Lithia & Driveway (LAD) reported on Tuesday a record second-quarter revenue of $9.6 billion, 4% year-over-year increase, marking the highest in the company’s history. Total gross profits increased 4.3% over Q2 2024, while diluted earnings per share (EPS) increased by 25% year-over-year to $9.87, and adjusted diluted EPS increased 30% compared to Q2 2024 to $10.24.
LAD’s Q2 2025 net income hit $258 million, up 19.2% from $217 million in 2024. And its adjusted net income was $268 million, up 24% year-over-year.
Here’s why it matters:
Lithia & Driveway is one of the largest and fastest-growing automotive retailers in the U.S., and the company’s financial health and business strategies reflect key trends in the retail automotive industry.
The company’s record revenue and earnings growth are also a positive sign that, despite the current headwinds and economic outlook, the retail auto market is still healthy, strong and has plenty of profitability potential.
Key takeaways:
- LAD hits record $9.6B in Q2 revenue
Lithia & Driveway’s second-quarter revenue increased by 4% to $9.6 billion compared to Q2 2024. - Aftersales profit jumps 11.5%
LAD’s aftersales gross profit grew 11.5%, further highlighting the importance and profitability of parts, service and maintenance. - Driveway Finance Corporation (DFC) expands market share and margins
DFC originated $731 million in loans with increased U.S. penetration to 14.8% and a higher net interest margin of 4.6%. - LAD continues to grow through strategic acquisitions
LAD expanded in the Southeast by acquiring two Mercedes-Benz dealerships, adding $220 million in expected annual revenue. - Strong cash reserves and share buybacks increase financial flexibility
With $1.3 billion in liquidity and active share buybacks, LAD is maintaining strong financial flexibility.
