Lithia Motors Q3 2026: EPS tops expectations as buybacks cut share count 12.7%
As seen on the 24/7 Wall St. homepage on October 21, 2026.
Buybacks are doing real work at Lithia: the diluted share count fell 12.7% year over year, amplifying every dollar of a quarter that already beat on both lines.
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Lithia Motors posted adjusted diluted EPS of $10.34 for the third quarter of 2026, beating expectations, with revenue also ahead of estimates and rising year over year. It was the seventh beat in the past eight periods.
The diluted share count fell 12.7% year over year as the company kept repurchasing stock, so each dollar of operating profit now maps to fewer shares. That lifts per-share earnings before any top-line growth is credited.
Gross profit per used retail unit climbed 11% year over year, with used vehicle revenue and aftersales margin both expanding. New vehicle gross profit per unit and Finance and Insurance revenue declined, two areas investors will want to track in coming quarters.
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Financing Operations income rose 69% to $32.3 million on record originations, with interest margin and penetration both expanding. That makes the segment an increasingly meaningful earnings contributor independent of vehicle sales volumes.
Net debt to adjusted EBITDA rose to 3.07x from 2.63x a year earlier as the company deployed capital into acquisitions, including a post-quarter deal for Hyundai and Kia stores in Memphis. CEO Bryan DeBoer characterized the company's earnings power as continuing to build heading into 2027, and the board declared a quarterly dividend of $0.75, a 7% increase, payable November 20 to shareholders of record November 6.
Mentioned: LAD