Lithia & Driveway (LAD) Reports First Quarter Results
Rhea-AI Summary
Lithia & Driveway (NYSE: LAD) reported record Q1 2026 revenue of $9.3 billion, diluted EPS of $4.28 and adjusted diluted EPS of $7.34. Net income was $102.0 million (51.7% decline); adjusted net income was $173.3 million (18% decline).
Used vehicle same-store GPU rose 9% sequentially; Driveway Finance originations reached $840 million with 18.0% penetration and average FICO 750. Repurchases totaled $259 million (~4.0% of shares); dividend of $0.57 per share declared.
Positive
- Record Q1 revenue of $9.3 billion
- Driveway Finance originations of $840 million with 18.0% penetration
- Used retail GPU increased 9% sequentially
- Repurchased $259 million of shares (~4.0% outstanding)
- Declared dividend of $0.57 per share
Negative
- GAAP diluted EPS declined 46% to $4.28
- Net income fell 51.7% to $102.0 million
- Adjusted net income down 18% to $173.3 million
- Approximately $362.9 million remaining on repurchase authorization (potential dilution if used)
Key Figures
Market Reality Check
Peers on Argus
Pre‑news, LAD is modestly positive (+0.14%) with mixed peers: AN (-1.9%), VVV (-2.62%) weaker, while KMX, GPI and ABG show smaller gains. No clear sector‑wide move is indicated.
Previous Earnings Reports
| Date | Event | Sentiment | Move | Catalyst |
|---|---|---|---|---|
| Apr 09 | Earnings call scheduling | Neutral | +1.2% | Announcement of Q1 2026 results release date and conference call details. |
| Feb 11 | Q4 and FY 2025 results | Positive | -1.9% | Record 2025 and Q4 revenue with higher EPS and significant buybacks and acquisitions. |
| Jan 22 | Earnings call scheduling | Neutral | -0.7% | Set date and access details for Q4 2025 and full‑year 2025 earnings release. |
| Oct 08 | Earnings call scheduling | Neutral | -0.9% | Announcement of Q3 2025 earnings release timing and conference call logistics. |
| Jul 29 | Q2 2025 earnings beat | Positive | -5.6% | Record Q2 revenue with strong EPS growth and higher aftersales and financing profits. |
Earnings‑tagged headlines have often been followed by slightly negative next‑day moves, including on strong fundamental results, suggesting a pattern of post‑earnings cooling or profit‑taking.
Recent earnings‑related news for LAD shows a mix of strong fundamentals and muted to negative next‑day stock reactions. On Feb 11, 2026, record full‑year 2025 revenue of $37.63 billion and higher EPS were followed by a -1.88% move. A record Q2 2025 revenue of $9.6 billion with sharply higher EPS on Jul 29, 2025 saw a -5.63% reaction. Scheduling releases for earnings calls (e.g., Jan 22, 2026 and Oct 8, 2025) produced small, mixed price changes. Against this backdrop, today’s Q1 2026 report combines record revenue with notably lower GAAP and adjusted earnings.
Historical Comparison
Across the last five earnings‑tagged headlines, LAD’s average next‑day move was about -1.56%, framing expectations for how investors might digest another record‑revenue quarter with weaker EPS.
Earnings news has progressed from record Q2 and full‑year 2025 results, supported by acquisitions and buybacks, to Q1 2026 figures that maintain high revenue levels but show compressed GAAP and adjusted earnings.
Market Pulse Summary
This announcement highlights a mixed quarter: record Q1 $9.3 billion revenue, stronger used‑vehicle GPUs, and higher aftersales margins, but with GAAP EPS falling to $4.28 and adjusted EPS to $7.34. Net and adjusted income declined year over year even as Driveway Finance produced record $840 million in originations. Significant buybacks of $259 million and a $0.57 dividend underscore capital returns. Investors may watch future earnings, margin trends, and acquisition contributions to gauge whether earnings recover alongside revenue growth.
Key Terms
basis point financial
fico score financial
AI-generated analysis. Not financial advice.
Key Highlights
- Record first quarter revenues of
$9.3 billion - Used vehicle revenue increased
4.6% on a same store basis in the quarter - Used retail GPUs increased
9% , or$133 , sequentially - Aftersales revenue increased
3.8% , gross profit increased by5.7% and gross margin was58.7% , a 100-basis point increase, on a same-store basis - Driveway Finance Corporation achieved record originations of
$840 million , with an18.0% penetration rate and an average FICO score of 750 in the quarter - First quarter diluted earnings per share of
$4.28 and adjusted diluted earnings per share of$7.34 - Repurchased
$259 million of shares, representing4.0% of outstanding shares in the quarter
MEDFORD, Ore., April 29, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD), the largest global automotive retailer, today reported financial results for the first quarter of 2026.
"Our team drove strong results across our platform and sequential growth in earnings, delivering higher revenues and improved GPU in used vehicles, meaningful growth in aftersales, and growing penetration in Driveway Finance," said Bryan DeBoer, President and CEO. “Capital discipline remains a key focus, and we repurchased nearly
First Quarter 2026 Operational Summary
First quarter 2026 revenue increased
First quarter 2026 diluted earnings per share attributable to LAD was
First quarter 2026 net income was
The financial measures discussed in this release include both GAAP and non-GAAP measures. See “Reconciliation of Certain Non-GAAP Measures”.
Corporate Development
Stores acquired during the first quarter are expected to generate
Balance Sheet Update
LAD ended the first quarter with approximately
Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of
During the first quarter of 2026, we repurchased approximately 942,000 shares at a weighted average price of
First Quarter Earnings Conference Call and Updated Presentation
The first quarter 2026 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting first quarter 2026 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.com and click on Quarterly Earnings.
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
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
Forward-Looking Statements
Certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the “Safe Harbor” provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as “project,” “outlook,” “target,” “may,” “will,” “would,” “should,” “seek,” “expect,” “plan,” “intend,” “forecast,” “anticipate,” “believe,” “estimate,” “predict,” “potential,” “likely,” “ensure,” “goal,” “strategy,” “future,” “maintain,” and “continue” or the negative of these terms or other comparable terms. Examples of forward-looking statements in this presentation include, among others, statements regarding:
- The profitability of our strategy and growth
- Future market conditions, including anticipated vehicle and other sales, gross profit and inventory supply
- Our business strategy and plans, including our achieving our long-term financial targets
- The growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional stores
- Annualized revenues from acquired stores or achieving target returns
- The growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targets
- The impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution models
- Our capital allocations and uses and levels of capital expenditures in the future
- Expected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projections
- Our anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate and other financing sources
- Our continuing to purchase shares under our share repurchase program
- Our compliance with financial and restrictive covenants in our credit facilities and other debt agreements
- Our programs and initiatives for team member recruitment, training, and retention
- Our strategies and targets for customer retention, growth, market position, operations, financial results and risk management
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this presentation. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation:
- Future national and local economic and financial conditions, including as a result of inflation, interest rates, tariffs, governmental actions, programs and spending, and public health issues
- The market for dealerships, including the availability of stores to us for an acceptable price
- Changes in customer demand, levels of consumer debt, consumer confidence and manufacturer sales incentives, and the electric vehicle landscape and the impact of evolving digital technologies
- Changes in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery models
- Changes in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehicles
- Risks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms
- The adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levels
- Disruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipment
- Government regulations and legislation
- The risks set forth throughout “Part II, Item 7. Management’s Discussion and Analysis of Financial Condition and Results of Operations” and in “Part I, Item 1A. Risk Factors” of our most recent Annual Report on Form 10-K, and in “Part II, Item 1A. Risk Factors” of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC.
Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Non-GAAP Financial Measures
All “adjusted” financial measures in this presentation are non-GAAP financial measures, as are EBITDA and net debt. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. We caution you not to place undue reliance on such non-GAAP measures and to consider them together with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.
LAD
Consolidated Statements of Operations (Unaudited)
(In millions except per share data)
| Three months ended March 31, | % | |||||||||
| Increase | ||||||||||
| 2026 | 2025 | (Decrease) | ||||||||
| Revenues: | ||||||||||
| New vehicle | $ | 4,379.4 | $ | 4,580.4 | (4.4 | ) % | ||||
| Used vehicle | 3,489.4 | 3,250.5 | 7.3 | |||||||
| Finance and insurance | 359.7 | 364.3 | (1.3 | ) | ||||||
| Aftersales | 1,042.9 | 983.1 | 6.1 | |||||||
| Total revenues | 9,271.4 | 9,178.3 | 1.0 | % | ||||||
| Cost of sales: | ||||||||||
| New vehicle | 4,119.8 | 4,287.0 | (3.9 | ) | ||||||
| Used vehicle | 3,301.7 | 3,061.8 | 7.8 | |||||||
| Aftersales | 428.2 | 419.1 | 2.2 | |||||||
| Total cost of sales | 7,849.7 | 7,767.9 | 1.1 | |||||||
| Gross profit | 1,421.7 | 1,410.4 | 0.8 | % | ||||||
| Finance operations income | 21.3 | 12.5 | 70.4 | % | ||||||
| SG&A expense | 1,037.4 | 952.7 | 8.9 | |||||||
| Depreciation and amortization | 69.8 | 63.9 | 9.2 | |||||||
| Income from operations | 335.8 | 406.3 | (17.4 | ) % | ||||||
| Floor plan interest expense | (55.9 | ) | (57.1 | ) | (2.1 | ) | ||||
| Other interest expense | (70.3 | ) | (65.5 | ) | 7.3 | |||||
| Other (expense) income | (67.6 | ) | 0.8 | NM | ||||||
| Income before income taxes | 142.0 | 284.5 | (50.1 | ) % | ||||||
| Income tax expense | (40.0 | ) | (73.3 | ) | (45.4 | ) | ||||
| Income tax rate | 28.2 | % | 25.8 | % | ||||||
| Net income | $ | 102.0 | $ | 211.2 | (51.7 | ) % | ||||
| Net income attributable to non-controlling interests | (1.6 | ) | (1.7 | ) | (5.9 | ) % | ||||
| Net income attributable to LAD | $ | 100.4 | $ | 209.5 | (52.1 | ) % | ||||
| Diluted earnings per share attributable to LAD: | ||||||||||
| Net income per share | $ | 4.28 | $ | 7.94 | (46.1 | ) % | ||||
| Diluted shares outstanding | 23.4 | 26.4 | (11.4 | ) % | ||||||
NM - not meaningful
LAD
Key Performance Metrics (Unaudited)
| Three months ended March 31, | % | |||||||||
| Increase | ||||||||||
| 2026 | 2025 | (Decrease) | ||||||||
| Gross margin | ||||||||||
| New vehicle | 5.9 | % | 6.4 | % | (50 | )bps | ||||
| Used vehicle | 5.4 | 5.8 | (40 | ) | ||||||
| Finance and insurance | 100.0 | 100.0 | — | |||||||
| Aftersales | 58.9 | 57.4 | 150 | |||||||
| Gross profit margin | 15.3 | 15.4 | (10 | ) | ||||||
| Unit sales | ||||||||||
| New vehicle | 94,787 | 99,503 | (4.7 | ) % | ||||||
| Used vehicle retail | 110,151 | 107,326 | 2.6 | |||||||
| Average selling price (excluding agency) | ||||||||||
| New vehicle | $ | 46,878 | $ | 47,209 | (0.7 | ) % | ||||
| Used vehicle retail | 28,464 | 27,198 | 4.7 | |||||||
| Average gross profit per unit | ||||||||||
| New vehicle | $ | 2,739 | $ | 2,950 | (7.2 | ) % | ||||
| Used vehicle retail | 1,688 | 1,769 | (4.6 | ) | ||||||
| Finance and insurance | 1,807 | 1,804 | 0.2 | |||||||
| Total vehicle(1) | 3,938 | 4,093 | (3.8 | ) | ||||||
| Revenue mix | ||||||||||
| New vehicle | 47.2 | % | 49.9 | % | ||||||
| Used vehicle | 37.6 | 35.4 | ||||||||
| Finance and insurance, net | 3.9 | 4.0 | ||||||||
| Aftersales | 11.3 | 10.7 | ||||||||
| Gross Profit Mix | ||||||||||
| New vehicle | 18.3 | % | 20.8 | % | ||||||
| Used vehicle | 13.2 | 13.4 | ||||||||
| Finance and insurance, net | 25.3 | 25.8 | ||||||||
| Aftersales | 43.2 | 40.0 | ||||||||
| Adjusted | As reported | ||||||||||
| Three months ended March 31, | Three months ended March 31, | ||||||||||
| Other metrics | 2026 | 2025 | 2026 | 2025 | |||||||
| SG&A as a % of revenue | 11.0 | % | 10.5 | % | 11.2 | % | 10.4 | % | |||
| SG&A as a % of gross profit | 71.5 | 68.2 | 73.0 | 67.5 | |||||||
| Operating profit as a % of revenue | 3.8 | 4.3 | 3.6 | 4.4 | |||||||
| Operating profit as a % of gross profit | 25.1 | 28.2 | 23.6 | 28.8 | |||||||
| Pretax margin | 2.5 | 3.1 | 1.5 | 3.1 | |||||||
| Net profit margin | 1.9 | 2.3 | 1.1 | 2.3 | |||||||
(1) Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail
LAD
Same Store Operating Highlights (Unaudited)
| Three months ended March 31, | % | |||||||||
| Increase | ||||||||||
| 2026 | 2025 | (Decrease) | ||||||||
| Revenues | ||||||||||
| New vehicle | $ | 4,156.8 | $ | 4,474.3 | (7.1 | ) % | ||||
| Used vehicle | 3,302.0 | 3,157.4 | 4.6 | |||||||
| Finance and insurance | 345.2 | 358.7 | (3.8 | ) | ||||||
| Aftersales | 992.1 | 955.8 | 3.8 | |||||||
| Total revenues | 8,796.1 | 8,946.2 | (1.7 | ) | ||||||
| Gross profit | ||||||||||
| New vehicle | $ | 246.8 | $ | 287.8 | (14.2 | ) % | ||||
| Used vehicle | 178.8 | 187.3 | (4.5 | ) | ||||||
| Finance and insurance | 345.2 | 358.7 | (3.8 | ) | ||||||
| Aftersales | 582.6 | 551.1 | 5.7 | |||||||
| Total gross profit | 1,353.4 | 1,384.9 | (2.3 | ) | ||||||
| Gross margin | ||||||||||
| New vehicle | 5.9 | % | 6.4 | % | (50 | )bps | ||||
| Used vehicle | 5.4 | 5.9 | (50 | ) | ||||||
| Finance and insurance | 100.0 | 100.0 | — | |||||||
| Aftersales | 58.7 | 57.7 | 100 | |||||||
| Gross profit margin | 15.4 | 15.5 | (10 | ) | ||||||
| Unit sales | ||||||||||
| New vehicle | 90,671 | 97,617 | (7.1 | ) % | ||||||
| Used vehicle retail | 105,541 | 104,961 | 0.6 | |||||||
| Average selling price (excluding agency) | ||||||||||
| New vehicle | $ | 46,545 | $ | 47,018 | (1.0 | ) % | ||||
| Used vehicle retail | 28,142 | 27,019 | 4.2 | |||||||
| Average gross profit per unit | ||||||||||
| New vehicle | $ | 2,722 | $ | 2,949 | (7.7 | ) % | ||||
| Used vehicle retail | 1,680 | 1,795 | (6.4 | ) | ||||||
| Finance and insurance | 1,813 | 1,812 | 0.1 | |||||||
| Total vehicle(1) | 3,928 | 4,116 | (4.6 | ) | ||||||
(1) Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail
LAD
Other Highlights (Unaudited)
| Three months ended March 31, | |||
| 2026 | |||
| Key Performance by Country | Total Revenue | Total Gross Profit | |
| United States | |||
| United Kingdom | |||
| Canada | |||
| As of | |||||
| March 31, | December 31, | March 31, | |||
| Days’ Supply(1) | 2026 | 2025 | 2025 | ||
| New vehicle inventory | 49 | 54 | 43 | ||
| Used vehicle inventory | 47 | 48 | 44 | ||
(1) Days’ supply in inventory is calculated using on-ground inventory unit levels and a 30-day total unit sales volumes, both at the end of each reporting period.
Selected Financing Operations Financial Information
| Three months ended March 31, | |||||||||||||
| ($ in millions) | 2026 | %(1) | 2025 | %(1) | |||||||||
| Interest and fee income | $ | 110.5 | 9.0 | $ | 94.4 | 9.4 | |||||||
| Interest expense | (51.6 | ) | (4.2 | ) | (48.1 | ) | (4.8 | ) | |||||
| Total interest margin | $ | 58.9 | 4.8 | $ | 46.3 | 4.6 | |||||||
| Lease income | 23.9 | 20.5 | |||||||||||
| Lease costs | (20.2 | ) | (16.8 | ) | |||||||||
| Lease income, net | 3.7 | 3.7 | |||||||||||
| Provision expense | (26.4 | ) | (2.1 | ) | (25.5 | ) | (2.5 | ) | |||||
| Other financing operations expenses | (14.9 | ) | (1.2 | ) | (12.0 | ) | (1.2 | ) | |||||
| Finance operations income | $ | 21.3 | $ | 12.5 | |||||||||
| Total average managed finance receivables | $ | 5,004.0 | $ | 4,062.1 | |||||||||
(1) Annualized percentage of total average managed finance receivables
LAD
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)
| March 31, 2026 | December 31, 2025 | ||||
| Cash, restricted cash, and cash equivalents | $ | 421.3 | $ | 341.8 | |
| Trade receivables, net | 1,261.4 | 1,134.1 | |||
| Inventories, net | 6,193.2 | 6,119.6 | |||
| Other current assets | 275.9 | 262.5 | |||
| Total current assets | $ | 8,151.8 | $ | 7,858.0 | |
| Property and equipment, net | 4,994.5 | 4,936.0 | |||
| Finance receivables, net | 5,012.9 | 4,755.1 | |||
| Intangibles | 5,242.0 | 5,254.1 | |||
| Other non-current assets | 2,348.5 | 2,304.0 | |||
| Total assets | $ | 25,749.7 | $ | 25,107.2 | |
| Floor plan notes payable | 6,284.5 | 5,008.9 | |||
| Other current liabilities | 1,915.2 | 1,687.8 | |||
| Total current liabilities | $ | 8,199.7 | $ | 6,696.7 | |
| Long-term debt, less current maturities | 6,448.8 | 7,274.9 | |||
| Non-recourse notes payable, less current maturities | 2,565.8 | 2,404.2 | |||
| Other long-term liabilities and deferred revenue | 2,125.9 | 2,103.0 | |||
| Total liabilities | $ | 19,340.2 | $ | 18,478.8 | |
| Equity | 6,409.5 | 6,628.4 | |||
| Total liabilities and equity | $ | 25,749.7 | $ | 25,107.2 | |
LAD
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)
| Three months ended March 31, | |||||||
| Cash flows from operating activities: | 2026 | 2025 | |||||
| Net income | $ | 102.0 | $ | 211.2 | |||
| Adjustments to reconcile net income to net cash provided by operating activities | 212.2 | 146.9 | |||||
| Changes in: | |||||||
| Inventories | (97.2 | ) | 186.4 | ||||
| Finance receivables | (261.2 | ) | (179.1 | ) | |||
| Floor plan notes payable | (65.5 | ) | 23.3 | ||||
| Other operating activities | 1.3 | (66.6 | ) | ||||
| Net cash (used in) provided by operating activities | (108.4 | ) | 322.1 | ||||
| Cash flows from investing activities: | |||||||
| Capital expenditures | (97.1 | ) | (68.7 | ) | |||
| Cash paid for acquisitions, net of cash acquired | (145.3 | ) | (84.5 | ) | |||
| Proceeds from sales of stores | — | 43.2 | |||||
| Other investing activities | 1.9 | (7.1 | ) | ||||
| Net cash used in investing activities | (240.5 | ) | (117.1 | ) | |||
| Cash flows from financing activities: | |||||||
| Net borrowings on floor plan notes payable, non-trade | 1,378.3 | (44.0 | ) | ||||
| Net borrowings on non-recourse notes payable | 160.0 | 254.4 | |||||
| Net borrowings on other debt and finance lease liabilities | (798.8 | ) | (159.7 | ) | |||
| Proceeds from issuance of common stock | 5.8 | 5.6 | |||||
| Repurchase of common stock | (297.0 | ) | (143.4 | ) | |||
| Dividends paid | (12.8 | ) | (13.9 | ) | |||
| Other financing activity | (3.5 | ) | (72.0 | ) | |||
| Net cash provided by (used in) financing activities | 432.0 | (173.0 | ) | ||||
| Effect of exchange rate changes on cash and restricted cash | (1.7 | ) | 0.3 | ||||
| Change in cash, restricted cash, and cash equivalents | 81.4 | 32.3 | |||||
| Cash, restricted cash, and cash equivalents at beginning of period | 391.3 | 445.8 | |||||
| Cash, restricted cash, and cash equivalents at end of period | 472.7 | 478.1 | |||||
LAD
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In millions)
| Three months ended March 31, | |||||||
| Net cash provided by operating activities | 2026 | 2025 | |||||
| As reported | $ | (108.4 | ) | $ | 322.1 | ||
| Floor plan notes payable, non-trade, net(1) | 1,378.3 | (44.0 | ) | ||||
| Adjust: finance receivables activity | 261.2 | 179.1 | |||||
| Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory | (11.3 | ) | (9.9 | ) | |||
| Adjusted | $ | 1,519.8 | $ | 447.3 | |||
(1) Includes the impact of converting inventory‑secured revolvers to floorplan facilities during the quarter, increasing net floorplan borrowings and adjusted operating cash flows
LAD
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)
| Three Months Ended March 31, 2026 | ||||||||||||||||||||||
| As reported | Investment loss | Acquisition expenses | Contract buyouts | Tax attribute | Adjusted | |||||||||||||||||
| Selling, general and administrative | $ | 1,037.4 | $ | — | $ | (0.3 | ) | $ | (20.3 | ) | $ | — | $ | 1,016.8 | ||||||||
| Operating income | 335.8 | — | 0.3 | 20.3 | — | 356.4 | ||||||||||||||||
| Other income (expense), net | (67.6 | ) | 73.3 | — | — | — | 5.7 | |||||||||||||||
| Income before income taxes | 142.0 | 73.3 | 0.3 | 20.3 | — | 235.9 | ||||||||||||||||
| Income tax (provision) benefit | (40.0 | ) | (18.6 | ) | (0.1 | ) | (5.1 | ) | 1.2 | (62.6 | ) | |||||||||||
| Net income | $ | 102.0 | $ | 54.7 | $ | 0.2 | $ | 15.2 | $ | 1.2 | $ | 173.3 | ||||||||||
| Net income attributable to non-controlling interests | (1.6 | ) | — | — | — | — | (1.6 | ) | ||||||||||||||
| Net income attributable to LAD | $ | 100.4 | $ | 54.7 | $ | 0.2 | $ | 15.2 | $ | 1.2 | $ | 171.7 | ||||||||||
| Diluted earnings per share attributable to LAD | $ | 4.28 | $ | 2.34 | $ | 0.01 | $ | 0.65 | $ | 0.06 | $ | 7.34 | ||||||||||
| Diluted share count | 23.4 | |||||||||||||||||||||
| Three Months Ended March 31, 2025 | |||||||||||||||||||||||||||
| As reported | Net gain on disposal of stores | Investment loss | Insurance reserves | Acquisition expenses | Tax attribute | Adjusted | |||||||||||||||||||||
| Selling, general and administrative | $ | 952.7 | $ | 9.4 | $ | — | $ | (0.4 | ) | $ | (0.2 | ) | $ | — | $ | 961.5 | |||||||||||
| Operating income | 406.3 | (9.4 | ) | — | 0.4 | 0.2 | — | 397.5 | |||||||||||||||||||
| Other income (expense), net | 0.8 | — | 9.7 | — | — | — | 10.5 | ||||||||||||||||||||
| Income before income taxes | 284.5 | (9.4 | ) | 9.7 | 0.4 | 0.2 | — | 285.4 | |||||||||||||||||||
| Income tax (provision) benefit | (73.3 | ) | 2.4 | (2.5 | ) | (0.1 | ) | — | (1.0 | ) | (74.5 | ) | |||||||||||||||
| Net income | $ | 211.2 | $ | (7.0 | ) | $ | 7.2 | $ | 0.3 | $ | 0.2 | $ | (1.0 | ) | $ | 210.9 | |||||||||||
| Net income attributable to non-controlling interests | (1.7 | ) | — | — | — | — | — | (1.7 | ) | ||||||||||||||||||
| Net income attributable to LAD | $ | 209.5 | $ | (7.0 | ) | $ | 7.2 | $ | 0.3 | $ | 0.2 | $ | (1.0 | ) | $ | 209.2 | |||||||||||
| Diluted earnings per share attributable to LAD | $ | 7.94 | $ | (0.25 | ) | $ | 0.27 | $ | 0.01 | $ | — | $ | (0.04 | ) | $ | 7.93 | |||||||||||
| Diluted share count | 26.4 | ||||||||||||||||||||||||||
LAD
Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)
(In millions)
| Three months ended March 31, | % | |||||||||
| Increase | ||||||||||
| 2026 | 2025 | (Decrease) | ||||||||
| EBITDA and Adjusted EBITDA | ||||||||||
| Net income | $ | 102.0 | $ | 211.2 | (51.7 | ) % | ||||
| Flooring interest expense | 55.9 | 57.1 | (2.1 | ) | ||||||
| Other interest expense | 70.3 | 65.5 | 7.3 | |||||||
| Financing operations interest expense | 51.6 | 48.1 | 7.3 | |||||||
| Income tax expense | 40.0 | 73.3 | (45.4 | ) | ||||||
| Depreciation and amortization | 69.8 | 63.9 | 9.2 | |||||||
| EBITDA | $ | 389.6 | $ | 519.1 | (24.9 | ) % | ||||
| Other adjustments: | ||||||||||
| Less: flooring interest expense | $ | (55.9 | ) | $ | (57.1 | ) | (2.1 | ) | ||
| Less: financing operations interest expense | (51.6 | ) | (48.1 | ) | 7.3 | |||||
| Less: used vehicle line of credit interest | (1.4 | ) | (3.0 | ) | (53.3 | ) | ||||
| Add: acquisition expenses | 0.3 | 0.2 | 50.0 | |||||||
| Add: loss (gain) on disposal of stores | — | (9.4 | ) | NM | ||||||
| Add: investment loss (gain)(1) | 73.3 | 9.7 | NM | |||||||
| Add: insurance reserves | — | 0.4 | NM | |||||||
| Add: contract buyouts | 20.3 | — | NM | |||||||
| Adjusted EBITDA | $ | 374.6 | $ | 411.8 | (9.0 | ) % | ||||
NM - not meaningful
(1) Investment losses (gains) retrospectively included in adjusted non-GAAP financial measures presented
| As of | % | ||||||||
| March 31, | Increase | ||||||||
| Net Debt to Adjusted EBITDA | 2026 | 2025 | (Decrease) | ||||||
| Floor plan notes payable | $ | 6,284.5 | $ | 4,904.9 | 28.1 | % | |||
| Used and service loaner vehicle inventory financing facility | 3.6 | 968.7 | (99.6 | ) | |||||
| Revolving lines of credit | 1,738.8 | 1,558.3 | 11.6 | ||||||
| Warehouse facilities | 1,337.0 | 768.5 | 74.0 | ||||||
| Non-recourse notes payable | 2,634.0 | 2,363.7 | 11.4 | ||||||
| 400.0 | 400.0 | — | |||||||
| 800.0 | 800.0 | — | |||||||
| 600.0 | — | — | |||||||
| 550.0 | 550.0 | — | |||||||
| Finance leases and other debt | 1,156.2 | 1,014.6 | 14.0 | ||||||
| Unamortized debt issuance costs | (26.3 | ) | (24.1 | ) | 9.1 | ||||
| Total debt | $ | 15,477.8 | $ | 13,304.6 | 16.3 | % | |||
| Less: Inventory related debt | $ | (6,288.1 | ) | $ | (5,873.6 | ) | 7.1 | % | |
| Less: Financing operations related debt | (3,971.0 | ) | (3,132.2 | ) | 26.8 | ||||
| Less: Unrestricted cash and cash equivalents | (160.8 | ) | (234.4 | ) | (31.4 | ) | |||
| Less: Marketable securities | (55.9 | ) | (53.7 | ) | 4.1 | ||||
| Less: Availability on used vehicle and service loaner financing facilities | (0.2 | ) | (24.3 | ) | (99.2 | ) | |||
| Net Debt | $ | 5,001.8 | $ | 3,986.4 | 25.5 | % | |||
| TTM Adjusted EBITDA | $ | 1,629.4 | $ | 1,596.5 | 2.1 | % | |||
| Net debt to Adjusted EBITDA | 3.07 | x | 2.50 | x | |||||
NM - not meaningful
Contact: Jardon Jaramillo Senior Director - Finance and Investor Relations IR@lithia.com (503) 799-5254