Lithia Motors, Inc. (NYSE:LAD) shares on Wednesday edged higher after the auto retailer posted a mixed quarter, with revenue holding up even as profit and earnings came in under pressure.

Investors appeared to focus on the company's resilient used-vehicle performance and continued capital returns despite a softer new-vehicle backdrop.

• Lithia Motors stock is moving in positive territory. Why is LAD stock trading higher?

Quarterly Metrics

The firm reported fourth-quarter adjusted earnings per share of $6.74 missed the Street view of $8.11. Quarterly sales of $9.198 billion (+0.3% year over year) outpaced the Street view of $9.189 billion.

Same-store sales were nearly flat during the quarter. On a same-store basis, used revenue increased 6.1%. Used retail units rose 4.7% on the same-store basis.

New vehicle sales fell 5.7% year over year to $4.626 billion, while Used vehicle sales gained 6.7% to $3.179 billion. Aftersales unit grew 11.4% to $1.035 billion.

Adjusted fourth quarter 2025 net income was $162.2 million, a 21% decrease compared to adjusted net income of $204.2 million for the same period of 2024.

Gross profit margin decreased to 14.9% from 15% a year ago.

“We remained disciplined in capital allocation, repurchasing over 11% of outstanding shares in 2025 while maintaining balance sheet strength,” said Bryan DeBoer, president and CEO.

Lithia Motors ended the fourth quarter with approximately $1.5 billion in cash and equivalents.

Dividend

The company approved a dividend of 55 cents per share related to fourth quarter 2025 financial results. The dividend is expected to be paid on March 20, 2026.

“As we look ahead, our diversified platform and operational discipline position us to navigate a dynamic market and capitalize on opportunities,” DeBoer said.

LAD Price Action: Lithia Motors shares are trading higher by 0.99% to $330.31 at publication on Wednesday.

Photo: T. Schneider via Shutterstock