Lithia Motors delivered a strong Q3 performance with revenues of $9.7 billion, up 4.9% year-over-year, and adjusted diluted EPS rising 17% to $9.50, benefiting from improved same-store sales and strategic focus on recurring revenue streams.
- Same-store revenue increased by 7.7%, driven by growth across all business lines, particularly strong in the used vehicle and aftersales segments.
- Aftersales revenue rose 3.9% with gross profit up 9.1%, highlighting the company's effective customer retention strategies.
- Cost control measures were successful, maintaining SG&A at 64.8% despite normalized gross profit margins (GPUs).
- Used vehicle revenue increased by 11.8%, reflecting a strategic emphasis on high ROI vehicles and efficient inventory management.
- Driveway Finance is experiencing stable earnings growth with improved underwriting discipline, enhancing long-term financial resilience.
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