Lithia posts record Q2, raises dividend, buys and sells stores
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.