U.S. auto retailer Lithia & Driveway (LAD) reported higher earnings per share for the three months ended Sept. 30, 2026, despite lower adjusted net income, helped by fewer diluted shares.
Adjusted diluted earnings per share rose about 9% to $10.34 from $9.50 a year earlier, Lithia said in an earnings release furnished to the SEC. Adjusted net income attributable to the company fell to $227.5 million from $239.4 million. Average diluted shares declined 12.7% to 22 million from 25.2 million, lifting the per-share result.
Revenue increased 2.8% to $9.95 billion, although comparable-store revenue declined 1.4%. The contrast shows that the company’s overall sales growth did not extend to stores operating in both comparison periods.
Reported diluted earnings per share rose to $13.22 from $8.61. That figure included an unrealized gain on Lithia’s investment in Pinewood Technologies Group PLC. Lithia valued the gain at $88.8 million before tax, equivalent to $2.95 per diluted share after tax, and excluded it along with other items from its adjusted results.
Gross profit per used vehicle sold at retail increased to $1,970 from $1,773. Aftersales gross profit at comparable stores rose 2.4% to $611.1 million, while financing operations income increased to $32.3 million from $19.1 million. Floor-plan interest expense also rose, reaching $70.3 million compared with $57.8 million a year earlier.
Lithia repurchased about 246,000 shares for $85 million during the quarter. Chairman and CEO Bryan DeBoer said the company’s capital decisions over the past year had produced “a meaningfully lower share count.”
The board approved a quarterly dividend of $0.75 per share, up about 7% from $0.70 in the preceding quarter. Lithia expects to pay it Nov. 20 to shareholders of record Nov. 6.
