MEDFORD, Ore., July 29, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD), the largest global automotive retailer, reported financial results for the second quarter of 2026 and announced a 23% increase in its quarterly dividend.

Key Highlights

• Record second-quarter revenues of $9.8 billion
• Used retail GPUs increased $339, or 20%, sequentially
• Aftersales gross profit increased 3.1%, and gross margin was 59.2%, a 120-basis-point increase, on a same-store basis
• Adjusted SG&A as a percent of gross profit was 68.6%, a 290-basis-point sequential improvement
• Financing Operations delivered record income of $37 million and record originations of $884 million, with a 17.5% penetration rate
• Second-quarter diluted earnings per share of $11.54, up 17%, and adjusted diluted earnings per share of $10.03, up 9%
• Repurchased $242 million of shares, equal to 3.7% of outstanding shares in the quarter and 7.6% in the first half of 2026
• Quarterly dividend increased 23%

"Our team delivered differentiated growth across the platform, with record quarterly revenues, stable new vehicle margins, improved used vehicle profitability, and meaningful sequential SG&A improvement. Financing Operations delivered 80% income growth, with expanding margins and increasing penetration," said Bryan DeBoer, President and CEO. "We continued to return value to shareholders this quarter, expanding our repurchase authorization by $500 million and purchasing nearly 4% of shares. Our ecosystem is delivering on its design, and we carry strong momentum into the second half of the year."

Second-Quarter 2026 Results

Revenue in the second quarter of 2026 increased 2% to $9.8 billion from $9.6 billion in the second quarter of 2025.

Diluted earnings per share attributable to LAD were $11.54, compared with $9.87 per share in the prior-year quarter, an increase of 17%.

After adjusting for the unrealized gain on Lithia & Driveway’s investment in Pinewood Technologies Group PLC and other non-core items, adjusted diluted earnings per share attributable to LAD were $10.03, up 9% from $9.20 in the same period of 2025.

Net income in the second quarter was $261.6 million, compared with $258.2 million a year earlier, an increase of 1.3%.

After adjusting for the unrealized gain on the Pinewood Technologies Group PLC investment and other non-core items, adjusted net income was $227.6 million, down 6% from $240.9 million in the second quarter of 2025.

The company said the financial measures in the release include both GAAP and non-GAAP measures.

For the first six months of 2026, revenue increased 2% to $19.1 billion from $18.8 billion in 2025. Diluted earnings per share attributable to LAD were $15.68, compared with $17.80 in the prior-year period, a decrease of 12%. Adjusted diluted earnings per share attributable to LAD increased 1% to $17.32 from $17.12.

Corporate Development

During the second quarter of 2026, Lithia & Driveway acquired five stores expected to generate $340 million in annualized revenues and divested three stores representing $120 million in annualized revenues.

Balance Sheet and Capital Return

Lithia & Driveway ended the second quarter with approximately $1.3 billion in cash and cash equivalents, marketable securities, and availability on revolving lines of credit.

The Board of Directors approved a quarterly dividend of $0.70 per share related to second-quarter 2026 results. The dividend is expected to be paid on August 21, 2026, to shareholders of record on August 7, 2026.

During the quarter, the company repurchased about 854,000 shares at a weighted average price of $284. Under the current share repurchase authorization, approximately $620 million remained available as of June 30, 2026.

Conference Call

The second-quarter 2026 conference call was scheduled for 10:00 a.m. ET on July 29, 2026, by telephone at 877-407-8029. An updated presentation highlighting second-quarter 2026 results was added to the company’s investor relations website. Live access and replay are available at investors.lithiadriveway.com by clicking on Quarterly Earnings.

About Lithia & Driveway

Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer, offering a wide range of products and services throughout the vehicle ownership lifecycle. The company says it provides simple, convenient, and transparent experiences through its network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and related businesses.

The company listed the following sites: www.lithia.com, investors.lithiadriveway.com, www.lithiacareers.com, www.driveway.com, www.greencars.com, and www.drivewayfinancecorp.com.

Lithia & Driveway on Facebook: and

Lithia & Driveway on X: https://x.com/lithiamotors, https://x.com/DrivewayHQ, and https://x.com/GreenCarsHQ

Lithia & Driveway on LinkedIn:

Lithia & Driveway on YouTube: https://www.youtube.com/@Lithia_Motors/featured

Contact: Skyya for Lithia & Driveway, [email protected]

Forward-Looking Statements

Certain statements in this presentation, and at times made by the company’s officers and representatives, constitute forward-looking statements within the meaning of the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995. The company said these statements generally can be identified by words 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 their negatives and similar terms.

Examples of forward-looking statements in the presentation include, among others, statements regarding the profitability of the company’s strategy and growth; future market conditions, including vehicle and other sales, gross profit, and inventory supply; business strategy and long-term financial targets; the growth, expansion, make-up, and success of the network, including accretive acquisitions that meet target valuations and additional store purchases; annualized revenues from acquired stores or target returns; the growth and performance of the Driveway e-commerce home solution and Driveway Finance Corporation, their synergies, and other impacts on the business; the impact of sustainable vehicles, market and regulatory changes, and evolving vehicle distribution models; capital allocation and future capital expenditures; expected operating results, including store performance and SG&A as a percentage of gross profit; anticipated financial condition and liquidity; continued share repurchases; compliance with financial and restrictive covenants; programs for team member recruitment, training, and retention; and strategies and targets for customer retention, growth, market position, operations, financial results, and risk management.

The company said forward-looking statements are subject to uncertainties, risks, and changes in circumstances that are difficult to predict and often outside its control. It added that actual results may differ materially from those expressed or implied by forward-looking statements and that investors should not rely on them.

The company identified potential risks and uncertainties including future national and local economic and financial conditions, including inflation, interest rates, tariffs, governmental actions, programs and spending, and public health issues; the market for dealerships and the availability of stores at acceptable prices; changes in customer demand, consumer debt, consumer confidence, manufacturer sales incentives, and the electric vehicle landscape; changes in relationships with OEMs and other suppliers and vehicle delivery models; changes in the competitive landscape and the company’s ability to deliver new products, services, customer experiences, and a portfolio of in-demand vehicles; risks associated with indebtedness, including borrowing capacity, interest rates, covenant compliance, and refinancing or repayment on favorable terms; adequacy of cash flows and conditions affecting capital expenditures, financing, and dividend payments; disruptions to technology networks, computer systems, severe weather, or other disruptions to operating systems, facilities, or equipment; government regulations and legislation; and the risks set forth in the company’s most recent Annual Report on Form 10-K and Quarterly Reports on Form 10-Q, as well as other SEC filings.

The company said any forward-looking statement is based only on information currently available as of the date it is made and that it undertakes no obligation to update such statements except as required by law.

Non-GAAP Financial Measures

Lithia & Driveway said all "adjusted" financial measures in the presentation are non-GAAP financial measures, as are EBITDA and net debt. The company noted that non-GAAP measures do not have definitions under GAAP and may not be comparable to similarly titled measures used by other companies.

The company said it presents cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve visibility into cash flows related to vehicle financing. It said it has reconciled these measures to the most directly comparable GAAP measures in the attachments to the release, and that the non-GAAP measures are intended to improve transparency and period-to-period comparability. The company said these measures should not be considered an alternative to GAAP measures.

Additional Notes

The release also included unaudited consolidated statements of operations, key performance metrics, same-store operating highlights, other highlights, selected financing operations financial information, condensed consolidated balance sheets, condensed consolidated statements of cash flows, reconciliation of non-GAAP cash flow from operations, and reconciliation of certain non-GAAP financial measures. It also noted that the impact of converting inventory-secured revolvers to floorplan facilities during 2026 increased net floorplan borrowings and adjusted operating cash flows by $1,138.3 million.