Lithia Motors, Inc. is an automotive retailer operating in the United States, the United Kingdom, and Canada. It operates in two segments: Vehicle Operations and Financing Operations. The company offers products and services covering the entire vehicle ownership lifecycle, including new and used vehicles, financing and insurance products, and aftersales repair and maintenance services. These are delivered through physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other related adjacencies. Founded in 1946, Lithia Motors, Inc. is headquartered in Medford, Oregon.
Lithia posts record Q2, raises dividend, buys and sells stores
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Record Q2 and bigger dividend Lithia reported record quarterly revenue of $9.8 billion, earnings per share up 17%, and raised its dividend 23% to $0.70. It also bought back $242 million of stock and added $500 million to its repurchase plan. More profit returned to shareholders supports the stock.
The quarter's results and shareholder payouts are the core new financial facts driving the stock.
Ford recalls bring service profit Ford recalled about 950,000 Broncos and Explorers. Lithia has the widest U.S. franchise reach and over $1 billion in quarterly parts-and-service revenue at nearly 59% gross margin, so recall repairs can add steady, high-margin aftersales profit.
Recall-driven service traffic is a concrete new demand tailwind for Lithia's highest-margin business.
Texas store added, LA stores sold Lithia bought Rockwall Hyundai in Texas, adding about $75 million in yearly revenue and lifting 2026 acquisition revenue to $915 million. It also sold its two Downtown LA Audi and Volkswagen stores, trimming a property built for three franchises.
These deals show Lithia still growing through purchases while pruning weaker real estate.
Ex-Toyota finance chief hired Lithia named Scott Cooke, former head of Toyota Financial Services, to run Driveway Finance and some regional stores. His finance experience could help scale Lithia's lending arm, but profits and margins are still trending lower and acquisitions may not pay off as hoped.
The hire is a real positive, but the article flags the offsetting risk that growth is not yet translating into better margins.
Lithia & Driveway Promotes Katie Macaddino to Chief People Officer
Lithia & Driveway announced the promotion of Katie Macaddino to Chief People Officer. In the role, Macaddino will continue to lead the company's global People & Culture organization and serve on its senior leadership team, overseeing people strategy, culture, leadership development, total rewards, employee experience, and people systems. President and CEO Bryan DeBoer said Macaddino understands that "Growth Powered by People" is more than the company's mission and called it a competitive advantage. Macaddino brings more than 20 years of business and people leadership experience, including 15 years at Intel, and holds a master's degree in human resources from Cornell University and a bachelor's degree in business management from Portland State University. Lithia & Driveway, the largest global automotive retailer, is celebrating 80 years in business in 2026.
Dave Cantin Group Advises Lithia & Driveway on Sale of Downtown LA Audi and Volkswagen Dealerships
Dave Cantin Group advised Lithia & Driveway on the sale of Audi Downtown LA and Volkswagen of Downtown LA to Grace Motorcars, LLC, in a deal that closed Sept. 28. DCG Managing Director Anthony Holbrook provided exclusive sell-side advisory services on the transaction, drawing on his previous 20 years with Audi and his relationships with luxury dealership owners and operators across the Western United States. The Downtown Los Angeles property had previously been shared by Audi, Volkswagen and Porsche, but Porsche moved to a new facility across the street earlier this year, leaving a vacant showroom and a property built for three franchises for a buyer of two to manage. Holbrook, who previously served as Audi's national franchise manager and area director in the Pacific Southwest, said DCG identified Grace Motorcars as an operator that wanted to grow with Audi and could see the value of two high-volume dealerships, following the buyer's early success at West Covina. DCG has worked with Lithia & Driveway on acquisitions and divestitures since 2019, including the sale of its Morgantown, West Virginia, dealerships and its two California Lexus stores, as well as acquisitions of Curry Honda Atlanta, Henderson Hyundai Superstore/Genesis and three West Palm Beach dealerships.
Dave Cantin Group · Capital · Positive Dave Cantin Group provided exclusive sell-side advisory services on the dealership sale, generating advisory business.
LAD · Capital · Neutral Lithia & Driveway divested its Audi and Volkswagen Downtown LA dealerships via a sale advised by DCG, a portfolio restructuring event.
Grace Motorcars, LLC · Capital · Positive Grace Motorcars acquired Audi Downtown LA and Volkswagen of Downtown LA, expanding its dealership footprint.
Lithia & Driveway acquires Rockwall Hyundai in Texas expansion
Lithia & Driveway has acquired Rockwall Hyundai in Rockwall, Texas, as part of its continued strategic network expansion. The dealership is expected to contribute approximately $75 million in annualized revenue, bringing the company's total year-to-date expected annualized revenue from acquisitions to $915 million. The acquisition was financed using the company's existing on-balance-sheet capacity.
Lithia Motors Appoints Ex-Toyota Finance Chief to Lead Driveway Finance
Lithia & Driveway has appointed Scott Cooke, former President and CEO of Toyota Financial Services, as Operations President to lead Southeastern and South Central store operations, Driveway Finance Corporation, and Finance & Insurance. Cooke previously oversaw more than US$150 billion in managed assets at Toyota Financial Services. This hire deepens Lithia's leadership bench as captive finance expansion and regional operational performance are central to its long-term growth plans. The appointment is seen as incrementally positive for the short-term focus on Driveway Finance Corporation, but it does not change the key near-term catalyst around improving store-level performance or the core risk that acquisitions remain less accretive than expected. Lithia's Q2 2026 earnings showed revenue of US$9,791.3 million and net income of US$260.0 million, with first-half profit and margins trending lower year over year. Analysts have modeled revenue near US$49.0 billion and about US$1.1 billion in earnings by 2029, and Cooke's arrival could reinforce or challenge that bullish view given how much now hinges on DFC scaling without amplifying acquisition and leverage risks.
LAD · Capital · Positive Appointment of ex-Toyota finance chief to lead Driveway Finance is seen as incrementally positive for short-term focus on DFC.
Lithia Motors stock surges after 23% dividend hike and aggressive buybacks
Lithia Motors shares jumped after the automotive retailer raised its quarterly dividend by 23% to $0.70 per share and repurchased 3.7% of its outstanding stock in the second quarter. Revenue rose 2% year over year to $9.8 billion, while adjusted earnings per share increased 9% to $10.03. The company acquired five stores expected to generate $340 million in annualized sales and sold three locations with $120 million in annualized revenue. CEO Bryan DeBoer credited dynamic pricing for a $339 sequential increase in used retail gross profit per unit to $2,019. Lithia has repurchased 7.6% of its shares in the first half of 2026, funneling higher profits back to shareholders.
LAD · Capital · Positive Lithia Motors raised dividend by 23% and aggressively repurchased shares, signaling strong financial health and shareholder returns.
Lithia & Driveway raises dividend by 22.8% to $0.70
Lithia & Driveway declared a quarterly dividend of $0.70 per share, a 22.8% increase from the prior dividend of $0.57. The forward yield is 0.78%. The dividend is payable on August 21 to shareholders of record on August 7, with the ex-dividend date also on August 7.
LAD · Capital · Positive Lithia & Driveway raised its quarterly dividend by 22.8% to $0.70 per share, a direct financial action benefiting shareholders.
Lithia and Group 1 Best Positioned to Profit from Ford Recalls
Ford's recalls of nearly 950,000 vehicles are pressuring its margins, but dealer groups Lithia Motors and Group 1 Automotive are best positioned to convert recall service traffic into profit. Ford is recalling 565,691 Bronco and Bronco Raptor vehicles for engine-compartment wiring and 387,911 Explorer and Aviator vehicles for a seat defect. Lithia stands out with the broadest domestic franchise footprint and over $1 billion in quarterly aftersales revenue at a 58.9% gross margin, while Group 1 carries meaningful Ford and Lincoln stores and achieved a record U.S. parts and service gross margin of 56.4%. Asbury Automotive ranks third in Ford recall benefit, and Penske Automotive's premium-brand mix limits direct exposure despite running a 59% service gross margin. Ford reports second-quarter results after the close on July 28, 2026.
Zacks Highlights Lithia Motors and Sonic Automotive as Resilient Auto Retailers
Zacks Equity Research identifies Lithia Motors and Sonic Automotive as two auto retailers worth watching despite eroding consumer purchasing power. The industry faces headwinds including elevated vehicle prices, high borrowing costs, and a forecasted 2.9% decline in full-year new-vehicle sales to 15.8 million units. Sonic Automotive, carrying a Zacks Rank #2 (Buy), has expanded through acquisitions and its EchoPark digital platform, with consensus estimates projecting 5% and 8% sales growth for 2026 and 2027. Lithia Motors, with a Zacks Rank #3 (Hold), added $2.4 billion in annualized revenues through acquisitions in 2025 and targets $2-$4 billion in acquired revenues in 2026, while its Driveway and GreenCars platforms support an omnichannel strategy.
CarMax Shares Drop 9% Despite Sales Beat as Profit Per Vehicle Falls
CarMax shares fell 9.0% on Wednesday even after the used-car giant reported first-quarter results that topped Wall Street estimates with revenues climbing 6.2%. Investors focused on the cost of that growth, as profit per used unit fell by $230 compared to last year, reflecting a deliberate strategy to cut prices and sacrifice margins to boost sales volume. New CEO Keith Barr, just three months into the job, laid out a multi-year turnaround plan, admitting that costs remain too high and the digital experience is too complex, and told CNBC the plan will take years to execute. Management described a more dynamic approach to margins, signaling less predictable profitability ahead. The market reacted negatively to the trade-off of thinner profits for higher volume, sending the stock sharply lower.
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