LAD · Lithia Motors Q2 FY2026 earnings call record财报电话会记录

“We delivered revenues of $9.8 billion and adjusted diluted EPS of $10.03, up 9% from last year, as our leaders continue to demonstrate the earnings power of our diversified model in a somewhat dynamic environment.”

“New vehicle margins continue to be stable, used vehicle profitability strengthened considerably, and we drove meaningful sequential improvements in SG&A as a percentage of gross profit.”

“Gross profit grew 3.1% on revenue growth of 1%, with margins expanding 120 basis points year-over-year to 59.2%, and customer pay gross profit growing 2.6% and warranty up 5.4%.”

“Each quarter of this execution moves us closer to our sub 60% SG&A target, and as vehicle margins stabilize and volumes improve, that leverage flows straight to earnings.”

“On the digital front, we keep making it simpler, faster and more transparent for our customers to shop, finance, and service with us in whatever channel they choose.”

“With managed receivables now above $5 billion and penetration climbing towards our target of 20% or more, DFC is doing exactly what we built it to do, converting vehicle sales into reoccurring countercyclical income with considerably greater customer impressions and earnings power.”

“Looking ahead, we will keep balancing share repurchases, acquisitions, organic investment and our balance sheet strength, strategically generating the highest returns for our shareholders.”

“As these levers compound alongside opportunistic capital allocation, they keep us squarely on the path to our longer-term target of $2 of EPS for every $1 billion of revenue.”

“Through the first half of the year, we have returned more than $560 million to shareholders across buybacks and dividends.”

“This is truly finding the balance between volume and margin, while most importantly, balancing and finding the benefits of everything that we've done in the ecosystem, whether it's DFC that Chuck talked about or whether it's utilizing the driveway.com and the My Driveway consumer portal, whether it's GreenCars or whether it's our investments in Pinewood.AI or Wheels Fleet Management.”

“I think when we think about our profitability model, it doesn't help our profitability model a lot, but it helps us gain more customers because that's where we take in our trade-ins, that's usually a very easy financeable car that's usually back a book and allows us to cover up this equity and those type of things that are big winners.”

“Lithia Motors and Driveway will take a balanced approach on capital allocation, We still believe that at four, $450, $500, we still have intrinsic undervalue in terms of what we've built, and the dry powder that exists within our stores when we start to talk about a sub 60% SG&A or the idea of growing our same store sales at a consistent 5% and having $1.5 billion-$2 billion in free cash flows a year.”