Lithia & Driveway (NYSE:LAD) reported record full-year revenue of $37.63 billion for 2025, a 4% increase over the previous year, as the automotive retailer leveraged its financing and used-car segments to counter cooling demand for new vehicles.
The Medford, Oregon-based company also posted record fourth-quarter revenue of $9.20 billion.
Adjusted diluted earnings per share for the full year rose 15.7%, while GAAP diluted earnings saw a 9.7% increase.
The bottom line was bolstered by a standout performance from Driveway Finance Corporation, which delivered record quarterly income of $23 million—a nearly fivefold increase from the $4 million reported in the same period last year.
The financing unit achieved a 15% penetration rate with a high-quality credit profile, averaging a FICO score of 751.
Despite the record top-line figures, same-store sales remained nearly flat during the fourth quarter, highlighting a challenging environment for organic growth.
However, used-vehicle operations provided a significant hedge; used-car revenue climbed 6.1%, and used retail units rose 4.7% on a same-store basis.
Aftersales services also proved resilient, with revenue in that segment jumping 10.9%.