Lithia Motors Q4 EPS Falls to $6.74, Revenue Rises 0.3% to $9.198B
Lithia Motors reported Q4 adjusted EPS of $6.74, missing the $8.11 estimate, while revenue edged up 0.3% to $9.198B on a 6.7% rise in used-vehicle sales. The company repurchased 11% of shares, declared a $0.55 dividend and held $1.5B in cash.
1. Q4 Financial Metrics
Lithia Motors posted adjusted earnings per share of $6.74 for the fourth quarter, below the $8.11 consensus, while revenue increased 0.3% year-over-year to $9.198 billion. Net income declined 21% to $162.2 million and gross profit margin slipped to 14.9% from 15%.
2. Segment Performance
New-vehicle sales fell 5.7% to $4.626 billion, offset partly by a 6.7% gain in used-vehicle revenue to $3.179 billion. Same-store used revenue rose 6.1% and used retail units climbed 4.7%, while aftersales revenue grew 11.4% to $1.035 billion.
3. Capital Allocation and Balance Sheet
The company repurchased over 11% of its outstanding shares in 2025 and approved a $0.55 per share dividend to be paid on March 20, 2026. Lithia ended the quarter with approximately $1.5 billion in cash and equivalents, underscoring its strong liquidity.
4. Management Outlook
President and CEO Bryan DeBoer emphasized disciplined capital allocation and a diversified platform as key to navigating a softer new-vehicle market. He noted that operational discipline positions the company to capitalize on opportunities across its ecosystem.