Lithia Motors (LAD) Q4 2025 Earnings Transcript

Motley Fool Transcribing, The Motley Fool

Wed, February 11, 2026 astatine 10:35 AM CST 47 min read

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Wednesday, Feb. 11, 2026 astatine 10 a.m. ET

• President and Chief Executive Officer — Bryan B. DeBoer

• Senior Vice President and Chief Financial Officer — Tina H. Miller

• President, Lithia & Driveway Financial Services — Chuck Lietz

Bryan B. DeBoer: Thank you, Jardon. Good morning, and invited to our 4th fourth net call. In the 4th quarter, we achieved grounds revenues driven by awesome utilized conveyance income that greatly outpaced the market. Quarterly gross was $9,200,000,000 mounting a caller grounds for full-year gross of $37,600,000,000, up 4% from 2024. Adjusted diluted EPS was $6.74 for the quarter, with full-year adjusted EPS of $33.46, up 16% from 2024. Our operational leaders leaned into increasing our apical enactment and flexing their muscles crossed each aspects of our ecosystem including DFC, which saw a $19,000,000 year-over-year summation successful pretax income and delivered a 16.7% penetration complaint successful December, exemplifying car done easy.

I would similar to commend our ops leaders for leaning into utilized cars, particularly worth autos, focusing connected the lawsuit experience, and earning considerably much stock successful positioning america again astatine the apical of our adjacent group. Together, we are challenging our store and income section leaders to reinvent their nett equation done much dynamic pricing and reducing SG&A portion outperforming successful volume. Growing our marketplace stock and expanding measurement is simply a turbo boost to our ecosystem’s aboriginal profitability arsenic we summation DFC penetration, aftersales retention, and payment from the waterfall of utilized conveyance trade-ins.

During the quarter, our same-store revenues were fundamentally flat, and gross nett was down 1.2%, reflecting beardown execution comparative to the market. Total conveyance GPU was $3,946, down $258 twelvemonth implicit year, successful enactment with industry-wide compression successful some caller and utilized conveyance margins. Despite these headwinds, our diversified net premix and absorption connected marketplace stock delivered double-digit maturation successful aftersales and unchangeable F&I show to assistance offset front-end pressures. Note that each conveyance cognition results volition beryllium connected a same-store ground from this constituent forward. New conveyance gross declined 6.6% connected an 8.3% portion diminution arsenic manufacture request softened and proviso normalized. New conveyance GPU was $2,760, down $300 implicit past year.

Performance varied by marque with luxury marque gross down 12.7% twelvemonth implicit year, partially owed to the hard prior-year comp. Domestic and import brands were besides soft, peculiarly precocious successful the 4th erstwhile income promotions did not materialize.