & Driveway (LAD) financed?

The company financed the acquisitions using existing on-balance sheet capacity. According to the company, no new external financing was disclosed in connection with these deals.

What strategic impact do the Toyota of Gallatin and Mercedes-Benz of Medford deals have for LAD?

The deals expand LAD's presence in a fast-growing Nashville market and add a luxury store in its hometown. According to the company, this strengthens brand mix and local footprint in Medford.

Does the March 3, 2026 announcement mention any changes to shareholder capital or dilution for LAD (NYSE: LAD)?

The announcement states the acquisitions were financed from on-balance sheet capacity and does not mention share issuance or dilution. According to the company, financing used existing balance-sheet resources.