Lithia Motors (LAD) Q3 2026 earnings summary

Executive summary

• Q3 revenue rose 2.8% YoY to $9,946.7M and gross profit rose 2.0% to $1,495.8M; operating income was nearly flat at $420.2M.

• Adjusted diluted EPS was $10.34, up 9% YoY; adjusted net income declined 5% to $229.3M.

• Reported earnings benefited from a $92.5M Pinewood investment fair-value gain; diluted EPS was $13.22, up 54% YoY.

• Same-store revenue fell 1.4%; used-vehicle profitability, aftersales and Financing Operations growth helped offset softer new-vehicle results.

Financial highlights

• Q3 adjusted EBITDA was $443.5M, up 1.3% YoY; adjusted cash flow from operations was $377M, up 12%.

• Nine-month revenue was $29,009.4M, operating income $1,204.2M and net income attributable to LAD $651.5M.

• Nine-month adjusted diluted EPS was $27.61 versus $26.60; adjusted net income attributable to LAD was $625.4M.

• Nine-month adjusted operating cash flow was $2,125.2M, including a $1,138.3M increase from converting inventory-secured revolvers to floorplan facilities.

Outlook and guidance

• Mid-term targets include financing operations income of $225M–$275M, DFC penetration of 18%, SG&A at 60%–65% of gross profit and $2B–$4B in annualized acquired revenue over the long run.

• Long-term targets include $75B–$100B revenue, operating margin above 5%, SG&A at 55%–60% of gross profit and $2 EPS per $1B of revenue.

• Long-term DFC targets include 20% U.S. penetration and $550M–$600M financing operations income.

• Pinewood.AI rollout across North American stores is targeted by end-2028; progress toward lower SG&A is expected to follow store rollout.