The strong EPS beat and dividend increase provide a positive catalyst after a weak Q1. Monitor the earnings call for guidance on new-vehicle margins and the trajectory of floor-plan interest costs, which rose 27% YoY. The leverage increase to 3.17x EBITDA warrants attention but is manageable given the cash flow generation.
Price Chart
Executive Summary
Lithia Motors (LAD) reported Q2 2026 adjusted EPS of $10.03, a 15% beat vs the $8.72 consensus, on record revenue of $9.8B (+2% YoY). GAAP EPS surged 17% to $11.54, driven by improved used-vehicle margins and an 82% jump in financing operations income. The company also raised its quarterly dividend 23% to $0.70/share and repurchased $242M of shares (3.7% of outstanding). The strong beat and capital return actions contrast with a weak Q1, signaling a turnaround in operating momentum.
Key Financial Metrics
Key Facts
- Adjusted EPS $10.03 vs consensus $8.72 (beat +15.0%)
- Record Q2 revenue $9.79B, up 2% YoY vs consensus $9.64B
- GAAP EPS $11.54, up 17% YoY
- Dividend raised 23% to $0.70/share
- Repurchased $242M of shares (3.7% of shares) in Q2
- Financing operations income $36.5M, +81.6% YoY
- Used retail GPU increased $339 (20%) sequentially
- Net debt to adjusted EBITDA 3.17x vs 2.53x a year ago
Financial Impact
EPS beat of 15% on consensus, with revenue beat of 1.6%; dividend increase adds ~$0.13/share quarterly
Risk Factors
- Net debt to adjusted EBITDA rose to 3.17x from 2.53x a year ago
- New vehicle gross margin compressed 80bps to 5.9%
- Used vehicle retail unit sales declined 2.7% YoY
- Adjusted net income fell 6% YoY despite revenue growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001023128-26-000047 |
| Document: lad-20260729.htm | 0001023128-26-000047 |
| Document: 0001023128-26-000047-index-headers.html | 0001023128-26-000047 |
| Document: 0001023128-26-000047-index.html | 0001023128-26-000047 |
| Document: 0001023128-26-000047.txt | 0001023128-26-000047 |
| 8-K Data (Synthetic) | 0001023128-26-000047 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 21, 2026 5d ago | 8-K | $269.13 $291.07 | ▲ +8.15% | ▲ +9.33% | $286.84 (+6.58%) |
Sep 29, 2026 27d ago | Press Release | $289.26 | awaiting T+1 | — | $286.84 (−0.84%) |
Sep 25, 2026 4w ago | 8-K | $303.07 $289.26 | ▼ −4.56% | ▼ −4.37% | $286.84 (−5.36%) |
Sep 14, 2026 6w ago | Insider Cluster | $345.91 $339.23 | ▼ −1.93% | ▼ −1.49% | $286.84 (−17.08%) |
Aug 25, 2026 8w ago | Press Release | $371.89 $370.15 | ▼ −0.47% | ▼ −0.49% | $286.84 (−22.87%) |
Jul 30, 2026 12w ago | ANALYST-DOWNGRADE | $405.03 $385.42 | ▼ −4.84% | ▼ −5.55% | $286.84 (−29.18%) |
Jul 29, 2026 12w ago | 8-K | $427.48 $405.03 | ▼ −5.25% | ▼ −6.93% | $286.84 (−32.90%) |
Jul 29, 2026 12w ago | Press Release | $427.48 $405.03 | ▼ −5.25% | ▼ −6.93% | $286.84 (−32.90%) |
Jul 14, 2026 14w ago | Press Release | $319.25 | awaiting T+1 | — | $286.84 (−10.15%) |
Jun 20, 2026 18w ago | Institutional Cluster | $295.15 $297.08 | ▲ +0.65% | ▲ +2.11% | $286.84 (−2.82%) |
US Market Status
Subscribe to SecBot
Get Real-Time SEC Filing Intelligence
Comprehensive SEC filing analysis delivered the moment filings hit EDGAR. Sentiment scoring, impact analysis, and actionable insights for every material event.
Create a free account Live analysis, Telegram alerts, watchlists and the MCP server for subscribers