The adjusted EPS beat is positive, but same-store revenue decline and adjusted net income drop suggest underlying business pressure. The CEO/Chairman consolidation and continued buybacks signal confidence, but leverage increased to 3.07x. Watch Q4 for same-store trends and whether adjusted earnings can stabilize.
Price Chart
Executive Summary
Lithia Motors (LAD) reported Q3 2026 adjusted EPS of $10.34, a 9% YoY increase and above consensus of $9.70 (+6.6% beat). Revenue rose 3% to $9.9B, slightly above the $9.4B consensus. GAAP EPS surged 54% to $13.22, driven by a $88.8M unrealized gain on Pinewood Technologies. The company also raised its quarterly dividend 7% to $0.75/share and appointed CEO Bryan DeBoer as Chairman. Same-store revenue declined 1.4% YoY, and adjusted net income fell 5% YoY, signaling underlying pressure despite headline beats.
Key Financial Metrics
Key Facts
- Q3 2026 revenue of $9.9B, +3% YoY vs $9.7B
- GAAP diluted EPS $13.22, +54% YoY (includes $88.8M unrealized investment gain)
- Adjusted diluted EPS $10.34, +9% YoY vs $9.50; consensus was $9.70
- Adjusted net income $229.3M, -5% YoY vs $240.9M
- Same-store revenue declined 1.4% YoY; same-store gross profit -1.6%
- Financing operations income $32.3M, +69% YoY; record originations $937M
- Dividend raised 7% to $0.75/share; $85M in share repurchases during Q3
- CEO Bryan DeBoer appointed Chairman; Sidney DeBoer becomes Vice Chairman
- Net debt to TTM adjusted EBITDA 3.07x vs 2.63x a year ago
- Year-to-date acquired $1.17B in expected annualized revenues
Financial Impact
Adjusted EPS beat consensus by $0.64 (+6.6%); revenue beat by ~$0.5B. GAAP EPS inflated by $2.95/share unrealized gain. Adjusted net income declined 5% YoY.
Risk Factors
- Same-store revenue declining 1.4% YoY signals organic weakness
- Adjusted net income down 5% YoY despite revenue growth
- Net debt to EBITDA increased to 3.07x from 2.63x a year ago
- New vehicle GPU compression (-5.7% YoY) and F&I per-unit decline (-4.7%)
- GAAP EPS inflated by non-cash investment gains; core earnings growth modest
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001023128-26-000057 |
| Document: lad-20261021.htm | 0001023128-26-000057 |
| Document: 0001023128-26-000057-index-headers.html | 0001023128-26-000057 |
| Document: 0001023128-26-000057-index.html | 0001023128-26-000057 |
| Document: 0001023128-26-000057.txt | 0001023128-26-000057 |
| 8-K Data (Synthetic) | 0001023128-26-000057 |
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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