**Lithia Motors, Inc.** (LAD) reported first-quarter 2026 adjusted earnings of $7.34 per share, a 4% decline from $7.66 year-over-year, but exceeding the Zacks Consensus Estimate of $7.06 by 4%. The company generated revenues of $9.27 billion, marking a 1% year-over-year increase, albeit slightly below expectations of $9.36 billion.
Key trends included a notable shift toward used vehicles and aftersales, with used vehicle revenues rising 7.3% to $3.49 billion and aftersales revenues increasing by 6.1% to $1.04 billion. New vehicle revenues, however, fell 4.4% to $4.38 billion. The volume of new vehicle sales dropped by 4.7% to 94,787 units, while used retail unit sales climbed 2.6% to 110,151 units.
Lithia’s operational margins reflected mixed performance; aftersales gross margin improved to 58.9%, yet vehicle margins tightened. The company’s net income declined 51.7% to $102 million, amid increased costs, with overall expenses rising 8.9% to $1.04 billion. As of March 31, 2026, Lithia’s cash and equivalents stood at $421.3 million, and inventory financing increased to $6.28 billion.
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