Lithia & Driveway (LAD) Provides Share Repurchase Update and Continues to Expand in Canada

Rhea-AI Summary

Lithia & Driveway (NYSE:LAD) reported share repurchases and a Canadian acquisition on Dec 2, 2025.

This quarter LAD repurchased $274 million for ~875,000 shares at a weighted average price of $313 (≈3.3% of outstanding shares). Year-to-date repurchases total $933 million for 2.98 million shares (≈11.3% of outstanding shares) with $636 million remaining under authorization.

LAD completed the acquisition of Fines Ford (Greater Toronto Area), expected to add $100 million of annualized revenue and bring LAD's year-to-date expected annualized revenue to $2.2 billion; the deal was financed using existing on-balance-sheet capacity.

Positive

• Quarterly repurchases of $274M for ~875,000 shares
• YTD repurchases of $933M representing 2.98M shares
• YTD buybacks equal 11.3% of outstanding shares
• Remaining repurchase authorization of $636M
• Fines Ford acquisition adds $100M annualized revenue
• YTD expected annualized revenue now $2.2B; financed on-balance-sheet

Negative

• None.

Insights

Capital allocation analyst

Lithia executed large repurchases and still has significant authorization left, showing active capital return and balance-sheet flexibility.

Lithia repurchased $274 million this quarter for nearly 875,000 shares at a weighted average of $313. Year-to-date repurchases total nearly $933 million for 2.98 million shares, representing 11.3% of outstanding shares, with $636 million remaining under the authorization. These facts show material capital return and use of cash rather than immediate cash preservation.

Key dependencies and risks include continued cash flow sufficiency and balance-sheet capacity to fund operations, organic investment, and acquisitions. Monitor quarterly cash flow and available authorization levels over the next four fiscal quarters to confirm sustainability of repurchase pace.

M&A and network expansion analyst

The Fines Ford acquisition expands Canadian footprint and adds expected annualized revenue, funded from on‑balance sheet capacity.

The completed purchase of Fines Ford in the Greater Toronto Area is expected to raise annualized revenue by $100 million and brings the year-to-date expected annualized revenue contribution from additions to $2.2 billion. The deal was financed using existing on‑balance sheet capacity, implying no new external financing was required.

Dependencies include successful local integration and retention of customer loyalty. Watch integration milestones and the near-term revenue recognition over the next 12 months and any updates to on‑balance sheet capacity or capital allocation statements to gauge net impact.

MEDFORD, Ore., Dec. 2, 2025 /PRNewswire/ -- In the quarter, LAD has invested $274 million to repurchase nearly 875,000 shares at a weighted average price of $313, representing 3.3% of outstanding shares.

"Our share repurchases this quarter demonstrate our conviction in our resilient profitability, generative cash flows and omnichannel model," said Bryan DeBoer, Lithia and Driveway President and CEO. "Our strong balance sheet and shares trading below intrinsic value allows us to return capital while also strengthening our network through strategic acquisitions."

To date this year, LAD has invested nearly $933 million to repurchase 2.98 million shares at a weighted average price of $313. This represents 11.3% of outstanding shares. $636 million remains available for repurchase under the existing share repurchase authorization.

Fines Ford Acquisition

Additionally, LAD completed the acquisition of Fines Ford in the Greater Toronto Area, Canada. This strategic investment demonstrates LAD's continued ability to strengthen its network in the North American market. This store is expected to increase annualized revenue by $100 million.

"We are excited to expand our presence in the Canadian market with the addition of Fines Ford to the Lithia & Driveway family. This strategic investment in Canada's number one volume brand strengthens our omnichannel network in the nation's largest market," said Bryan DeBoer, Lithia and Driveway President and CEO. "Fines Ford's customer loyalty and established reputation in the community align perfectly with our strategy to provide exceptional experiences wherever, whenever, and however customers desire. This accretive acquisition reflects our disciplined approach to delivering sustainable growth and shareholder value while bringing new customers into our unique ecosystem."

This addition brings LAD's total year-to-date expected annualized revenue to $2.2 billion and was financed using existing on-balance sheet capacity.

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.

Sites
www.lithia.com
www.investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com

Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ

Lithia & Driveway on X
https://x.com/lithiamotors
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/@Lithia_Motors/featured

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SOURCE Lithia Motors, Inc.

FAQ

How much did Lithia & Driveway (LAD) spend on share repurchases in Q4 2025?

LAD repurchased $274 million in the quarter, buying ~875,000 shares.

What percentage of outstanding shares has LAD repurchased year-to-date in 2025 (LAD)?

LAD repurchased about 11.3% of outstanding shares year-to-date in 2025.

How much repurchase authorization remains for Lithia & Driveway (LAD)?

Approximately $636 million remains available under the current repurchase authorization.

What is the expected revenue impact of the Fines Ford acquisition for LAD?

Fines Ford is expected to add about $100 million of annualized revenue to LAD.

How was the Fines Ford acquisition financed by Lithia & Driveway (LAD)?

The acquisition was financed using the company's existing on-balance-sheet capacity.

What is LAD's updated year-to-date expected annualized revenue after the acquisition?

LAD's year-to-date expected annualized revenue is now reported at $2.2 billion.