Lithia & Driveway Reports Record Second Quarter Results: A Financial Powerhouse in the Automotive Sector

Lithia & Driveway (NYSE: LAD) has announced remarkable financial results for the second quarter of 2025, marking a significant milestone in the company's history. The automotive retailer reported record revenue of $9.6 billion for the quarter, representing a 4% increase from the $9.2 billion reported in the same quarter of 2024. This surge in revenue is accompanied by a 25% increase in diluted earnings per share (EPS), which reached $9.87, compared to $7.87 in the prior year.

The company also highlighted a 30% increase in adjusted diluted EPS, which rose to $10.24 from $7.87 in the second quarter of 2024. Notably, unrealized gains from Lithia's investment in Pinewood Technologies Group PLC contributed $1.03 to diluted EPS for the quarter.

Lithia's net income for the second quarter stood at $258 million, reflecting a 19.2% increase from $217 million in the same period last year. When adjusted for non-core items, the net income reached $268 million, a robust 24% increase year-over-year.

The quarter's impressive financial performance can be attributed to several key factors:

Lithia & Driveway has been proactive in expanding its market presence, particularly in the Southeast region. The company recently acquired two Mercedes-Benz stores in Collierville, Tennessee, and Jackson, Mississippi, which are expected to contribute $220 million in annualized revenue. Year-to-date, Lithia has successfully acquired businesses contributing $400 million in expected annualized revenues.

As of the end of the second quarter, Lithia reported approximately $1.3 billion in cash and cash equivalents, along with marketable securities and availability on revolving lines of credit. In terms of shareholder returns, the company's Board of Directors approved a dividend of $0.55 per share, which will be paid on August 22, 2025, to shareholders of record on August 8, 2025.

During the second quarter, Lithia repurchased about 387,000 shares at a weighted average price of $306. To date in 2025, the company has repurchased approximately 791,000 shares at an average price of $316, with $568.8 million remaining available under the current share repurchase authorization.

In a notable corporate development, Gary Glandon, the Chief People Officer, announced his retirement effective December 31, 2025. The company is currently undertaking succession planning to ensure a seamless transition.

Bryan DeBoer, President and CEO of Lithia & Driveway, expressed confidence in the company’s future, stating, "Building on continued strength across our core operations, Lithia & Driveway's differentiated design once again powered record performance in the second quarter as we delivered a 25% year-over-year increase in diluted EPS." He emphasized the scalability of Lithia's omnichannel ecosystem and its role in driving market-share gains, earnings growth, and capital efficiency.

Lithia's financial results have set a strong foundation for accelerating growth in the latter half of 2025 and beyond, indicating a positive outlook for shareholders and stakeholders alike.

Lithia & Driveway's impressive second-quarter performance highlights its robust operational capabilities and strategic execution, positioning the company as a formidable player in the automotive retail landscape. With strong financials, successful acquisitions, and a clear growth strategy, Lithia is poised for continued success in a rapidly evolving industry.