Lithia operates dealerships across the United States and Canada, offering a broad portfolio of new and pre-owned vehicles from more than 40 different manufacturers, with core business activities including vehicle sales, financing, insurance, parts and service. The company is projected to achieve revenues of $39.5 billion in 2026, with strategic emphasis on digital initiatives and aftermarket expansion.
Cyborg Score Rationale
The company has received a consensus Buy rating from analysts (50% Strong Buy, 30% Buy, 20% Hold), though revenue growth is expected to slow to 4.8% in 2026, well below historical 16% p.a. growth and slower than industry participants forecast at 6.0%.
Top Insights
Q4 2025 earnings missed expectations with EPS of $6.74 vs. $8.09 consensus and flat revenues, indicating execution challenges in key new vehicle segment
Used vehicle business showing strength with 6.7% YoY revenue growth, offsetting new vehicle sales decline of 8.1% units YoY
Aftermarket services segment demonstrates robust performance with 9.1% gross profit growth and expanded margins to 58.4% in Q3 2025
Captive finance operations (Driveway Finance) gaining momentum with 14.5% penetration rate and 4.6% net interest margin, supporting overall profitability
Named Competitors
AutoNation — Largest automotive retailer in United States