# Lithia Motors Q3 2026 Earnings Report

> Lithia Motors reports record Q3 revenue and 9% EPS growth with AI-driven cost cuts targeting sub-60% SG&A by 2028.
- Title: Lithia Motors Q3 2026 Earnings Report · The Motley Fool
- Summary: Lithia Motors reports record Q3 revenue and 9% EPS growth with AI-driven cost cuts targeting sub-60% SG&A by 2028. Lithia Motors achieved $9.9 billion Q3…
- Keywords: lithia motors, q3 2026, earnings call, dfc, pinewood ai, sga, used vehicle gpu, new vehicle units, finance, money, Lithia, Motors
- Source: The Motley Fool — https://fool.com/earnings/call-transcripts/2026/10/21/lithia-motors-lad-q3-2026-earnings-call-transcript
- Author: Motley Fool Transcribing
- Published: 2026-10-21T18:38:57+00:00
- Read time: 1 min
- Topics: lithia motors, q3 2026, earnings call, dfc, pinewood ai, sga, used vehicle gpu, new vehicle units, finance, money
## Q3 Revenue
Lithia Motors reported $9.9 billion Q3 revenue with 2.8% year-over-year growth.
## Adjusted EPS Growth
Adjusted diluted EPS rose to $10.34, an 8.8% increase from prior year.
## DFC Performance
Driveway Finance Corporation managed $5.6 billion receivables with 22.4% year-over-year growth.
## Used Vehicle GPU
Used vehicle gross profit per unit grew 13.3% to $1,993 on same-store basis.
## Aftersales Margin
Aftersales gross margin expanded 100 basis points to 59.5% on same-store basis.
## New Vehicle Units
New vehicle units declined 2.7% on same-store basis with 100,559 units sold.
## SG&A Efficiency
North American same-store SG&A as percentage of gross profit improved to 65.7%.
## Pinewood AI Integration
Pinewood.AI rollout targets SG&A below 60% of gross profit by 2028.
## Share Repurchases
Company repurchased 246,317 shares at $345 average price.
## UK Performance
U.K. operations reported 7% gross profit growth with 10.6% new vehicle unit increase.
## Acquisitions
Company acquired $1.2 billion in annualized revenue from four Memphis stores.
## Net Leverage
Net leverage decreased to 3.1 times from 3.2 times in Q2.
## F&I per Unit
F&I per unit declined 4.7% to $1,736 on same-store basis.
## Used Vehicle Pricing Gap
Lithia narrowed used vehicle pricing gap to competitors to 5% from double-digit.
## Q4 Outlook
CEO warns Q4 is toughest quarter due to weather challenges and UK registration issues.
## Next Steps
Company targets $2 EPS for every $1 billion revenue by 2027.
## Key takeaway

Lithia Motors achieved $9.9 billion Q3 revenue and $10.34 adjusted EPS with AI integration aiming to reduce SG&A to below 60% of gross profit by 2028.