Lithia & Driveway (NYSE: LAD) has reported financial results for the third quarter of 2026, highlighting record quarterly revenue and significant growth in earnings per share. The company announced record third quarter revenues of $9.9 billion, a 3% increase compared to the same period in 2025.
Key financial metrics for the third quarter of 2026 include diluted earnings per share of $13.22, which represents a 54% increase from $8.61 per share in the prior year. Adjusted diluted earnings per share was reported at $10.34, a 9% increase year over year. Net income for the quarter was $292.9 million, a 34.0% increase compared to $218.6 million in the third quarter of 2025.
Operational performance showed strength in used vehicle retail, with used retail GPUs increasing by $197, or 11%, year over year. Aftersales gross profit increased by 2.4%, resulting in a gross margin of 59.5% on a same-store basis. Financing Operations income rose to $32.3 million, a 69% increase year over year, driven by record originations of $937 million and an 18.3% penetration rate.
In terms of corporate development, Lithia acquired two stores in the third quarter, expected to generate $150 million in annualized revenues, and divested two stores representing $115 million in annualized revenues. The company also continued expansion in the Southeast region with the acquisition of two Hyundai and two Kia stores in Memphis, TN, adding $250 million in expected annualized revenue. Year-to-date, Lithia has acquired $1.17 billion in expected annualized revenues.
The company also updated its capital allocation strategy. During the third quarter, Lithia repurchased approximately 246,000 shares at a weighted average price of $345. The Board of Directors approved a quarterly dividend of $0.75 per share, a 7% increase from the previous rate. This dividend is scheduled to be paid on November 20, 2026, to shareholders of record as of November 6, 2026.
Additionally, the Board of Directors announced that Bryan B. DeBoer, the company's President and Chief Executive Officer, has been appointed as Chairman of the Board, effective October 19, 2026. Sidney B. DeBoer will serve as Vice Chairman, and Louis P. Miramontes will continue as Lead Independent Director.
