Lithia Motors, Inc. · NYSE:LAD
Lithia Motors — Q2 2025 Earnings Presentation
27 slides from Lithia Motors's earnings presentation, Jul 29, 2025
Slide 1: Investor Presentation
Investor Presentation Updated 07/29/2025 JULY 2025
Slide 2: Disclosure
NYSE: LAD Disclosure Forward-Looking Statements Any forward-looking statement made by us in this presentation is based only on information currently available to us and Certain statements in this presentation, and at times made by our officers and representatives, constitute forward- speaks only as
Slide 3: Lithia & Driveway
NYSE: LAD Lithia & Driveway +494% x HIGHLIGHTS REVENUE PER SHARE x +241% Strategy § Diverse synergistic portfolio of businesses 16% . 10-year Revenue CAGR* +88% § Complete ownership lifecycle attachment § 100% participation in $2 trillion+ market 2015 2020 YTD 2025 Track Record* ADJUSTED EPS § 10-ye
Slide 4: Strategic Differentiation
NYSE: LAD KEY Verticals – Consumer Growth (REV) Strategic Differentiation Horizontals – Consumer Synergies (EPS) 4
Slide 5: Key Highlights
NYSE: LAD Key Highlights Profitably Modernizing an Industry Building a profitable platform with the ability to respond to changing consumer and industry trends. 01 LARGEST RETAIL INDUSTRY Early stages of consolidation and modernization. Variety of brands, financing solutions, leasing, repair & maint
Slide 6: Over $3 Trillion in Revenue Across Industries
NYSE: LAD 01 LARGEST RETAIL INDUSTRY Over $3 Trillion in Revenue Across Industries $3T ~5.0% 5% Mobility $900B Diversified Mobility Verticals 4% Used $800B Traditional franchise In-Store & Online Retail Marketplaces auto dealer reach New ~3.0% LAD platform provides 3% $700B access to a 70% larger ~2
Slide 7: Lithia & Driveway Ecosystem
NYSE: LAD 02 CONSUMER ECOSYSTEM Lithia & Driveway Ecosystem Earning Customers for Life 50+ OEMs Shop, Sell, & Trade The LAD Ecosystem fulfills customer needs wherever, whenever, and however they desire, creating infectious Finance Options customer loyalty. Products & Services Aftersales Support Dive
Slide 8: Operating Results and Efficiency
NYSE: LAD 03 OPERATIONAL EXCELLENCE Operating Results and Efficiency Improving Operating Efficiency 2024 Vehicle Operations SG&A Performance at a Store Level Adjusted SG&A as a % of Gross Profit 70.2% 67.4% $4m Average Gross Profit per Store $12m Average Gross Profit per Store $26m Average Gross Pro
Slide 9: Regenerative Growth Engine
NYSE: LAD 03 OPERATIONAL EXCELLENCE Regenerative Growth Engine Achieving best-in-class cash flow growth through strategic capital allocation Free Cash Flow Generation (EBITDA per diluted share) TTM Capital Allocation (Percent of capital allocation) 19% CAGR $7 5 3% 3% 3% 2% 3% 3% 3% 5% 5% 14% 14% 12
Slide 10: Leveraging Growth & Scale
NYSE: LAD 04 GROWTH & SCALE Leveraging Growth & Scale With a focus on consumer convenience and a disciplined, proven M&A strategy, LAD is reducing the distance to our customers. National network works in tandem with eCommerce tools such as Driveway to increase Driveway Hub consumer optionality and r
Slide 11: Mergers & Acquisitions
NYSE: LAD 04 GROWTH & SCALE Mergers & Acquisitions HISTORICAL RETURNS BY VINTAGE U.S. PUBLIC DEALERSHIP TRANSACTIONS & ANNUALIZED REVENUES (R) ACQUIRED 392 20 0% 350 159% 15 0% 250 Number of Dealerships 216 Cumulative Return 105% 97% Targeted 5-year return (15% CAGR) 10 0% 169 (43%) R: $16.7B 150 47
Slide 12: Driveway Finance Corporation (DFC)
NYSE: LAD 05 ADJACENCIES Driveway Finance Corporation (DFC) $20B $1B Business Proposition Portfolio Design Serving LAD customers through: • Full credit spectrum lender $17B • Variety of financing options • Focus on prime FICO portfolio $16B $800M • Integration throughout Lithia profile Finance Opera
Slide 13: Driveway Finance Corporation (DFC)
NYSE: LAD 05 ADJACENCIES Driveway Finance Corporation (DFC) UNDERWRITING METRICS PORTFOLIO SIZE AND INVESTED CAPITAL 9.9% 9.8% $4 .0 B 50 % $9 00m 9.3% 10 .0 % $3.3B 9.1% 8.7% $2.9B % Invested Capital $6 75m $731m 7.5% $3 .0 B 36% 40 % Portfolio Size ($B) Originations ($m) $2.3B $623m APR $561m 28%
Slide 14: Future Growth
NYSE: LAD 06 PREMIER RETAILER Future Growth EPS PER BILLION: PATH TO $2+ Diversified. Dynamic. Profitable. $2 .5 0 Revenue: $75-100B Leveraging our platform for growth SG&A % GP: Mid-50% Op Margin: 5+% and scale in revenue and EPS. $1.75-2.00 $2 .0 0 Adjacencies: Operations Efficiencies Financing Op
Slide 15: LAD Over the Years
NYSE: LAD LAD Over the Years The pragmatic disrupter with a proven multifaceted success strategy, uniquely and competitively leading the modernization of personal transportation by providing consumers solutions wherever, whenever, and however they desire. 1946 2012 2020 2023 Mid-Term Walt DeBoer fou
Slide 16: Appendix
NYSE: LAD Appendix 16
Slide 17: Resilient Business Model
NYSE: LAD Resilient Business Model Profitable business with diversified brand mix, geographic mix and multiple earnings streams Business Mix Aftersales New Vehicle Mix New and Used Revenue / Gross Profit includes F&I Used New Segment Segment % 4 Brand Brand Revenue Brand Unit Sales Honda 13% 16% FY
Slide 18: Used Vehicle Marketplace
NYSE: LAD Used Vehicle Marketplace Focus on broad used vehicle spectrum addresses largest proportion of used vehicle TAM of any retailer Q2 2025 Same Store Metrics CPO Average % Mix ROI 2 14% Selling Price CPO $36,763 18% 56% Core 3 $29,093 60% 70% VALUE Used Vehicle CORE 60% Market 26% Value Autos
Slide 19: Aftersales Profitability and Retention
NYSE: LAD Aftersales Profitability and Retention Aftersales is a stable, diverse business generating a 21% 10-year gross profit CAGR* Same Store Aftersales Aftersales Service Retention by Model Year (2024) Revenue Mix 2019 vs. 2024 Q2 2025 5% 4% 4% 98% 6% 10 0% 6% 15% 15% 88% 15% 25% 75 % 73% 25% 24
Slide 20: Driveway
NYSE: LAD Driveway Customers purchased 90,000 Shop vehicles through our digital ecosystem throughout the first six months of 2025. Driveway’s ecosystem benefits create flywheel effects as Sell/Trade customers trade-in and return the LAD for future purchases. Approximately half of Driveway sales are
Slide 21: Driving Positive Change
NYSE: LAD ESG AT LITHIA & DRIVEWAY Driving Positive Change ENVIRONMENTAL GOALS CORE VALUES Increase GreenCars on the Road Earn Customers for Life Create welcoming and trustworthy experiences for our customers Operate Sustainable Stores Improve Constantly Extend Vehicle Lifecycles Champion one anothe
Slide 22: 2025 Financial Outlook
NYSE: LAD 2025 Financial Outlook Key Same Store Metrics 2025 Outlook Q2 2025 Q1 2025 Q4 2024 Q3 2024 FY2019 New vehicle retail gross profit per unit $2,800 - $3,000 $3,175 $3,046 $3,082 $3,188 $2,138 Used vehicle retail gross profit per unit $1,800 - $2,000 $1,900 $1,877 $1,959 $2,136 $2,163 Finance
Slide 23: Supplemental Information
NYSE: LAD Supplemental Information 2025 Quarterly Income Statement $M YTD 2025 Q4 2025 Q3 2025 Q2 2025 Q1 2025 FY2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 New vehicle retail 8,878.6 4,498.4 4,380.2 17,553.8 4,705.9 4,430.0 4,403.7 4,014.1 Used vehicle retail 6,013.9 3,094.8 2,919.1 11,268.6 2,638.5 2,843
Slide 24: Supplemental Information
NYSE: LAD Supplemental Information 2025 Adjusted non-GAAP Income Statement YTD Net gain on Insurance Acquisition Tax YTD 2025 disposal of stores Reserves expenses attribute 2025 $M, except for per share amounts As Reported Q1 Q2 Q1 Q2 Q1 Q2 Q1 Q2 Adjusted Selling, general and administrative 1,967.4
Slide 25: Supplemental Information
NYSE: LAD Supplemental Information 2024 Adjusted non-GAAP Income Statement Premium on FY Net loss (gain) on disposal of Insurance Acquisition expenses Redeemable Tax attributes FY 2024 stores reserves NCI Buyout 2024 $M, except for per share amounts As Reported Q3 Q4 Q2 Q1 Q2 Q3 Q4 Q3 Q2 Q3 Q4 Adjus
Slide 26: Supplemental Information
NYSE: LAD Supplemental Information EBITDA, Adjusted EBITDA, and Net Debt $M YTD 2025 FY2024 FY2023 FY2022 FY2021 Net Income 469.4 816.3 1,011.7 1,261.6 1,062.7 Add: Flooring interest expense 112.0 278.8 150.9 38.8 22.3 Add: Other interest expense 132.2 257.8 201.2 129.1 103.4 Add: Financing operatio
Slide 27: Thank You
NYSE: LAD Thank You