- Record Q1 2025 revenue of $9.2 billion, a 7% increase year-over-year
- 35% rise in diluted EPS to $7.94, with adjusted EPS up 25% to $7.66
- Lithia & Driveway (LAD, Financial) acquired two Subaru dealerships, boosting expected annual revenue by $180 million
Lithia & Driveway (LAD) has reported record-breaking financial results for the first quarter of 2025, with a revenue increase of 7% compared to the same period last year. The company's revenue climbed to $9.2 billion from $8.6 billion in Q1 2024. This continued growth comes amid strategic operational enhancements and market expansion efforts.
The company's diluted earnings per share surged by 35% to $7.94, with adjusted diluted earnings per share rising by 25% to $7.66. Net income for the quarter increased 28% to $211 million, while adjusted net income saw a boost of 20% reaching $204 million. A notable highlight of their operational performance includes a 3.6% increase in new retail unit sales on a same-store basis.
Lithia & Driveway also expanded its business footprint by acquiring two Subaru dealerships in Sterling, Virginia, and Elk Grove, California. These acquisitions are expected to contribute an additional annualized revenue of $180 million, further strengthening LAD's regional market presence.
Reflecting confidence in its financial health, the company increased its quarterly dividend by 4% to $0.55 per share. Furthermore, Lithia & Driveway repurchased approximately 403,000 shares at an average price of $326, demonstrating a strong commitment to returning capital to shareholders.
LAD's financial arm, Driveway Finance, originated $623 million in loans during the quarter, managing a total portfolio of $4.1 billion in receivables, with an increased net interest margin of 4.6% indicating higher lending profitability.
The company's liquidity remains robust with approximately $1.4 billion available through a combination of cash, cash equivalents, and revolving credit facilities, allowing for continued strategic investments and shareholder returns.
