Lithia Motors Reports Q1 2026 Financial Results with $9.27 Billion Revenue

Lithia Motors, Inc. reported its financial results for the first quarter of 2026, revealing total revenues of $9.27 billion, a 1% increase from $9.18 billion in the same period of 2025. The company's net income attributable to Lithia Motors, Inc. was $100.4 million, down from $209.5 million year-over-year, resulting in a basic earnings per share of $4.29 compared to $7.96 in the prior year. The decline in profitability was attributed to increased selling, general, and administrative (SG&A) expenses, which rose by 8.9% to $1.04 billion, and equity method investment losses.

In terms of operational performance, Lithia's new vehicle revenue decreased by 4.4% to $4.38 billion, while used vehicle revenue increased by 7.3% to $3.49 billion. Aftersales revenue also saw a 6.1% increase, reaching $1.04 billion. The company sold 94,787 new vehicles, a 4.7% decline from the previous year, while used vehicle retail sales increased slightly to 110,151 units. The average selling price for new vehicles decreased marginally to $46,878, while used vehicles saw an increase to $28,464.

Strategically, Lithia Motors expanded its footprint through acquisitions, adding six new locations in the first quarter, including Mercedes-Benz of Medford in Oregon and Toyota of Gallatin in Tennessee. The acquisitions contributed $18.1 million in revenue and $0.8 million in operating income since their acquisition dates. The company continues to focus on diversifying its brand and geographic mix to minimize exposure to any single manufacturer.

Lithia's balance sheet showed total assets of $25.75 billion as of March 31, 2026, up from $25.11 billion at the end of 2025. The company reported cash and cash equivalents of $421.3 million, an increase from $341.8 million. The total liabilities increased to $19.34 billion, with long-term debt less current maturities at $6.45 billion. The company’s liquidity position remains strong, with approximately $1.4 billion available, including cash, marketable securities, and credit facilities.

Looking ahead, Lithia Motors anticipates continued growth driven by its acquisition strategy and operational improvements. The company aims to enhance profitability through increased efficiency and customer engagement across its physical and digital platforms. However, it acknowledges potential challenges from market conditions and rising operational costs, which may impact future performance.