Lithia Driveway Delivers Record-Breaking Adjusted Diluted EPS of $10.34 in Q3, Beating Market Expectations
Lithia Driveway's third quarter results have exceeded expectations, with the company delivering record-breaking adjusted diluted earnings per share (EPS) of $10.34, a 9% increase from last year.
Chairman and CEO Bryan DeBoer highlighted the company's diversified model as a key factor in its success during the quarter, stating that leaders continued to capture profitability despite a mixed retail environment. Same-store revenues declined 1.4%, a resilient result considering the significant revenue growth of nearly 8% in the third quarter of 2025.
The company's used vehicle business also saw strong performance, with gross profit up 13% year-over-year and total vehicle GPU down only $63 from last year. This reflects Lithia Driveway's commitment to pricing discipline and its ability to navigate the changing market conditions.
Driveway Finance Corporation (DFC) continued to grow, delivering finance operations income of $32 million, a nearly 70% increase over last year. Average managed receivables grew 22%, and provision expenses improved, demonstrating the company's focus on cost controls and its ability to drive growth through its various business lines.
Lithia Driveway's diversified mix continued to drive stable earnings, with used vehicle gross profit up 9.3% and after-sales gross profit up 2.4%, offsetting a modest quarter for new vehicles. The company views the decline in new vehicle sales as cyclical and expects its team to carry strong momentum into year-end and beyond.
The company's commitment to innovative pricing strategies, such as dynamic AI pricing, has also paid off, with total used gross profit growing 9.3% year-over-year. Used vehicles remain one of the company's highest return businesses, providing an entry point to its ecosystem for customers at every affordability level.
Chairman and CEO Bryan DeBoer expressed gratitude to Lithia Driveway's store and support team members for their hard work and dedication to customer satisfaction during the quarter. The company's focus on customer relationships creates recurring value after the first sale, driving growth through its various business lines.
