The strong EPS beat and aggressive share buyback program (3.7% of shares retired in Q2) should support the stock near-term. However, same-store revenue decline and new vehicle margin compression warrant monitoring for further deterioration. Watch for Q3 guidance on the upcoming earnings call for signals on demand trends and margin trajectory.
Price Chart
Executive Summary
Lithia & Driveway reported Q2 2026 GAAP diluted EPS of $11.54, a 17% YoY increase, and adjusted diluted EPS of $10.03, a 9% increase, on record revenue of $9.8B (+2% YoY). However, the Street consensus was $8.72 EPS on $9.64B revenue, meaning the reported GAAP EPS of $11.54 represents a 32% beat vs consensus, while revenue slightly exceeded estimates. The company also repurchased $242M in shares (3.7% of outstanding) and increased its dividend by 23%, signaling strong capital return momentum despite a sequential decline in new vehicle margins and a 1.6% same-store revenue decline.
Key Financial Metrics
Key Facts
- Q2 2026 revenue of $9.8B, up 2% YoY and above $9.64B consensus
- GAAP diluted EPS of $11.54, up 17% YoY, beating $8.72 consensus by 32%
- Adjusted diluted EPS of $10.03, up 9% YoY
- Record financing operations income of $36.5M, up 82% YoY
- Repurchased $242M of shares (3.7% of outstanding) in Q2; $620M remaining under authorization
- Dividend increased 23% to $0.70 per share
- Same-store revenues declined 1.6% YoY; same-store gross profit down 2.7%
- New vehicle gross margin compressed 80 bps to 5.9% on a same-store basis
- Acquired 5 stores ($340M annualized revenue) and divested 3 ($120M annualized)
Financial Impact
EPS beat consensus by $2.82 (32%), revenue beat by ~$160M (1.7%). Share repurchases of $242M and dividend increase of 23% provide additional shareholder return.
Risk Factors
- Same-store revenues declined 1.6% YoY, indicating organic weakness
- New vehicle gross margin compressed 80 bps to 5.9% on a same-store basis
- Net debt to adjusted EBITDA increased to 3.17x from 2.53x a year ago
- Adjusted net income declined 6% YoY to $227.6M
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 1 press release from GlobeNewswire.
| Document | Accession Number |
|---|---|
| PRESS-RELEASE Data (Synthetic) | press-3335007 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 6d ago | 8-K | $269.13 $291.07 | ▲ +8.15% | ▲ +9.33% | $290.73 (+8.03%) |
Sep 29, 2026 28d ago | Press Release | $289.26 | awaiting T+1 | — | $290.73 (+0.51%) |
Sep 25, 2026 4w ago | 8-K | $303.07 $289.26 | ▼ −4.56% | ▼ −4.37% | $290.73 (−4.07%) |
Sep 14, 2026 6w ago | Insider Cluster | $345.91 $339.23 | ▼ −1.93% | ▼ −1.49% | $290.73 (−15.95%) |
Aug 25, 2026 9w ago | Press Release | $371.89 $370.15 | ▼ −0.47% | ▼ −0.49% | $290.73 (−21.82%) |
Jul 30, 2026 12w ago | ANALYST-DOWNGRADE | $405.03 $385.42 | ▼ −4.84% | ▼ −5.55% | $290.73 (−28.22%) |
Jul 29, 2026 12w ago | 8-K | $427.48 $405.03 | ▼ −5.25% | ▼ −6.93% | $290.73 (−31.99%) |
Jul 29, 2026 12w ago | Press Release | $427.48 $405.03 | ▼ −5.25% | ▼ −6.93% | $290.73 (−31.99%) |
Jul 14, 2026 15w ago | Press Release | $319.25 | awaiting T+1 | — | $290.73 (−8.93%) |
Jun 20, 2026 18w ago | Institutional Cluster | $295.15 $297.08 | ▲ +0.65% | ▲ +2.11% | $290.73 (−1.50%) |
US Market Status
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