LITHIA MOTORS INC SEC 10-Q Report
Lithia Motors Inc., a leading provider of automotive retail services, has released its Form 10-Q report for the third quarter of 2025. The report highlights the company's robust financial performance and significant operational achievements, driven by strategic acquisitions and enhanced customer experiences through both physical and digital platforms.
Financial Highlights
Total Revenues: $28,437.1 million, increased by 5.3% compared to the same period in 2024, primarily driven by acquisition growth and supported by same store increases in aftersales and F&I.
Total Gross Profit: $4,361.5 million, increased by 4.1% compared to 2024, with aftersales contributing significantly to the overall profitability.
Operating Income: $1,253.3 million, increased due to improved profitability of Financing Operations and increased gross profit, partially offset by increased SG&A expenses.
Net Income: $688.0 million, reflecting an increase primarily due to the growth in total gross profit and financing operations.
Diluted Earnings Per Share (EPS): $26.42, reflecting the company's strong financial performance and effective cost management strategies.
Business Highlights
Revenue Segments: The company reported increases in revenue across several segments, including new vehicle retail, used vehicle retail, finance and insurance, and aftersales. Used vehicle retail saw an 8.9% increase in revenue for Q3 2025 compared to Q3 2024, driven by same store performance and acquisition activity.
Geographical Performance: The company operates 447 locations across the United States, the United Kingdom, and Canada, representing 52 brands. The expansion into these regions has been supported by acquisition activity, which has increased proximity to consumers and diversified the brand and geographic mix.
Sales Units: In Q3 2025, the company sold 96,639 new vehicles and 109,097 used vehicles, marking a 1.8% and 4.0% increase, respectively, compared to Q3 2024. The average selling price per new vehicle increased by 2.7% to $47,913, while the average selling price per used vehicle increased by 4.7% to $28,381.
New Product Launches: The company continues to enhance its Driveway and GreenCars e-commerce platforms, which complement in-store experiences and provide differentiated digital experiences for customers.
Future Outlook: The company aims to continue its growth through acquisitions and network optimization, targeting an annual after-tax return of more than 15% for acquisitions. It also plans to focus on operational excellence, innovation, and diversification to drive customer loyalty and optimize profitability.
Operational Strategy: The company emphasizes a seamless, blended online and physical retail experience, supported by a comprehensive network of physical locations and e-commerce platforms. It aims to increase market share by focusing on consumer experience and applying proprietary performance measurement systems fueled by data science.
Aftersales Performance: Aftersales revenue increased by 2.4% in Q3 2025 compared to Q3 2024, driven by same store performance and acquisition activity. The company focuses on retaining customers through competitively-priced routine maintenance and marketing efforts.
Financing Operations: The company's financing operations recorded higher income in Q3 2025 compared to Q3 2024, primarily due to increased interest income from portfolio growth and decreased cost of funds. The penetration rate for vehicle financing increased to 14.5% in Q3 2025 from 11.6% in Q3 2024.
Operational Efficiency: The company centralizes many administrative functions to drive efficiencies and streamline store-level operations, allowing local managers to focus on serving customers and increasing revenues and gross profit.
SEC Filing: LITHIA MOTORS INC [ LAD ] - 10-Q - Oct. 24, 2025