Q1 2026 Lithia Motors Inc Earnings Call Transcript
Key Points
- Lithia Motors Inc (LAD) achieved record revenues of $9.3 billion and an adjusted diluted EPS of $7.34, demonstrating strong operational resilience.
- Used vehicle revenue grew by 4.6% on a same-store basis, and Driveway Finance Corporation delivered another quarter of record originations.
- Aftersales business showed steady growth with revenues up 3.8% and gross profit up 5.7%, highlighting its ability to generate high-margin earnings.
- Driveway Finance Corporation's financing operation income grew 71% year-over-year, driven by record originations and improving loss provisions.
- The company maintained an aggressive share repurchase pace, retiring approximately 4% of outstanding shares in the quarter, reflecting confidence in its intrinsic value.
- Same-store revenues were down 1.7% and total gross profit decreased by 2.3%, reflecting challenges compared to the strong first quarter of 2025.
- New vehicle revenue declined by 7.1% due to a 7.1% decline in units, impacted by a challenging comparison to the previous year.
- Luxury brand revenue was down 10.2%, domestic down 8.7%, and imports down 5.4% year-over-year, indicating cyclical market conditions.
- Adjusted SG&A as a percentage of gross profit increased to 71.5% from 68.2% a year ago, reflecting pressure from lower new vehicle volumes and normalizing GPUs.
- Used vehicle gross profit per unit (GPU) was down $115 year-over-year, although it improved sequentially, indicating ongoing margin pressures.
Greetings, and welcome to Lithia Motors and Driveway first quarter 2026 results conference call. (Operator Instructions)
Please note that this conference is being recorded. I would now like to turn the conference over to Jardon Jaramillo, Senior Director of Finance. Thank you. You may begin.
Good morning. Thank you for joining us for our first quarter earnings call. With me today are Bryan DeBoer, President and CEO; Tina Miller, Senior Vice President and CFO; and Chuck Lietz, Senior Vice President of Driveway Finance Corporation.
Today's discussion may include statements about future events, financial projections and expectations about the company's products, markets and growth. Such statements are forward-looking and subject to risks and uncertainties that could cause actual results to materially differ from the statements made.
We disclose those risks and uncertainties we deem to be material in our filings with the
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