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Lithia & Driveway (LAD) Continues Strategic Network Expansion in Texas with Rockwall Hyundai Acquisition and Provides Share Repurchase Update

Lithia & Driveway expands its Texas footprint with Rockwall Hyundai and details substantial year-to-date share repurchases and remaining buyback capacity.

(Neutral)
(Very Positive)
Tags
buybacks acquisition

Lithia & Driveway (LAD) acquired Rockwall Hyundai in Rockwall, Texas, adding an estimated $75 million in annualized revenue.

The dealership expands LAD’s presence in the Dallas-Fort Worth market and increases network density within its broader Texas platform, which already serves drivers in Houston, Austin, Corpus Christi, San Antonio, West Texas and other communities. With this transaction, LAD’s total year-to-date expected annualized revenue from acquired stores rises to $915 million. The Rockwall Hyundai acquisition was funded using existing on-balance sheet capacity.

During the quarter, LAD repurchased approximately 108,000 shares for $40 million at a weighted average price of $375, equal to 0.46% of outstanding shares. Year-to-date, it has repurchased about 1.9 million shares for $541 million at an average price of $284, representing 8.1% of outstanding shares. LAD reports that $580 million remains available under its current share repurchase authorization.

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Positive

  • Rockwall Hyundai acquisition adds an estimated $75 million in annualized revenue
  • Year-to-date acquired stores contribute expected annualized revenue of $915 million
  • Quarterly share repurchases of $40 million for ~108,000 shares at $375
  • Year-to-date buybacks of $541 million for ~1.9 million shares at $284
  • Repurchased shares equal 8.1% of outstanding shares year-to-date
  • $580 million remains authorized for additional share repurchases

Negative

  • None.

News Explained

Against LAD’s stated use of existing on-balance-sheet capacity for the Rockwall Hyundai acquisition, its June 30, 2026 quarter-end cash and equivalents were $110.3 million versus $65.7 million of operating cash outflow; at that quarter’s rate, the cash equals 152.8 days of the last reported operating cash use.

Sources and calculations
  • Available liquidity against the last reported quarterly operating outflow, in days at that rate $110,300,000 / ($65,700,000 / 91) = 152.8 days

Market Context

The July 29 Q2 earnings report preceded a 19.3% 24-hour gain and documented prior acquisition activi...
Analysis

The July 29 Q2 earnings report preceded a 19.3% 24-hour gain and documented prior acquisition activity and repurchases, providing a comparable capital-allocation record for this acquisition and buyback update.

Key Figures

Annualized revenue acquired: $75 million Year-to-date annualized revenue acquired: $915 million Quarterly share repurchase: $40 million +5 more
Annualized revenue acquired
$75 million
Rockwall Hyundai acquisition
Year-to-date annualized revenue acquired
$915 million
Through the Rockwall Hyundai acquisition
Quarterly share repurchase
$40 million
108,000 shares at a weighted average price of $375
Quarterly shares repurchased
Approximately 108,000 shares
Weighted average price of $375
Year-to-date share repurchase
$541 million
Approximately 1.9 million shares at a weighted average price of $284
Year-to-date shares repurchased
Approximately 1.9 million shares
Representing 8.1% of outstanding shares
Quarterly shares repurchased
0.46% of outstanding shares
During the quarter
Remaining repurchase authorization
$580 million
Available under the existing authorization

Historical Context

1 past event · Latest: Jul 29
1 event
  1. Jul 29

    Earnings report

    24h Move
    +19.3%

    Reported Q2 results alongside acquisitions, substantial repurchases, and expanded capital-return authorization.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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MEDFORD, Ore., Sept. 08, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) today announced the acquisition of Rockwall Hyundai in Rockwall, Texas, as part of the company’s continued strategic network expansion and brings an estimated $75 million in annualized revenue.

“Adding Rockwall Hyundai to the Lithia & Driveway network strengthens our presence in the growing Dallas-Fort Worth market and creates greater network density for our customers,” said Bryan DeBoer, Lithia & Driveway President and CEO. “This acquisition reflects our disciplined and strategic approach to expansion, and we remain focused on growing strong teams, high-quality franchises, and providing seamless ownership experiences throughout the car buying process.”

Lithia's Texas dealership network serves drivers across Dallas-Fort Worth, Houston, Austin, Corpus Christi, San Antonio, West Texas and other communities throughout the state.

This addition brings LAD’s total year-to-date expected annualized revenue acquired to $915 million. This acquisition was financed using existing on-balance sheet capacity.

Share Repurchase Update

In the quarter, LAD has invested $40 million to repurchase approximately 108,000 shares at a weighted average price of $375, representing 0.46% of outstanding shares.

To date this year, LAD has invested $541 million to repurchase approximately 1.9 million shares at a weighted average price of $284. This represents 8.1% of outstanding shares. $580 million remains available for repurchase under the existing share repurchase authorization.

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 80th 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
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https://www.instagram.com/lithiamotors/?hl=en
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https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@LithiaDriveway

Media Contact
Skyya for Lithia & Driveway
lithia@skyya.com  


FAQ

How was the Rockwall Hyundai acquisition financed by Lithia & Driveway?

The Rockwall Hyundai acquisition was financed using Lithia & Driveway’s existing on-balance sheet capacity, meaning it used resources already on its balance sheet rather than announcing new external financing for this transaction.

What portion of Lithia & Driveway’s shares were repurchased in the most recent quarter?

In the quarter, Lithia & Driveway invested $40 million to repurchase approximately 108,000 shares at a weighted average price of $375. This quarterly repurchase activity represents 0.46% of the company’s outstanding shares.

How large is Lithia & Driveway’s buyback activity so far this year?

Year-to-date, Lithia & Driveway has invested $541 million to repurchase approximately 1.9 million shares at a weighted average price of $284. This cumulative repurchase amount corresponds to 8.1% of the company’s outstanding shares.

How much capacity remains under Lithia & Driveway’s current share repurchase authorization?

Lithia & Driveway reports that $580 million remains available for future repurchases under its existing share repurchase authorization.

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