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On September 08, 2026, Lithia Motors Inc LAD shares fell 4.7%, bringing the current price to $368.70. The stock has experienced a 52-week range between $239.78 and $439.49, highlighting significant volatility over the past year.

GF Value™ verdict: Current price vs GF Value of $386.50 indicates the stock is 4.6% undervalued. GF Score™ of 93/100 suggests the company is in strong overall condition. Notable signal: Insiders sold $0.3M worth of shares over the past 12 months, with no buying activity.Is LAD Overvalued or Undervalued?Analyzing the current price of Lithia Motors Inc against the GF Value™ estimate reveals a nuanced picture. The GF Value™ is GuruFocus' proprietary estimate of the stock's intrinsic value, derived from historical trading multiples, past growth rates, and forecasts for future performance. Currently, the GF Value™ is set at $386.50, indicating that LAD shares are about 4.6% undervalued at the current trading price of $368.70. However, while this suggests a potential upside, investors should approach this with caution given the company's unprofitable and cash-flow-negative status. The GF Valuation label of "Fairly Valued" further emphasizes that the intrinsic value assessment may not hold the same reliability for a company not generating profits.

Despite the apparent undervaluation, it is essential to consider the risks involved. The price-to-sales (P/S) ratio, which is more applicable to companies without profits, is currently not favorable when compared to its historical median of approximately 0.3x. This could suggest that the current valuation may not accurately reflect the company’s long-term fundamentals and that earnings-based evaluations, like the P/E ratio, may not apply effectively in this scenario.

How Does LAD's Valuation Compare to Its History?Metric Current Historical P/E (TTM) 12.2x 8.5x Forward P/E 8.7x -Lithia Motors Inc’s current P/E ratio of 12.2x is significantly above its 5-year median P/E of 8.5x, indicating that the stock is trading at a premium compared to its historical valuation. This disparity suggests that the P/E analysis does not align with the GF Value™ verdict, which indicates caution regarding the stock's current valuation given its financial performance. The elevated current P/E may further highlight the risk involved in relying on earnings-based metrics for a company that is currently unprofitable.

What Does LAD's GF Score™ Tell Us?The GF Score™ is a comprehensive metric that evaluates a company's performance based on several key factors, including financial strength, profitability, growth, valuation, and momentum. Lithia Motors Inc boasts a strong GF Score™ of 93/100, reflecting robust fundamentals in certain areas while indicating potential weaknesses in others.

Metric Rating GF Score™ 93 Financial Strength 4/10 Profitability 9/10 Growth 10/10 Valuation 9/10 Momentum 10/10The scores indicate that while profitability, growth, and momentum are strong, the financial strength rank of 4/10 raises concerns regarding the company’s stability. This mix of strengths and weaknesses suggests that while there are attractive aspects to LAD, caution is warranted due to the financial strength profile, especially for a company currently facing challenges with profitability and cash flow.

What Are Gurus and Insiders Doing with LAD?Currently, 9 gurus hold shares of Lithia Motors Inc, with 4 gurus increasing their positions while 4 have trimmed their stakes in recent quarters. This mixed activity reflects a somewhat cautious sentiment among institutional investors, which can be indicative of uncertainty regarding the stock's future performance.

On the insider front, there has been selling activity totaling $0.3M over the past 12 months, with no buying reported. This pattern of insider selling, without corresponding buying, often raises flags about management's confidence in the company's future prospects, suggesting that investors should be vigilant regarding potential challenges ahead.

What This Means for InvestorsIn summary, Lithia Motors Inc is currently seen as fairly valued according to GF Value™, but the underlying fundamentals tell a more complex story. The company's unprofitability and cash-flow-negative status suggest caution, especially when considering the reliance on earnings-based valuations like the P/E ratio. The P/S analysis may provide a better view of its historical context, but the current valuation metrics indicate potential risks ahead. For those seeking detailed insights, further exploration can be found on the Lithia Motors Inc LAD stock page.

Frequently Asked QuestionsWhat is LAD's GF Score™?

Lithia Motors Inc has a GF Score™ of 93/100, indicating strong overall performance, with notable strengths in profitability, growth, and momentum.

Is LAD overvalued or undervalued?

According to the GF Value™ assessment, LAD is currently 4.6% undervalued, but caution is advised due to the company's financial challenges.

What is LAD's P/E ratio?

LAD's P/E ratio stands at 12.2x, which is significantly higher than its 5-year median of 8.5x, suggesting the stock is trading at a premium compared to its historical valuations.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Disclosures I/We may personally own shares in some of the companies mentioned above. However, those positions are not material to either the company or to my/our portfolios.

Deutsche Bank AG purchased a new stake in Lithia Motors, Inc. (NYSE:LAD – Free Report) in the 2nd quarter, according to its most recent disclosure with the Securities & Exchange Commission. The fund purchased 3,101 shares of the company’s stock, valued at approximately $901,000.

Other institutional investors have also recently made changes to their positions in the company. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Lithia Motors by 13.9% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,474 shares of the company’s stock worth $2,487,000 after purchasing an additional 1,032 shares in the last quarter. Goldman Sachs Group Inc. increased its position in Lithia Motors by 67.6% in the 1st quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company’s stock valued at $33,272,000 after buying an additional 45,716 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC raised its stake in Lithia Motors by 16.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,170 shares of the company’s stock worth $27,349,000 after buying an additional 13,407 shares during the period. Federated Hermes Inc. boosted its holdings in Lithia Motors by 16.2% in the second quarter. Federated Hermes Inc. now owns 2,430 shares of the company’s stock worth $821,000 after acquiring an additional 338 shares in the last quarter. Finally, WINTON GROUP Ltd bought a new position in Lithia Motors in the second quarter worth approximately $651,000.

Wall Street Analysts Forecast Growth Several equities research analysts have recently commented on LAD shares. Bank of America boosted their price objective on Lithia Motors from $350.00 to $417.00 and gave the company a “buy” rating in a report on Thursday, July 9th. Jefferies Financial Group reiterated a “buy” rating and issued a $490.00 target price on shares of Lithia Motors in a report on Thursday, July 30th. Barclays lifted their price target on shares of Lithia Motors from $360.00 to $415.00 and gave the company an “overweight” rating in a research report on Wednesday, August 19th. Benchmark upped their price objective on shares of Lithia Motors from $400.00 to $475.00 and gave the stock a “buy” rating in a report on Thursday, July 30th. Finally, JPMorgan Chase & Co. raised their price objective on shares of Lithia Motors from $325.00 to $340.00 and gave the company a “neutral” rating in a research note on Tuesday, August 4th. Six research analysts have rated the stock with a Buy rating and five have assigned a Hold rating to the company. According to data from MarketBeat, Lithia Motors currently has an average rating of “Moderate Buy” and a consensus target price of $436.33.

Get Our Latest Analysis on LAD Lithia Motors Stock Down 1.0% LAD stock opened at $366.72 on Tuesday. The firm has a market capitalization of $8.06 billion, a PE ratio of 12.16, a P/E/G ratio of 0.78 and a beta of 1.22. The company has a quick ratio of 0.21, a current ratio of 1.00 and a debt-to-equity ratio of 1.46. Lithia Motors, Inc. has a twelve month low of $239.78 and a twelve month high of $439.49. The stock’s 50 day moving average is $345.73 and its 200-day moving average is $301.93.

Lithia Motors (NYSE:LAD – Get Free Report) last announced its quarterly earnings results on Wednesday, July 29th. The company reported $10.03 earnings per share (EPS) for the quarter, topping the consensus estimate of $8.73 by $1.30. Lithia Motors had a return on equity of 12.16% and a net margin of 1.88%.The business had revenue of $9.79 billion during the quarter, compared to the consensus estimate of $9.64 billion. During the same quarter in the prior year, the company posted $10.24 earnings per share. Lithia Motors’s revenue was up 2.2% compared to the same quarter last year. Sell-side analysts expect that Lithia Motors, Inc. will post 36 EPS for the current fiscal year.

Lithia Motors Increases Dividend The company also recently declared a quarterly dividend, which was paid on Friday, August 21st. Investors of record on Friday, August 7th were issued a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a yield of 0.8%. This is a boost from Lithia Motors’s previous quarterly dividend of $0.57. The ex-dividend date was Friday, August 7th. Lithia Motors’s dividend payout ratio is presently 9.29%.

Lithia Motors declared that its board has initiated a stock repurchase plan on Tuesday, May 26th that allows the company to repurchase $500.00 million in shares. This repurchase authorization allows the company to repurchase up to 7.9% of its shares through open market purchases. Shares repurchase plans are usually an indication that the company’s leadership believes its stock is undervalued.

Insider Transactions at Lithia Motors In other Lithia Motors news, Director Shauna Mcintyre sold 165 shares of the company’s stock in a transaction dated Wednesday, June 10th. The shares were sold at an average price of $305.64, for a total value of $50,430.60. Following the completion of the sale, the director directly owned 1,681 shares of the company’s stock, valued at approximately $513,780.84. This represents a 8.94% decrease in their position. The sale was disclosed in a document filed with the SEC, which is accessible through the SEC website. Insiders own 1.08% of the company’s stock.

Lithia Motors Profile (Free Report)

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.

Featured Articles Five stocks we like better than Lithia Motors Securing AI: 5 Most-Upgraded Stocks From the Q2 Reporting Season Insiders Are Betting Big on These 3 Healthcare Stocks 3 Stocks for Investors Who Still Believe Cash Is King Dollar General and Dollar Tree Are Recovering, But Not for the Same Reason Want to see what other hedge funds are holding LAD? Visit HoldingsChannel.com to get the latest 13F filings and insider trades for Lithia Motors, Inc. (NYSE:LAD – Free Report).

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MEDFORD, Ore., Aug. 25, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) today announced the appointment of Scott Cooke as Operations President and welcomes his leadership, experience and passion to further advance its mission of Growth Powered by People. 

Scott brings two and a half decades of experience with Toyota Financial Services, most recently serving as President and CEO, where he led an integrated business that touched virtually every aspect of the vehicle ownership lifecycle, with more than $150 billion in managed assets. His deep experience across automotive finance, operations, and people development will help us accelerate our growth, further drive performance, and leverage the strategic strengths and differentiations that Lithia & Driveway have built.

As Operations President, Cooke will lead performance across the Southeastern and South Central Store Operations, Driveway Finance Corporation (DFC), and Finance & Insurance, aligning operational, financial, and people strategies to drive customer loyalty, operational excellence, and long-term shareholder value.

"Scott is a perfect cultural fit and proven leader with deep operational expertise, a customer-first mindset, and an impressive track record of delivering results," said Bryan DeBoer, President and CEO of Lithia & Driveway. "As we continue executing our strategy, Scott's leadership will help accelerate performance across our platform while advancing our mission of Growth Powered by People. His experience building high-performing teams and creating scalable operational excellence makes him an outstanding addition to our executive leadership team."

Scott joins Mike Cavanaugh, recently promoted to Operations President, Bryan Osterhout, Operations President in the Western Region, and Neil Williamson, Operations President in the UK, as part of LAD’s senior operations leadership team. Together, they bring deep operational experience and a shared focus on developing people, improving performance, and driving sustainable growth across the organization.

The appointment comes as DFC leader Chuck Lietz prepares to retire in 2027. Throughout his career with LAD, Chuck has played an important role in the company's operational success and leadership development efforts.

"We are grateful for Chuck's many contributions to Lithia & Driveway and the impact he has had on our people, culture, and performance," DeBoer said. "His leadership has been nothing short of remarkable helping build a strong foundation for continued growth, and we look forward to culminating his illustrious career together over the next few quarters and his retirement."

These leadership transitions reflect Lithia & Driveway's commitment to developing talent and building a deep leadership bench capable of supporting the company's long-term growth strategy.

Guided by its mission of Growth Powered by People, LAD remains focused on delivering a high-performance culture while making Auto Done Easy for customers through seamless experiences, operational excellence, and a relentless commitment to earning customer loyalty wherever, whenever and however they choose.

A month has gone by since the last earnings report for Lithia Motors (LAD - Free Report) . Shares have lost about 8.4% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Lithia Motors due for a breakout? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at the latest earnings report in order to get a better handle on the important catalysts.

Lithia Q2 Earnings Top EstimatesLithia posted second-quarter 2026 adjusted earnings of $10.03 per share, which increased 9% from $9.20 a year ago. The bottom line beat the Zacks Consensus Estimate of $8.67 by 15.7%.

Quarterly revenues increased 2.2% year over year to $9.79 billion and topped the consensus estimate of $9.64 billion by 1.6%. Improved used-vehicle profitability, aftersales growth and record Financing Operations income supported the results. Driveway Finance Corporation generated record originations of $884 million.

Revenue Growth Spans Core Business LinesNew-vehicle revenues rose 2.7% year over year to $4,829.2 million, while used-vehicle revenues increased 1.4% to $3,528.3 million. Aftersales revenues advanced 3.9% to $1,067.4 million.

Finance and insurance revenues declined 2% to $366.4 million. Same-store new-vehicle revenues fell 1.5%, while same-store used-vehicle revenues decreased 2.2%, showing that acquisitions contributed to the consolidated growth in both categories.

Used Vehicle Profitability ImprovesNew-vehicle unit sales increased 2.7% to 104,089 units. Used retail unit sales declined 2.7% to 106,114 units, but the used retail average selling price rose 4.3% to $29,593.

Used-vehicle gross profit increased 4.2% to $214 million. Used retail gross profit per unit climbed 5.4% to $2,014, and the used-vehicle gross margin expanded 20 basis points to 6.1%. By contrast, new-vehicle gross profit per unit fell 11.8% to $2,728 as the new-vehicle margin contracted 80 basis points to 5.9%.

Aftersales Business Supports the Profit MixAftersales gross profit increased 6.8% year over year to $633 million. Its gross margin expanded 160 basis points to 59.3%, reinforcing the importance of recurring service and repair activity to overall profitability.

Aftersales accounted for 42.2% of total gross profit, up from 39.9% a year earlier. Total gross profit increased 0.8% to $1,497.4 million, although the consolidated gross margin narrowed 20 basis points to 15.3%.

Cost Control Lifts Operating IncomeSelling, general and administrative expenses were unchanged year over year at $1,014.7 million. Lower personnel and other costs offset higher advertising, rent and facility expenses.

Reported SG&A as a percentage of gross profit improved 50 basis points to 67.8%. Income from operations increased 5.4% to $448.3 million, while depreciation and amortization rose 8.7% to $70.9 million. Floor plan interest expense increased 26.7% to $69.7 million, partly tempering the operating improvement.

Financing Operations Reach Record IncomeFinancing Operations income surged 81.6% to $36.5 million. Interest and fee income increased to $116.4 million from $98.8 million, while the total interest margin expanded to 4.8% from 4.5%.

DFC’s penetration rate was 17.5%, and the average FICO score on originated loans was 749. Managed finance receivables reached nearly $5.3 billion, up 23% year over year, supporting a larger stream of interest income. More than 99% of the portfolio was less than 60 days past due.

Balance Sheet Reflects Finance GrowthAs of June 30, 2026, cash, restricted cash and cash equivalents totaled $363.9 million, up from $341.8 million as of Dec. 31, 2025. Inventories increased to $6,516.8 million from $6,119.6 million at year-end 2025, while total floor plan debt rose to $6,387.4 million from $5,008.9 million.

For the first six months of 2026, net cash used in operating activities was $174.1 million, reflecting increases in inventories and finance receivables. Capital expenditures totaled $153.4 million, and cash paid for acquisitions was $221.7 million. Available liquidity was approximately $1.3 billion.

Capital ReturnsDuring the quarter, LAD repurchased roughly 854,000 shares at a weighted average price of $284, representing $242 million of share repurchases. Approximately $620 million remained under the authorization at quarter-end.

The board increased the quarterly dividend 23% to 70 cents per share.

How Have Estimates Been Moving Since Then?In the past month, investors have witnessed a upward trend in estimates revision.

The consensus estimate has shifted 8.7% due to these changes.

VGM ScoresCurrently, Lithia Motors has a poor Growth Score of F, however its Momentum Score is doing a lot better with a C. Charting a somewhat similar path, the stock has a grade of B on the value side, putting it in the top 40% for value investors.

Overall, the stock has an aggregate VGM Score of D. If you aren't focused on one strategy, this score is the one you should be interested in.

OutlookEstimates have been trending upward for the stock, and the magnitude of these revisions looks promising. Notably, Lithia Motors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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Growth ScoreGrowth investors are more concerned with a stock's future prospects, and the overall financial health and strength of a company. Thus, the Growth Style Score analyzes characteristics like projected and historic earnings, sales, and cash flow to find stocks that will see sustainable growth over time.

Momentum ScoreMomentum investors, who live by the saying "the trend is your friend," are most interested in taking advantage of upward or downward trends in a stock's price or earnings outlook. Utilizing one-week price change and the monthly percentage change in earnings estimates, among other factors, the Momentum Style Score can help determine favorable times to buy high-momentum stocks.

VGM ScoreIf you like to use all three kinds of investing, then the VGM Score is for you. It's a combination of all Style Scores, and is an important indicator to use with the Zacks Rank. The VGM Score rates each stock on their shared weighted styles, narrowing down the companies with the most attractive value, best growth forecast, and most promising momentum.

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As mentioned above, the Scores are designed to work with the Zacks Rank, so any change to a company's earnings outlook should be a deciding factor when picking which stocks to buy.

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Stock to Watch: Lithia Motors (LAD - Free Report) Lithia Motors, Inc. is one of the leading automotive retailers of new and used vehicles, and related services in the United States. As of Dec 31, 2025, the company offered 54 vehicle brands across 455 locations in the United States, United Kingdom and Canada.

LAD is a #3 (Hold) on the Zacks Rank, with a VGM Score of B.

Momentum investors should take note of this Retail-Wholesale stock. LAD has a Momentum Style Score of A, and shares are up 32.3% over the past four weeks.

For fiscal 2026, four analysts revised their earnings estimate upwards in the last 60 days, and the Zacks Consensus Estimate has increased $0.11 to $34.48 per share. LAD boasts an average earnings surprise of +3.6%.

With a solid Zacks Rank and top-tier Momentum and VGM Style Scores, LAD should be on investors' short list.

Posted by Defense World Staff on Jul 30th, 2026

Lithia Motors, Inc. (NYSE:LAD – Get Free Report) traded up 14.5% during trading on Wednesday after the company announced better than expected quarterly earnings. The company traded as high as $407.00 and last traded at $410.2550. Approximately 140,350 shares were traded during trading, a decline of 54% from the average session volume of 307,375 shares. The stock had previously closed at $358.31.

The company reported $10.03 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $8.73 by $1.30. Lithia Motors had a return on equity of 12.49% and a net margin of 1.88%.The firm had revenue of $9.79 billion during the quarter, compared to analyst estimates of $9.64 billion. During the same period last year, the company earned $10.24 EPS. Lithia Motors’s quarterly revenue was up 2.2% compared to the same quarter last year.

Lithia Motors Increases Dividend The firm also recently announced a quarterly dividend, which will be paid on Friday, August 21st. Stockholders of record on Friday, August 7th will be given a dividend of $0.70 per share. This represents a $2.80 annualized dividend and a dividend yield of 0.7%. This is a positive change from Lithia Motors’s previous quarterly dividend of $0.57. The ex-dividend date is Friday, August 7th. Lithia Motors’s dividend payout ratio is 8.01%.

Lithia Motors announced that its board has authorized a stock repurchase program on Tuesday, May 26th that allows the company to buyback $500.00 million in shares. This buyback authorization allows the company to purchase up to 7.9% of its stock through open market purchases. Stock buyback programs are usually an indication that the company’s management believes its shares are undervalued.

Key Lithia Motors News Here are the key news stories impacting Lithia Motors this week:

Positive Sentiment: Second-quarter earnings and revenue exceeded expectations. Lithia reported record revenue of approximately $9.8 billion, up 2.2% year over year. Adjusted diluted EPS was $10.03, ahead of the roughly $8.67–$8.73 consensus, while reported diluted EPS was $11.54, a 17% increase. Lithia & Driveway second-quarter results Positive Sentiment: Profitability indicators improved despite challenging market conditions. Used-vehicle retail gross profit per unit increased $339, or 20%, sequentially. Aftersales gross margin reached 59.2%, up 120 basis points on a same-store basis, while adjusted SG&A as a percentage of gross profit improved by 290 basis points. Positive Sentiment: Shareholder returns were strengthened. Lithia repurchased $242 million of stock during the quarter—equivalent to 3.7% of shares outstanding—and has repurchased 7.6% of shares in the first half of 2026. The company also raised its quarterly dividend 22.8%, from $0.57 to $0.70 per share. Investors of record on August 7 will receive the dividend on August 21. Lithia Motors reaches record high Positive Sentiment: Financing operations delivered record results. The unit generated $37 million in income and $884 million in originations, with a 17.5% penetration rate, adding support to earnings diversification. Neutral Sentiment: The stock’s rally has pushed it close to its 52-week high, with elevated trading volume. Its valuation remains moderate at roughly 15 times earnings, but the sharp move may increase sensitivity to any earnings disappointment. Negative Sentiment: Broader-market conditions were unfavorable as oil prices surged amid rising U.S.-Iran tensions and major indexes sold off ahead of the Federal Reserve’s interest-rate decision. Higher fuel costs, interest rates, or renewed economic concerns could pressure vehicle demand and financing activity. Market sell-off and oil spike Analysts Set New Price Targets A number of brokerages have recently commented on LAD. Barclays reduced their target price on shares of Lithia Motors from $370.00 to $360.00 and set an “overweight” rating on the stock in a research report on Wednesday, July 15th. Zacks Research raised shares of Lithia Motors from a “strong sell” rating to a “hold” rating in a research note on Thursday, April 23rd. Wells Fargo & Company upped their price target on shares of Lithia Motors from $305.00 to $306.00 and gave the stock an “equal weight” rating in a research report on Monday, July 6th. Citigroup upped their target price on Lithia Motors from $326.00 to $365.00 and gave the stock a “buy” rating in a report on Friday, May 1st. Finally, Wall Street Zen lowered Lithia Motors from a “hold” rating to a “sell” rating in a research report on Monday, July 20th. Eight equities research analysts have rated the stock with a Buy rating and four have given a Hold rating to the stock. According to MarketBeat.com, Lithia Motors presently has an average rating of “Moderate Buy” and a consensus price target of $380.33.

Read Our Latest Stock Report on LAD

Insider Buying and Selling In related news, Director Richard J. Bailey, Jr. sold 297 shares of the stock in a transaction that occurred on Tuesday, May 26th. The shares were sold at an average price of $280.57, for a total transaction of $83,329.29. Following the completion of the sale, the director owned 760 shares of the company’s stock, valued at $213,233.20. This represents a 28.10% decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the SEC, which is available at this link. Also, Director Shauna Mcintyre sold 245 shares of the firm’s stock in a transaction that occurred on Monday, May 11th. The shares were sold at an average price of $294.64, for a total transaction of $72,186.80. Following the completion of the sale, the director owned 1,846 shares of the company’s stock, valued at approximately $543,905.44. This trade represents a 11.72% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. In the last ninety days, insiders sold 782 shares of company stock worth $229,572. Insiders own 1.08% of the company’s stock.

Hedge Funds Weigh In On Lithia Motors A number of large investors have recently made changes to their positions in the business. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its position in shares of Lithia Motors by 13.9% in the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 8,474 shares of the company’s stock worth $2,487,000 after purchasing an additional 1,032 shares in the last quarter. Goldman Sachs Group Inc. increased its position in Lithia Motors by 67.6% during the 1st quarter. Goldman Sachs Group Inc. now owns 113,346 shares of the company’s stock valued at $33,272,000 after buying an additional 45,716 shares in the last quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC increased its position in Lithia Motors by 16.8% during the 1st quarter. UBS AM A Distinct Business Unit of UBS Asset Management Americas LLC now owns 93,170 shares of the company’s stock valued at $27,349,000 after buying an additional 13,407 shares in the last quarter. Federated Hermes Inc. raised its stake in Lithia Motors by 16.2% in the second quarter. Federated Hermes Inc. now owns 2,430 shares of the company’s stock valued at $821,000 after buying an additional 338 shares during the last quarter. Finally, WINTON GROUP Ltd purchased a new stake in Lithia Motors in the second quarter valued at about $651,000.

Lithia Motors Stock Performance The company has a debt-to-equity ratio of 1.41, a current ratio of 0.99 and a quick ratio of 0.24. The firm has a market cap of $9.70 billion, a price-to-earnings ratio of 14.94, a P/E/G ratio of 0.84 and a beta of 1.26. The firm has a fifty day simple moving average of $308.92 and a two-hundred day simple moving average of $294.90.

About Lithia Motors (Get Free Report)

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.

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Shares of Lithia Motors (LAD +19.30%) popped on Wednesday after the automotive retailer boosted its cash payout to investors.

Image source: Getty Images.

Higher profits fuel larger dividends and buybacks Lithia's revenue rose 2% year over year to $9.8 billion in the second quarter.

The car dealership network purchased 5 stores during the quarter, which are projected to produce $340 million in annualized sales. It also sold 3 locations that together generate $120 million in annualized revenue.

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During a conference call with analysts, CEO Bryan DeBoer said Lithia's dynamic pricing initiatives contributed to a $339 sequential increase in its used retail gross profit per unit -- essentially, the average profit it makes on each pre-owned car sale -- to $2,019.

Management is funneling much of these profits into stock buybacks. Lithia repurchased 3.7% of its outstanding shares in the second quarter and 7.6% in the first half of 2026.

That's helping to boost its earnings per share. All told, Lithia's adjusted per-share profits increased 9% to $10.03.

A proven, value-creating business model Lithia employs a relatively simple growth strategy. It acquires automotive businesses that have the potential to become more profitable as part of its nationwide network. It then improves their operations, harvests their cash flow, and passes it on to shareholders via buybacks and dividends.

Investors, in turn, rewarded Lithia for raising its quarterly dividend by 23%, to $0.70 per share, by bidding up its stock price.

Joe Tenebruso has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy.

Lithia Motors (LAD - Free Report) reported $9.79 billion in revenue for the quarter ended June 2026, representing a year-over-year increase of 2.2%. EPS of $10.03 for the same period compares to $10.24 a year ago.

The reported revenue compares to the Zacks Consensus Estimate of $9.64 billion, representing a surprise of +1.55%. The company delivered an EPS surprise of +15.69%, with the consensus EPS estimate being $8.67.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Lithia Motors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Unit sales - New vehicle: 104,089 compared to the 98,045 average estimate based on three analysts.Unit sales - Used vehicle retail: 106,114 versus 113,416 estimated by three analysts on average.Average selling price - New vehicle: $47,156.00 versus the three-analyst average estimate of $47,689.69.Average selling price - Used vehicle retail: $29,593.00 versus the three-analyst average estimate of $29,481.20.Revenues- Finance and insurance: $366.4 million versus $379.46 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -2% change.Revenues- Used vehicle: $3.53 billion versus $3.42 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +14% change.Revenues- New vehicle: $4.83 billion versus the four-analyst average estimate of $4.74 billion. The reported number represents a year-over-year change of +7.4%.Revenues- Aftersales: $1.07 billion versus $1.1 billion estimated by four analysts on average. Compared to the year-ago quarter, this number represents a +4.3% change.Same Store Operating- Revenues- Finance and insurance: $350.3 million versus $358.96 million estimated by two analysts on average. Compared to the year-ago quarter, this number represents a -4.3% change.Same Store Operating- Revenues- Used vehicle: $3.32 billion compared to the $3.11 billion average estimate based on two analysts. The reported number represents a change of +9.8% year over year.Same Store Operating- Revenues- New vehicle: $4.55 billion versus the two-analyst average estimate of $4.49 billion. The reported number represents a year-over-year change of +3.8%.Same Store Operating- Revenues- Aftersales: $1.01 billion versus $1.05 billion estimated by two analysts on average. Compared to the year-ago quarter, this number represents a +1.5% change.View all Key Company Metrics for Lithia Motors here>>>

Shares of Lithia Motors have returned +23.4% over the past month versus the Zacks S&P 500 composite's +1.9% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

Key Highlights

Record second quarter revenues of $9.8 billionUsed retail GPUs increased $339, or 20%, sequentiallyAftersales gross profit increased by 3.1% and gross margin was 59.2%, a 120-basis point increase, on a same-store basisAdjusted SG&A as a percent of gross profit was 68.6%, a 290-basis point improvement sequentiallyFinancing Operations achieved record income of $37 million and record originations of $884 million, with a 17.5% penetration rateSecond quarter diluted earnings per share of $11.54, a 17% increase, and adjusted diluted earnings per share of $10.03, a 9% increaseRepurchased $242 million of shares, representing 3.7% of outstanding shares in the quarter, and 7.6% of outstanding shares in the first half of 2026Announced a 23% increase to quarterly dividend MEDFORD, Ore., July 29, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD), the largest global automotive retailer, today reported financial results for the second quarter of 2026.

"Our team delivered differentiated growth across the platform, with record quarterly revenues, stable new vehicle margins, improved used vehicle profitability, and meaningful sequential SG&A improvement. Financing Operations delivered 80% income growth, with expanding margins and increasing penetration," said Bryan DeBoer, President and CEO. "We continued to return value to shareholders this quarter, expanding our repurchase authorization by $500 million and purchasing nearly 4% of shares. Our ecosystem is delivering on its design, and we carry strong momentum into the second half of the year.”

Second Quarter 2026 Operational Summary
Second quarter 2026 revenue increased 2% to $9.8 billion from $9.6 billion in the second quarter of 2025.

Second quarter 2026 diluted earnings per share attributable to LAD was $11.54, a 17% increase from $9.87 per share reported in the second quarter of 2025. After adjusting for the unrealized gain on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted diluted earnings per share attributable to LAD for the second quarter of 2026 was $10.03, a 9% increase compared to $9.20 per share in the same period of 2025.

Second quarter 2026 net income was $261.6 million, a 1.3% increase compared to net income of $258.2 million in the second quarter of 2025. After adjusting for the unrealized gain on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted net income for the second quarter 2026 was $227.6 million, an 6% decrease compared to adjusted net income of $240.9 million for the same period of 2025.

The financial measures discussed in this release include both GAAP and non-GAAP measures. See “Reconciliation of Certain Non-GAAP Measures”.

For the first six months of 2026 revenues increased 2% to $19.1 billion, compared to $18.8 billion in 2025.

Diluted earnings per share attributable to LAD for the first six months of 2026 was $15.68, compared to $17.80 per share in 2025, a decrease of 12%. Adjusted diluted earnings per share attributable to LAD for the first six months of 2026 increased 1% to $17.32 from $17.12 in the same period of 2025.

Corporate Development
In the second quarter of 2026, LAD acquired 5 stores, which are expected to generate $340 million in annualized revenues, and divested 3 stores representing $120 million in annualized revenues.

Balance Sheet Update
LAD ended the second quarter with approximately $1.3 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 $0.70 per share related to second quarter 2026 financial results. The dividend is expected to be paid on August 21, 2026 to shareholders of record on August 7, 2026.

During the second quarter of 2026, we repurchased approximately 854,000 shares at a weighted average price of $284. Under the current share repurchase authorization approximately $620 million remains available as of June 30, 2026.

Second Quarter Earnings Conference Call and Updated Presentation
The second quarter 2026 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting second quarter 2026 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

Contact:
Skyya for Lithia & Driveway  
[email protected]

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 growthFuture market conditions, including anticipated vehicle and other sales, gross profit and inventory supplyOur business strategy and plans, including our achieving our long-term financial targetsThe growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional storesAnnualized revenues from acquired stores or achieving target returnsThe 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 targetsThe impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution modelsOur capital allocations and uses and levels of capital expenditures in the futureExpected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projectionsOur anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate and other financing sourcesOur continuing to purchase shares under our share repurchase programOur compliance with financial and restrictive covenants in our credit facilities and other debt agreementsOur programs and initiatives for team member recruitment, training, and retentionOur 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, interest rates, tariffs, governmental actions, programs and spending, and public health issuesThe market for dealerships, including the availability of stores to us for an acceptable priceChanges in customer demand, levels of consumer debt, consumer confidence and manufacturer sales incentives, and the electric vehicle landscape and the impact of evolving digital technologiesChanges in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery modelsChanges 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 vehiclesRisks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable termsThe 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 levelsDisruptions 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 equipmentGovernment regulations and legislationThe 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
All “adjusted” financial measures in this presentation are non-GAAP financial measures, as are 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. We caution you not to place undue reliance on such non-GAAP measures and to consider them together 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
June 30,
 %
Increase Six months ended
June 30,
 %
Increase 2026
 2025
 (Decrease) 2026
 2025
 (Decrease)Revenues:           New vehicle$4,829.2  $4,703.5  2.7% $9,208.6  $9,283.9  (0.8)%Used vehicle 3,528.3   3,478.3  1.4   7,017.7   6,728.8  4.3 Finance and insurance 366.4   373.8  (2.0)  726.1   738.1  (1.6)Aftersales 1,067.4   1,027.4  3.9   2,110.3   2,010.4  5.0 Total revenues 9,791.3   9,583.0  2.2%  19,062.7   18,761.2  1.6%Cost of sales:           New vehicle 4,545.2   4,390.1  3.5   8,665.0   8,677.1  (0.1)Used vehicle 3,314.3   3,273.0  1.3   6,616.0   6,334.8  4.4 Aftersales 434.4   434.8  (0.1)  862.6   853.9  1.0 Total cost of sales 8,293.9   8,097.9  2.4   16,143.6   15,865.8  1.8 Gross profit 1,497.4   1,485.1  0.8%  2,919.1   2,895.4  0.8%            Finance operations income 36.5   20.1  81.6%  57.8   32.6  77.3%            SG&A expense 1,014.7   1,014.7  —   2,052.1   1,967.4  4.3 Depreciation and amortization 70.9   65.2  8.7   140.7   129.0  9.1 Income from operations 448.3   425.3  5.4%  784.1   831.6  (5.7)%Floor plan interest expense (69.7)  (55.0) 26.7   (125.6)  (112.0) 12.1 Other interest expense (62.7)  (66.7) (6.0)  (132.9)  (132.2) 0.5 Other income (expense) 36.2   48.5  (25.4)  (31.5)  49.3  NM Income before income taxes 352.1   352.1  —%  494.1   636.7  (22.4)%Income tax expense (90.5)  (93.9) (3.6)  (130.4)  (167.3) (22.1)Income tax rate 25.7%  26.7%    26.4%  26.3%  Net income$261.6  $258.2  1.3% $363.7  $469.4  (22.5)%Net income attributable to non-controlling interests (1.6)  (2.1) (23.8)%  (3.3)  (3.8) (13.2)%Net income attributable to LAD$260.0  $256.1  1.5% $360.4  $465.6  (22.6)%            Diluted earnings per share attributable to LAD:           Net income per share$11.54  $9.87  16.9% $15.68  $17.80  (11.9)%            Diluted shares outstanding 22.5   25.9  (13.1)%  23.0   26.2  (12.2)% NM - not meaningful

LAD
Key Performance Metrics (Unaudited)

 Three months ended
June 30, %
Increase Six months ended
June 30, %
Increase 2026
 2025
 (Decrease) 2026
 2025
 (Decrease)Gross margin           New vehicle 5.9%  6.7% (80) bps  5.9%  6.5% (60) bpsUsed vehicle 6.1   5.9  20   5.7   5.9  (20)Finance and insurance 100.0   100.0  —   100.0   100.0  — Aftersales 59.3   57.7  160   59.1   57.5  160 Gross profit margin 15.3   15.5  (20)  15.3   15.4  (10)            Unit sales           New vehicle 104,089   101,316  2.7%  198,876   200,819  (1.0)%Used vehicle retail 106,114   109,053  (2.7)  216,265   216,379  (0.1)            Average selling price (excluding agency)           New vehicle$47,156  $47,494  (0.7)% $47,024  $47,353  (0.7)%Used vehicle retail 29,593   28,379  4.3   29,018   27,793  4.4             Average gross profit per unit           New vehicle$2,728  $3,093  (11.8)% $2,733  $3,022  (9.6)%Used vehicle retail 2,014   1,911  5.4   1,848   1,840  0.4 Finance and insurance 1,808   1,819  (0.6)  1,807   1,812  (0.3)Total vehicle(1) 4,112   4,242  (3.1)  4,026   4,168  (3.4)            Revenue mix           New vehicle 49.3%  49.1%    48.3%  49.5%  Used vehicle 36.0   36.3     36.8   35.9   Finance and insurance, net 3.7   3.9     3.8   3.9   Aftersales 11.0   10.7     11.1   10.7               Gross Profit Mix           New vehicle 19.0%  21.1%    18.6%  21.0%  Used vehicle 14.3   13.8     13.8   13.6   Finance and insurance, net 24.5   25.2     24.9   25.5   Aftersales 42.2   39.9     42.7   39.9                         Adjusted As reported Adjusted As reported Three months
ended June 30, Three months
ended June 30, Six months ended
June 30, Six months ended
June 30,Other metrics2026
 2025
 2026
 2025
 2026
 2025
 2026
 2025
SG&A as a % of revenue10.5% 10.5% 10.4% 10.6% 10.7% 10.5% 10.8% 10.5%SG&A as a % of gross profit68.6  67.7  67.8  68.3  70.0  67.9  70.3  67.9 Operating profit as a % of revenue4.5  4.5  4.6  4.4  4.2  4.4  4.1  4.4 Operating profit as a % of gross profit29.1  29.3  29.9  28.6  27.1  28.8  26.9  28.7 Pretax margin3.2  3.4  3.6  3.7  2.9  3.3  2.6  3.4 Net profit margin2.3  2.5  2.7  2.7  2.1  2.4  1.9  2.5  (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
June 30,
 % Six months ended
June 30, %  Increase  Increase 2026
 2025
 (Decrease) 2026
 2025
 (Decrease)Revenues           New vehicle$4,548.3  $4,619.6  (1.5)% $8,704.3  $9,080.0  (4.1)%Used vehicle 3,316.7   3,390.8  (2.2)  6,620.6   6,539.9  1.2 Finance and insurance 350.3   369.6  (5.2)  696.2   728.1  (4.4)Aftersales 1,013.0   1,002.9  1.0   2,003.9   1,957.2  2.4 Total revenues 9,228.3   9,382.9  (1.6)  18,025.0   18,305.2  (1.5)            Gross profit           New vehicle$267.1  $307.5  (13.1)% $513.6  $594.2  (13.6)%Used vehicle 205.3   202.9  1.2   383.9   389.9  (1.5)Finance and insurance 350.3   369.6  (5.2)  696.2   728.1  (4.4)Aftersales 599.7   581.7  3.1   1,182.2   1,132.4  4.4 Total gross profit 1,422.4   1,461.7  (2.7)  2,775.9   2,844.6  (2.4)            Gross margin           New vehicle 5.9%  6.7% (80) bps  5.9%  6.5% (60) bpsUsed vehicle 6.2   6.0  20   5.8   6.0  (20)Finance and insurance 100.0   100.0  —   100.0   100.0  — Aftersales 59.2   58.0  120   59.0   57.9  110 Gross profit margin 15.4   15.6  (20)  15.4   15.5  (10)            Unit sales           New vehicle 98,286   100,517  (2.2)%  189,168   198,103  (4.5)%Used vehicle retail 101,462   108,040  (6.1)  207,669   213,087  (2.5)            Average selling price (excluding agency)           New vehicle$47,082  $47,020  0.1% $46,767  $46,954  (0.4)%Used vehicle retail 29,141   27,965  4.2   28,553   27,454  4.0             Average gross profit per unit           New vehicle$2,718  $3,059  (11.1)% $2,715  $3,000  (9.5)%Used vehicle retail 2,019   1,899  6.3   1,839   1,846  (0.4)Finance and insurance 1,811   1,814  (0.2)  1,809   1,813  (0.2)Total vehicle(1) 4,119   4,220  (2.4)  4,016   4,164  (3.6) (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 June 30, Six months ended June 30, 2026
 2026
Key Performance by CountryTotal Revenue Total Gross Profit Total Revenue Total Gross ProfitUnited States77.4% 82.2% 76.5% 81.6%United Kingdom18.7% 14.8% 20.0% 15.7%Canada3.9% 3.0% 3.5% 2.7%              As of June 30, December 31, June 30,Days’ Supply(1)2026 2025 2025New vehicle inventory59 54 63Used vehicle inventory60 48 48 (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 June 30, Six months ended June 30,($ in millions)2026
 %(1) 2025
 %(1) 2026
 %(1) 2025
 %(1)Interest and fee income$116.4  8.9  $98.8  9.2  $226.9  8.9  $193.2  9.3 Interest expense (53.5) (4.1)  (49.8) (4.7)  (105.2) (4.1)  (97.9) (4.7)Total interest margin$62.9  4.8  $49.0  4.5  $121.7  4.8  $95.3  4.5 Lease income 26.4     23.7     50.3     44.2   Lease costs (22.5)    (18.6)    (42.7)    (35.4)  Lease income, net 3.9     5.1     7.6     8.8   Provision expense (15.8) (1.2)  (21.2) (2.0)  (42.2) (1.7)  (46.7) (2.2)Other financing operations expenses (14.5) (1.1)  (12.8) (1.2)  (29.3) (1.2)  (24.8) (1.2)Finance operations income$36.5    $20.1    $57.8    $32.6                   Total average managed finance receivables$5,271.4    $4,287.6    $5,140.2    $4,196.6    (1)   Annualized percentage of total average managed finance receivables

LAD
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)

 June 30, 2026
 December 31, 2025
Cash, restricted cash, and cash equivalents$363.9  $341.8 Trade receivables, net 1,124.9   1,134.1 Inventories, net 6,516.8   6,119.6 Other current assets 267.7   262.5 Total current assets$8,273.3  $7,858.0       Property and equipment, net 5,031.6   4,936.0 Finance receivables, net 5,281.6   4,755.1 Intangibles 5,320.5   5,254.1 Other non-current assets 2,338.8   2,304.0 Total assets$26,245.8  $25,107.2       Floor plan notes payable 6,387.4   5,008.9 Other current liabilities 1,861.5   1,687.8 Total current liabilities$8,248.9  $6,696.7       Long-term debt, less current maturities 6,690.9   7,274.9 Non-recourse notes payable, less current maturities 2,688.9   2,404.2 Other long-term liabilities and deferred revenue 2,189.7   2,103.0 Total liabilities$19,818.4  $18,478.8       Equity 6,427.4   6,628.4 Total liabilities and equity$26,245.8  $25,107.2          LAD
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)

 Six months ended June 30,Cash flows from operating activities:2026
 2025
Net income$363.7  $469.4 Adjustments to reconcile net income to net cash (used in) provided by operating activities 326.6   266.7 Changes in:   Inventories (433.8)  (19.7)Finance receivables (534.5)  (432.1)Floor plan notes payable 12.6   26.4 Other operating activities 91.3   20.7 Net cash (used in) provided by operating activities (174.1)  331.4 Cash flows from investing activities:   Capital expenditures (153.4)  (148.8)Cash paid for acquisitions, net of cash acquired (221.7)  (278.6)Proceeds from sales of stores 21.0   104.4 Other investing activities 2.3   7.5 Net cash used in investing activities (351.8)  (315.5)Cash flows from financing activities:   Net borrowings on floor plan notes payable, non-trade 1,409.2   (141.2)Net borrowings on non-recourse notes payable 267.4   (67.4)Net borrowings on other debt and finance lease liabilities (568.3)  552.2 Proceeds from issuance of common stock 14.0   13.6 Repurchase of common stock (534.0)  (263.3)Dividends paid (25.7)  (28.2)Other financing activity (7.5)  (79.2)Net cash provided by (used in) financing activities 555.1   (13.5)Effect of exchange rate changes on cash and restricted cash (3.3)  7.4 Change in cash, restricted cash, and cash equivalents 25.9   9.8 Cash, restricted cash, and cash equivalents at beginning of period 391.3   445.8 Cash, restricted cash, and cash equivalents at end of period 417.2   455.6          LAD
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In millions)

 Six months ended June 30,Net cash provided by operating activities2026
 2025
As reported$(174.1) $331.4 Floor plan notes payable, non-trade, net(1) 1,409.2   (141.2)Adjust: finance receivables activity 534.5   432.1 Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory (21.8)  (45.6)Adjusted$1,747.8  $576.7  (1) Includes the impact of converting inventory‑secured revolvers to floorplan facilities during 2026, increasing net floorplan borrowings and adjusted operating cash flows $1,138.3 million.

LAD
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)

 Three Months Ended June 30, 2026 As reported Net gain on disposal of stores Investment gain Insurance reserves Acquisition expenses Tax attribute AdjustedSelling, general and administrative 1,014.7   15.1   —   (2.3)  (0.4)  —   1,027.1 Operating income 448.3   (15.1)  —   2.3   0.4   —   435.9 Other income (expense), net 36.2   —   (28.2)  —   —   —   8.0               Income before income taxes 352.1   (15.1)  (28.2)  2.3   0.4   —   311.5 Income tax (provision) benefit (90.5)  4.1   6.4   (0.6)  (0.1)  (3.2)  (83.9)Net income$261.6  $(11.0) $(21.8) $1.7  $0.3  $(3.2) $227.6 Net income attributable to non-controlling interests (1.6)  —   —   —   —   —   (1.6)Net income attributable to LAD$260.0  $(11.0) $(21.8) $1.7  $0.3  $(3.2) $226.0               Diluted earnings per share attributable to LAD$11.54  $(0.49) $(0.96) $0.07  $0.01  $(0.14) $10.03 Diluted share count 22.5                               Three Months Ended June 30, 2025 As reported Net loss on disposal of stores Investment gain(1) Insurance reserves Acquisition expenses Tax attribute AdjustedSelling, general and administrative$1,014.7  $(7.2) $—  $(2.4) $(0.1) $—  $1,005.0 Operating income 425.3   7.2   —   2.4   0.1   —   435.0 Other income (expense), net 48.5   —   (36.4)  —   —   —   12.1               Income before income taxes 352.1   7.2   (36.4)  2.4   0.1   —   325.4 Income tax (provision) benefit (93.9)  1.8   9.5   (0.6)  —   (1.3)  (84.5)Net income$258.2  $9.0  $(26.9) $1.8  $0.1  $(1.3) $240.9 Net income attributable to non-controlling interests$(2.1) $—  $—  $—  $—  $—  $(2.1)Net income attributable to LAD$256.1  $9.0  $(26.9) $1.8  $0.1  $(1.3) $238.8               Diluted earnings per share attributable to LAD$9.87  $0.35  $(1.04) $0.07  $—  $(0.05) $9.20 Diluted share count 25.9                              LAD
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)

 Six Months Ended June 30, 2026 As reported Net gain on disposal of stores Investment loss Insurance reserves Acquisition expenses Contract buyouts Tax attribute AdjustedSelling, general and administrative$2,052.1  $15.0  $—  $(2.3) $(0.7) $(20.3) $—  $2,043.8 Operating income 784.1   (15.0)  —   2.3   0.7   20.3   —   792.4 Other income (expense), net (31.5)  —   45.2   —   —   —   —   13.7                 Income before income taxes 494.1   (15.0)  45.2   2.3   0.7   20.3   —   547.6 Income tax (provision) benefit (130.4)  4.0   (12.1)  (0.6)  (0.1)  (5.1)  (2.0)  (146.3)Net income$363.7  $(11.0) $33.1  $1.7  $0.6  $15.2  $(2.0) $401.3 Net income attributable to non-controlling interests (3.3)  —   —   —   —   —   —   (3.3)Net income attributable to LAD$360.4  $(11.0) $33.1  $1.7  $0.6  $15.2  $(2.0) $398.0                 Diluted earnings per share attributable to LAD$15.68  $(0.48) $1.44  $0.07  $0.03  $0.66  $(0.08) $17.32 Diluted share count 23.0                 Six Months Ended June 30, 2025 As reported Net gain on disposal of stores Investment gain(1) Insurance reserves Acquisition expenses Tax attribute AdjustedSelling, general and administrative$1,967.4  $2.2  $—  $(2.8) $(0.3) $—  $1,966.5 Operating income 831.6   (2.2)  —   2.8   0.3   —   832.5 Other income (expense), net 49.3   —   (26.7)  —   —   —   22.6               Income before income taxes 636.7   (2.2)  (26.7)  2.8   0.3   —   610.9 Income tax (provision) benefit (167.3)  4.3   7.0   (0.7)  (0.1)  (2.3)  (159.1)Net income$469.4  $2.1  $(19.7) $2.1  $0.2  $(2.3) $451.8 Net income attributable to non-controlling interests (3.8)  —   —   —   —   —   (3.8)Net income attributable to LAD$465.6  $2.1  $(19.7) $2.1  $0.2  $(2.3) $448.0               Diluted earnings per share attributable to LAD$17.80  $0.08  $(0.76) $0.08  $0.01  $(0.09) $17.12 Diluted share count 26.2                              LAD
Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)
(In millions)

 Three months ended
June 30,
 % Six months ended
June 30, %  Increase  Increase 2026
 2025
 (Decrease) 2026
 2025
 (Decrease)EBITDA and Adjusted EBITDA           Net income$261.6  $258.2  1.3% $363.7  $469.4  (22.5)%Flooring interest expense 69.7   55.0  26.7   125.6   112.0  12.1 Other interest expense 62.7   66.7  (6.0)  132.9   132.2  0.5 Financing operations interest expense 53.5   49.8  7.4   105.2   97.9  7.5 Income tax expense 90.5   93.9  (3.6)  130.4   167.3  (22.1)Depreciation and amortization 70.9   65.2  8.7   140.7   129.0  9.1 EBITDA$608.9  $588.8  3.4% $998.5  $1,107.8  (9.9)%            Other adjustments:           Less: flooring interest expense$(69.7) $(55.0) 26.7  $(125.6) $(112.0) 12.1 Less: financing operations interest expense (53.5)  (49.8) 7.4   (105.2)  (97.9) 7.5 Less: used vehicle line of credit interest —   (4.4) (100.0)  (1.4)  (7.5) (81.3)Add: acquisition expenses 0.4   0.1  NM  0.7   0.3  NMAdd: (gain) loss on disposal of stores (15.1)  7.2  NM  (15.0)  (2.2) NMAdd: investment (gain) loss(1) (28.2)  (36.4) NM  45.2   (26.7) NMAdd: insurance reserves 2.3   2.4  NM  2.3   2.8  NMAdd: contract buyouts —   —  NM  20.3   —  NMAdjusted EBITDA$445.1  $452.9  (1.7)% $819.8  $864.6  (5.2)% NM - not meaningful
(1) Investment (gains) losses retrospectively included in adjusted non-GAAP financial measures presented

 As of % June 30, IncreaseNet Debt to Adjusted EBITDA2026
 2025
 (Decrease)Floor plan notes payable$6,387.4  $4,888.0  30.7%Used and service loaner vehicle inventory financing facility 3.5   1,011.3  (99.7)Revolving lines of credit 1,889.8   1,792.1  5.5 Warehouse facilities 1,459.0   1,241.0  17.6 Non-recourse notes payable 2,741.4   2,042.0  34.3 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  — Real estate mortgages, finance lease obligations, and other debt 1,106.7   986.4  12.2 Unamortized debt issuance costs (25.1)  (20.6) 21.8 Total debt$15,912.7  $13,690.2  16.2%      Less: Inventory related debt$(6,390.9) $(5,899.3) 8.3%Less: Financing operations related debt (4,200.4)  (3,283.0) 27.9 Less: Unrestricted cash and cash equivalents (110.3)  (202.8) (45.6)Less: Marketable securities (67.0)  (52.1) 28.6 Less: Availability on used vehicle and service loaner financing facilities (0.5)  (29.9) (98.3)Net Debt$5,143.6  $4,223.1  21.8%      TTM Adjusted EBITDA$1,621.7  $1,670.6  (2.9)%      Net debt to Adjusted EBITDA3.17x 2.53x   NM - not meaningful

Wall Street expects a year-over-year decline in earnings on higher revenues when Lithia Motors (LAD - Free Report) reports results for the quarter ended June 2026. While this widely-known consensus outlook is important in gauging the company's earnings picture, a powerful factor that could impact its near-term stock price is how the actual results compare to these estimates.

The earnings report, which is expected to be released on July 29, might help the stock move higher if these key numbers are better than expectations. On the other hand, if they miss, the stock may move lower.

While management's discussion of business conditions on the earnings call will mostly determine the sustainability of the immediate price change and future earnings expectations, it's worth having a handicapping insight into the odds of a positive EPS surprise.

Zacks Consensus EstimateThis auto dealership chain is expected to post quarterly earnings of $8.67 per share in its upcoming report, which represents a year-over-year change of -15.3%.

Revenues are expected to be $9.64 billion, up 0.6% from the year-ago quarter.

Estimate Revisions TrendThe consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This is essentially a reflection of how the covering analysts have collectively reassessed their initial estimates over this period.

Investors should keep in mind that the direction of estimate revisions by each of the covering analysts may not always get reflected in the aggregate change.

Price, Consensus and EPS Surprise

Earnings WhisperEstimate revisions ahead of a company's earnings release offer clues to the business conditions for the period whose results are coming out. This insight is at the core of our proprietary surprise prediction model -- the Zacks Earnings ESP (Expected Surprise Prediction).

The Zacks Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate for the quarter; the Most Accurate Estimate is a more recent version of the Zacks Consensus EPS estimate. The idea here is that analysts revising their estimates right before an earnings release have the latest information, which could potentially be more accurate than what they and others contributing to the consensus had predicted earlier.

Thus, a positive or negative Earnings ESP reading theoretically indicates the likely deviation of the actual earnings from the consensus estimate. However, the model's predictive power is significant for positive ESP readings only.

A positive Earnings ESP is a strong predictor of an earnings beat, particularly when combined with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold). Our research shows that stocks with this combination produce a positive surprise nearly 70% of the time, and a solid Zacks Rank actually increases the predictive power of Earnings ESP.

Please note that a negative Earnings ESP reading is not indicative of an earnings miss. Our research shows that it is difficult to predict an earnings beat with any degree of confidence for stocks with negative Earnings ESP readings and/or Zacks Rank of 4 (Sell) or 5 (Strong Sell).

How Have the Numbers Shaped Up for Lithia Motors?For Lithia Motors, the Most Accurate Estimate is lower than the Zacks Consensus Estimate, suggesting that analysts have recently become bearish on the company's earnings prospects. This has resulted in an Earnings ESP of -0.31%.

On the other hand, the stock currently carries a Zacks Rank of #3.

So, this combination makes it difficult to conclusively predict that Lithia Motors will beat the consensus EPS estimate.

Does Earnings Surprise History Hold Any Clue?While calculating estimates for a company's future earnings, analysts often consider to what extent it has been able to match past consensus estimates. So, it's worth taking a look at the surprise history for gauging its influence on the upcoming number.

For the last reported quarter, it was expected that Lithia Motors would post earnings of $7.06 per share when it actually produced earnings of $7.34, delivering a surprise of +3.97%.

Over the last four quarters, the company has beaten consensus EPS estimates three times.

Bottom LineAn earnings beat or miss may not be the sole basis for a stock moving higher or lower. Many stocks end up losing ground despite an earnings beat due to other factors that disappoint investors. Similarly, unforeseen catalysts help a number of stocks gain despite an earnings miss.

That said, betting on stocks that are expected to beat earnings expectations does increase the odds of success. This is why it's worth checking a company's Earnings ESP and Zacks Rank ahead of its quarterly release. Make sure to utilize our Earnings ESP Filter to uncover the best stocks to buy or sell before they've reported.

Lithia Motors doesn't appear a compelling earnings-beat candidate. However, investors should pay attention to other factors too for betting on this stock or staying away from it ahead of its earnings release.

An Industry Player's Expected ResultsAnother stock from the Zacks Automotive - Retail and Whole Sales industry, Asbury Automotive Group (ABG - Free Report) , is soon expected to post earnings of $6.3 per share for the quarter ended June 2026. This estimate indicates a year-over-year change of -15.2%. Revenues for the quarter are expected to be $4.46 billion, up 2.1% from the year-ago quarter.

Over the last 30 days, the consensus EPS estimate for Asbury Automotive has been revised 0.9% down to the current level. Nevertheless, the company now has an Earnings ESP of -0.46%, reflecting a lower Most Accurate Estimate.

When combined with a Zacks Rank of #3 (Hold), this Earnings ESP makes it difficult to conclusively predict that Asbury Automotive will beat the consensus EPS estimate. Over the last four quarters, the company surpassed consensus EPS estimates two times.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

For Immediate ReleaseChicago, IL – June 26, 2026 – Today, Zacks Equity Research Lithia Motors (LAD - Free Report) and Sonic Automotive (SAH - Free Report) .

Industry: Auto Retail

Link: https://www.zacks.com/commentary/2942607/2-auto-retailers-worth-watching-despite-purchasing-power-erosion

The Zacks Auto Retail and Wholesale industry enters the second half of 2026 navigating a complex landscape. New-vehicle demand has demonstrated notable resilience, supported by stable monthly sales volumes and broadening credit access, even as macro headwinds persist. However, sustained inflationary pressures, elevated vehicle prices and high borrowing costs continue to erode consumer purchasing power, disproportionately impacting mainstream and entry-level buyers. With full-year sales forecast at 15.8 million units— below 2025 levels— the industry faces pressure on volumes and margins.

Despite this backdrop, a few retailers like Lithia Motors and Sonic Automotive are better positioned to weather the cycle, backed by strategic acquisitions, ongoing digitization efforts and shareholder-friendly capital allocation.

About the IndustryThe auto retail and wholesale industry plays a key role in how cars, trucks and auto parts reach consumers. Companies in this space operate through dealership networks and retail chains, selling both new and used vehicles, offering repair and maintenance services, and facilitating customer financing. As a consumer-driven industry, its performance is closely tied to broader economic conditions — disposable income levels, interest rates, and consumer confidence all directly influence vehicle purchase decisions. The industry has also undergone meaningful structural change in recent years, with dealers increasingly investing in digital tools and e-commerce capabilities, a shift that continues to reshape how vehicles are bought and sold.

Key Investing ThemesResilient Demand and Stabilizing Sales Pace: Despite a volatile start to 2026 driven by weather disruptions, policy shifts and the Middle East energy shock, new-vehicle demand has proven surprisingly durable. Per Cox Automotive, the SAAR has held near 16.1 million for four consecutive months, including June, reflecting the underlying strength of consumer commitment to vehicle purchases. Strong equity markets and accumulated household wealth are also providing meaningful support, helping insulate demand despite elevated fuel prices and broader macro uncertainty.

Broadening Credit Access Supporting a Wider Buyer Pool: Per Cox Automotive, while average new vehicle loan rates remain elevated, it is a result of a broader mix of consumers now accessing financing, including lower credit tiers that were previously shut out of the market. Lenders have been expanding approval rates, extending loan terms, financing negative equity, and narrowing yield spreads, collectively widening the pool of eligible buyers. This broadening of credit access, even within a high-rate environment, should continue to support transaction volumes that might otherwise have deteriorated more sharply given current affordability pressures.

Eroding Consumer Purchasing Power: A sustained erosion of household purchasing power remains a key structural headwind for auto retail going into the second half of 2026. Per Cox Automotive, consumer price inflation has compounded at nearly 5% annually over the last five years, and personal expenditure growth continues to outpace income growth.

The average consumer's budget is under meaningful pressure. Energy costs remain a persistent drag, and unless inflation trends materially improve, discretionary spending on big-ticket purchases like vehicles will continue to face resistance— particularly in mainstream and entry-level segments where financing dependency is highest and budget sensitivity is most acute.

Elevated Vehicle Prices and High Borrowing Costs Suppressing Volume: Average transaction prices for new vehicles sit at approximately $49,220 — nearly 9% above where they would be had pre-COVID price growth trends continued. Layered on top of that, average new auto loan rates stand at 9.6%, having risen sharply from approximately 6.5% a decade ago. Cox Automotive's Vehicle Affordability Index highlights rising income requirements to purchase a new vehicle, with price-sensitive compact and subcompact segment buyers increasingly trading down to used vehicles or exiting the market entirely.

Year-Over-Year Volume Decline Pressuring Revenue Comps: Full-year new-vehicle sales are forecast at 15.8 million units, a 2.9% decline from 2025. While some of this softness reflects last year's outperformance rather than a fundamental demand collapse, negative unit comps create meaningful headwinds for revenue growth and operating leverage across the industry. In a business with high fixed costs at the dealership level, even modest volume declines can compress margins and pressure earnings comparisons through the remainder of 2026.

Zacks Industry Rank Isn't EncouragingThe Zacks Auto Retail & Wholesale industry is part of the broader Zacks Auto-Tires-Trucks sector. The industry currently carries a Zacks Industry Rank #167, which places it in the bottom 32% of nearly 245 Zacks industries.

The group’s Zacks Industry Rank, which is the average of the Zacks Rank of all the member stocks, indicates weak near-term prospects. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1.

The industry’s position in the bottom 50% of the Zacks-ranked industries is a result of a negative earnings outlook for the constituent companies in aggregate. Looking at the aggregate earnings estimate revisions, it appears that analysts are losing confidence about this group’s earnings growth potential. Over the past year, the industry's earnings estimate for 2026 has declined roughly 8%.

We will present a couple of stocks that you might consider adding to your watchlist. But before that, let’s discuss the industry’s recent stock market performance and valuation picture.

Industry Lags Sector and S&P 500The Zacks Auto Retail & Whole Sales industry has lost roughly 4%, underperforming the Zacks S&P 500 composite as well as the Auto, Tires and Truck sector over the past year, which grew 26% and 16%, respectively.

Industry's Current ValuationSince automotive companies are debt-laden, it makes sense to value them based on the enterprise value/earnings before interest, tax, depreciation and amortization (EV/EBITDA) ratio.

On the basis of the trailing 12-month EV/EBITDA, the industry is currently trading at 9.1X compared with the S&P 500’s 18.23X and the sector’s trailing 12-month EV/EBITDA of 26.76X.

Over the past five years, the industry has traded as high as 9.45X, as low as 4.78X and at a median of 7.21X.

2 Stocks Worth ConsideringSonichas grown into one of the most diversified franchised auto retailers in the United States. The 2021 acquisition of RFJ Auto Partners cemented its position among the top five U.S. dealership groups, while its more recent acquisition of four Jaguar and Land Rover dealerships in California made it the largest U.S. retailer of those premium brands— adding meaningful exposure to the higher-end segment that has shown relative resilience in 2026.

Beyond traditional auto retail, Sonic is expanding into powersports through its Sonic Powersports unit, now operating 20 rooftops across 46 franchises following its Harley-Davidson dealership acquisitions, positioning it among the top five U.S. powersports groups. Its EchoPark digital platform further supports an omnichannel retail strategy aligned with evolving consumer preferences. Notably, Sonic has raised its dividend eight times over the last five years, underscoring consistent shareholder returns.

Sonic currently carries a Zacks Rank #2 (Buy). The Zacks Consensus Estimate for 2026 and 2027 sales implies year-over-year growth of 5% and 8%, respectively. The consensus mark for Sonic’s current and next year EPS has moved north by 13 cents and 10 cents, respectively, over the past 30 days.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Lithia stands out as one of the most acquisitive and strategically disciplined auto retailers in the United States. The company added $2.4 billion in annualized revenues through acquisitions in 2025 and continues to target $2-$4 billion in annual acquired revenues in 2026, with a deliberate focus on large, high-performing stores in the high-profitability Southeast and South-Central markets.

Beyond physical expansion, Lithia's digital platforms— Driveway and GreenCars— enable customers to buy, sell and service vehicles online, supporting an omnichannel strategy aligned with shifting consumer preferences. Its North American JV sale to Pinewood AI has further streamlined operations, unified its technology platform and accelerated delivery capabilities. Lithia also maintains a strong shareholder return track record, with a five-year annualized dividend growth rate of 11.56%, reflecting confidence in its long-term earnings trajectory.

Lithia currently carries a Zacks Rank #3 (Hold). The Zacks Consensus Estimate for 2026 and 2027 sales implies year-over-year growth of 3% and 17%, respectively. The consensus mark for LAD’s current and next year EPS has moved north by 11 cents and 43 cents, respectively, over the past 30 days.

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It has been about a month since the last earnings report for Lithia Motors (LAD - Free Report) . Shares have lost about 16% in that time frame, underperforming the S&P 500.

Will the recent negative trend continue leading up to its next earnings release, or is Lithia Motors due for a breakout? Well, first let's take a quick look at its latest earnings report in order to get a better handle on the recent drivers for Lithia Motors, Inc. before we dive into how investors and analysts have reacted as of late.

Lithia Q4 Earnings Miss ExpectationsLithia reported fourth-quarter 2025 adjusted earnings per share of $6.74, down from the prior-year quarter’s figure of $7.79. The figure missed the Zacks Consensus Estimate of $8.09. Revenues of $9.2 billion remained flat year over year and missed the Zacks Consensus Estimate of $9.53 billion.

Segmental PerformanceNew vehicle revenues fell 5.7% year over year to $4.63 billion and missed our estimate of $4.71 billion due to lower-than-expected average selling price (ASP). New vehicle units sold declined 8.1% from the prior-year quarter’s level to 97,424 units but beat our estimate of 95,435 units.

The ASP of new vehicle increased to $48,239 from $47,478 in the prior-year quarter but missed our estimate of $49,401. The gross margin in this segment contracted 70 basis points (bps) to 5.9% while the cost of sales fell 5% year over year to $4.36 billion.

Used vehicle revenues rose 6.7% year over year to $3.2 billion and surpassed our estimate of $2.68 billion due to higher-than-anticipated unit sales and ASP. The used-vehicle retail units sold increased 4.8% from the year-ago quarter’s figure to 99,905 units and beat our expectation of 94,261 units. The ASP of used vehicle was $28,533, up 3.1% year over year. Our estimate was $28,413. The gross margin in the segment decreased 60 bps to 4.7%.

The company’s finance and insurance revenues rose 0.3% to $356.9 million and beat our estimate of $347 million. Revenues from aftersales totaled $1.04 billion, which rose 11.4% year over year and beat our estimate of $972.1 million. Same-store new vehicle revenues fell 6.6% year over year, while same-store used vehicle sales rose 6.1%. Same-store revenues from finance and insurance fell 0.9%, while those from the aftersales unit rose 10.9%.

Financial TidbitsCost of sales was up 0.3% year over year. SG&A expenses amounted to $979.3 million, up 8.6% year over year. Adjusted SG&A, as a percentage of gross profit, was 71.4%, up from the prior-year quarter’s 66.3%. Pretax and net profit margins declined from the year-ago levels.

The company announced a dividend of 55 cents to be paid out on March 20, 2026, to its shareholders of record as of March 6, 2026. In fourth-quarter 2025, LAD repurchased nearly 917,427 shares at an average price of $314. Currently, Lithia has approximately $621.6 million shares remaining under its buyback authorization.

Lithia had cash/cash equivalents/restricted cash of $341.8 million as of Dec. 31, 2025, down from $402.2 million as of Dec. 31, 2024. Long-term debt was $7.27 billion as of Dec. 31, 2025, up from $6.12 billion as of Dec. 31, 2024.

How Have Estimates Been Moving Since Then?Since the earnings release, investors have witnessed a flat trend in estimates review.

VGM ScoresCurrently, Lithia Motors has a subpar Growth Score of D, though it is lagging a bit on the Momentum Score front with an F. However, the stock was allocated a score of A on the value side, putting it in the top quintile for value investors.

Overall, the stock has an aggregate VGM Score of C. If you aren't focused on one strategy, this score is the one you should be interested in.

Outlook Lithia Motors has a Zacks Rank #3 (Hold). We expect an in-line return from the stock in the next few months.

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Posted by Defense World Staff on Mar 31st, 2026

Lithia Motors, Inc. (NYSE:LAD – Get Free Report) was the target of some unusual options trading on Monday. Traders purchased 6,255 put options on the company. This represents an increase of 3,356% compared to the average daily volume of 181 put options.

Lithia Motors Stock Down 1.7% LAD stock opened at $246.20 on Tuesday. Lithia Motors has a one year low of $239.78 and a one year high of $360.55. The firm has a market cap of $5.76 billion, a PE ratio of 7.66, a PEG ratio of 0.59 and a beta of 1.21. The firm’s 50 day moving average price is $290.36 and its 200-day moving average price is $310.55. The company has a debt-to-equity ratio of 1.46, a quick ratio of 0.26 and a current ratio of 1.17.

Lithia Motors (NYSE:LAD – Get Free Report) last issued its quarterly earnings data on Wednesday, February 11th. The company reported $6.74 earnings per share for the quarter, missing the consensus estimate of $8.09 by ($1.35). Lithia Motors had a return on equity of 12.76% and a net margin of 2.18%.The business had revenue of $9.20 billion during the quarter, compared to analysts’ expectations of $9.19 billion. During the same quarter in the previous year, the company posted $7.79 earnings per share. The company’s revenue was up .3% on a year-over-year basis. On average, equities research analysts anticipate that Lithia Motors will post 34.45 EPS for the current year.

Lithia Motors Announces Dividend The firm also recently disclosed a quarterly dividend, which was paid on Friday, March 20th. Investors of record on Friday, March 6th were given a dividend of $0.55 per share. This represents a $2.20 dividend on an annualized basis and a dividend yield of 0.9%. The ex-dividend date of this dividend was Friday, March 6th. Lithia Motors’s dividend payout ratio (DPR) is presently 6.85%.

Institutional Inflows and Outflows Large investors have recently bought and sold shares of the stock. Parallel Advisors LLC raised its position in shares of Lithia Motors by 26.8% during the 4th quarter. Parallel Advisors LLC now owns 156 shares of the company’s stock worth $52,000 after purchasing an additional 33 shares during the last quarter. AGP Franklin LLC grew its holdings in Lithia Motors by 0.3% during the 3rd quarter. AGP Franklin LLC now owns 10,459 shares of the company’s stock valued at $3,305,000 after buying an additional 34 shares during the last quarter. Arizona State Retirement System increased its position in Lithia Motors by 0.4% during the third quarter. Arizona State Retirement System now owns 7,702 shares of the company’s stock worth $2,434,000 after buying an additional 34 shares in the last quarter. GAMMA Investing LLC raised its holdings in shares of Lithia Motors by 9.2% in the fourth quarter. GAMMA Investing LLC now owns 403 shares of the company’s stock worth $134,000 after acquiring an additional 34 shares during the last quarter. Finally, M&T Bank Corp lifted its position in shares of Lithia Motors by 2.4% in the second quarter. M&T Bank Corp now owns 1,488 shares of the company’s stock valued at $503,000 after acquiring an additional 35 shares in the last quarter.

Wall Street Analysts Forecast Growth A number of equities analysts recently commented on the company. Citigroup reduced their price objective on Lithia Motors from $399.00 to $366.00 and set a “buy” rating on the stock in a research report on Thursday, March 5th. Bank of America assumed coverage on Lithia Motors in a report on Wednesday, March 4th. They issued a “neutral” rating for the company. Zacks Research lowered Lithia Motors from a “hold” rating to a “strong sell” rating in a report on Wednesday, March 25th. Wells Fargo & Company lowered their price target on shares of Lithia Motors from $358.00 to $355.00 and set an “equal weight” rating on the stock in a research report on Thursday, February 12th. Finally, Barclays dropped their price objective on shares of Lithia Motors from $390.00 to $380.00 and set an “overweight” rating for the company in a report on Tuesday, February 17th. Six research analysts have rated the stock with a Buy rating, five have assigned a Hold rating and one has assigned a Sell rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Hold” and a consensus price target of $382.33.

Read Our Latest Stock Report on LAD

About Lithia Motors (Get Free Report)

Lithia Motors, Inc is an American automotive retailer headquartered in Medford, Oregon. Founded in 1946 as a small auto body and glass shop, the company has grown through organic expansion and strategic acquisitions to become one of the largest automotive retail networks in North America. Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers.

The company’s core business activities include vehicle sales, financing, insurance, parts and service.

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The April 2026 Top 25 High Growth Dividend Stocks list targets quality companies trading below intrinsic value, averaging a 1.52% yield and 17.7% five-year dividend growth. Screened stocks appear ~34% undervalued by dividend yield theory, with an estimated +21% annualized long-term return potential. MSCI, WING, ZTS, INTU, and MSFT stand out for attractive valuations, robust dividend growth, and strong projected EPS growth.

On April 21, 2026, Lithia Motors Inc LAD shares fell 3.1% to a current price of $279.89, which is within its 52-week range of $239.78 to $360.56. This decline reflects a challenging market environment for the company, particularly as it faces a year-to-date drop of 15.6%.

GF Value™ verdict: The current price is $279.89, while GF Value™ estimates fair value at $365.83, indicating that the stock is 23.5% undervalued.GF Score™ of 89/100 suggests that LAD has strong potential for long-term returns based on key financial metrics.Notable signal: The insider activity shows that insiders sold $0.0M in the last 3 months, indicating no buying activity. Is LAD Overvalued or Undervalued? With a current price of $279.89, Lithia Motors Inc LAD appears to be undervalued when compared to its GF Value™ of $365.83, representing a margin of safety of 23.5%. This modest undervaluation presents an opportunity for potential investors, especially in light of the company's high GF Score™ of 89/100, which reflects strong fundamentals. GF Value™ is GuruFocus' proprietary measure of intrinsic value, calculated from historical trading multiples, past business growth, and future performance estimates.

However, despite the positive valuation signal, the financial strength score of 4/10 raises some concerns. This indicates that while there may be an opportunity, investors should remain cautious and consider the overall financial health of the company before making any decisions.

How Does LAD's Valuation Compare to Its History? Metric Current Historical P/E (TTM) 8.7x 8.5x Forward P/E 8.1x N/A The current P/E (TTM) of 8.7x is slightly above its 5-year median P/E of 8.5x, suggesting that the stock is trading at a premium compared to its historical valuation. This analysis aligns with the GF Value™ verdict, as the stock's current valuation appears to be only modestly undervalued, providing a somewhat mixed signal regarding the price's attractiveness.

What Does LAD's GF Score™ Tell Us? Metric Rating GF Score™ 89/100 Financial Strength 4/10 Profitability 8/10 Growth 10/10 Valuation 8/10 Momentum 5/10 The GF Score™ of 89/100 indicates strong potential for long-term returns, with particularly high growth (10/10) and profitability (8/10) scores. However, the financial strength score of 4/10 is a significant weakness, suggesting that while the company has robust profit margins and growth prospects, it may face challenges related to its financial structure. The momentum score of 5/10 indicates mixed performance in the market, which could impact short-term investment decisions.

What Are Insiders Doing with LAD Stock? In the last three months, insiders have not engaged in any buying activity, with a total of $0.0M in insider sales reported. This lack of insider buying might suggest caution from those closest to the company, which could be interpreted as a signal for potential investors to proceed with care. The absence of significant insider transactions implies that management may not currently view the stock as undervalued enough to warrant personal investment.

What This Means for Investors Based on the assessment of GF Value™, Lithia Motors Inc LAD is currently undervalued with a price that is 23.5% below its estimated fair value. However, the relatively low financial strength score suggests that potential investors should approach with caution, weighing the growth potential against existing financial risks.

For the complete analysis, visit the Lithia Motors Inc LAD stock page. You can also explore the GF Value™ page for detailed valuation methodology, or use the GuruFocus Stock Screener to find similar opportunities.

Frequently Asked Questions What is LAD's GF Score™?

LAD's GF Score™ is 89/100, indicating strong potential for long-term returns based on key financial metrics.

Is LAD overvalued or undervalued?

LAD is currently undervalued, with a GF Value™ of $365.83 compared to its current price of $279.89, representing a 23.5% undervaluation.

What is LAD's P/E ratio?

LAD's P/E (TTM) is 8.7x, which is slightly above its 5-year median P/E of 8.5x, suggesting that the stock is trading at a premium relative to its historical valuation.

This stock alert was generated using automated technology and GuruFocus financial data to provide readers with timely and accurate market reporting. This content was reviewed by GuruFocus editorial team prior to publication. Please send any questions or comments about this story to [email protected].

Key Highlights

Record first quarter revenues of $9.3 billionUsed vehicle revenue increased 4.6% on a same store basis in the quarterUsed retail GPUs increased 9%, or $133, sequentiallyAftersales revenue increased 3.8%, gross profit increased by 5.7% and gross margin was 58.7%, a 100-basis point increase, on a same-store basisDriveway Finance Corporation achieved record originations of $840 million, with an 18.0% penetration rate and an average FICO score of 750 in the quarterFirst quarter diluted earnings per share of $4.28 and adjusted diluted earnings per share of $7.34Repurchased $259 million of shares, representing 4.0% of outstanding shares in the quarter MEDFORD, Ore., April 29, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD), the largest global automotive retailer, today reported financial results for the first quarter of 2026.

"Our team drove strong results across our platform and sequential growth in earnings, delivering higher revenues and improved GPU in used vehicles, meaningful growth in aftersales, and growing penetration in Driveway Finance," said Bryan DeBoer, President and CEO. “Capital discipline remains a key focus, and we repurchased nearly 4% of our shares at prices well below intrinsic value. Our balance sheet and diversified platform give us a durable foundation to successfully navigate any market cycle."

First Quarter 2026 Operational Summary
First quarter 2026 revenue increased 1% to $9.3 billion from $9.2 billion in the first quarter of 2025.

First quarter 2026 diluted earnings per share attributable to LAD was $4.28, a 46% decrease from $7.94 per share reported in the first quarter of 2025. After adjusting for the unrealized loss on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted diluted earnings per share attributable to LAD for the first quarter of 2026 was $7.34, a 7% decrease compared to $7.93 per share in the same period of 2025.

First quarter 2026 net income was $102.0 million, a 51.7% decrease compared to net income of $211.2 million in the first quarter of 2025. After adjusting for the unrealized loss on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted net income for the first quarter 2026 was $173.3 million, an 18% decrease compared to adjusted net income of $210.9 million for the same period of 2025.

The financial measures discussed in this release include both GAAP and non-GAAP measures. See “Reconciliation of Certain Non-GAAP Measures”.

Corporate Development
Stores acquired during the first quarter are expected to generate $425 million in annualized revenues.

Balance Sheet Update
LAD ended the first quarter with approximately $1.4 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 $0.57 per share related to first quarter 2026 financial results. The dividend is expected to be paid on May 22, 2026 to shareholders of record on May 8, 2026.

During the first quarter of 2026, we repurchased approximately 942,000 shares at a weighted average price of $274.62. Under the current share repurchase authorization approximately $362.9 million remains available.

First Quarter Earnings Conference Call and Updated Presentation
The first quarter 2026 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting first quarter 2026 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 growthFuture market conditions, including anticipated vehicle and other sales, gross profit and inventory supplyOur business strategy and plans, including our achieving our long-term financial targetsThe growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional storesAnnualized revenues from acquired stores or achieving target returnsThe 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 targetsThe impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution modelsOur capital allocations and uses and levels of capital expenditures in the futureExpected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projectionsOur anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate and other financing sourcesOur continuing to purchase shares under our share repurchase programOur compliance with financial and restrictive covenants in our credit facilities and other debt agreementsOur programs and initiatives for team member recruitment, training, and retentionOur 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, interest rates, tariffs, governmental actions, programs and spending, and public health issuesThe market for dealerships, including the availability of stores to us for an acceptable priceChanges in customer demand, levels of consumer debt, consumer confidence and manufacturer sales incentives, and the electric vehicle landscape and the impact of evolving digital technologiesChanges in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery modelsChanges 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 vehiclesRisks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable termsThe 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 levelsDisruptions 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 equipmentGovernment regulations and legislationThe 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
All “adjusted” financial measures in this presentation are non-GAAP financial measures, as are 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. We caution you not to place undue reliance on such non-GAAP measures and to consider them together 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
March 31,
 %  Increase  2026   2025  (Decrease)Revenues:     New vehicle$4,379.4  $4,580.4  (4.4) %Used vehicle 3,489.4   3,250.5  7.3 Finance and insurance 359.7   364.3  (1.3)Aftersales 1,042.9   983.1  6.1 Total revenues 9,271.4   9,178.3  1.0%Cost of sales:     New vehicle 4,119.8   4,287.0  (3.9)Used vehicle 3,301.7   3,061.8  7.8 Aftersales 428.2   419.1  2.2 Total cost of sales 7,849.7   7,767.9  1.1 Gross profit 1,421.7   1,410.4  0.8%      Finance operations income 21.3   12.5  70.4%      SG&A expense 1,037.4   952.7  8.9 Depreciation and amortization 69.8   63.9  9.2 Income from operations 335.8   406.3  (17.4) %Floor plan interest expense (55.9)  (57.1) (2.1)Other interest expense (70.3)  (65.5) 7.3 Other (expense) income (67.6)  0.8  NM Income before income taxes 142.0   284.5  (50.1) %Income tax expense (40.0)  (73.3) (45.4)Income tax rate 28.2%  25.8%  Net income$102.0  $211.2  (51.7) %Net income attributable to non-controlling interests (1.6)  (1.7) (5.9) %Net income attributable to LAD$100.4  $209.5  (52.1) %      Diluted earnings per share attributable to LAD:     Net income per share$4.28  $7.94  (46.1) %      Diluted shares outstanding 23.4   26.4  (11.4) % NM - not meaningful

LAD
Key Performance Metrics (Unaudited)

 Three months ended
March 31,
 %  Increase  2026   2025  (Decrease)Gross margin     New vehicle 5.9%  6.4% (50)bpsUsed vehicle 5.4   5.8  (40)Finance and insurance 100.0   100.0  — Aftersales 58.9   57.4  150 Gross profit margin 15.3   15.4  (10)      Unit sales     New vehicle 94,787   99,503  (4.7) %Used vehicle retail 110,151   107,326  2.6       Average selling price (excluding agency)     New vehicle$46,878  $47,209  (0.7) %Used vehicle retail 28,464   27,198  4.7       Average gross profit per unit     New vehicle$2,739  $2,950  (7.2) %Used vehicle retail 1,688   1,769  (4.6)Finance and insurance 1,807   1,804  0.2 Total vehicle(1) 3,938   4,093  (3.8)      Revenue mix     New vehicle 47.2%  49.9%  Used vehicle 37.6   35.4   Finance and insurance, net 3.9   4.0   Aftersales 11.3   10.7         Gross Profit Mix     New vehicle 18.3%  20.8%  Used vehicle 13.2   13.4   Finance and insurance, net 25.3   25.8   Aftersales 43.2   40.0     Adjusted As reported Three months ended
March 31, Three months ended
March 31,Other metrics2026  2025  2026  2025 SG&A as a % of revenue11.0% 10.5% 11.2% 10.4%SG&A as a % of gross profit71.5  68.2  73.0  67.5 Operating profit as a % of revenue3.8  4.3  3.6  4.4 Operating profit as a % of gross profit25.1  28.2  23.6  28.8 Pretax margin2.5  3.1  1.5  3.1 Net profit margin1.9  2.3  1.1  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
March 31,
 %  Increase  2026   2025  (Decrease)Revenues     New vehicle$4,156.8  $4,474.3  (7.1) %Used vehicle 3,302.0   3,157.4  4.6 Finance and insurance 345.2   358.7  (3.8)Aftersales 992.1   955.8  3.8 Total revenues 8,796.1   8,946.2  (1.7)      Gross profit     New vehicle$246.8  $287.8  (14.2) %Used vehicle 178.8   187.3  (4.5)Finance and insurance 345.2   358.7  (3.8)Aftersales 582.6   551.1  5.7 Total gross profit 1,353.4   1,384.9  (2.3)      Gross margin     New vehicle 5.9%  6.4% (50)bpsUsed vehicle 5.4   5.9  (50)Finance and insurance 100.0   100.0  — Aftersales 58.7   57.7  100 Gross profit margin 15.4   15.5  (10)      Unit sales     New vehicle 90,671   97,617  (7.1) %Used vehicle retail 105,541   104,961  0.6       Average selling price (excluding agency)     New vehicle$46,545  $47,018  (1.0) %Used vehicle retail 28,142   27,019  4.2       Average gross profit per unit     New vehicle$2,722  $2,949  (7.7) %Used vehicle retail 1,680   1,795  (6.4)Finance and insurance 1,813   1,812  0.1 Total vehicle(1) 3,928   4,116  (4.6) (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 March 31, 2026Key Performance by CountryTotal Revenue Total Gross ProfitUnited States75.6% 80.9%United Kingdom21.4% 16.7%Canada3.0% 2.4%  As of March 31, December 31, March 31,Days’ Supply(1)2026 2025 2025New vehicle inventory49 54 43Used vehicle inventory47 48 44 (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 March 31,($ in millions) 2026  %(1)  2025  %(1)Interest and fee income$110.5  9.0  $94.4  9.4 Interest expense (51.6) (4.2)  (48.1) (4.8)Total interest margin$58.9  4.8  $46.3  4.6 Lease income 23.9     20.5   Lease costs (20.2)    (16.8)  Lease income, net 3.7     3.7   Provision expense (26.4) (2.1)  (25.5) (2.5)Other financing operations expenses (14.9) (1.2)  (12.0) (1.2)Finance operations income$21.3    $12.5           Total average managed finance receivables$5,004.0    $4,062.1    (1)   Annualized percentage of total average managed finance receivables

LAD
Condensed Consolidated Balance Sheets (Unaudited)
(In millions)

 March 31, 2026 December 31, 2025Cash, restricted cash, and cash equivalents$421.3 $341.8Trade receivables, net 1,261.4  1,134.1Inventories, net 6,193.2  6,119.6Other current assets 275.9  262.5Total current assets$8,151.8 $7,858.0    Property and equipment, net 4,994.5  4,936.0Finance receivables, net 5,012.9  4,755.1Intangibles 5,242.0  5,254.1Other non-current assets 2,348.5  2,304.0Total assets$25,749.7 $25,107.2    Floor plan notes payable 6,284.5  5,008.9Other current liabilities 1,915.2  1,687.8Total current liabilities$8,199.7 $6,696.7    Long-term debt, less current maturities 6,448.8  7,274.9Non-recourse notes payable, less current maturities 2,565.8  2,404.2Other long-term liabilities and deferred revenue 2,125.9  2,103.0Total liabilities$19,340.2 $18,478.8    Equity 6,409.5  6,628.4Total liabilities and equity$25,749.7 $25,107.2 LAD
Condensed Consolidated Statements of Cash Flows (Unaudited)
(In millions)

 Three months ended March 31,Cash flows from operating activities: 2026   2025 Net income$102.0  $211.2 Adjustments to reconcile net income to net cash provided by operating activities 212.2   146.9 Changes in:   Inventories (97.2)  186.4 Finance receivables (261.2)  (179.1)Floor plan notes payable (65.5)  23.3 Other operating activities 1.3   (66.6)Net cash (used in) provided by operating activities (108.4)  322.1 Cash flows from investing activities:   Capital expenditures (97.1)  (68.7)Cash paid for acquisitions, net of cash acquired (145.3)  (84.5)Proceeds from sales of stores —   43.2 Other investing activities 1.9   (7.1)Net cash used in investing activities (240.5)  (117.1)Cash flows from financing activities:   Net borrowings on floor plan notes payable, non-trade 1,378.3   (44.0)Net borrowings on non-recourse notes payable 160.0   254.4 Net borrowings on other debt and finance lease liabilities (798.8)  (159.7)Proceeds from issuance of common stock 5.8   5.6 Repurchase of common stock (297.0)  (143.4)Dividends paid (12.8)  (13.9)Other financing activity (3.5)  (72.0)Net cash provided by (used in) financing activities 432.0   (173.0)Effect of exchange rate changes on cash and restricted cash (1.7)  0.3 Change in cash, restricted cash, and cash equivalents 81.4   32.3 Cash, restricted cash, and cash equivalents at beginning of period 391.3   445.8 Cash, restricted cash, and cash equivalents at end of period 472.7   478.1  LAD
Reconciliation of Non-GAAP Cash Flow from Operations (Unaudited)
(In millions)

 Three months ended March 31,Net cash provided by operating activities 2026   2025 As reported$(108.4) $322.1 Floor plan notes payable, non-trade, net(1) 1,378.3   (44.0)Adjust: finance receivables activity 261.2   179.1 Less: Borrowings on floor plan notes payable, non-trade associated with acquired new vehicle inventory (11.3)  (9.9)Adjusted$1,519.8  $447.3  (1)   Includes the impact of converting inventory‑secured revolvers to floorplan facilities during the quarter, increasing net floorplan borrowings and adjusted operating cash flows $1,138.3 million.

LAD
Reconciliation of Certain Non-GAAP Financial Measures (Unaudited)
(In millions, except for per share data)

 Three Months Ended March 31, 2026 As reported Investment loss Acquisition expenses Contract buyouts Tax attribute AdjustedSelling, general and administrative$1,037.4  $—  $(0.3) $(20.3) $— $1,016.8 Operating income 335.8   —   0.3   20.3   —  356.4 Other income (expense), net (67.6)  73.3   —   —   —  5.7             Income before income taxes 142.0   73.3   0.3   20.3   —  235.9 Income tax (provision) benefit (40.0)  (18.6)  (0.1)  (5.1)  1.2  (62.6)Net income$102.0  $54.7  $0.2  $15.2  $1.2 $173.3 Net income attributable to non-controlling interests (1.6)  —   —   —   —  (1.6)Net income attributable to LAD$100.4  $54.7  $0.2  $15.2  $1.2 $171.7             Diluted earnings per share attributable to LAD$4.28  $2.34  $0.01  $0.65  $0.06 $7.34 Diluted share count 23.4             Three Months Ended March 31, 2025 As reported Net gain on disposal of stores Investment loss Insurance reserves Acquisition expenses Tax attribute AdjustedSelling, general and administrative$952.7  $9.4  $—  $(0.4) $(0.2) $—  $961.5 Operating income 406.3   (9.4)  —   0.4   0.2   —   397.5 Other income (expense), net 0.8   —   9.7   —   —   —   10.5               Income before income taxes 284.5   (9.4)  9.7   0.4   0.2   —   285.4 Income tax (provision) benefit (73.3)  2.4   (2.5)  (0.1)  —   (1.0)  (74.5)Net income$211.2  $(7.0) $7.2  $0.3  $0.2  $(1.0) $210.9 Net income attributable to non-controlling interests (1.7)  —   —   —   —   —   (1.7)Net income attributable to LAD$209.5  $(7.0) $7.2  $0.3  $0.2  $(1.0) $209.2               Diluted earnings per share attributable to LAD$7.94  $(0.25) $0.27  $0.01  $—  $(0.04) $7.93 Diluted share count 26.4              LAD
Adjusted EBITDA and Net Debt to Adjusted EBITDA (Unaudited)
(In millions)

 Three months ended
March 31,
 %  Increase  2026   2025  (Decrease)EBITDA and Adjusted EBITDA     Net income$102.0  $211.2  (51.7) %Flooring interest expense 55.9   57.1  (2.1)Other interest expense 70.3   65.5  7.3 Financing operations interest expense 51.6   48.1  7.3 Income tax expense 40.0   73.3  (45.4)Depreciation and amortization 69.8   63.9  9.2 EBITDA$389.6  $519.1  (24.9) %      Other adjustments:     Less: flooring interest expense$(55.9) $(57.1) (2.1)Less: financing operations interest expense (51.6)  (48.1) 7.3 Less: used vehicle line of credit interest (1.4)  (3.0) (53.3)Add: acquisition expenses 0.3   0.2  50.0 Add: loss (gain) on disposal of stores —   (9.4) NM Add: investment loss (gain)(1) 73.3   9.7  NM Add: insurance reserves —   0.4  NM Add: contract buyouts 20.3   —  NM Adjusted EBITDA$374.6  $411.8  (9.0) % NM - not meaningful
(1) Investment losses (gains) retrospectively included in adjusted non-GAAP financial measures presented

 As of% March 31,IncreaseNet Debt to Adjusted EBITDA 2026   2025 (Decrease)Floor plan notes payable$6,284.5  $4,904.9 28.1%Used and service loaner vehicle inventory financing facility 3.6   968.7 (99.6)Revolving lines of credit 1,738.8   1,558.3 11.6 Warehouse facilities 1,337.0   768.5 74.0 Non-recourse notes payable 2,634.0   2,363.7 11.4 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 1,156.2   1,014.6 14.0 Unamortized debt issuance costs (26.3)  (24.1)9.1 Total debt$15,477.8  $13,304.6 16.3%     Less: Inventory related debt$(6,288.1) $(5,873.6)7.1%Less: Financing operations related debt (3,971.0)  (3,132.2)26.8 Less: Unrestricted cash and cash equivalents (160.8)  (234.4)(31.4)Less: Marketable securities (55.9)  (53.7)4.1 Less: Availability on used vehicle and service loaner financing facilities (0.2)  (24.3)(99.2)Net Debt$5,001.8  $3,986.4 25.5%     TTM Adjusted EBITDA$1,629.4  $1,596.5 2.1%     Net debt to Adjusted EBITDA 3.07
x
  2.50
x
  NM - not meaningful

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For the quarter ended March 2026, Lithia Motors (LAD - Free Report) reported revenue of $9.27 billion, up 1% over the same period last year. EPS came in at $7.34, compared to $7.66 in the year-ago quarter.

The reported revenue compares to the Zacks Consensus Estimate of $9.36 billion, representing a surprise of -0.94%. The company delivered an EPS surprise of +3.91%, with the consensus EPS estimate being $7.06.

While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to determine their next move, some key metrics always offer a more accurate picture of a company's financial health.

As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.

Here is how Lithia Motors performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

Unit sales - New vehicle: 94,787 compared to the 95,181 average estimate based on three analysts.Unit sales - Used vehicle retail: 110,151 versus the three-analyst average estimate of 114,333.Average selling price - New vehicle: $46,878.00 versus the three-analyst average estimate of $48,386.25.Average selling price - Used vehicle retail: $28,464.00 compared to the $28,760.85 average estimate based on three analysts.Revenues- Finance and insurance: $359.7 million versus the four-analyst average estimate of $376.21 million. The reported number represents a year-over-year change of -1.3%.Revenues- Used vehicle: $3.49 billion compared to the $3.25 billion average estimate based on four analysts. The reported number represents a change of +19.5% year over year.Revenues- New vehicle: $4.38 billion versus the four-analyst average estimate of $4.59 billion. The reported number represents a year-over-year change of 0%.Revenues- Aftersales: $1.04 billion versus the four-analyst average estimate of $1.06 billion. The reported number represents a year-over-year change of +6.5%.Same Store Operating- Revenues- Finance and insurance: $345.2 million compared to the $359.12 million average estimate based on two analysts. The reported number represents a change of +0.1% year over year.Same Store Operating- Revenues- Used vehicle: $3.3 billion versus the two-analyst average estimate of $2.92 billion. The reported number represents a year-over-year change of +24.2%.Same Store Operating- Revenues- New vehicle: $4.16 billion versus the two-analyst average estimate of $4.31 billion. The reported number represents a year-over-year change of -0.2%.Same Store Operating- Revenues- Aftersales: $992.1 million versus the two-analyst average estimate of $981.41 million. The reported number represents a year-over-year change of +8.7%.View all Key Company Metrics for Lithia Motors here>>>

Shares of Lithia Motors have returned +11% over the past month versus the Zacks S&P 500 composite's +12.2% change. The stock currently has a Zacks Rank #5 (Strong Sell), indicating that it could underperform the broader market in the near term.

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Published in earnings earnings-estimates-revisions earnings-surprise

Lithia Motors, Inc. (LAD) Q1 2026 Earnings Call Transcript

May 26, 2026 05:30 ET  | Source: Lithia & Driveway

MEDFORD, Ore., May 26, 2026 (GLOBE NEWSWIRE) -- Lithia & Driveway (NYSE: LAD) announced today an increase to its share repurchase authorization of $500 million to bring the current remaining authorization to $726 million.

“Today’s increase reflects our conviction in LAD’s strategy and the regenerative cash flows of our diversified platform,” said Bryan DeBoer, President and CEO. “With our uniquely diversified strategy beginning to deliver meaningfully differentiated results, our shares present a compelling opportunity at today’s prices, and repurchases provide an attractive, value-accretive accelerator to our growth strategy and commitment to maximizing shareholder returns.”

Since March 31, 2026, LAD has invested over $137 million to repurchase approximately 505,000 shares representing 2.2% of shares outstanding, at a weighted average of $272 per share.

Year to date, LAD has invested nearly $396 million to repurchase 1.45 million shares, representing 6.2% of outstanding shares, at a weighted average price of $274 per share.

About Lithia & Driveway (LAD)
Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer making Auto Done Easy by providing simple, transparent, and convenient experiences throughout the ownership lifecycle. LAD helps customers take care of any vehicle need through a comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. Celebrating 80 years in business in 2026, LAD consistently delivers profitable growth in a massive and unconsolidated industry. Its highly diversified and competitively differentiated design provides LAD with the flexibility and scale to pursue its vision to modernize personal transportation solutions wherever, whenever and however consumers desire.

The 80th Celebration
https://www.lithiadriveway.com/80-years

Connect with Us!
All Cars: https://www.lithia.com
Driveway.com (Buy, sell, trade, or finance entirely online): https://www.driveway.com
GreenCars (All things sustainable vehicles): https://www.greencars.com
DFC (Auto Financing): https://www.drivewayfinancecorp.com
Investor Relations: https://investors.lithiadriveway.com/
Careers: https://www.lithiacareers.com
Lithia & Driveway on Instagram
https://www.instagram.com/lithiamotors/?hl=en
https://www.instagram.com/driveway_hq/
Lithia & Driveway on Facebook
https://www.facebook.com/lithiaanddriveway/
https://www.facebook.com/DrivewayHQ
Lithia & Driveway on X
https://x.com/lithiadriveway
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/@LithiaDriveway

Media Contact

[email protected] 

Forward-Looking Statements

Certain statements in this release, 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 release include statements regarding our future financial condition, liquidity, results of operations, future business strategy and plans, and expected growth and performance.

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 release. 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 issuesThe market for dealerships, including the availability of stores to us for an acceptable priceChanges in customer demand and the electric vehicle landscape and the impact of evolving digital technologiesChanges in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery modelsChanges 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 vehiclesRisks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable termsThe 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 levelsDisruptions 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 equipmentGovernment regulations and legislationThe 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 release 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.

Favorable safety and tolerability profile, with rapid onset of clinical activity and therapeutic effects observed in patients with LADData support the start of a Phase 1b clinical trial in rheumatoid arthritis, anticipated in Q3 2026 Warsaw, Poland – June 03, 2026 – JJP Biologics, ("JJPBio" or the "Company") a clinical-stage, immune-focused biotech that engineers precision antibodies to correct derailed immune pathways that drive autoimmune diseases and cancer, today announces positive interim data from its ongoing Phase 1b trial evaluating nebaprubart, also known as JJP-1212, its investigational potential first-in-class anti-CD89 antagonist, in patients diagnosed with Linear IgA Disease (LAD), a rare autoantibody-mediated skin disease.

The interim results demonstrate encouraging safety and tolerability alongside early evidence of rapid and sustained clinical benefit, including the potential to reduce or eliminate reliance on chronically-administered immunosuppressive therapy.

Interim data demonstrates:

Favorable safety and tolerability profile observed to date, consistent with Phase I outcomes in healthy volunteers.Clinical activity with therapeutic effects observed within one week of dosing.Preliminary evidence of therapeutic activity, characterized by reductions in blister formation and pruritus, together with progressive healing of ulcerative lesions.Continued tapering of dapsone-based treatment after first dose of JJP-1212, with a sustained response after complete tapering. LAD currently has no approved therapies in the European Union. It was the first autoimmune-disease selected by JJPBio because the deposits of IgA autoantibodies in the skin are known to activate neutrophils via CD89 leading to tissue damage and widespread skin blistering that can progress to open sores affecting the mucous membranes. These visible manifestations demonstrate nebaprubart’s mechanism of action in IgA-mediated inflammation. By blocking the CD89 receptor present on neutrophils, nebaprubart interrupts this pathway at its source, restoring tissue integrity and preventing blister formation.

Paweł Szczepański, Chief Executive Officer of JJP Biologics, said: “The interim Phase 1b results in LAD, together with our previously reported Phase I data in healthy volunteers, provide early validation of our approach targeting the IgA/CD89 axis. LAD is our proof-of-mechanism showcase, and these positive interim data demonstrate the potential of nebaprubart to deliver rapid, durable responses while reducing dependence on traditionally-administered immunosuppressive agents with known toxicities. This positions nebaprubart as a potentially transformative therapy across a broad range of IgA-mediated diseases, and we look forward to commencing a Phase 1b trial of nebaprubart for rheumatoid arthritis in Q3 2026 and a Phase 2a basket study in IgA nephropathy in Q4 2026.”

Given its well-defined pathophysiology and clinically overt reflection of a visual response to treatment within days, LAD provides a clear path to clinical validation, enabling expansion into other IgA-driven diseases.

Sohail Ahmed, MD, MBA, Chief Medical Officer of JJP Biologics, added: “The consistency between the safety profile observed in healthy volunteers and the early efficacy and tolerability signals seen in LAD patients is very encouraging. Our Phase Ib trial showed predictable pharmacology and no dose-limiting toxicities, reducing clinical development risk. In LAD, the tapering or elimination of other treatments that are difficult for some patients to tolerate is highly meaningful for this patient population.”

The Phase 1b study (registered in the EU Clinical Trials Information System (CTIS) under EU Trial Number 2023-508661-33-00) is an open-label trial designed to evaluate safety and tolerability along with pharmacokinetic, immunogenicity, and exploratory efficacy measures including disease activity, blister formation, and quality of life.

The interim results in LAD follows the positive top-line Phase I trial results of nebaprubart in healthy volunteers which were announced in January 2026.

-Ends-

For further information from JJP Biologics, please contact:

JJP BiologicsPaweł Szczepanski, Chief Executive Officer / Chairman of the Management Board
[email protected]

  Media enquiries

ICR Healthcare
Namrata Taak, Chris Welsh, Jonathan Edwards
[email protected]

About JJP Biologics (JJPBio)

JJP Biologics is a clinical-stage biotech that leverages its in-depth understanding of immune pathway science in autoimmune diseases and cancer. Starting from deep mechanistic insights, JJPBio engineers antibodies that are built-to-order, designed to restore immune balance and deliver better disease control for patients with significant unmet need, because we believe that we can do better for patients.

JJPBio is the first company to generate clinical validation of the IgA/CD89 axis, establishing first-mover advantage in a disease area with broad implications across autoimmune conditions including IgA nephropathy, rheumatoid arthritis, lupus, and celiac disease. Our immuno-oncology program targets the CD270/HVEM checkpoint pathway in cancer.

Backed by the long-term, socially responsible capital of the Starak family and the Polpharma Group, JJPBio operates with the scientific freedom and financial stability to pursue mechanisms others simply cannot.

JJP Biologics: We restore. We don't deplete. We work smarter.

About nebaprubart (JJP-1212)

Nebaprubart is a first-in-class IgG4-κ CD89 antagonist that is being developed to treat a wide range of autoimmune, inflammatory, and fibrotic diseases where IgA antibodies are known to have significant pathogenic involvement (e.g., rheumatoid arthritis, systemic lupus erythematosus, idiopathic pulmonary fibrosis, dermatitis herpetiformis, inflammatory bowel disease, IgA nephropathy, and IgA vasculitis). Nebaprubart was designated an Orphan Medicinal Product in October 2022 by the European Commission for the treatment of Linear IgA Disease. An open-label trial with nebaprubart for this indication is ongoing.