Lithia Motors, Inc. reported significant financial performance in its latest 10-Q filing for the second quarter of 2025, with total revenues reaching $9.58 billion, a 3.8% increase from $9.23 billion in the same period last year. The company's net income attributable to Lithia Motors, Inc. was $256.1 million, up from $214.2 million in Q2 2024, resulting in a basic earnings per share of $9.89, compared to $7.88 in the prior year. The growth in revenue and profitability was primarily driven by increased sales volumes from acquisitions and same-store performance, particularly in the aftersales and finance and insurance segments.
Comparatively, Lithia's gross profit for the quarter increased to $1.49 billion, a 4.3% rise from $1.42 billion in Q2 2024. However, the gross profit margin for new vehicle retail decreased to 6.7% from 7.3% year-over-year, reflecting a normalization of margins in the automotive market. The company reported a total of 94,144 new vehicles sold during the quarter, a 1.8% increase from the previous year, while used vehicle sales remained stable with 109,053 units sold.
Strategically, Lithia Motors has continued to expand its footprint through acquisitions, adding four new locations in 2025, including Stohlman Subaru in Virginia and Collierville Mercedes-Benz in Tennessee. The acquisitions contributed approximately $61.9 million in revenue and $3.5 million in operating income since their respective acquisition dates. As of June 30, 2025, Lithia operated 448 locations across the U.S., U.K., and Canada, representing 52 brands.
Operationally, the company reported a total of $4.42 billion in finance receivables, reflecting a significant increase from $3.97 billion at the end of 2024. The allowance for credit losses on finance receivables rose to $135.1 million, up from $123.4 million, indicating a proactive approach to managing credit risk amid a growing portfolio. Lithia's employee headcount also increased, supporting its expansion efforts and operational needs.
Looking ahead, Lithia Motors expressed optimism about its growth trajectory, emphasizing its commitment to enhancing customer experiences through both physical and digital channels. The company plans to continue pursuing strategic acquisitions while managing costs effectively to maintain profitability. With available liquidity of approximately $1.3 billion, including $202.8 million in cash and $1.0 billion in credit facilities, Lithia is well-positioned to capitalize on future opportunities in the automotive retail market.
About LITHIA MOTORS INC
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