"Lithia Motors ( NYSE: LAD) beat both revenue and earnings estimates in Q3 2025, posting $9.70 billion in sales and adjusted EPS of $9.50-outpacing consensus by $210 million and 89 cents, respectively. The automotive retailer's results reflect disciplined execution across its dealership network, with same-store used retail sales climbing 11.8% and after-sales gross profit rising 9.1% on a comparable basis."
"LAD's Q3 revenue grew 5.19% year-over-year, while net income expanded 4.54% to $218.6 million. The adjusted EPS beat-up 17% YoY-signals margin expansion beyond top-line growth, a key signal that the company is managing inventory costs and labor expenses effectively in a competitive retail environment. Gross profit of $1.466 billion reflects the company's diversified revenue streams. While new vehicle sales remain cyclical, LAD's after-sales business (service, parts, F&I) grew 9.1% same-store, demonstrating stickiness in higher-margin recurring revenue."
"Management returned capital aggressively: the company repurchased 5.1% of outstanding shares during the quarter, reducing share count and supporting EPS growth independent of operational gains. The $0.55 per-share dividend remained consistent, signaling confidence in cash generation. LAD also closed three acquisitions in South Florida-Palm Beach Acura, West Palm Beach Hyundai, and West Palm Beach Genesis-expected to contribute $220 million in annualized revenue. These bolt-on deals target high-income markets and expand the company's luxury and import franchise footprint, areas with stronger per-unit profitability than mass-market segments."
Lithia Motors reported Q3 2025 sales of $9.70 billion and adjusted EPS of $9.50, topping estimates by $210 million and $0.89. Revenue rose 5.19% year-over-year and net income increased 4.54% to $218.6 million, while adjusted EPS improved 17% year-over-year, indicating margin expansion. Gross profit totaled $1.466 billion, with same-store after-sales gross profit up 9.1% and same-store used retail sales up 11.8%. Management repurchased 5.1% of shares and maintained a $0.55 per-share dividend. Three South Florida acquisitions are expected to add about $220 million in annualized revenue and expand luxury/import presence.
#lithia-motors #q3-2025-results #used-vehicle-sales #after-sales-margins #capital-allocation--acquisitions
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