Lithia Motors: Expansion Of Used Vehicles & The Top Influences on Its Performance for 2025 & The Future!

Lithia Motors reported a solid set of quarterly results reflecting a steady balance between growth, margin management, and disciplined capital allocation amid a normalizing auto retail environment. Revenue rose 4.9% year-over-year to $9.7 billion, supported by 7.7% same-store sales growth across all segments, while adjusted diluted EPS grew 17% to $9.50. This performance was aided by stronger contributions from used vehicles and aftersales, both of which demonstrated resilience despite ongoing normalization in front-end gross profit per unit (GPU). The company maintained tight control over SG&A expenses, which remained flat sequentially in North America at 64.8%, highlighting cost efficiency in a challenging market. Lithia Motors’ focus on recurring profit streams through finance, service, and digital channels contributed to a more balanced earnings mix, although front-end profitability continues to face cyclical pressure from affordability constraints and lower GPUs.