Competitive AdvantageAround 45% of Lithia Motors' inventory is not impacted by tariffs, which is expected to provide a competitive advantage compared to peers with a more tariff-exposed mix.
Cost EfficiencyThe company executed on inventory and personnel cost reductions with a 120bps decline in SG&A y/y – the first y/y decline since 2022 – and identified further cost-cutting opportunities.
Profitability And GrowthDriveway Finance, a key LT EPS driver, is now profitable at $4B in scale with growth toward 15–20% mid-term target.