Auto Stock Lithia & Driveway (NYSE: LAD) Gains On Record Second Quarter Revenue

(MENAFN- Investor Ideas) ) a trusted platform for investing ideas, including auto stocks, issues a news and trading alert for Lithia & Driveway (NYSE: LAD ), the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle.

The stock makes the NYSE top percentage gainers list following reporting financial results for the second quarter of 2026.

Lithia & Driveway (NYSE: LAD) is trading at $409.75 +51.43 (+14.35%). The stock has a morning high of 414.60, making a new 52 week high.

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Key Highlights

Record second quarter revenues of $9.8 billion Used retail GPUs increased $339, or 20%, sequentially Aftersales gross profit increased by 3.1% and gross margin was 59.2%, a 120-basis point increase, on a same-store basis Adjusted SG&A as a percent of gross profit was 68.6%, a 290-basis point improvement sequentially Financing Operations achieved record income of $37 million and record originations of $884 million, with a 17.5% penetration rate Second quarter diluted earnings per share of $11.54, a 17% increase, and adjusted diluted earnings per share of $10.03, a 9% increase Repurchased $242 million of shares, representing 3.7% of outstanding shares in the quarter, and 7.6% of outstanding shares in the first half of 2026 Announced a 23% increase to quarterly dividend

Second Quarter 2026 Operational Summary

Second quarter 2026 revenue increased 2% to $9.8 billion from $9.6 billion in the second quarter of 2025.

Second quarter 2026 diluted earnings per share attributable to LAD was $11.54, a 17% increase from $9.87 per share reported in the second quarter of 2025. After adjusting for the unrealized gain on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted diluted earnings per share attributable to LAD for the second quarter of 2026 was $10.03, a 9% increase compared to $9.20 per share in the same period of 2025.

Second quarter 2026 net income was $261.6 million, a 1.3% increase compared to net income of $258.2 million in the second quarter of 2025. After adjusting for the unrealized gain on our investment in Pinewood Technologies Group PLC and other non-core items, adjusted net income for the second quarter 2026 was $227.6 million, an 6% decrease compared to adjusted net income of $240.9 million for the same period of 2025.

The financial measures discussed in this release include both GAAP and non-GAAP measures. See "Reconciliation of Certain Non-GAAP Measures".

For the first six months of 2026 revenues increased 2% to $19.1 billion, compared to $18.8 billion in 2025.

Diluted earnings per share attributable to LAD for the first six months of 2026 was $15.68, compared to $17.80 per share in 2025, a decrease of 12%. Adjusted diluted earnings per share attributable to LAD for the first six months of 2026 increased 1% to $17.32 from $17.12 in the same period of 2025.

AdvertisementCorporate Development

In the second quarter of 2026, LAD acquired 5 stores, which are expected to generate $340 million in annualized revenues, and divested 3 stores representing $120 million in annualized revenues.

Balance Sheet Update

LAD ended the second quarter with approximately $1.3 billion in cash and cash equivalents, marketable securities, and availability on our revolving lines of credit.

Dividend Payment and Share Repurchases

The Board of Directors approved a dividend of $0.70 per share related to second quarter 2026 financial results. The dividend is expected to be paid on August 21, 2026 to shareholders of record on August 7, 2026.

During the second quarter of 2026, we repurchased approximately 854,000 shares at a weighted average price of $284. Under the current share repurchase authorization approximately $620 million remains available as of June 30, 2026.

Second Quarter Earnings Conference Call and Updated Presentation

The second quarter 2026 conference call may be accessed at 10:00 a.m. ET today by telephone at 877-407-8029. An updated presentation highlighting second quarter 2026 results has been added to our investor relations website. To listen live on our website or for replay, visitand click on Quarterly Earnings.

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