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.

News Market Reaction

-0.94%

1 alert

-0.94% News Effect

On the day this news was published, LAD declined 0.94%, reflecting a mild negative market reaction.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Q4 repurchases: $274 million Shares repurchased (quarter): 875,000 shares Average repurchase price: $313 +5 more

8 metrics

Q4 repurchases $274 million Invested this quarter to repurchase shares

Shares repurchased (quarter) 875,000 shares Repurchased this quarter at $313 average price

Average repurchase price $313 Weighted average price paid for repurchases

YTD repurchases $933 million Invested year-to-date to repurchase shares

YTD shares repurchased 2.98 million shares Repurchased year-to-date at $313 average price

Percent of shares YTD 11.3% Year-to-date repurchases as share of outstanding

Remaining authorization $636 million Available under existing share repurchase authorization

Added annualized revenue $100 million Expected annualized revenue from Fines Ford acquisition

Market Reality Check

Price: $332.05 Vol: Volume 343,421 is about 1...

normal vol

$332.05 Last Close

Volume Volume 343,421 is about 10% above the 20-day average of 311,478. normal

Technical Price $356.66 is trading above the 200-day MA of $313.83.

Peers on Argus

LAD gained 6.12% while key peers were mixed: AN -1.25%, VVV -1.36%, but KMX, GPI...

LAD gained 6.12% while key peers were mixed: AN -1.25%, VVV -1.36%, but KMX, GPI, and ABG rose 1.49%, 1.13%, and 1.24%, indicating stock-specific strength.

Historical Context

5 past events · Latest: Dec 02 (Positive)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Dec 02	Buybacks & acquisition	Positive	-0.9%	Detailed Q4 repurchases, year-to-date buybacks, and Fines Ford acquisition in Canada.
Nov 12	Luxury acquisitions	Positive	+2.1%	Acquisition of Porsche Beverly Hills and Santa Monica Audi adding luxury exposure.
Nov 11	Network expansion	Positive	-0.2%	Luxury network expansion and recognition on TIME America’s Growth Leaders list.
Oct 28	Southwest expansion	Positive	-1.1%	Hyundai acquisitions in Orange County and Canadian workplace recognition.
Oct 22	Q3 earnings	Positive	-1.1%	Record Q3 revenue with higher EPS and ongoing buybacks and acquisitions.

Pattern Detected

News has generally been positive, but price reactions often underperformed the constructive fundamentals, with more divergences than alignments.

Recent Company History

This announcement extends a year of active capital returns and network expansion. Recent updates included record Q3 2025 revenue of $9.7 billion, multiple U.S. and Canadian dealership acquisitions adding over $2.1 billion in expected annualized revenue, and recognition on TIME’s America’s Growth Leaders list. Prior buyback announcements increased authorization and detailed sizable repurchases. Historically, these positive developments saw mixed to negative next-day price moves, so today’s stronger gain contrasts with several earlier divergences.

Market Pulse Summary

This announcement highlighted LAD’s continued capital return and network growth. The company investe...

Analysis

This announcement highlighted LAD’s continued capital return and network growth. The company invested $274 million this quarter and $933 million year-to-date in share repurchases, equivalent to 11.3% of outstanding shares, while adding Fines Ford, expected to contribute $100 million in annualized revenue and lift year-to-date acquired annualized revenue to $2.2 billion. Investors may watch the balance between buybacks and acquisitions, authorization capacity of $636 million, and integration of newly acquired stores.

Key Terms

share repurchases, share repurchase authorization, omnichannel, annualized revenue, +1 more

5 terms

share repurchases financial

"LAD has invested $274 million to repurchase nearly 875,000 shares..."

Share repurchases occur when a company buys back its own shares from the open market. This process reduces the total number of shares available, which can increase the value of each remaining share and signal confidence in the company's future. For investors, share repurchases can be a sign that the company believes its stock is undervalued and may lead to higher share prices.

share repurchase authorization financial

"$636 million remains available for repurchase under the existing share repurchase authorization."

A share repurchase authorization is a company's official approval to buy back its own shares from the market. This signals that the company believes its stock is a good investment and can help increase the value of remaining shares by reducing how many are available. For investors, it often suggests confidence from the company and can influence the stock’s price.

omnichannel technical

"our resilient profitability, generative cash flows and omnichannel model"

A coordinated approach to selling and serving customers across all touchpoints—stores, websites, mobile apps, social media, and call centers—so the experience feels like one continuous conversation no matter where a customer interacts. For investors, omnichannel capability signals how well a company can attract and keep customers, turn interactions into sales, and use shared customer data to cut costs and boost revenue—making it a key driver of growth and competitive strength.

annualized revenue financial

"This store is expected to increase annualized revenue by $100 million."

Annualized revenue is a way to estimate how much money a company will earn in a year based on its current sales over a shorter period. It helps investors understand the company's consistent earning power, kind of like projecting your monthly earnings to see what you might make in a full year.

on-balance sheet capacity financial

"was 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., 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.