Lithia Motors, Inc. · NYSE:LAD
Lithia Motors — Q4 2025 Earnings Presentation
26 slides from Lithia Motors's earnings presentation, Feb 11, 2026
Slide 1: Investor Presentation
Investor Presentation Updated 2/11/26 FEBRUARY 2026
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 speaks Certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking s
Slide 3: Lithia & Driveway
NYSE: LAD Lithia & Driveway +385% HIGHLIGHTS REVENUE PER SHARE x x Strategy 17% . § Diverse synergistic portfolio of businesses 10-year Revenue CAGR* +89% § Complete ownership lifecycle attachment § 100% participation in $2 trillion+ market 2015 2020 2025 Track Record* ADJUSTED EPS § 10-year Revenue
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 Used 4% $800B Traditional franchise In-Store & Online Retail Marketplaces auto dealer reach New 3.0% LAD platform provides 3% $700B access to a 70% larger 2.5%
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 2025 Vehicle Operations SG&A Performance at a Store Level Adjusted SG&A as a % of Gross Profit 70.2% 68.7% 5.7% 65.8% $5m Average Gross Profit per Store $12m Average Gross Profit per Store $26m Averag
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) Capital Allocation 3% 2% 3% 3% 3% 5% 5% 4% 2% $7 5 12% 20% CAGR 15% 17% 18% 17% 16% 2% 21% 26% 3% 30% $6 0
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. Driveway Hub National network works in tandem with eCommerce tools such as Driveway to increase 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 450 200% 164% 150% Number of Dealerships Cumulative Return 112% 216 105% Targeted 5-year return (15% CAGR) 100% 190 (42%)* R: $18.2B 58% 50% 32% 68
Slide 12: Driveway Finance Corporation (DFC)
NYSE: LAD 05 ADJACENCIES Driveway Finance Corporation (DFC) 18 Business Proposition Portfolio Design 16 $17B Serving LAD customers through: • Full credit spectrum lender • Variety of financing options • Focus on prime FICO portfolio 14 $550-600M • Integration throughout Lithia profile Financing Oper
Slide 13: Driveway Finance Corporation (DFC)
NYSE: LAD 05 ADJACENCIES Driveway Finance Corporation (DFC) UNDERWRITING METRICS PORTFOLIO SIZE AND INVESTED CAPITAL $5 .0 B 50 % $9 00m 9.3% 10 .0 % $3.7B 9.1% 8.6% 8.7% 8.1% $4 .0 B % Invested Capital Portfolio Size ($B) Originations ($m) 36% $2.9B 40 % $6 75m $731m $732m 7.5% $719m APR $3 .0 B $6
Slide 14: Future Growth
NYSE: LAD 06 PREMIER RETAILER Future Growth $2.50 Diversified. Dynamic. Profitable. Revenue: $75-100B SG&A % GP: Mid-50% Op Margin: 5+% Leveraging our platform for growth and scale in revenue and EPS. $1.75-2.00 Adjacencies: $2.00 $0.05-0.10 Financing Ops: Operations Efficiencies Financing Ops $0.10
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 FY 2015 – FY 2019
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 Q4 2025 Same Store Metrics CPO Average % Mix ROI 2 19% Selling Price CPO $36,377 23% 34% Core 3 $29,240 59% 53% VALUE Used Vehicle CORE 57% Market 24% Value Autos
Slide 19: Aftersales Profitability and Retention
NYSE: LAD Aftersales Profitability and Retention Aftersales is a stable, diverse, countercyclical business Same Store Aftersales Aftersales Service Retention by Model Year (2025) Revenue Mix 2019 vs. 2025 Q4 2025 99% 99% 100% 88% 6% 4% 4% 4% 85% 6% 15% 14% 75% 15% 75% 25% 65% 64% 64% Service Retenti
Slide 20: Driveway
NYSE: LAD Driveway Customers purchased 180,000 Shop vehicles through our digital ecosystem throughout 2025. Driveway’s ecosystem benefits create flywheel effects as Sell/Trade customers trade-in and return the LAD for future purchases. Integrated with DFC, Driveway’s Finance lender of choice. Drivew
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: Supplemental Information
NYSE: LAD Supplemental Information 2025 Quarterly Income Statement $M FY 2025 Q4 2025 Q3 2025 Q2 2025 Q1 2025 FY 2024 Q4 2024 Q3 2024 Q2 2024 Q1 2024 New vehicle $18,703.0 $4,626.7 $4,792.4 $4,703.5 $4,580.4 $18,322.8 $4,908.7 $4,608.4 $4,639.7 $4,166.0 Used vehicle 13,371.5 3,179.2 3,463.6 3,478.3
Slide 23: Supplemental Information
NYSE: LAD Supplemental Information 2025 Adjusted non-GAAP Income Statement YTD Net loss (gain) on disposal of Asset YTD 2025 stores impairment Investment loss (gain) Insurance reserves Acquisition expenses Tax attributes 2025 $M, except for per share As amounts Reporte Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1
Slide 24: Supplemental Information
NYSE: LAD Supplemental Information 2024 Adjusted non-GAAP Income Statement YTD Net loss (gain) on Insurance Premium on YTD 2024 disposal of stores Investment loss (gain) reserves Acquisition expenses Redeemable Tax attributes 2024 NCI Buyout $M, except for per share As Q3 Q4 Q2 Q3 Q4 Q2 Q1 Q2 Q3 Q4
Slide 25: EBITDA, Adjusted EBITDA, and Net Debt
NYSE: LAD Supplemental Information EBITDA, Adjusted EBITDA, and Net Debt $M FY’2025 FY’2024 FY’2023 FY’2022 FY’2021 FY’2020 Net Income attributable to LAD 825.9 816.3 1,011.7 1,261.6 1,062.7 470.3 Add: Flooring interest expense 228.2 278.8 150.9 38.8 22.3 34.4 Add: Other interest expense 275.5 257.8
Slide 26: Thank You
NYSE: LAD Thank You