Zacks Investment Research·Jun 26, 2026
Zacks Industry Outlook Lithia Motors, and SonicLithia Motors, and Sonic have been highlighted in this Industry Outlook article.
Lithia Motors, Inc.(LAD)Earnings, Financials & Key Ratios
LAD•NYSE
$311.69
9.6× P/E·Price updated Jul 7, 2026
AboutLithia Motors, Inc. operates as an automotive retailer in the United States. The company operates through three segments: Domestic, Import, and Luxury. It offers new and used vehicles; vehicle financing services; warranties, insurance contracts, and vehicle and theft protection services; and automotive repair and maintenance services, as well as sells vehicle body and parts under the Driveway and GreenCars brand names. As of February 18, 2022, the company operated through 278 stores. It also offers its products online through 300 websites. Lithia Motors, Inc. was founded in 1946 and is headquartered in Medford, Oregon.Show more
- Revenue$37.63B+4.0%
- EBITDA$1.84B-6.2%
- Net Income$820M+2.2%
- EPS (Diluted)32.32+9.0%
- Gross Margin15.23%-0.9%
- EBITDA Margin4.9%-9.8%
- Operating Margin3.8%-12.8%
- Net Margin2.18%-1.7%
- ROE12.32%-0.5%
LAD Price & Volume
Lithia Motors, Inc. (LAD) stock price & volume — 10-year historical chart
Loading chart...
Stagnant Growth Challenges Lithia's Acquisition Strategy
Investment Thesis • Updated 2026Q1
VerdictNeutral
Growth:Decelerating
Profitability:Strained
Financial:Strained
Cash Flow:Deteriorating
Primary Risk:High leverage and liquidity
Key Thesis Takeaways
- Lithia Motors faces a challenging transition as its aggressive acquisition-led growth model encounters significant top-line deceleration, with revenue growth slowing to 1.0% in 2026Q1.
- The company's reliance on inorganic expansion has resulted in a substantial $5.2 billion goodwill balance and persistent margin compression, as operating margins fell to 3.1% in 2026Q1.
- Investors should monitor the sustainability of capital allocation, particularly given the recent volatility in free cash flow and the erosion of retained earnings to zero.
Verdict Logic
Negative: The combination of a 1.0% revenue growth rate and a 3.1% operating margin suggests that the current valuation of 9.04x P/E may not fully account for the risks associated with the company's $9.7 billion debt load.
LAD Growth Metrics
Lithia Motors, Inc. (LAD) revenue, earnings & EPS growth — 3, 5 & 10-year CAGR
Revenue CAGR
10 Years16.95%
5 Years23.45%
3 Years10.11%
TTM2.51%
Profit CAGR
10 Years16.18%
5 Years11.75%
3 Years-13.15%
TTM-16.31%
EPS CAGR
10 Years16.68%
5 Years10.62%
3 Years-9.91%
TTM-10.24%
Return on Capital
10 Years15.93%
5 Years14.67%
3 Years10.33%
Last Year8.17%
LAD Recent Earnings
Lithia Motors, Inc. (LAD) EPS & revenue vs analyst estimates — last 4 quarters
●Beat EPS 7/12 qtrs (58%)●Beat Revenue 8/12 qtrs (67%)
Q2 2026Latest
Apr 29, 2026Metric
Actual
Est
EPS
$7.34+6.7%
$6.88
Rev
$9.3B+0.5%
$9.2B
Q1 2026
Feb 11, 2026Metric
Actual
Est
EPS
$6.74-16.7%
$8.09
Rev
$9.2B+0.0%
$9.2B
Q4 2025
Oct 22, 2025Metric
Actual
Est
EPS
$9.50+11.4%
$8.53
Rev
$9.7B+4.5%
$9.3B
Q3 2025
Jul 29, 2025Metric
Actual
Est
EPS
$10.24+10.8%
$9.24
Rev
$9.6B+0.3%
$9.6B
| Quarter | Date | EPS (Act vs Est) | Revenue (Act vs Est) |
|---|---|---|---|
| Q2 2026Latest | Apr 29, 2026 | $7.34vs $6.88+6.7% | $9.3Bvs $9.2B+0.5% |
| Q1 2026 | Feb 11, 2026 | $6.74vs $8.09-16.7% | $9.2Bvs $9.2B+0.0% |
| Q4 2025 | Oct 22, 2025 | $9.50vs $8.53+11.4% | $9.7Bvs $9.3B+4.5% |
| Q3 2025 | Jul 29, 2025 | $10.24vs $9.24+10.8% | $9.6Bvs $9.6B+0.3% |
Based on last 12 quarters of dataView full earnings history →
Latest LAD News
Recent stock market news and headlines for Lithia Motors, Inc. (LAD)
Zacks Investment Research·Jun 25, 2026
2 Auto Retailers Worth Watching Despite Purchasing Power ErosionU.S. auto retail faces volume pressure and eroding purchasing power. Yet LAD and SAH stand out with smart acquisitions, digital push and shareholder returns.
Peers Comparison
Key metrics vs top competitors for Lithia Motors, Inc. (LAD)
| Company | Price | Market Cap | P/E Ratio | Rev Growth (1Y) | Net Margin | ROE | Div Yield |
|---|---|---|---|---|---|---|---|
| $311.69 | $7.11B | 9.64 | 4% | 2.18% | 12.32% | 0.7% | |
| $191.68 | $6.58B | 11.25 | 3.24% | 2.47% | 28.44% | — | |
| $184.97 | $12.16B | 13.09 | -0.18% | 2.89% | 16.37% | — | |
| $87.26 | $2.96B | 25.51 | 6.53% | 0.72% | 10.5% | — | |
| $208.74 | $4.03B | 8.31 | 4.71% | 2.27% | 14.14% | — | |
| $296.47 | $3.52B | 11.80 | 13.23% | 1.45% | 11.04% | — |
Compare LAD vs Peers
Lithia Motors, Inc. (LAD) vs competitors — business, growth, and fundamentals comparison against the closest industry rivals.
LAD SEC Filings & Documents
Lithia Motors, Inc. (LAD) SEC filings — annual & quarterly reports (10-K, 10-Q)
8-K Announcements
6Material company update
May 1, 2026·SEC
Material company update
Apr 29, 2026·SEC
Material company update
Mar 4, 2026·SEC
10-K Annual Reports
310-Q Quarterly Reports
6Get notified when LAD posts new earnings or crosses analyst targets
Free. No account needed. Unsubscribe any time.
LAD Frequently Asked Questions
Lithia Motors, Inc. (LAD) stock FAQ — growth, dividends, profitability & financials explained
Growth & Financials
What is Lithia Motors, Inc.'s revenue?
Lithia Motors, Inc. (LAD) reported $37.73B in revenue for fiscal year 2025. This represents a 26320% increase from $142.8M in 1996.
How fast is Lithia Motors, Inc. growing?
Lithia Motors, Inc. (LAD) grew revenue by 4.0% over the past year. Growth has been modest.
Is LAD profitable?
Yes, Lithia Motors, Inc. (LAD) is profitable, generating $710.5M in net income for fiscal year 2025 (2.2% net margin).
Dividend & Returns
Does LAD pay dividends?
Yes, Lithia Motors, Inc. (LAD) pays a dividend with a yield of 0.70%. This makes it attractive for income-focused investors.
What is LAD's return on equity?
Lithia Motors, Inc. (LAD) has a return on equity (ROE) of 12.3%. This is reasonable for most industries.
What is Lithia Motors, Inc.'s free cash flow?
Lithia Motors, Inc. (LAD) generated $1.89B in free cash flow for fiscal year 2025. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.