Lithia & Driveway lifts dividend 7% as third-quarter EPS jumps 54% on record revenue

Lithia & Driveway raised its quarterly dividend 7% on Wednesday after the auto retailer, which calls itself the largest global automotive retailer, posted record third-quarter revenue and a 54% jump in reported earnings per share.

Diluted EPS rose to $13.22 from $8.61 a year earlier, boosted by an unrealized gain on its stake in Pinewood Technologies Group, according to its earnings release filed with an 8-K. Excluding that gain and other non-core items, adjusted EPS rose 9% to $10.34.

Revenue increased 3% to a third-quarter record of $9.9 billion. Net income rose 34% to $292.9 million, while adjusted net income fell 5% to $229.3 million.

Used cars and financing

Gross profit per used retail unit rose $197, or 11%, from a year earlier. Same-store aftersales gross profit grew 2.4%, with gross margin up a full point to 59.5%.

The company's financing operations earned $32.3 million, up 69%, on record originations of $937 million.

Capital returns and leadership

The board approved a dividend of $0.75 a share, payable Nov. 20 to holders of record on Nov. 6. Lithia repurchased about 246,000 shares in the quarter at an average of $345, about $85 million, and had about $535 million left on its authorization at Sept. 30.

The board also named President and Chief Executive Bryan DeBoer chairman, effective Oct. 19. Founder Sidney DeBoer becomes vice chairman and stays on the board, the company said.

By the numbers

• Revenue: $9.9 billion, up 3%
• Diluted EPS: $13.22, vs. $8.61
• Adjusted diluted EPS: $10.34, up 9%
• Quarterly dividend: $0.75, up 7%
• Financing operations income: $32.3 million, up 69%

Sources

1. Lithia Motors, Inc. (Lithia & Driveway), Form 8-K (Items 2.02, 8.01) with Exhibit 99.1 earnings release, filed Oct. 21, 2026, accession 0001023128-26-000057

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