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• The Walmart of car sales.
• The Home Depot for cars.
• Like Starbucks, but for car dealerships.

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• New Vehicle Sales: Retail sale of new cars, trucks, and SUVs from various automotive manufacturers.
• Used Vehicle Sales: Retail sale of pre-owned cars, trucks, and SUVs across a wide range of makes and models.
• Vehicle Service & Parts: Providing maintenance, repair services, and the sale of replacement parts and accessories for vehicles.
• Automotive Finance & Insurance: Arranging financing for vehicle purchases and offering vehicle protection plans, extended warranties, and other insurance products.
• Digital Retail Platform (Driveway): An online platform enabling customers to buy, sell, and service vehicles from home through an integrated digital experience.

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Lithia Motors (LAD) Major Customers

• New Vehicle Purchasers: Individuals and families seeking to buy brand new cars, trucks, SUVs, or luxury vehicles from the various automotive brands represented by Lithia's extensive network of dealerships across the United States.
• Used Vehicle Purchasers: Individuals looking for pre-owned vehicles, including certified pre-owned (CPO) options. Lithia's dealerships offer a wide selection of used cars across different makes, models, and price points to cater to diverse customer needs and budgets.
• Automotive Service and Parts Customers: Vehicle owners who require maintenance, repairs, parts, and accessories for their existing vehicles. This includes routine service (e.g., oil changes, tire rotations), major repairs, body shop services, and the purchase of genuine manufacturer parts from Lithia's service centers.

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• General Motors (GM)
• Ford Motor Company (F)
• Toyota Motor Corporation (TM)
• Honda Motor Co., Ltd. (HMC)
• Stellantis N.V. (STLA)
• Nissan Motor Co., Ltd. (NSANY)
• Hyundai Motor Company (HYMLY)
• Subaru Corporation (FUJHY)
• Mercedes-Benz Group AG (MBGAF)
• Bayerische Motoren Werke AG (BMWYY)
• Volkswagen AG (VWAGY)
• Ally Financial Inc. (ALLY)
• JPMorgan Chase & Co. (JPM)
• Capital One Financial Corporation (COF)

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Bryan DeBoer, President & CEO

Bryan DeBoer is the third-generation leader of Lithia Motors, with his grandfather, Walt DeBoer, founding the company in 1946. He joined Lithia in 1989, progressing through various managerial roles within dealerships, including Finance Manager, Used Vehicle Manager, General Sales Manager, General Manager, and multi-store General Manager. DeBoer also served as Senior Vice President of Mergers & Acquisitions/Operations and Chief Operating Officer before becoming CEO in 2012, succeeding his father, Sidney DeBoer. He holds a B.S. in Business Administration/Management, summa cum laude, from Southern Oregon University and is a graduate of the National Auto Dealers Association Dealer Academy.

Tina Miller, Senior Vice President, Chief Financial Officer

Tina Miller leads Lithia Motors' accounting, tax, corporate finance, financial planning & analysis, risk management, and treasury functions. She joined Lithia in 2005, initially working in internal audit and corporate accounting. Miller was promoted to Corporate Controller in 2015, Vice President in 2018, and has served as Chief Financial Officer since 2019. Prior to her tenure at Lithia, she worked as an auditor at Ernst & Young in their assurance practice. Miller graduated from Santa Clara University with a B.S. in Accounting and is a licensed CPA in Oregon.

Chris Holzshu, Executive Vice President, Chief Operating Officer

Christopher S. Holzshu became Chief Operating Officer of Lithia Motors in 2019, after serving as Executive Vice President leading regional platforms and operations teams from 2016 to 2019. His previous roles at Lithia include Chief Financial Officer (2010-2016) and Chief Human Resources Officer. Holzshu joined Lithia in 2003 as Director of Accounting, following his work at KPMG LLP, where he specialized in the automotive manufacturing and retail sectors. He holds a B.S. in Accounting from the University of Alaska and is a licensed CPA.

Bryan Osterhout, Senior Vice President, Operations

Bryan Osterhout is a Senior Vice President who leads a significant group of Lithia stores across the Northwest U.S. and Alaska. He joined Lithia over 20 years ago as the General Manager of Eugene Chrysler Dodge Jeep Ram. Osterhout demonstrated an entrepreneurial spirit early in his career by starting a used car dealership at the age of 21. He studied economics and marketing for four years at the University of Oregon.

David Stork, Senior Vice President, Chief Administrative Officer

David G. Stork has been the Chief Administrative Officer and Senior Vice President of Lithia Motors since 2021. Before joining Lithia, he served as the General Counsel and Head of Compliance at JELD-WEN, Inc. Additionally, Stork was the General Counsel and Director of Risk Management for Krause Gentle Companies.

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The key risks to Lithia Motors' business include its susceptibility to economic fluctuations and rising interest rates, its high debt levels associated with an aggressive acquisition strategy, and the compression of gross profit per unit driven by intense market competition and the evolving electric vehicle landscape.

1. Economic Fluctuations and Interest Rate Increases: Lithia Motors is highly susceptible to economic cycles and rising interest rates. Economic downturns can significantly reduce consumer spending on large purchases like vehicles, directly impacting the company's revenue and profitability. Elevated interest rates increase borrowing costs for both Lithia Motors and its customers, thereby dampening demand for new vehicles as financing becomes more expensive. The profitability of Lithia's Driveway Finance Corporation (DFC), which provides customer financing, is particularly vulnerable to shifts in interest rate environments.
2. High Debt Levels and Acquisition Strategy Execution: Lithia Motors' aggressive growth strategy relies heavily on acquisitions, which are substantially funded by debt. As of March 2025, the company's total debt reached approximately $13.90 billion, making it highly sensitive to further interest rate hikes and potentially limiting future investment flexibility. The effective integration of numerous acquired dealerships and maintaining cost discipline across a growing global network also poses a significant operational challenge.
3. Gross Profit Per Unit (GPU) Compression and Market Competition: Lithia Motors faces a significant risk of gross profit per unit (GPU) compression, particularly in new vehicles and Battery Electric Vehicles (BEVs), due to a challenging market and increasing competition. The automotive retail industry is intensely competitive, with pressure from traditional dealerships, online retailers like CarMax and Carvana, and direct-to-consumer sales models from EV manufacturers such as Tesla. The ongoing transition to electric vehicles and evolving EV mandates also require substantial investments in inventory and service capabilities, which could impact profitability if market demand does not align with these shifts.

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• Direct-to-Consumer (DTC) Sales Models by Automotive Manufacturers: Several automotive manufacturers, particularly those focused on electric vehicles (EVs) like Tesla, Rivian, and Lucid, have adopted or are actively exploring direct-to-consumer sales models. Major legacy automakers such as Ford have also announced plans to shift aspects of their EV sales to a DTC model, aiming to streamline the purchasing experience and establish fixed pricing directly from the factory. This trend directly bypasses the traditional dealership network, threatening Lithia Motors' long-standing role and revenue streams from new vehicle sales for brands that adopt this approach.
• Impact of Electric Vehicles (EVs) on Dealership Service & Parts Revenue: As the automotive market rapidly transitions towards electric vehicles, dealerships face a clear emerging threat to their highly profitable service and parts departments. EVs inherently require significantly less maintenance compared to internal combustion engine (ICE) vehicles due to fewer moving parts, the absence of oil changes, spark plug replacements, and reduced brake wear from regenerative braking. This fundamental shift in vehicle technology poses a long-term risk to a substantial and historically stable portion of Lithia Motors' overall profitability.
• Intensified Competition from Pure-Play Online Used Car Retailers: The rise and continued presence of pure-play online used car retailers like Carvana and Vroom (despite some recent financial challenges in the sector) demonstrate a clear consumer demand for fully online, often no-haggle, home-delivery purchasing experiences for pre-owned vehicles. While Lithia Motors has invested in its own digital platforms like Driveway, these dedicated online competitors set new benchmarks for convenience and efficiency, forcing traditional dealerships to make significant investments in digital infrastructure, adapt their pricing strategies, and compete on new terms, potentially compressing margins and altering the competitive landscape for used car sales.

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Lithia Motors (LAD) operates in several key addressable markets within the automotive industry, primarily focusing on the United States. Its main products and services include new vehicle sales, used vehicle sales, automotive services (parts, maintenance, and repair), and vehicle financing and insurance products.

Addressable Markets for Lithia Motors' Products and Services:

• Automotive Dealership Market (New and Used Vehicle Sales): The overall automotive dealership market in the United States, which includes both new and used vehicle sales through dealerships, is estimated to be approximately USD 2.95 trillion in 2025 and is projected to reach USD 3.68 trillion by 2030, growing at a Compound Annual Growth Rate (CAGR) of 4.52% during this period.
• Used Car Market: The United States used car market size is estimated at approximately USD 1.05 trillion in 2025 and is expected to reach USD 1.20 trillion by 2030, with a CAGR of 2.71% during the forecast period. Other estimates for the U.S. used car market indicate a size of around USD 322.01 billion in 2024, projected to reach USD 539.70 billion by 2034, with a CAGR of 5.30%.
• Automotive Aftermarket (Service, Parts, and Repair): The U.S. automotive aftermarket, which encompasses parts, maintenance, and repair services, experienced sales totaling USD 391 billion in 2023 and is projected to grow to USD 472 billion by 2027. The U.S. automotive repair & maintenance service market alone was valued at USD 183.4 billion in 2023 and is estimated to grow at a CAGR of 10.1% between 2024 and 2032.
• Automotive Finance Market: The United States auto finance market reached a valuation of approximately USD 1.6 trillion in outstanding auto loans in 2023. Separately, the United States car loan market is valued at USD 595.19 billion in 2025 and is forecasted to reach USD 898.25 billion by 2030, advancing at a 5.28% CAGR.

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Lithia Motors (LAD) is expected to drive future revenue growth over the next 2-3 years through several key strategies:

1. Strategic Acquisitions and Market Expansion: Lithia Motors continues to pursue an aggressive acquisition strategy, aiming to add between $2 billion and $4 billion in annual revenues through new dealerships. This includes expanding its U.S. market share and making significant international moves, such as the acquisition of Pendragon's UK motor and leasing businesses in early 2024, which is projected to add $2.5 billion in annualized revenue. The company has already acquired $400 million in annualized revenues in 2025.
2. Growth in Used Vehicle Sales: The company has demonstrated accelerated growth in its used vehicle segment, particularly in "Value Autos." Lithia reported an 11.8% increase in used retail revenue year-over-year in Q3 2025, driven by a 6.3% increase in unit growth. The Value Autos segment specifically saw a 22.3% year-over-year increase in unit sales. This focus on used car and value auto growth is a key area of execution for management and analysts.
3. Expansion of Aftersales Services: Aftersales activities, including service, parts, and warranty, are a significant and growing contributor to Lithia's profitability, accounting for over 60% of its net profit. These predictable, high-margin revenue streams are supported by an aging U.S. vehicle fleet and extended replacement cycles. In Q3 2025, aftersales revenue grew by 3.9%, with gross profit increasing by 9.1% on a same-store basis.
4. Advancement of Digital and Omnichannel Platforms: Lithia is enhancing its digital presence through platforms like Driveway and GreenCars, along with technological investments such as the full rollout of its Pinewood AI partnership by 2027-2028. These omnichannel retail platforms are broadening the company's reach, generating over $4 billion in digital sales in 2024, and are crucial for driving both top-line growth and margin expansion by integrating physical dealerships with digital services.
5. Growth in Financing Operations (Driveway Finance Corporation - DFC): Lithia's financing operations, particularly through Driveway Finance Corporation (DFC), are a substantial contributor to earnings growth. The company's financing operations income showed a significant year-on-year growth of 110-155% in Q2 2025. Lithia aims to increase DFC penetration from 15% to 20%, with strong origination flow and improving margins supporting long-term DFC profitability targets.

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Share Repurchases

• In August 2025, Lithia's Board of Directors approved an additional $750 million share repurchase authorization, increasing the total repurchase capacity to $1.08 billion.
• Year-to-date in 2025, Lithia has repurchased 8% of outstanding shares at an average price of $313, with approximately 60% of Q3 2025 capital deployment allocated to share repurchases.
• In 2021, the company repurchased 756,883 shares for $214.8 million, and in 2020, 563,953 shares for $46.1 million under repurchase authorizations.

Share Issuance

• In May 2021, Lithia Motors announced the pricing of a public offering of 3,105,590 shares of its Class A common stock at $322.00 per share.
• The underwriters for this offering were granted a 30-day option to purchase up to an additional 465,838 shares of common stock.

Outbound Investments

• Lithia Motors reiterates a target of $2 billion in acquisition revenue for 2025, focusing on strategic acquisitions in high-performing regions, particularly the Southeast and South Central U.S.
• In October 2025, Lithia acquired Anaheim Hyundai, Huntington Beach Hyundai, and Garden Grove Hyundai, adding an estimated $440 million in annualized revenue and bringing the year-to-date expected annualized U.S. revenue acquired to $1.16 billion.
• In 2021, Lithia invested $2.3 billion, net of floor plan debt, to acquire 77 stores, which were expected to add nearly $7.0 billion in annual revenues.

Capital Expenditures

• As of June 30, 2025, Capital Expenditures amounted to -$290.5 million.
• Capital expenditures are primarily focused on store CapEx, enhancing the customer experience, and improving operating efficiency.
• The average annual capital expenditures growth rate was -1% over the past three years and -15% over the past five years.