Lithia & Driveway's Q2 2025 earnings call highlighted strong revenue and EPS growth, driven by impressive performance in aftersales and financing operations. While the company is effectively deploying capital through share buybacks and acquisitions, challenges remain with declining vehicle gross profit, higher SG&A costs, and ongoing issues in the U.K. market. Despite these challenges, the overall sentiment remains positive due to the company's robust growth and strategic initiatives.

Company Guidance -

Q3 2025

In the second quarter of 2025, Lithia & Driveway reported significant financial growth, with a 29% increase in EPS year-over-year and record revenue of $9.6 billion, alongside a 4% same-store revenue increase. Diluted earnings per share were up 25% to $9.87, and an adjusted EPS rose by 30% to $10.24. The company achieved record profitability in financing operations and expanded aftersales margins while maintaining flat SG&A costs despite lower GPUs. Aftersales contributed over 60% of the net profit, with same-store aftersales gross profit growing by 8.5% year-over-year, and gross profit margins widening to 57.8%. The company's financing operations delivered a 4.5% year-over-year growth in same-store sales gross profit, with a $1,841 per unit basis, reflecting a $25 increase from the previous year. The company leveraged its omnichannel platform to expand customer engagement and drive margin improvements, while strategic acquisitions and an increase in share buybacks also contributed to its growth strategy.

Record Revenue and EPS Growth

Lithia & Driveway achieved a record revenue of $9.6 billion in Q2 2025, with a 4% year-over-year same-store revenue increase. The company also reported a 29% increase in EPS year-over-year, with diluted earnings per share for the quarter at $9.87 and $10.24 on an adjusted basis, marking an increase of 25% and 30% year-over-year, respectively.

Strong Performance in Aftersales and Financing Operations

Aftersales gross profit grew 8.5% year-over-year, with a gross profit margin widening to 57.8%. Financing operations income more than doubled year-over-year from $7 million to $20 million, supported by a 50 basis point expansion in net interest margin to 4.6%.

Successful Capital Deployment and Share Buybacks

In H1 2025, Lithia & Driveway repurchased 3% of its outstanding shares. The company is targeting up to 50% of free cash flow for share buybacks, capitalizing on the meaningful disconnect between stock price and intrinsic value.

Lithia Motors (LAD) Earnings, Revenues Date & History

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LAD Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change	Slides	Play Transcript
Oct 15, 2025	2025 (Q3)	9.03 / -	8.21	―	―	―
Jul 29, 2025	2025 (Q2)	9.24 / 10.24	7.87	30.11% (+2.37)
Apr 23, 2025	2025 (Q1)	7.86 / 7.66	6.11	25.37% (+1.55)
Feb 12, 2025	2024 (Q4)	7.17 / 7.79	8.24	-5.46% (-0.45)
Oct 23, 2024	2024 (Q3)	7.60 / 8.21	9.25	-11.24% (-1.04)
Aug 01, 2024	2024 (Q2)	7.00 / 7.87	10.91	-27.86% (-3.04)
Apr 24, 2024	2024 (Q1)	7.62 / 6.11	8.44	-27.61% (-2.33)
Feb 14, 2024	2023 (Q4)	8.20 / 8.24	9.05	-8.95% (-0.81)
Oct 25, 2023	2023 (Q3)	9.99 / 9.25	11.08	-16.52% (-1.83)
Jul 26, 2023	2023 (Q2)	9.26 / 10.91	12.18	-10.43% (-1.27)

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
Jul 29, 2025	$307.07	$289.77	-5.63%
Apr 23, 2025	$294.92	$277.79	-5.81%
Feb 12, 2025	$367.40	$384.36	+4.62%
Oct 23, 2024	$303.04	$333.65	+10.10%

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.