Lithia Motors Adds Mercedes Dealerships, Q2 Profits Rise

Lithia Motors reported strong preliminary financial results for the second quarter of 2025, expecting earnings per diluted share between $9.70 and $10.00, surpassing both last year's results and Wall Street estimates. The company projects quarterly revenue between $9.4 billion and $9.6 billion, with same-store revenue growth of 3.5% to 4%. Lithia's performance is supported by diversified operations and notable growth in financing income, outpacing industry peers. The company completed acquisitions totaling $400 million in annualized revenues, including two recent Mercedes-Benz dealership purchases. Lithia is experiencing margin pressures from tariffs, which could result in higher prices for customers and potential impacts on aftersales business. Share repurchases and disciplined capital allocation highlight the company's focus on long-term value creation.