Lithia & Driveway beats Q3 estimates, raises dividend 7%, names Bryan DeBoer chairman

Lithia & Driveway reported third-quarter earnings per share of $10.34, beating estimates by $0.47. Revenue was $9.95 billion, above the $9.83 billion expected.

President and CEO Bryan DeBoer attributed the results to strengthening used vehicle profitability, expanding aftersales margins, cost discipline and financing income growth, along with a reduced share count that magnified per-share earnings.

The company raised its quarterly dividend 7% to $0.75 per share, payable November 20, 2026 to shareholders of record as of November 6, 2026. It repurchased $85 million of shares in the quarter, 1.1% of shares outstanding, leaving $535 million under its current buyback authorization as of September 30, 2026. The Board also appointed DeBoer as Chairman effective October 19, 2026, with Sidney DeBoer moving to Vice Chairman.

The beat rests on used vehicle margins, aftersales growth and financing income rather than new unit volume, suggesting pricing power in the used car segment is holding up even as new vehicle affordability stays stretched. The dividend increase, paired with buybacks that already cut the share count by more than 1% in the quarter, points to management treating current cash generation as durable rather than a one-time gain. The move from Sidney DeBoer to Bryan DeBoer as chairman formalizes leadership continuity rather than any strategic shift, since DeBoer has already run the company as CEO. Together, the moves describe a dealership operator leaning on service and financing revenue to offset a slower new car cycle.