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Lithia & Driveway (LAD) Announces Share Repurchase Authorization Increase

1. LAD's share repurchase authorization increased by $750 million to $1.08 billion. 2. CEO emphasizes confidence in strategy and cash generation from their omnichannel model. 3. LAD has repurchased 812,000 shares for $242 million in Q3 at $298 average price. 4. Total repurchases in 2025 represent 6.1% of shares outstanding, signaling shareholder value commitment. 5. LAD aims for growth through digital solutions amid evolving market demand and conditions.

Shares Buyback
+2.76%Current Return
VS
+0.08%S&P 500
$323.4908/26 06:31 AM EDTEvent Start
$332.4308/26 12:10 PM EDTLatest Updated
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FAQ

Why Bullish?

The significant share repurchase plan increases shareholder value and signals confidence in LAD’s performance. Historically, similar buybacks have positively influenced share prices, as seen with other companies in the retail sector increasing repurchase rates during growth phases.

How important is it?

The announcement of a substantial increase in share repurchase significantly impacts market perception, enhancing the company’s attractiveness as an investment and potentially leading to stock price appreciation.

Why Short Term?

The immediate impact from the repurchase plan is likely noticeable in the next few quarters, as market players react to the buyback signal, likely boosting share prices soon due to perceived undervaluation.

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, /PRNewswire/ -- Lithia & Driveway (NYSE: LAD) announced today an increase to its share repurchase authorization by its Board of Directors of $750 million, bringing total repurchase capacity to $1.08 billion. "Today's increase underscores our long-term conviction in LAD's strategy and the cash generation of our omnichannel model," said Bryan DeBoer, Lithia & Driveway President and CEO. "With the strength of our business and our shares trading below intrinsic value, repurchases are an attractive and value-accretive complement to our continued investments in growth, all guided by disciplined return on invested capital and our commitment to maximizing shareholder returns." In the third quarter to date, LAD has invested $242 million to repurchase approximately 812,000 shares at a weighted average price of $298 per share. Total repurchases in 2025 of $492 million represent 6.1% of shares outstanding. About Lithia & Driveway (LAD) Lithia & Driveway (NYSE: LAD) is the largest global automotive retailer providing a wide array of products and services throughout the vehicle ownership lifecycle. Simple, convenient, and transparent experiences are offered through our comprehensive network of physical locations, e-commerce platforms, captive finance solutions, fleet management offerings, and other synergistic adjacencies. We deliver consistent, profitable growth in a massive and unconsolidated industry. Our highly diversified and competitively differentiated design provides us the flexibility and scale to pursue our vision to modernize personal transportation solutions wherever, whenever and however consumers desire. Siteswww.lithia.com www.investors.lithiadriveway.com www.lithiacareers.com www.driveway.com www.greencars.com www.drivewayfinancecorp.com Lithia & Driveway on Facebookhttps://www.facebook.com/LithiaMotors https://www.facebook.com/DrivewayHQ Lithia & Driveway on Xhttps://x.com/lithiamotors https://x.com/DrivewayHQ https://x.com/GreenCarsHQ Lithia & Driveway on LinkedInhttps://www.linkedin.com/company/lithia-motors/ Lithia & Driveway on YouTubehttps://www.youtube.com/@Lithia_Motors/featured Forward-Looking Statements Certain statements in this presentation, and at times made by our officers and representatives, constitute forward-looking statements within the meaning of the "Safe Harbor" provisions of the Private Securities Litigation Reform Act of 1995. Generally, you can identify forward-looking statements by terms such as "project," "outlook," "target," "may," "will," "would," "should," "seek," "expect," "plan," "intend," "forecast," "anticipate," "believe," "estimate," "predict," "potential," "likely," "ensure," "goal," "strategy," "future," "maintain," and "continue" or the negative of these terms or other comparable terms. Examples of forward-looking statements in this presentation include, among others, statements regarding: Acceleration of the profitability of our strategy, earnings growth, and our momentum and market share Future market conditions, including anticipated car and other sales and gross profit levels and the supply of inventory Our business strategy and plans, including our achieving our long-term financial targets The growth, expansion, make-up and success of our network, including our finding accretive acquisitions that meet our target valuations and acquiring additional stores Annualized revenues from acquired stores or achieving target returns The growth and performance of our Driveway e-commerce home solution and Driveway Finance Corporation (DFC), their synergies and other impacts on our business and our ability to meet Driveway and DFC-related targets The impact of sustainable vehicles and other market and regulatory changes on our business, including evolving vehicle distribution models Our capital allocations and uses and levels of capital expenditures in the future Expected operating results, such as improved store performance, continued improvement of selling, general and administrative expenses as a percentage of gross profit and any projections Our anticipated financial condition and liquidity, including from our cash and the future availability of our credit facilities, unfinanced real estate and other financing sources Our continuing to purchase shares under our share repurchase program Our compliance with financial and restrictive covenants in our credit facilities and other debt agreements Our programs and initiatives for team member recruitment, training, and retention Our strategies and targets for customer retention, growth, market position, operations, financial results and risk management Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Forward-looking statements are not guarantees of future performance, and our actual results of operations, financial condition and liquidity and development of the industry in which we operate may differ materially from those made in or suggested by the forward-looking statements in this presentation. Therefore, you should not rely on any of these forward-looking statements. The risks and uncertainties that could cause actual results to differ materially from estimated or projected results include, without limitation: Future national and local economic and financial conditions, including as a result of inflation, governmental programs and spending, and public health issues The market for dealerships, including the availability of stores to us for an acceptable price Changes in customer demand and the electric vehicle landscape and the impact of evolving digital technologies Changes in our relationship with, and the financial and operational stability of, OEMs and other suppliers, and vehicle delivery models Changes in the competitive landscape, including through technology and our ability to deliver new products, services and customer experiences and a portfolio of in-demand and available vehicles Risks associated with our indebtedness, including available borrowing capacity, interest rates, compliance with financial covenants and ability to refinance or repay indebtedness on favorable terms The adequacy of our cash flows and other conditions which may affect our ability to fund capital expenditures, obtain favorable financing and pay our quarterly dividend at planned levels Disruptions to our technology network including computer systems, as well as natural events such as severe weather or man-made or other disruptions of our operating systems, facilities or equipment Government regulations and legislation The risks set forth throughout "Part II, Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations" and in "Part I, Item 1A. Risk Factors" of our most recent Annual Report on Form 10-K, and in "Part II, Item 1A. Risk Factors" of our Quarterly Reports on Form 10-Q, and from time to time in our other filings with the SEC. Any forward-looking statement made by us in this presentation is based only on information currently available to us and speaks only as of the date on which it is made. Except as required by law, we undertake no obligation to publicly update any forward-looking statement, whether written or oral, that may be made from time to time, whether as a result of new information, future developments or otherwise. SOURCE Lithia & Driveway WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

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