Lithia Motors Inc

Lithia & Driveway has appointed Scott Cooke, former President and CEO of Toyota Financial Services, as Operations President to lead Southeastern and South Central store operations, Driveway Finance Corporation, and Finance & Insurance. Cooke previously oversaw more than US$150 billion in managed assets at Toyota Financial Services. This hire deepens Lithia's leadership bench as captive finance expansion and regional operational performance are central to its long-term growth plans. The appointment is seen as incrementally positive for the short-term focus on Driveway Finance Corporation, but it does not change the key near-term catalyst around improving store-level performance or the core risk that acquisitions remain less accretive than expected. Lithia's Q2 2026 earnings showed revenue of US$9,791.3 million and net income of US$260.0 million, with first-half profit and margins trending lower year over year. Analysts have modeled revenue near US$49.0 billion and about US$1.1 billion in earnings by 2029, and Cooke's arrival could reinforce or challenge that bullish view given how much now hinges on DFC scaling without amplifying acquisition and leverage risks.

Lithia Motors shares jumped after the automotive retailer raised its quarterly dividend by 23% to $0.70 per share and repurchased 3.7% of its outstanding stock in the second quarter. Revenue rose 2% year over year to $9.8 billion, while adjusted earnings per share increased 9% to $10.03. The company acquired five stores expected to generate $340 million in annualized sales and sold three locations with $120 million in annualized revenue. CEO Bryan DeBoer credited dynamic pricing for a $339 sequential increase in used retail gross profit per unit to $2,019. Lithia has repurchased 7.6% of its shares in the first half of 2026, funneling higher profits back to shareholders.

Lithia & Driveway declared a quarterly dividend of $0.70 per share, a 22.8% increase from the prior dividend of $0.57. The forward yield is 0.78%. The dividend is payable on August 21 to shareholders of record on August 7, with the ex-dividend date also on August 7.

Ford's recalls of nearly 950,000 vehicles are pressuring its margins, but dealer groups Lithia Motors and Group 1 Automotive are best positioned to convert recall service traffic into profit. Ford is recalling 565,691 Bronco and Bronco Raptor vehicles for engine-compartment wiring and 387,911 Explorer and Aviator vehicles for a seat defect. Lithia stands out with the broadest domestic franchise footprint and over $1 billion in quarterly aftersales revenue at a 58.9% gross margin, while Group 1 carries meaningful Ford and Lincoln stores and achieved a record U.S. parts and service gross margin of 56.4%. Asbury Automotive ranks third in Ford recall benefit, and Penske Automotive's premium-brand mix limits direct exposure despite running a 59% service gross margin. Ford reports second-quarter results after the close on July 28, 2026.