Lithia Motors (LAD)
NYSE:LAD
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Earnings Data
Report Date
Jul 22, 2026Before Open (Confirmed)
Period Ending
2026 (Q2)Consensus EPS Forecast
8.76Last Year’s EPS
10.24Same Quarter Last Year
Moderate Buy
Based on 10 Analysts Ratings
Earnings Call Summary
Earnings Call Sentiment|Positive
The call highlighted multiple operating strengths — record revenue and EPS, clear progress scaling the captive finance business (DFC), sequential improvements in used retail and aftersales, strong UK performance, and aggressive capital returns — demonstrating resilience and an omnichannel advantage. However, meaningful near-term headwinds remain (new vehicle revenue and GPU declines, adjusted EBITDA down 9% YoY, SG&A as a percent of gross higher YoY), and some positive cash flow was supported by a one-time benefit. Management outlined concrete structural initiatives (cost discipline, Pinewood AI, sales/service reorganization) that should drive improvements but will take time to fully materialize. On balance, the highlights and growth levers conveyed on the call outweigh the lowlights tied to cyclical margin pressure and near-term comps, supporting a constructive outlook if execution continues.Company Guidance
Record Revenue and Strong EPS
Reported record revenues of $9.3 billion for Q1 FY2026 and adjusted diluted EPS of $7.34, demonstrating resilient top-line performance and high-quality earnings versus macro and weather headwinds.
Driveway Finance (DFC) Scaling Rapidly
DFC financing operations income was $21 million, up 71% year-over-year; record originations of $840 million (Tina), portfolio reached $5 billion, North American penetration hit a record 18%, NIM increased to 4.8% (+20 bps), and annualized provision rate remained low at ~3% with average origination FICO ~750 and ~95% LTV.
Used Retail and Aftersales Strength
Same-store used vehicle revenue grew 4.6% with unit growth +0.6%; used GPU sequentially improved to $1,680 (up from $1,575 in Q4) despite a year-over-year decline of $115; aftersales revenue growth was 3.8% with gross profit up 5.7% and margins expanding to 58.7%; customer-pay GP +6.5% and warranty GP +5%.
Inventory and Unit Economics Improving Sequentially
Total vehicle GPU of $3,928 essentially flat sequentially (Q4: $3,946), new vehicle day supply improved to 49 days from 54 days, used inventory days improved to 47 from 48 — positive signals heading into the seasonally stronger period.
Capital Allocation and Share Repurchases
Maintained aggressive buyback pace, repurchasing approximately 4% of outstanding shares in the quarter with total repurchases of $259 million (average price ~$275), reflecting strong free cash flow generation and balance sheet flexibility.
UK Operational Momentum
U.K. gross profit up 12.5% year-over-year; SG&A as a percentage of gross profit improved ~440 basis points year-over-year; adjusted pretax income in the U.K. grew 78%, driven by network optimization and successful brand/portfolio adjustments.
Platform & Digital Progress (Pinewood AI and Marketplaces)
Ongoing partnership with Pinewood AI aiming to streamline DMS/CRM and customer experience; pilots planned in U.S. later this year. Driveway marketplace volumes up ~8% and new-vehicle transactions via Driveway increased markedly (~500% YoY on a small base), expanding omnichannel reach and acquisition funnel.
Free Cash Flow and Adjusted Cash Flow Results
Adjusted cash flow from operations (proxy for free cash flow) was $381 million for the quarter (includes a one-time $1.1 billion benefit tied to conversion to VIN-specific used vehicle floor plan) enabling acquisitions and buybacks.
LAD Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed
LAD Earnings-Related Price Changes
Report Date | Price 1 Day Before | Price 1 Day After | Percentage Change |
|---|---|---|---|
Apr 29, 2026 | $277.24 | $291.00 | +4.96% |
Feb 11, 2026 | $325.88 | $319.75 | -1.88% |
Oct 22, 2025 | $310.64 | $307.13 | -1.13% |
Jul 29, 2025 | $305.28 | $288.08 | -5.63% |
Earnings announcements can affect a stock’s price. This table shows the stock's price the day before and the day after recent earnings reports, including the percentage change.
FAQ
When does Lithia Motors (LAD) report earnings?
Lithia Motors (LAD) is schdueled to report earning on Jul 22, 2026, Before Open (Confirmed).
What is Lithia Motors (LAD) earnings time?
Lithia Motors (LAD) earnings time is at Jul 22, 2026, Before Open (Confirmed).
Where can I see when companies are reporting earnings?
You can see which companies are reporting today on our designated earnings calendar.
What companies are reporting earnings today?
You can see a list of the companies which are reporting today on TipRanks earnings calendar.
What is LAD EPS forecast?
LAD EPS forecast for the fiscal quarter 2026 (Q2) is 8.76.
