Lithia & Driveway (LAD) Reports Fourth Quarter Results and Full Year Results
- Record full year revenues of $37.63 billion, a 4.0% increase; Record fourth quarter revenue of $9.20 billion
- Full year diluted earnings per share increased 9.7% and adjusted diluted earnings per share increased 15.7%
- Same-store sales nearly flat in the quarter
- Used revenue increased 6.1% and used retail units increased 4.7% on a same store basis in the quarter
- Aftersales revenue increased 10.9% and gross profit increased by 9.8% on a same store basis in the quarter
- Financing operations delivered record quarterly income of $23 million, a $19 million increase from the prior year
- Driveway Finance Corporation achieved a 15.0% penetration rate with an average FICO of 751 in the quarter
- Fourth quarter diluted earnings per share of $5.72 and adjusted diluted earnings per share of $6.74.
- Repurchased $947 million of shares, 11.4% of shares outstanding in 2025, including 3.8% of outstanding shares in the quarter
- Strategic acquisitions totaling $2.4 billion of annual revenue
MEDFORD, Ore., Feb. 11, 2026 /PRNewswire/ -- Lithia & Driveway (NYSE:LAD), largest global automotive retailer, today reported financial results for the fourth quarter and full year 2025.
"Our team delivered strong growth in used vehicles and aftersales, despite headwinds in new vehicles and continued margin pressures. This resulted in industry-leading same store gross profits declines of only 1%. Driveway Finance Corporation delivered record quarterly income while achieving strong penetration with excellent credit quality." said Bryan DeBoer, President and CEO. "We remained disciplined in capital allocation, repurchasing over 11% of outstanding shares in 2025 while maintaining balance sheet strength. As we look ahead, our diversified platform and operational discipline position us to navigate a dynamic market and capitalize on opportunities."
Fourth Quarter 2025 Operational Summary
Fourth quarter 2025 revenue increased 0.3% to $9.20 billion from $9.17 billion in the fourth quarter of 2024.
Fourth quarter 2025 diluted earnings per share attributable to LAD was $5.72, a 28% decrease from $7.98 per share reported in the fourth quarter of 2024. Fourth quarter 2025 adjusted diluted earnings per share attributable to LAD was $6.74, a 12% decrease compared to $7.62 per share in the same period of 2024.
Fourth quarter 2025 net income was $137.9 million, a 35.5% decrease compared to net income of $213.7 million in the same period of 2024. Adjusted fourth quarter 2025 net income was $162.2 million, a 21% decrease compared to adjusted net income of $204.2 million for the same period of 2024.
The financial measures discussed include both GAAP and non-GAAP measures. See "Reconciliation of Certain Non-GAAP Measures".
Full Year 2025 Operational Summary
Full year 2025 revenue increased 4.0% to a record $37.63 billion from $36.19 billion in 2024.
Full year 2025 diluted earnings per share attributable to LAD was $32.32, a 10% increase from $29.45 per share reported in 2024. Full year 2025 adjusted diluted earnings per share attributable to LAD was $33.46, a 16% increase from $28.92 per share reported in 2024. Full year 2025 net income increased 1% to $825.9 million from $816.3 million for 2024. Adjusted net income increased 8% to $854.7 million for 2025 from $790.4 million for 2024.
Corporate Development
During the fourth quarter, LAD acquired a total of eleven stores across North America and the United Kingdom, which are expected to generate $1.6 billion in annualized revenues. For the full year 2025, LAD acquired $2.4 billion of expected annualized revenues, while divesting $1.3 billion.
Balance Sheet Update
LAD ended the fourth quarter with approximately $1.5 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit.
Dividend Payment and Share Repurchases
The Board of Directors approved a dividend of $0.55 per share related to fourth quarter 2025 financial results. The dividend is expected to be paid on March 20, 2026 to shareholders of record on March 6, 2026.
During the fourth quarter 2025, we repurchased approximately 917,427 shares at a weighted average price of $314. In 2025, we have repurchased approximately 3,020,000 shares at a weighed average price of $314. Under the current share repurchase authorization approximately $621.6 million remains available.
Fourth Quarter Earnings Conference Call and Updated Presentation
The fourth quarter 2025 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting the fourth quarter 2025 results has been added to our investor relations website. To listen live on our website or for replay, visit investors.lithiadriveway.com and click on quarterly earnings.
About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE:LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire.
Sites
www.lithia.com
investors.lithiadriveway.com
www.lithiacareers.com
www.driveway.com
www.greencars.com
www.drivewayfinancecorp.com
Lithia & Driveway on Facebook
https://www.facebook.com/LithiaMotors
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiamotors
https://x.com/DrivewayHQ
https://x.com/GreenCarsHQ
Lithia & Driveway on LinkedIn
https://www.linkedin.com/company/lithia-motors/
Lithia & Driveway on YouTube
https://www.youtube.com/@Lithia_Motors/featured
Forward-Looking Statements
Certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as "project," "outlook," "target," "may," "will," "would," "should," "seek," "expect," "plan," "intend," "forecast," "anticipate," "believe," "estimate," "predict," "potential," "likely," "ensure," "goal," "strategy," "future," "maintain," and "continue" or the negative of these terms or other comparable terms. Examples of forward-looking statements in this presentation include, among others, statements regarding:
- The profitability of our strategy and growth
- Future market conditions, including anticipated vehicle and other sales, gross profit and inventory supply
- Our business strategy and plans, including our achieving our long-term financial targets
- The growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional stores
- Annualized revenues from acquired stores or achieving target returns
- The growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targets
- The impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution models
- Our capital allocations and uses and levels of capital expenditures in the future
- Expected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projections
- Our anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate and other financing sources
- Our continuing to purchase shares under our share repurchase program
- Our compliance with financial and restrictive covenants in our credit facilities and other debt agreements
- Our programs and initiatives for team member recruitment, training, and retention
- Our strategies and targets for customer retention, growth, market position, operations, financial results and risk management
Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this presentation. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation:
- Future national and local economic and financial conditions, including as a result of inflation, tariffs, governmental actions, programs and spending, and public health issues
- The market for dealerships, including the availability of stores to us for an acceptable price
- Changes in customer demand and the electric vehicle landscape and the impact of evolving digital technologies
- Changes in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery models
- Changes in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehicles
- Risks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms
- The adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levels
- Disruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipment
- Government regulations and legislation
- The risks set forth throughout "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and in "Part I, Item 1A. Risk Factors" of our most recent Annual Report on Form 10-K, and in "Part II, Item 1A. Risk Factors" of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC.
Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise.
Non-GAAP Financial Measures
This presentation contains non-GAAP financial measures, which may include adjusted net income, adjusted net income attributable to LAD, adjusted net income attributable to non-controlling interests, adjusted net income attributable to redeemable non-controlling interest, adjusted diluted earnings per share attributable to LAD, adjusted SG&A, adjusted SG&A as a percentage of revenue and gross profit, adjusted operating income, adjusted net cash provided by operating activities, adjusted income before income taxes, adjusted income tax (provision) benefit, adjusted operating profit as a percentage of revenue and gross profit, adjusted pre-tax margin and net profit margin, EBITDA, adjusted EBITDA and net debt. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. As a result, we review any non-GAAP financial measures in connection with a review of the most directly comparable measures calculated in accordance with GAAP. We caution you not to place undue reliance on such non-GAAP measures, but also to consider them with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.
LAD Consolidated Statements of Operations (Unaudited) (In millions except per share data) | |||||||||||
Three months ended | % | Twelve months ended | % | ||||||||
Increase | Increase | ||||||||||
2025 | 2024 | (Decrease) | 2025 | 2024 | (Decrease) | ||||||
Revenues: | |||||||||||
New vehicle | $ 4,626.7 | $ 4,908.7 | (5.7) % | $ 18,703.0 | $ 18,322.8 | 2.1 % | |||||
Used vehicle | 3,179.2 | 2,979.7 | 6.7 | 13,371.5 | 12,628.8 | 5.9 | |||||
Finance and insurance | 356.9 | 355.8 | 0.3 | 1,473.6 | 1,417.7 | 3.9 | |||||
Aftersales | 1,035.0 | 929.3 | 11.4 | 4,086.8 | 3,818.9 | 7.0 | |||||
Total revenues | 9,197.8 | 9,173.5 | 0.3 % | 37,634.9 | 36,188.2 | 4.0 % | |||||
Cost of sales: | |||||||||||
New vehicle | 4,355.8 | 4,585.1 | (5.0) | 17,533.9 | 17,037.3 | 2.9 | |||||
Used vehicle | 3,029.1 | 2,821.5 | 7.4 | 12,638.3 | 11,905.1 | 6.2 | |||||
Aftersales | 441.5 | 395.4 | 11.7 | 1,729.7 | 1,684.8 | 2.7 | |||||
Total cost of sales | 7,826.4 | 7,802.0 | 0.3 | 31,901.9 | 30,627.2 | 4.2 | |||||
Gross profit | 1,371.4 | 1,371.5 | — % | 5,733.0 | 5,561.0 | 3.1 % | |||||
Finance operations income | 22.9 | 4.3 | 432.6 % | 74.6 | 8.4 | 788.1 % | |||||
Asset impairments | 5.8 | — | NM | 5.8 | — | NM | |||||
SG&A expense | 979.3 | 902.1 | 8.6 | 3,944.7 | 3,755.2 | 5.0 | |||||
Depreciation and amortization | 67.8 | 62.1 | 9.2 | 262.4 | 245.6 | 6.8 | |||||
Income from operations | 341.4 | 411.6 | (17.1) % | 1,594.7 | 1,568.6 | 1.7 % | |||||
Floor plan interest expense | (58.3) | (64.8) | (10.0) | (228.2) | (278.8) | (18.1) | |||||
Other interest expense | (75.0) | (68.4) | 9.6 | (275.5) | (257.8) | 6.9 | |||||
Other (expense) income | (18.5) | 3.9 | (574.4) | 17.4 | 39.3 | (55.7) | |||||
Income before income taxes | 189.6 | 282.3 | (32.8) % | 1,108.4 | 1,071.3 | 3.5 % | |||||
Income tax expense | (51.7) | (68.6) | (24.6) | (282.5) | (255.0) | 10.8 | |||||
Income tax rate | 27.3 % | 24.3 % | 25.5 % | 23.8 % | |||||||
Net income | $ 137.9 | $ 213.7 | (35.5) % | $ 825.9 | $ 816.3 | 1.2 % | |||||
Net income attributable to non-controlling interests | (1.1) | (1.0) | 10.0 % | (6.3) | (4.8) | 31.3 % | |||||
Net income attributable to redeemable non- controlling interest | — | — | NM | — | (14.8) | (100.0) % | |||||
Net income attributable to LAD | $ 136.8 | $ 212.7 | (35.7) % | $ 819.6 | $ 796.7 | 2.9 % | |||||
Diluted earnings per share attributable to LAD: | |||||||||||
Net income per share | $ 5.72 | $ 7.98 | (28.3) % | $ 32.32 | $ 29.45 | 9.7 % | |||||
Diluted shares outstanding | 23.9 | 26.6 | (10.2) % | 25.4 | 27.1 | (6.3) % | |||||
NM - not meaningful | |||||||||||
LAD Key Performance Metrics (Unaudited) | |||||||||||
Three months ended | % | Twelve months ended | % | ||||||||
Increase | Increase | ||||||||||
2025 | 2024 | (Decrease) | 2025 | 2024 | (Decrease) | ||||||
Gross margin | |||||||||||
New vehicle | 5.9 % | 6.6 % | (70) bps | 6.3 % | 7.0 % | (70) bps | |||||
Used vehicle | 4.7 | 5.3 | (60) | 5.5 | 5.7 | (20) | |||||
Finance and insurance | 100.0 | 100.0 | — | 100.0 | 100.0 | — | |||||
Aftersales | 57.3 | 57.4 | (10) | 57.7 | 55.9 | 180 | |||||
Gross profit margin | 14.9 | 15.0 | (10) | 15.2 | 15.4 | (20) | |||||
Unit sales | |||||||||||
New vehicle | 97,424 | 106,027 | (8.1) % | 402,575 | 406,286 | (0.9) % | |||||
Used vehicle retail | 99,905 | 95,342 | 4.8 | 425,381 | 411,925 | 3.3 | |||||
Average selling price (excluding agency) | |||||||||||
New vehicle | $ 48,239 | $ 47,478 | 1.6 % | $ 47,426 | $ 46,259 | 2.5 % | |||||
Used vehicle retail | 28,533 | 27,674 | 3.1 | 28,118 | 27,356 | 2.8 | |||||
Average gross profit per unit | |||||||||||
New vehicle | $ 2,781 | $ 3,053 | (8.9) % | $ 2,904 | $ 3,164 | (8.2) % | |||||
Used vehicle retail | 1,555 | 1,694 | (8.2) | 1,756 | 1,769 | (0.7) | |||||
Finance and insurance | 1,869 | 1,852 | 0.9 | 1,844 | 1,813 | 1.7 | |||||
Total vehicle(1) | 3,942 | 4,160 | (5.2) | 4,077 | 4,188 | (2.7) | |||||
Revenue mix | |||||||||||
New vehicle | 50.3 % | 53.5 % | 49.7 % | 50.6 % | |||||||
Used vehicle | 34.6 | 32.5 | 35.5 | 34.9 | |||||||
Finance and insurance, net | 3.9 | 3.9 | 3.9 | 3.9 | |||||||
Aftersales | 11.2 | 10.1 | 10.9 | 10.6 | |||||||
Gross Profit Mix | |||||||||||
New vehicle | 19.8 % | 23.6 % | 20.4 % | 23.1 % | |||||||
Used vehicle | 10.9 | 11.5 | 12.8 | 13.0 | |||||||
Finance and insurance, net | 26.0 | 25.9 | 25.7 | 25.5 | |||||||
Aftersales | 43.3 | 39.0 | 41.1 | 38.4 | |||||||
Adjusted | As reported | Adjusted | As reported | ||||||||||||
Three months ended | Three months ended | Twelve months ended | Twelve months ended | ||||||||||||
Other metrics | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | 2025 | 2024 | |||||||
SG&A as a % of revenue | 10.7 % | 9.9 % | 10.6 % | 9.8 % | 10.5 % | 10.4 % | 10.5 % | 10.4 % | |||||||
SG&A as a % of gross profit | 71.4 | 66.3 | 71.4 | 65.8 | 68.7 | 67.4 | 68.8 | 67.5 | |||||||
Operating profit as a % of revenue | 3.8 | 4.4 | 3.7 | 4.5 | 4.3 | 4.4 | 4.2 | 4.3 | |||||||
Operating profit as a % of gross profit | 25.3 | 29.5 | 24.9 | 30.0 | 28.0 | 28.3 | 27.8 | 28.2 | |||||||
Pretax margin | 2.4 | 3.0 | 2.1 | 3.1 | 3.0 | 2.9 | 2.9 | 3.0 | |||||||
Net profit margin | 1.8 | 2.2 | 1.5 | 2.3 | 2.3 | 2.2 | 2.2 | 2.3 | |||||||
(1) Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail |
LAD Same Store Operating Highlights (Unaudited) | |||||||||||
Three months ended | % | Twelve months ended | % | ||||||||
Increase | Increase | ||||||||||
2025 | 2024 | (Decrease) | 2025 | 2024 | (Decrease) | ||||||
Revenues | |||||||||||
New vehicle | $ 4,458.1 | $ 4,773.4 | (6.6) % | $ 17,912.0 | $ 17,681.6 | 1.3 % | |||||
Used vehicle | 3,041.7 | 2,865.8 | 6.1 | 12,658.5 | 11,969.4 | 5.8 | |||||
Finance and insurance | 344.9 | 348.0 | (0.9) | 1,419.3 | 1,376.8 | 3.1 | |||||
Aftersales | 995.1 | 897.2 | 10.9 | 3,892.0 | 3,661.6 | 6.3 | |||||
Total revenues | 8,839.8 | 8,884.4 | (0.5) | 35,881.8 | 34,689.4 | 3.4 | |||||
Gross profit | |||||||||||
New vehicle | $ 260.1 | $ 314.5 | (17.3) % | $ 1,120.0 | $ 1239.3 | (9.6) % | |||||
Used vehicle | 146.3 | 155.9 | (6.2) | 705.6 | 713.2 | (1.1) | |||||
Finance and insurance | 344.9 | 348.0 | (0.9) | 1,419.3 | 1,376.8 | 3.1 | |||||
Aftersales | 570.0 | 519.1 | 9.8 | 2,252.5 | 2,058.3 | 9.4 | |||||
Total gross profit | 1,321.3 | 1,337.5 | (1.2) | 5,497.4 | 5,387.6 | 2.0 | |||||
Gross margin | |||||||||||
New vehicle | 5.8 % | 6.6 % | (80) bps | 6.3 % | 7.0 % | (70) bps | |||||
Used vehicle | 4.8 | 5.4 | (60) | 5.6 | 6.0 | (40) | |||||
Finance and insurance | 100.0 | 100.0 | — | 100.0 | 100.0 | — | |||||
Aftersales | 57.3 | 57.9 | (60) | 57.9 | 56.2 | 170 | |||||
Gross profit margin | 14.9 | 15.1 | (20) | 15.3 | 15.5 | (20) | |||||
Unit sales | |||||||||||
New vehicle | 94,046 | 102,596 | (8.3) % | 385,991 | 390,779 | (1.2) % | |||||
Used vehicle retail | 96,342 | 92,045 | 4.7 | 403,137 | 389,081 | 3.6 | |||||
Average selling price (excluding agency) | |||||||||||
New vehicle | $ 48,177 | $ 47,732 | 0.9 % | $ 47,382 | $ 46,434 | 2.0 % | |||||
Used vehicle retail | 28,304 | 27,594 | 2.6 | 28,078 | 27,417 | 2.4 | |||||
Average gross profit per unit | |||||||||||
New vehicle | $ 2,766 | $ 3,066 | (9.8) % | $ 2,902 | $ 3,171 | (8.5) % | |||||
Used vehicle retail | 1,575 | 1,726 | (8.7) | 1,784 | 1,842 | (3.1) | |||||
Finance and insurance | 1,874 | 1,865 | 0.5 | 1,863 | 1,842 | 1.1 | |||||
Total vehicle(1) | 3,946 | 4,205 | (6.2) | 4,112 | 4,269 | (3.7) | |||||
(1) Includes the sales and gross profit related to new, used, and finance and insurance and unit sales for new and used retail |
LAD Other Highlights (Unaudited) | |||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||
2025 | 2025 | ||||||
Key Performance by Country | Total Revenue | Total Gross Profit | Total Revenue | Total Gross Profit | |||
United States | 79.5 % | 83.8 % | 78.5 % | 83.3 % | |||
United Kingdom | 17.4 % | 13.6 % | 18.4 % | 14.1 % | |||
Canada | 3.1 % | 2.6 % | 3.1 % | 2.6 % | |||
As of | |||||
December 31, | December 31, | December 31, | |||
Days' Supply(1) | 2025 | 2024 | 2023 | ||
New vehicle inventory | 54 | 59 | 47 | ||
Used vehicle inventory | 48 | 53 | 41 | ||
(1) Days' supply in inventory is calculated using on-ground inventory unit levels and a 30-day total unit sales volumes, both at the end of each reporting period. |
Selected Financing Operations Financial Information | |||||||||||||||
Three months ended December 31, | Twelve months ended December 31, | ||||||||||||||
($ in millions) | 2025 | % (1) | 2024 | % (1) | 2025 | % (1) | 2024 | % (1) | |||||||
Interest and fee income | $ 109.3 | 9.1 | $ 90.9 | 9.2 | $ 407.4 | 9.2 | $ 340.8 | 9.3 | |||||||
Interest expense | (52.1) | (4.3) | (49.1) | (5.0) | (202.1) | (4.6) | (195.1) | (5.3) | |||||||
Total interest margin | $ 57.3 | 4.8 | $ 41.8 | 4.2 | $ 205.3 | 4.6 | $ 145.7 | 4.0 | |||||||
Lease income | 23.9 | 13.4 | 91.6 | 74.6 | |||||||||||
Lease costs | (19.5) | (9.3) | (73.5) | (60.3) | |||||||||||
Lease income, net | 4.4 | 4.1 | 18.1 | 14.3 | |||||||||||
Provision expense | (24.8) | (2.1) | (29.7) | (3.0) | (97.3) | (2.2) | (106.7) | (2.9) | |||||||
Other financing operations expenses | (13.9) | (1.2) | (11.8) | (1.2) | (51.5) | (1.2) | (44.9) | (1.2) | |||||||
Finance operations income | $ 22.9 | $ 4.3 | $ 74.6 | $ 8.4 | |||||||||||
Total average managed finance receivables | $ 4,767.2 | $ 3,928.7 | $ 4,421.9 | $ 3,659.9 | |||||||||||
(1) Annualized percentage of total average managed finance receivables |
LAD Condensed Consolidated Balance Sheets (Unaudited) (In millions) | |||
December 31, 2025 | December 31, 2024 | ||
Cash, restricted cash, and cash equivalents | $ 341.8 | $ 402.2 | |
Trade receivables, net | 1,134.1 | 1,237.0 | |
Inventories, net | 6,119.6 | 5,911.7 | |
Other current assets | 262.5 | 223.0 | |
Total current assets | $ 7,858.0 | $ 7,773.9 | |
Property and equipment, net | 4,936.0 | 4,629.9 | |
Finance receivables, net | 4,755.1 | 3,868.2 | |
Intangibles | 5,254.1 | 4,665.8 | |
Other non-current assets | 2,304.0 | 2,184.8 | |
Total assets | $ 25,107.2 | $ 23,122.6 | |
Floor plan notes payable | 5,008.9 | 4,903.1 | |
Other current liabilities | 1,687.8 | 1,648.0 | |
Total current liabilities | $ 6,696.7 | $ 6,551.1 | |
Long-term debt, less current maturities | 7,274.9 | 6,119.3 | |
Non-recourse notes payable, less current maturities | 2,404.2 | 2,051.2 | |
Other long-term liabilities and deferred revenue | 2,103.0 | 1,726.9 | |
Total liabilities | $ 18,478.8 | $ 16,448.5 | |
Equity | 6,628.4 | 6,674.1 | |
Total liabilities and equity | $ 25,107.2 | $ 23,122.6 | |
LAD Condensed Consolidated Statements of Cash Flows (Unaudited) (In millions) | |||
Twelve months ended December 31, | |||
Cash flows from operating activities: | 2025 | 2024 | |
Net income | $ 825.9 | $ 816.3 | |
Adjustments to reconcile net income to net cash provided by operating activities | 578.9 | 436.9 | |
Changes in: | |||
Inventories | 33.3 | (260.9) | |
Finance receivables | (878.3) | (622.4) | |
Floor plan notes payable | (186.1) | 194.5 | |
Other operating activities | (17.0) | (139.3) | |
Net cash provided by operating activities | 356.7 | 425.1 | |
Cash flows from investing activities: | |||
Capital expenditures | (350.9) | (351.4) | |
Cash paid for acquisitions, net of cash acquired | (886.4) | (1,248.5) | |
Proceeds from sales of stores | 194.0 | 85.7 | |
Other investing activities | 15.4 | (340.2) | |
Net cash used in investing activities | (1,027.9) | (1,854.4) | |
Cash flows from financing activities: | |||
Net borrowings on floor plan notes payable, non-trade | 191.7 | 304.8 | |
Net borrowings on non-recourse notes payable | 364.5 | 403.7 | |
Net borrowings on other debt and finance lease liabilities | 1,139.1 | 615.8 | |
Proceeds from issuance of common stock | 27.5 | 27.3 | |
Repurchase of common stock | (960.9) | (365.9) | |
Dividends paid | (55.3) | (56.5) | |
Other financing activity | (94.5) | (21.6) | |
Net cash provided by financing activities | 612.1 | 907.6 | |
Effect of exchange rate changes on cash and restricted cash | 4.6 | (4.5) | |
Change in cash, restricted cash, and cash equivalents | (54.5) | (526.2) | |
Cash, restricted cash, and cash equivalents at beginning of period | 445.8 | 972.0 | |
Cash, restricted cash, and cash equivalents at end of period | 391.3 | 445.8 | |
LAD Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited) (In millions) | |||
Twelve months ended December 31, | |||
Net cash provided by operating activities | 2025 | 2024 | |
As reported | $ 356.7 | $ 425.1 | |
Floor plan notes payable, non-trade, net | 191.7 | 304.8 | |
Adjust: finance receivables activity | 878.3 | 622.4 | |
Less: Borrowings on floor plan notes payable, non-trade associated with | (135.4) | (105.5) | |
Adjusted | $ 1,291.3 | $ 1,246.8 | |
LAD Reconciliation of Certain Non-GAAP Financial Measures (Unaudited) (In millions, except for per share data) | |||||||||||||||
Three Months Ended December 31, 2025 | |||||||||||||||
As reported | Net gain on disposal of stores | Asset impairment | Investment loss | Insurance reserves | Acquisition expenses | Tax attribute | Adjusted | ||||||||
Asset impairments | $ 5.8 | $ — | $ (5.8) | $ — | $ — | $ — | $ — | $ — | |||||||
Selling, general and administrative | 979.3 | 2.6 | — | — | (1.4) | (0.9) | — | 979.6 | |||||||
Operating income | 341.4 | (2.6) | 5.8 | — | 1.4 | 0.9 | — | 346.9 | |||||||
Other income (expense), net | (18.5) | — | — | 27.9 | — | — | — | 9.4 | |||||||
Income before income taxes | 189.6 | (2.6) | 5.8 | 27.9 | 1.4 | 0.9 | — | 223.0 | |||||||
Income tax (provision) benefit | (51.7) | 0.4 | (1.5) | (7.0) | (0.4) | (0.2) | (0.4) | (60.8) | |||||||
Net income | $ 137.9 | $ (2.2) | $ 4.3 | $ 20.9 | $ 1.0 | $ 0.7 | $ (0.4) | $ 162.2 | |||||||
Net income attributable to non- controlling interests | (1.1) | — | — | — | — | — | — | (1.1) | |||||||
Net income attributable to LAD | $ 136.8 | $ (2.2) | $ 4.3 | $ 20.9 | $ 1.0 | $ 0.7 | $ (0.4) | $ 161.1 | |||||||
Diluted earnings per share attributable to LAD | $ 5.72 | $ (0.09) | $ 0.18 | $ 0.88 | $ 0.04 | $ 0.03 | $ (0.02) | $ 6.74 | |||||||
Diluted share count | 23.9 | ||||||||||||||
Three Months Ended December 31, 2024 | |||||||||||
As reported | Net gain on disposal of stores | Investment gain | Acquisition expenses | Tax attribute | Adjusted | ||||||
Selling, general and administrative | $ 902.1 | $ 7.9 | $ — | $ (0.3) | $ — | $ 909.8 | |||||
Operating income | 411.6 | (7.9) | — | 0.3 | — | 404.0 | |||||
Other income (expense), net | 3.9 | — | (1.1) | — | — | 2.8 | |||||
Income before income taxes | 282.3 | (7.9) | (1.1) | 0.3 | — | 273.6 | |||||
Income tax (provision) benefit | (68.6) | 4.1 | 0.3 | (0.1) | (5.1) | (69.4) | |||||
Net income | $ 213.7 | $ (3.8) | $ (0.8) | $ 0.2 | $ (5.1) | $ 204.2 | |||||
Net income attributable to non-controlling interests | $ (1.0) | $ — | $ — | $ — | $ — | $ (1.0) | |||||
Net income attributable to redeemable non- controlling interest | $ — | $ — | $ — | $ — | $ — | $ — | |||||
Net income attributable to LAD | $ 212.7 | $ (3.8) | $ (0.8) | $ 0.2 | $ (5.1) | $ 203.2 | |||||
Diluted earnings per share attributable to LAD | $ 7.98 | $ (0.15) | $ (0.03) | $ 0.01 | $ (0.19) | $ 7.62 | |||||
Diluted share count | 26.6 | ||||||||||
LAD Reconciliation of Certain Non-GAAP Financial Measures (Unaudited) (In millions, except for per share data) | |||||||||||||||
Twelve Months Ended December 31, 2025 | |||||||||||||||
As reported | Net gain on | Asset | Investment | Insurance | Acquisition | Tax attribute | Adjusted | ||||||||
Asset impairments | $ 5.8 | $ — | $ (5.8) | $ — | $ — | $ — | $ — | $ — | |||||||
Selling, general and administrative | 3,944.7 | 20.3 | — | — | (6.7) | (17.0) | — | 3,941.3 | |||||||
Operating income | 1,594.7 | (20.3) | 5.8 | — | 6.7 | 17.0 | — | 1,603.9 | |||||||
Other income (expense), net | 17.4 | — | — | 23.8 | — | — | — | 41.2 | |||||||
Income before income taxes | 1,108.4 | (20.3) | 5.8 | 23.8 | 6.7 | 17.0 | — | 1,141.4 | |||||||
Income tax (provision) benefit | (282.5) | 11.9 | (1.5) | (6.0) | (1.7) | (0.8) | (6.1) | (286.7) | |||||||
Net income | $ 825.9 | $ (8.4) | $ 4.3 | $ 17.8 | $ 5.0 | $ 16.2 | $ (6.1) | $ 854.7 | |||||||
Net income attributable to non- controlling interests | (6.3) | — | — | — | — | — | — | (6.3) | |||||||
Net income attributable to LAD | $ 819.6 | $ (8.4) | $ 4.3 | $ 17.8 | $ 5.0 | $ 16.2 | $ (6.1) | $ 848.4 | |||||||
Diluted earnings per share attributable to LAD | $ 32.32 | $ (0.33) | $ 0.17 | $ 0.70 | $ 0.20 | $ 0.64 | $ (0.24) | $ 33.46 | |||||||
Diluted share count | 25.4 | ||||||||||||||
Twelve Months Ended December 31, 2024 | |||||||||||||||
As reported | Net gain on stores | Investment gain | Insurance reserves | Acquisition expenses | Premium on redeemable NCI buyout | Tax attribute | Adjusted | ||||||||
Selling, general and administrative | $ 3,755.2 | $ 8.2 | $ — | $ (6.1) | $ (10.0) | $ — | $ — | $ 3,747.3 | |||||||
Operating income | 1,568.6 | (8.2) | — | 6.1 | 10.0 | — | — | 1,576.5 | |||||||
Other income (expense), net | 39.3 | — | (30.2) | — | — | — | — | 9.1 | |||||||
Income before income taxes | 1,071.3 | (8.2) | (30.2) | 6.1 | 10.0 | — | — | 1,049.0 | |||||||
Income tax provision) benefit | (255.0) | 4.1 | 7.5 | (1.6) | (0.5) | — | (13.1) | (258.6) | |||||||
Net income | $ 816.3 | $ (4.1) | $ (22.7) | $ 4.5 | $ 9.5 | $ — | $ (13.1) | $ 790.4 | |||||||
Net income attributable to non- controlling interests | (4.8) | — | — | — | — | — | — | (4.8) | |||||||
Net income attributable to redeemable non- controlling interest | (14.8) | — | — | — | — | 11.6 | — | (3.2) | |||||||
Net income attributable to LAD | $ 796.7 | $ (4.1) | $ (22.7) | $ 4.5 | $ 9.5 | $ 11.6 | $ (13.1) | $ 782.4 | |||||||
Diluted earnings per share attributable to LAD | $ 29.45 | $ (0.15) | $ (0.84) | $ 0.17 | $ 0.35 | $ 0.43 | $ (0.49) | $ 28.92 | |||||||
Diluted share count | 27.1 | ||||||||||||||
LAD Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited) (In millions) | |||||||||||
Three months ended December 31, | % | Twelve months ended December 31, | % | ||||||||
Increase | Increase | ||||||||||
2025 | 2024 | (Decrease) | 2025 | 2024 | (Decrease) | ||||||
EBITDA and Adjusted EBITDA | |||||||||||
Net income | $ 137.9 | $ 213.7 | (35.5) % | $ 825.9 | $ 816.3 | 1.2 % | |||||
Flooring interest expense | 58.3 | 64.8 | (10.0) | 228.2 | 278.8 | (18.1) | |||||
Other interest expense | 75.0 | 68.4 | 9.6 | 275.5 | 257.8 | 6.9 | |||||
Financing operations interest expense | 52.1 | 49.1 | 6.1 | 202.1 | 195.1 | 3.6 | |||||
Income tax expense | 51.7 | 68.6 | (24.6) | 282.5 | 255.0 | 10.8 | |||||
Depreciation and amortization | 67.8 | 62.1 | 9.2 | 262.4 | 245.6 | 6.8 | |||||
EBITDA | $ 442.8 | $ 526.7 | (15.9) % | $ 2,076.6 | $ 2,048.6 | 1.4 % | |||||
Other adjustments: | |||||||||||
Less: flooring interest expense | $ (58.3) | $ (64.8) | (10.0) | $ (228.2) | $ (278.8) | (18.1) | |||||
Less: financing operations interest expense | (52.1) | (49.1) | 6.1 | (202.1) | (195.1) | 3.6 | |||||
Less: used vehicle line of credit interest | (1.7) | (4.6) | (63.0) | (12.9) | (24.2) | (46.7) | |||||
Add: acquisition expenses | 0.9 | 0.3 | 200.0 | 17.0 | 10.0 | 70.0 | |||||
Add: loss (gain) on disposal of stores | (2.6) | (7.9) | NM | (20.3) | (8.2) | NM | |||||
Add: investment loss (gain)(1) | 27.9 | (1.1) | NM | 23.8 | (30.2) | NM | |||||
Add: insurance reserves | 1.4 | — | NM | 6.7 | 6.1 | 9.8 | |||||
Add: asset impairment | 5.8 | — | NM | 5.8 | — | NM | |||||
Adjusted EBITDA | $ 364.1 | $ 399.5 | (8.9) % | $ 1,666.4 | $ 1,528.2 | 9.0 % | |||||
NM - not meaningful | |||||||||||
(1) Investment losses (gains) retrospectively included in adjusted non-GAAP financial measures presented |
As of | % | |||
December 31, | Increase | |||
Net Debt to Adjusted EBITDA | 2025 | 2024 | (Decrease) | |
Floor plan notes payable | $ 5,008.9 | $ 4,903.2 | 2.2 % | |
Used and service loaner vehicle inventory financing facility | 1,043.0 | 975.3 | 6.9 | |
Revolving lines of credit | 1,570.8 | 1,633.2 | (3.8) | |
Warehouse facilities | 1,251.0 | 834.0 | 50.0 | |
Non-recourse notes payable | 2,473.9 | 2,109.3 | 17.3 | |
4.625% Senior notes due 2027 | 400.0 | 400.0 | — | |
3.875% Senior notes due 2029 | 800.0 | 800.0 | — | |
5.500% Senior notes due 2030 | 600.0 | — | — | |
4.375% Senior notes due 2031 | 550.0 | 550.0 | — | |
Finance leases and other debt | 1,152.1 | 1,085.9 | 6.1 | |
Unamortized debt issuance costs | (27.8) | (25.1) | 10.8 | |
Total debt | $ 14,821.9 | $ 13,265.7 | 11.7 % | |
Less: Inventory related debt | $ (6,051.9) | $ (5,878.5) | 2.9 % | |
Less: Financing operations related debt | (3,724.9) | (2,943.3) | 26.6 | |
Less: Unrestricted cash and cash equivalents | (109.2) | (225.1) | (51.5) | |
Less: Marketable securities | (56.4) | (53.4) | 5.6 | |
Less: Availability on used vehicle and service loaner financing facilities | (15.4) | (23.3) | (33.9) | |
Net Debt | $ 4,864.1 | $ 4,142.1 | 17.4 % | |
TTM Adjusted EBITDA | $ 1,666.4 | $ 1,528.2 | 9.0 % | |
Net debt to Adjusted EBITDA | 2.92 x | 2.71 x | ||
NM - not meaningful | ||||
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SOURCE Lithia Motors, Inc.