Lithia & Driveway (NYSE:LAD) is a prominent player in the automotive retail industry, recognized as the largest global automotive retailer. The company engages in the sale of new and used vehicles, as well as providing aftersales services. Lithia & Driveway competes with other major automotive retailers, striving to maintain its leadership position through strategic growth and acquisitions.
On February 12, 2026, Colin Langan from Wells Fargo set a price target of $355 for LAD, suggesting a potential upside of approximately 10.8% from its current trading price of $320.41. This optimistic outlook aligns with the company's recent financial performance, which includes record full-year revenues of $37.63 billion, a 4% increase from the previous year.
In the fourth quarter, Lithia & Driveway reported revenues of $9.20 billion. Despite challenges in new vehicle sales and margin pressures, the company achieved a 6.1% growth in used vehicle revenue and a 4.7% increase in used retail units on a same-store basis. Aftersales revenue also saw a notable 10.9% increase, contributing to a 9.8% rise in gross profit on a same-store basis.
The company's financing operations delivered a record quarterly income of $23 million, a significant $19 million increase from the previous year. Driveway Finance Corporation achieved a 15% penetration rate with an average FICO score of 751 during the quarter. The fourth quarter diluted earnings per share were reported at $5.72, with adjusted diluted earnings per share at $6.74.
In 2025, Lithia & Driveway repurchased $947 million worth of shares, accounting for 11.4% of the outstanding shares, including 3.8% in the fourth quarter alone. The company also made strategic acquisitions totaling $2.4 billion in annual revenue. Bryan DeBoer, President and CEO, emphasized the company's strong growth in used vehicles and aftersales, despite facing headwinds in new vehicles and margin pressures.
