Lithia Motors Reports $9.18 Billion Revenue and $209.5 Million Net Income in Q1 2025

Lithia Motors, Inc. reported a total revenue of $9.18 billion for the first quarter of 2025, reflecting a 7.2% increase from $8.56 billion in the same period of 2024. The company's net income attributable to Lithia Motors, Inc. rose to $209.5 million, up from $162.6 million year-over-year, resulting in a basic earnings per share of $7.96, compared to $5.90 in the prior year. The growth in revenue and profitability was primarily driven by increased sales volumes related to acquisitions, alongside same-store growth in aftersales and finance and insurance (F&I) services.

In terms of operational metrics, Lithia's new vehicle retail revenue increased by 9.1% to $4.38 billion, while used vehicle retail revenue rose by 4.2% to $2.92 billion. The company sold 91,990 new vehicles and 107,326 used vehicles during the quarter, marking increases of 7.4% and 4.8%, respectively. However, the gross profit from new vehicle retail declined by 6.1% to $277.4 million, attributed to the normalization of margins. The overall gross profit for the quarter was $1.41 billion, a 5.6% increase from the previous year.

Strategically, Lithia Motors completed two acquisitions in early 2025, including Stohlman Subaru in Virginia and Elk Grove Subaru in California, which contributed to the revenue growth. The company has emphasized its acquisition strategy, targeting businesses that enhance its geographic and brand diversity. As of March 31, 2025, Lithia operated 451 locations across the U.S., U.K., and Canada, representing 52 brands. The company also reported a significant increase in its finance receivables, which rose to $4.15 billion, up from $3.97 billion at the end of 2024.

Lithia's selling, general, and administrative (SG&A) expenses increased by 2.0% to $952.7 million, but as a percentage of gross profit, SG&A decreased to 67.5% from 70.0% in the prior year, indicating improved operational efficiency. The company maintained a strong liquidity position with approximately $1.4 billion available, including $234.4 million in cash and $1.1 billion in credit facilities. Looking ahead, Lithia Motors anticipates continued growth driven by its strategic acquisitions and operational improvements, while remaining cautious of market conditions and consumer demand fluctuations.