Lithia Motors Earnings Call Transcripts
Fiscal Year 2026
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Shareholders elected all board nominees, approved executive compensation, and ratified the auditor. Record 2025 financials were reported, with strong revenue, EPS growth, and major share repurchases. A shareholder proposal for an independent board chair was not approved.
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Record Q1 revenue and EPS were achieved, driven by strong used vehicle, after-sales, and finance growth, while cost discipline and technology investments supported margins. Aggressive share repurchases and strategic acquisitions continued, with a focus on operational efficiency and long-term SG&A improvement.
Fiscal Year 2025
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Record revenue and EPS growth driven by strong used vehicle and after-sales performance offset new vehicle softness and margin compression. Capital allocation favored share buybacks and acquisitions, while DFC and technology investments supported future growth.
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Revenue rose 4.9% to $9.7B and adjusted EPS climbed 17% to $9.50, driven by strong used vehicle and after-sales growth, disciplined SG&A, and robust capital returns. Share repurchases and targeted acquisitions remain key, with a focus on compounding value per share.
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Record Q2 revenue and EPS growth were driven by strong after-sales and financing operations, with over 60% of net profit from after-sales. Capital allocation prioritized share buybacks and high-return acquisitions, while digital and omnichannel initiatives expanded customer engagement.
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Q1 saw record revenue of $9.2B (up 7%) and adjusted EPS of $7.66 (up 25.4% YoY), with strong after-sales and financing growth. SG&A efficiency improved, inventory days declined, and capital allocation favored share buybacks. Tariff risks are mitigated by a diversified product mix.
Fiscal Year 2024
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Record Q4 revenue and first year-over-year operating profit growth in nine quarters were driven by market share gains, cost discipline, and digital expansion. Guidance targets $2 EPS per $1B revenue, with balanced capital allocation and further cost savings expected in 2025.
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Record Q3 revenue and strong cost discipline drove improved profitability, with digital and after-sales segments showing robust growth. Financing operations returned to profitability, and capital allocation balanced acquisitions with share buybacks. SG&A efficiencies and inventory management remain key focus areas.
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Quarterly revenue hit a record $9.2B, up 14% YoY, with adjusted EPS of $7.87, despite a major CDK cyberattack. Financing operations turned profitable, and $150M+ in annualized SG&A savings are on track, with further cost reductions expected.