Lithia Motors Inc. (NYSE:LAD) reported first-quarter 2026 financial results Wednesday, topping analyst expectations on both the top and bottom lines despite a year-over-year dip in adjusted profits.

Earnings And Revenue Performance

The Medford-Oregon-based auto retailer posted adjusted diluted earnings of $7.34 per share. This figure surpassed the analyst consensus estimate of $6.83. However, it marked a decrease from the $7.93 per share reported in the prior-year period.

Quarterly sales reached $9.271 billion, edging past the estimated $9.222 billion. This represents a slight climb from the $9.178 billion recorded during the same period last year, according to Benzinga Pro.

Used Vehicle And Aftersales Momentum

Used vehicle revenue rose 4.6% on a same-store basis this quarter.

The aftersales segment also showed resilience. Revenue grew 3.8%, while gross profit jumped 5.7%. Same-store aftersales gross margins expanded by 100 basis points to 58.7%.

LAD ended the first quarter with approximately $1.4 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit.

Financing and Capital Allocation

Driveway Finance Corporation hit record originations of $840 million. The unit maintained an 18% penetration rate with an average FICO score of 750.

Lithia remained aggressive with its buyback program. The company repurchased approximately 942,000 shares for $259 million. This represents 4% of outstanding shares.

Executive Commentary On Strategy

“Our team drove strong results across our platform and sequential growth in earnings,” stated President and CEO Bryan DeBoer. “Capital discipline remains a key focus, and we repurchased nearly 4% of our shares at prices well below intrinsic value. Our balance sheet and diversified platform give us a durable foundation to successfully navigate any market cycle.”

The Board approved a 57-cent-per-share dividend. It is payable May 22 to shareholders of record as of May 8.

LAD Stock Price Activity: Lithia Motors shares were unchanged at $277.24 during premarket trading on Wednesday, according to Benzinga Pro data.

Photo by T. Schneider via Shutterstock