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Lithia Motors’ $1.2 Billion Acquisition Expansion — A New Growth Catalyst!

Lithia Motors, Inc. reported third-quarter revenues approaching $10 billion and adjusted diluted earnings per share (EPS) of $10.34, marking a 9% increase from the previous year. The company’s earnings growth occurred despite a slight 1.4% decline in same-store revenues, following a strong 8% growth comparison from the prior year. Total vehicle gross profit per unit (GPU) moderately declined by $63 to $3,958, indicating maintained pricing discipline in a mixed retail environment. Used vehicle profitability remained robust, with a 13% increase in GPU year over year, driven primarily by higher margins in core three- to eight-year-old vehicles, supported by AI-enabled dynamic pricing strategies. After-sales gross profit grew by 2.4%, reaching a 59.5% margin, aided by initiatives like the increased adoption of lifetime oil contracts, while new vehicle revenues declined 2.6% on a 2.7% decrease in units sold. The U.K.