Lithia Motors (NYSE:LAD) reported second-quarter 2026 financial results on Wednesday, beating Wall Street expectations for earnings per share and quarterly revenue.

Quarterly Financial Results

Lithia Motors reported quarterly earnings of $10.03 per share, which beat the analyst consensus estimate of $8.78.

The company reported quarterly sales of $9.791 billion, exceeding the analyst consensus estimate of $9.634 billion. This performance represents an increase over sales of $9.583 billion from the same period last year, according to Benzinga Pro.

Second-quarter 2026 net income reached $261.6 million, a 1.3% increase compared to net income of $258.2 million in the second quarter of 2025.

After adjusting for the unrealized gain on an investment in Pinewood Technologies Group PLC and other non-core items, adjusted net income for the second quarter of 2026 stood at $227.6 million, representing a 6% decrease compared to adjusted net income of $240.9 million for the same period of 2025.

Dividend and Capital Returns

The Board of Directors approved a dividend of 70 cents per share related to second-quarter 2026 financial results. The dividend is scheduled for payment on August 21 to shareholders of record on August 7.

During the second quarter of 2026, Lithia Motors repurchased approximately 854,000 units of stock at a weighted average price of $284. Under the current stock repurchase authorization, approximately $620 million remains available as of June 30.

Executive Commentary

President and CEO Bryan DeBoer said the company posted broad-based growth during the quarter, driven by record revenue, resilient new-vehicle margins, stronger profitability in used vehicles and sequential improvement in selling, general and administrative expenses.

He added that the Financing Operations segment delivered an 80% increase in income, supported by higher margins and greater customer penetration.

DeBoer also said the company continued returning capital to shareholders by increasing its share repurchase authorization by $500 million and buying back nearly 4% of its outstanding shares during the quarter.

He said the company’s integrated business model continues to perform as intended, positioning it with solid momentum heading into the second half of the year.

Balance Sheet and Store Operations

Lithia Motors ended the second quarter with approximately $1.3 billion in cash and cash equivalents, marketable securities, and availability on revolving lines of credit.

In the second quarter of 2026, the company acquired 5 stores, which are expected to generate $340 million in annualized revenues. During the same period, the company divested 3 stores representing $120 million in annualized revenues.

LAD Price Action: Lithia Motors shares were up 4.77% at $375.40 during premarket trading on Wednesday. The stock is trading at a new 52-week high, according to Benzinga Pro data.

Photo by T. Schneider via Shutterstock