Lithia Motors (NYSE:LAD) shares climbed 0.68% in premarket trading on Wednesday after the auto retailer delivered record third-quarter revenue and earnings that topped Wall Street forecasts, boosted by strong performance in used vehicle sales and after-sales services.
The company reported adjusted earnings per share of $9.50 for the quarter, beating analyst estimates of $8.70. Revenue came in at a record $9.7 billion, up 5% from $9.2 billion in the same period last year and above the consensus projection of $9.41 billion.
On a same-store basis, total revenue grew 7.7% year-over-year, with used retail revenue jumping 11.8%. Aftersales gross profit also saw robust growth, increasing 9.1% on a same-store basis.
“Our third quarter results demonstrate our focus on operational excellence with strong growth in same store sales and earnings per share and solid profitability gains driven by the continued execution of our strategy,” said Bryan DeBoer, President and CEO of Lithia & Driveway.
Net income for the third quarter of 2025 came in at $219 million, down slightly from $221 million a year earlier. Adjusted net income, however, rose 9% to $241 million.
The company also continued to return capital to shareholders, repurchasing about 1,312,000 shares at an average price of $312 during the quarter, representing roughly 5.1% of its outstanding stock. Over the first nine months of 2025, it has repurchased around 8% of shares.
Lithia’s Board of Directors declared a quarterly dividend of $0.55 per share, payable on November 21, 2025, to shareholders of record as of November 7, 2025.
As of September 30, 2025, the company held approximately $1.9 billion in cash, cash equivalents, marketable securities, and credit line availability — providing ample flexibility for future growth initiatives and potential acquisitions.