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Lithia Motors Inc. — Lithia & Driveway Investor Presentation (Q3 2026)
Lithia Motors Inc. (LAD) · 0 slides · Filed Oct 21, 2026
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Slide 1 — Lithia & Driveway
O C T O B E R 2 0 2 6 Lithia & Driveway Investor Presentation
Slide 2 — Disclosure
N Y S E : L A D Disclosure 2 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 statements regarding our future financial condition, liquidity, results of operations, future business strategy and plans, and expected growth and performance. 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, tariffs, governmental actions, 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. Non-GAAP Financial Measures All “adjusted” financial measures in this presentation are non-GAAP financial measures, as are EBITDA and net debt. Non-GAAP measures do not have definitions under GAAP and may be defined differently by and not comparable to similarly titled measures used by other companies. We caution you not to place undue reliance on such non-GAAP measures and to consider them together with the most directly comparable GAAP measures. We present cash flows from operations in the attached tables, adjusted to include the change in non-trade floor plan debt to improve the visibility of cash flows related to vehicle financing. As required by SEC rules, we have reconciled these measures to the most directly comparable GAAP measures in the attachments to this release. We believe the non-GAAP financial measures we present improve the transparency of our disclosures; provide a meaningful presentation of our results from core business operations, because they exclude items not related to core business operations and other non-cash items; and improve the period-to-period comparability of our results from core business operations. These presentations should not be considered an alternative to GAAP measures.
Slide 3 — +356%
N Y S E : L A D Consistent Growth and Returns Over Time LAD’s unique strategy consistently delivers industry-leading earnings and shareholder returns. 3 +356% +371% +524% Revenue Growth 16% 10-year CAGR Adjusted EPS Growth 17% 10-year CAGR EBITDA per share Growth 20% 10-year CAGR
Slide 4 — Key Highlights
N Y S E : L A D Key Highlights 4 Broad Customer Ecosystem Our omnichannel strategy is uniquely positioned as the world’s largest auto retailer providing customers access to a complete ecosystem of physical, digital and financial products to drive organic growth. 01 Operating Excellence Our resilient and diversified model spans the vehicle ownership lifecycle from new and used vehicles to aftersales and financing, leveraging the ecosystem to improve efficiency and produce earnings through each economic cycle. 02 Differentiated Model Our captive finance company, Driveway Finance Corporation (DFC), along with other adjacent businesses such as fleet management, deliver high-quality earnings growth. 03 Regenerative Capital Engine Our consistent free cash flow creates flexibility to compound shareholder value over time, with a balanced mix of accretive acquisitions, opportunistic share repurchases, and reinvestment, while maintaining balanced leverage. 04
Slide 5 — Diversified, Dynamic, and Profitable Growth
N Y S E : L A D Mid-Term % Growth Long-Term Diversified, Dynamic, and Profitable Growth Complementary growth engines compound into durable, multi-year EPS expansion. 5 Long-term Target $2 EPS per $1B of Revenue • Revenue: $75-100B • SG&A % GP: 55-60% • Op Margin: 5+% Time Horizon T H E L A D S T R A T E G Y 01 Broad Customer Ecosystem LAD platform compounds growth through organic market share capture across business lines. LAD platform captures share through organic expansion and full maturity of all business lines, compounding growth as we scale to full revenue targets. 02 Operating Excellence Efficiency gains compound across new, used, aftersales, and SG&A as scale advantages and Pinewood.AI deployment drive productivity throughout the platform. Full-scale operations and mature technology deliver end-to-end efficiency across every revenue stream, with SG&A reaching 55- 60% of gross profit at steady state. 03 Differentiated Model DFC penetration and portfolio maturity lift financing operations income to $225 to $275 million, while fleet management and other adjacencies add incremental high-quality earnings. DFC reaches 20% US penetration and delivers $550 to $600 million in financing operations income, with mature adjacent businesses providing a differentiated, structural earnings layer. 04 Regenerative Capital Engine Regenerative free cash flow funds a balanced mix of accretive M&A and opportunistic share repurchases, while leverage below 3x moves LAD toward investment grade and a lower cost of capital. An investment-grade balance sheet lowers the cost of capital, while disciplined M&A, buybacks, and reinvestment continue compounding shareholder returns at scale. 01 02 03 04
Slide 6 — 471
N Y S E : L A D 6 471 Stores Globally 170,000+ Retail Vehicles in Inventory $1.6B TTM Adjusted EBITDA 59 OEM Brands ~220mi Miles to Reach 95% of U.S. Driveway Hub 205 mi 100 0 Brand Network With Global Reach We’re increasing consumer optionality through class-leading scale and diverse geographies. 0 1 | B R O A D C U S T O M E R E C O S Y S T E M
Slide 7 — One company. Every offering.
N Y S E : L A D One company. Every offering. LAD is the only operator covering every layer of the vehicle ownership lifecycle, which is the foundation for compounding customer experiences and capital-efficient growth. 7 Lithia & Driveway Public Franchised Peers E-commerce Retailers New Vehicle Retail 50+ OEM franchises across 450+ stores All segments All segments Primarily used only Used Vehicle and Online Home delivery, trade-in Driveway.com Peer-specific Limited physical stores Captive Financing Origination + ABS securitization $5.5 billion book Primarily 3rd party In-house financing Aftersales and Service Recurring, high-margin lifetime revenue 43% of gross profit Dealer-based services No customer offerings EV and Sustainability Platform Education + inventory + infrastructure GreenCars.com No dedicated brand Filter only Fleet & Adjacencies Complementary business lines Multiple business lines Varies by group Consumer only National Network Density Physical presence within 95% of US pop. Largest national network Varying geographic reach Various locations Full Full Full Full Full Full Full 0 1 | B R O A D C U S T O M E R E C O S Y S T E M Partial Partial Full Full Full Partial Partial Partial Partial Partial
Slide 8 — Differentiated, Resilient Business Model
N Y S E : L A D Differentiated, Resilient Business Model Multiple earnings streams, broad spectrum of brands, and geographic mix power earnings growth. BUSINESS MIX New and Used Revenue / Gross Profit includes F&I Aftersales Used New 26% 11% 38% 51% 43% 31% Q3 2026 Revenue Gross Profit 8 0 2 | O P E R A T I N G E X C E L L E N C E New Vehicles New vehicle sales anchor LAD's ecosystem and serve as the primary entry point into lifetime customer relationships. A diversified portfolio of 50+ OEM franchises across import, domestic and luxury brands feed the customer funnel, creating downstream trade-ins, F&I sales, opportunity for Driveway Finance, and a multi-year aftersales annuity. Used Vehicles LAD's used vehicle business is segmented across Certified Pre-Owned, Core, and Value Auto, allowing us to serve customers across every price point and age profile. Value Auto, which targets vehicles up to 20 years old, expands our addressable market well beyond the traditional franchise dealer playbook and delivers high returns on investment while driving traffic to our stores and digital channels. Aftersales Aftersales has grown from 32% to 43% of gross profit since 2016, becoming LAD's single largest profit contributor. This high-margin, recurring annuity compounds as our installed base of sold vehicles grows, and it is reinforced by industry tailwinds including an older fleet and increasing vehicle complexity, along with our scale advantages. Aftersales gross margins have expanded from 50% in 2019 to 59% in 2026 21% 10-year gross profit per share CAGR Steady, multi-year annuity increases customer attachment
Slide 9 — Improving Operating Efficiency
N Y S E : L A D ADJUSTED SG&A AS A % OF GROSS PROFIT Improving Operating Efficiency SG&A efficiency increases operating leverage and powers earnings growth. 9 0 2 | O P E R A T I N G E X C E L L E N C E 46.6% 43.2% 42.7% 11.8% 13.9% 12.8% 6.1% 7.1% 5.6% 5.7% 4.5% 4.7% 2019 2025 FY (Consolidated) 2025 FY (NA Only) Mid-Term Long-Term Rent & Facility Costs Advertising Other Personnel 70.2% 55-60% 68.7% 60-65% 65.8% Increase Scale As LAD grows, we improve our margins through greater purchasing power, better fixed cost allocation, and greater benefits from organizational learning. Improve Efficiency Greater scale creates opportunities to centralize costs, improve team member productivity, and implement proven best practices across more stores, with benefits compounding as the network grows. Deploy Technology Industry-leading technology, including our Pinewood.AI dealer management system, allows LAD to deliver exceptional customer experiences while reducing cost to serve across sales, service, and back-office operations. Pinewood.AI LAD’s strategic partnership with Pinewood.AI will support deploying the cloud-native Pinewood Automotive IntelligenceTM platform across US stores by the end of 2028. The platform consolidates sales, aftersales, accounting, and CRM into a single system, simplifying our technology stack, automating back-office workflows, and accelerating our progress toward our long-term SG&A targets.
Slide 10 — Strategic Design Provides Platform for Adjacencies
N Y S E : L A D Verticals – Consumer Growth (REV) Horizontals – Consumer Synergies (EPS) KEY 10 The LAD Advantage Every adjacency is layered onto an existing customer base and operating platform, allowing LAD to enter new markets with lower acquisition costs and higher incremental returns than standalone entrants. 0 3 | D I F F E R E N T I A T E D M O D E L Strategic Design Provides Platform for Adjacencies Massive market opportunity exists in adjacent mobility sectors. 2019 2026 Mid-Term Long-Term
Slide 11 — Captive Finance Provides Consistent Earnings
N Y S E : L A D $5B $8B $17B 2025 Mid-Term Long-Term Portfolio Size ($B) Financing Operations Income ($M) Top of Funnel LAD’s 300+ US stores and Driveway e- commerce platform generate a pipeline of loan origination opportunities that DFC can underwrite selectively. High-quality Credit Disciplined underwriting delivers an average origination FICO of 752 and 95% loan-to-value in Q3 2026, producing a high-yielding, resilient portfolio. Growth Opportunity DFC maintained an 18% penetration for all units sold in the US in Q3 2026, and 29% of all units financed, with meaningful runway to our long-term target of 20+% for all units sold. Maturing Portfolio Managed receivables grew YoY 23% to $5.5 billion in Q3 2026, with a seasoned portfolio driving improving ABS issuance efficiency and declining overcollateralization requirements. Earnings Potential Financing Operations income is on track to scale from $75 million in 2025 to $225 to $275 million in the mid-term and $550 to $600 million at maturity, a structural uplift to LAD's earnings profile. Captive Finance Provides Consistent Earnings Driveway Finance Corporation (DFC) supports a high-quality portfolio with significant growth potential. 11 0 3 | D I F F E R E N T I A T E D M O D E L Financing Operations Income ($M) 14.5% 18% $75M $225-$275M $550-$600M 20%+ US Penetration Rate
Slide 12 — Regenerative Free Cash Flow Creates Opportunity
N Y S E : L A D TTM CAPITAL ALLOCATION1 12 0 4 | R E G E N E R A T I V E C A P I T A L E N G I N E Capital allocation calculated as a percent of total uses of capital (Acquisitions, Share Repurchases, Capex, Cash Dividends, Debt paydown percentages not meaningful). Values in charts rounded and may not add to 100. Cash dividends Capex Share repurchases Acquisitions LAD’s Capital Allocation Strategy Acquisitive Growth An unconsolidated industry creates massive opportunity to grow through acquisition. Shareholder Return • Share repurchases create attractive returns when stock trades below intrinsic value • During the last twelve months, we allocated $0.9B to share repurchases, representing 49% of allocated capital Balance Sheet Leverage We aim to maintain leverage below 3x, with the goal of achieving an investment grade rating over time. Best-in-class cash flow growth allows opportunistic capital allocation. Regenerative Free Cash Flow Creates Opportunity 1 Capital allocation for acquisitions is calculated as cash paid for acquisitions less borrowings on floor plan notes payable from acquisitions and proceeds from divestitures and other assets. 61% 58% 8% 10% 6% 28% 29% 26% 29% 17% 20% 51% 49% 62% 51% 52% 56% 49% 19% 19% 35% 34% 28% 18% 17% 16% 19% 3% 3% 6% 7% 4% 3% 2% 2% 3% 3 Q 2 4 4 Q 2 4 1 Q 2 5 2 Q 2 5 3 Q 2 5 4 Q 2 5 1 Q 2 6 2 Q 2 6 3 Q 2 6
Slide 13 — Acquisition Opportunity in Largest Retail Industry
N Y S E : L A D LARGEST RETAIL INDUSTRY1 Total Available Market by Segment Acquisition Opportunity in Largest Retail Industry LAD continues to consolidate auto retail through a strategic M&A strategy. 13 EXPANDING MARKET SHARE2 LAD US Market Share DISCIPLINED M&A ENGINE Acquired Revenue $0B $1B $2B $3B $4B $5B $6B $7B $8B 2019 2020 2021 2022 2023 2024 2025 0.4% 0.8% 1.0% 2.0% 0.6% 1.1% 1.5% 3.0% 1.1% 2.0% 2.5% 5.0% 0% 1% 2% 3% 4% 5% 2019 2025 Mid-Term Long-Term Used Blended New LAD Market Share Targets Blended market share has roughly doubled since 2019 through organic growth and disciplined M&A. In a fragmented industry, we're targeting 1.5% blended share mid-term and 3% long-term. Proven M&A Track Record LAD has consistently deployed capital into accretive acquisitions, with returns approaching double our 15% after-tax hurdle rate. We target purchase prices of 15% to 30% of revenue, or three to six times normalized EBITDA, and plan to acquire $2 to $4 billion in annualized revenue each year over the long term. $800b $1100b $500b $500b $0 $200 $400 $600 $800 $1,000 $1,200 New Used Aftersales Consumer Finance ($Billions) Acquisition Opportunity Auto retail remains one of the largest and least- consolidated industries in the US, with the vast majority of stores still privately owned. LAD's scale, balance sheet, and operating platform position it to consolidate at attractive valuations over the long term. 0 4 | R E G E N E R A T I V E C A P I T A L E N G I N E 1 New Vehicle: Calculated using monthly average SAAR from January 2014 to December 2025. | Used vehicle: Calculated using used vehicle registrations from 2021-2025. | Aftersales: Assumes traditional new franchise dealers addressable market limited by utilization of only OEM parts and represents 50% of the market. | Source: Autosource, S&P Mobility, Auto Care Association, Federal Reserve Bank of St. Louis. 2 Based on Lithia Motors US retail unit sales divided by new and used SAAR.
Slide 14 — Future Earnings Potential
N Y S E : L A D Long-Term Execution Targets Mid-Term Execution Targets Future Earnings Potential By leveraging our platform, we are set up to achieve future EPS and revenue targets. 14 Long-term Target $2 EPS per $1B of Revenue • Revenue: $75-100B • SG&A % GP: 55-60% • Op Margin: 5+% % Growth Time Horizon 01 T H E L A D S T R A T E G Y 02 03 Regenerative Capital Engine • Focus on share repurchases when undervalued • Long-run average acquired revenue of $2 to $4 billion • Investment grade balance sheet • Focus on shareholder return at full scale Differentiated Model • Financing Operations income of $225 to $275 million • Penetration remaining at 18% • Financing Operations income of $550 to $600 million • Penetration 20% at mature revenue scale Operating Excellence • Full North American Pinewood.AI rollout • SG&A to gross profit %: 60 – 65% • Realization of Pinewood.AI & tech benefits at scale • SG&A to gross profit %: 55 – 60% Broad Customer Ecosystem • Low-single digit new vehicle same store sales growth • Mid-single digit used vehicle same store sales growth • Mid-single digit aftersales same store growth • 5% US new vehicle market share • 2% US used vehicle market share 04
Slide 15 — Appendix
N Y S E : L A D Appendix
Slide 16 — LAD Over the Years
N Y S E : L A D 1 Store $150 Million $3.3 Billion $13.1 Billion $37.6 Billion $50 Billion $22.8 Billion $75-100 Billion $2 EPS per $1 Billion in Revenue LAD Over the Years 16 Walt DeBoer founded Lithia Motors in 1946 as a Chrysler-Plymouth- Dodge store in Ashland, Oregon. 1946 Bryan DeBoer became CEO, accelerating company growth. That same year, we launched our captive finance company, now known as DFC. 1996 After growing the business in southern Oregon to several locations over 25 years, Walt’s son Sid DeBoer, took the company public (NYSE:LAD). 2012 LAD announced 5-year plan to profitably consolidate. Mid-Term LAD looks to complete its store footprint to obtain 2.5% US new vehicle market share. This includes offering Driveway.com as an in-service product to help drive conquest of market share. 2020 2021 LAD continued its growth as the world’s largest automotive retailer, setting new revenue records and debuting on the Fortune Global 500 List at #434. DFC grew to nearly $5 billion in managed receivables. 2025 Driveway.com and GreenCars.com launched. 2023 LAD expands domestically and internationally with strategic acquisitions across North America and the United Kingdom. Long-Term LAD continues to evolve its business as the majority of vehicles become zero-emission. We plan to reach 5%+ of new vehicles US market share as well as grow into new verticals and international locations. The pragmatic disrupter with a proven multifaceted success strategy, uniquely and competitively leading the modernization of personal transportation solutions wherever, whenever, and however consumers desire.
Slide 17 — Driveway.com
N Y S E : L A D 17 Profitability Ecosystem Reach Driveway.com generated an average of 1.0 million unique visitors per month in Q3 2026. Sell/Trade Driveway.com’s ecosystem benefits create flywheel effects as customers trade in and return to LAD for future purchases. Finance Service Driveway.com increases the reach of our aftersales business and promotes brand loyalty across the LAD ecosystem. Driveway.com Integrated with DFC, Driveway’s lender of choice. Shop Customers in North America purchased 44,000 vehicles through our digital ecosystem in Q3 2026. S U P P L E M E N T A L I N F O R M A T I O N
Slide 18 — 2026 Quarterly Income Statement
N Y S E : L A D 2026 Quarterly Income Statement $M YTD 2026 Q4 2026 Q3 2026 Q2 2026 Q1 2026 FY 2025 Q4 2025 Q3 2025 Q2 2025 Q1 2025 New vehicle $14,077.1 $4,868.6 $4,829.2 $4,379.4 $18,703.0 $4,626.7 $4,792.4 $4,703.5 $4,580.4 Used vehicle 10,647.8 3,630.1 3,528.3 3,489.4 13,371.6 3,179.2 3,463.6 3,478.3 3,250.5 Finance and Insurance 1,087.5 361.4 366.4 359.7 1,473.6 356.9 378.6 373.8 364.3 Aftersales 3,197.0 1,086.6 1,067.4 1,042.9 4,086.7 1,035.0 1,041.2 1,027.4 983.1 Total revenues $29,009.4 $9,946.7 $9,791.3 $9,271.4 $37,634.9 $9,197.8 $9,675.8 $9,583.0 $9,178.3 New vehicle $821.4 $277.9 $284.0 $259.6 $1,169.1 $270.9 $291.4 $313.3 $293.5 Used vehicle 612.6 210.9 214.0 187.7 733.3 150.1 189.2 205.3 188.7 Finance and Insurance 1,087.5 361.4 366.4 359.7 1,473.6 356.9 378.6 373.8 364.3 Aftersales 1,893.4 645.6 633.0 614.7 2,356.9 593.5 606.8 592.7 563.9 Gross profit $4,414.9 $1,495.8 $1,497.4 $1,421.7 $5,732.9 $1,371.4 $1,466.0 $1,485.1 $1,410.4 Finance operations income (loss) 90.0 32.3 36.5 21.3 74.6 22.9 19.1 20.1 12.5 Asset impairments — — — — 5.8 5.8 — — — SG&A expense 3,088.4 1,036.3 1,014.7 1,037.4 3,944.7 979.3 998.0 1,014.7 952.7 Depreciation and amortization 212.3 71.6 70.9 69.8 262.4 67.8 65.5 65.2 63.9 Income from operations $1,204.2 $420.2 $448.3 $335.8 $1,594.7 $341.4 $421.6 $425.3 $406.3 Floor plan interest expense (195.9) (70.3) (69.7) (55.9) (228.2) (58.3) (57.8) (55.0) (57.1) Other interest expense (196.0) (63.1) (62.7) (70.3) (275.5) (75.0) (68.3) (66.7) (65.5) Other income (expense), net 72.7 104.2 36.2 (67.6) 17.4 (18.5) (13.3) 48.5 0.8 Income before income taxes $885.0 $391.0 $352.1 $142.0 $1,108.4 $189.6 $282.2 $352.1 $284.5 Income tax expense (228.4) (98.1) (90.5) (40.0) (282.5) (51.7) (63.6) (93.9) (73.3) Net Income 656.6 292.9 261.6 102.0 825.9 137.9 218.6 258.2 211.2 Net Income attributable to non-controlling interests (5.1) (1.8) (1.6) (1.6) (6.3) (1.1) (1.5) (2.2) (1.7) Net income attributable to LAD $651.5 $291.1 $260.0 $100.4 $819.6 $136.8 $217.1 $256.1 $209.5 New vehicle units 304,347 105,471 104,089 94,787 402,575 97,424 104,332 101,316 99,503 Used retail vehicle units 326,056 109,791 106,114 110,151 425,381 99,905 109,097 109,053 107,326 S U P P L E M E N T A L I N F O R M A T I O N 18 Sum of QTD may not equal YTD due to rounding.
Slide 19 — 2026 Adjusted Non-GAAP Income Statement
N Y S E : L A D YTD 2026 Net loss (gain) on disposal of stores Investment loss (gain) Insurance reserves Acquisition expenses Contract Buyouts Tax attributes YTD 2026 $M, except for per share amounts As Reported Q2 Q3 Q1 Q2 Q3 Q2 Q3 Q1 Q2 Q1 Q1 Q2 Q3 Adjusted Selling, general and administrative 3,088.4 15.1 (5.8) — — — (2.3) (0.8) (0.3) (0.4) (20.3) — — — 3,073.4 Operating income 1,204.2 (15.1) 5.8 — — — 2.3 0.8 0.3 0.4 20.3 — — — 1,219.2 Other income (expense), net 72.7 — — 73.3 (28.2) (88.8) — — — — — — — — 29.0 Income before income taxes 885.0 (15.1) 5.8 73.3 (28.2) (88.8) 2.3 0.8 0.3 0.4 20.3 — — — 856.3 Income tax (provision) benefit (228.4) 4.1 (1.6) (18.6) 6.4 23.7 (0.6) (0.2) (0.1) (0.1) (5.1) 1.2 (3.2) (3.3) (225.8) Net income $656.6 (11.0) 4.2 54.7 (21.8) (65.1) 1.7 0.6 0.2 0.3 15.2 1.2 (3.2) (3.3) $630.5 Net income attributable to non-controlling interests (5.1) — — — — — — — — — — — — — (5.1) Net income attributable to LAD $651.5 (11.0) 4.2 54.7 (21.8) (65.1) 1.7 0.6 0.2 0.3 15.2 1.2 (3.2) (3.3) $625.4 Diluted earnings per share $28.77 $(0.49) $0.19 $2.34 $(0.96) $(2.95) $0.07 $0.03 $0.01 $0.01 $0.65 $0.06 $(0.14) $(0.15) $27.61 Diluted share count 22.6 S U P P L E M E N T A L I N F O R M A T I O N 2026 Adjusted Non-GAAP Income Statement 19 Sum of QTD may not equal YTD due to rounding.
Slide 20 — 2025 Adjusted Non-GAAP Income Statement
N Y S E : L A D FY 2025 Net loss (gain) on disposal of stores Asset impairments Investment loss (gain) Insurance reserves Acquisition expenses Tax attributes FY 2025 $M, except for per share amounts As Reported Q1 Q2 Q3 Q4 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Adjusted Asset impairments 5.8 — — — — (5.8) — — — — — — — — — — — — — — — — — Selling, general and administrative 3,944.7 9.4 (7.2) 15.4 2.6 — — — — — (0.4) (2.4) (2.5) (1.4) (0.2) (0.1) (15.9) (0.9) — — — — 3,941.3 Operating income 1,594.7 (9.4) 7.2 (15.4) (2.6) 5.8 — — — — 0.4 2.4 2.5 1.4 0.2 0.1 15.9 0.9 — — — — 1,603.9 Other income (expense), net 17.4 — — — — — 9.7 (36.4) 22.7 27.9 — — — — — — — — — — — — 41.2 Income before income taxes 1,108.4 (9.4) 7.2 (15.4) (2.6) 5.8 9.7 (36.4) 22.7 27.9 0.4 2.4 2.5 1.4 0.2 0.1 15.9 0.9 — — — — 1,141.4 Income tax (provision) benefit (282.5) 2.4 1.8 7.2 0.4 (1.5) (2.4) 9.5 (6.0) (7.0) (0.1) (0.6) (0.5) (0.4) — — (0.6) (0.2) (1.0) (1.3) (3.5) (0.4) (286.7) Net income $825.9 (7.0) 9.0 (8.2) (2.2) 4.3 7.2 (26.9) 16.7 20.9 0.3 1.8 2.0 1.0 0.2 0.1 15.3 0.7 (1.0) (1.3) (3.5) (0.4) $854.7 Net income attributable to non-controlling interests (6.3) — — — — — — — — — — — — — — — — — — — — — (6.3) Net income attributable to LAD $819.6 (7.0) 9.0 (8.2) (2.2) 4.3 7.2 (26.9) 16.7 20.9 0.3 1.8 2.0 1.0 0.2 0.1 15.3 0.7 (1.0) (1.3) (3.5) (0.4) $848.4 Diluted earnings per share $32.32 $(0.25) $0.35 $(0.32) $(0.09) $0.18 $0.28 $(1.04) $0.66 $0.88 $0.01 $0.07 $0.08 $0.04 $— $— $0.61 $0.03 $(0.04) $(0.05) $(0.14) $(0.02) $33.46 Diluted share count 25.4 20 S U P P L E M E N T A L I N F O R M A T I O N 2025 Adjusted Non-GAAP Income Statement Sum of QTD may not equal YTD due to rounding.
Slide 21 — EBITDA, Adjusted EBITDA, and Net Debt
N Y S E : L A D EBITDA, Adjusted EBITDA, and Net Debt $M YTD 2026 FY’2025 FY’2024 FY’2023 FY’2022 FY’2021 Net Income 656.6 825.9 816.3 1,011.7 1,261.6 1,062.7 Add: Flooring interest expense 195.9 228.2 278.8 150.9 38.8 22.3 Add: Other interest expense 196.0 275.5 257.8 201.2 129.1 103.4 Add: Financing operations interest expense 161.4 202.1 200.5 170.5 52.2 4.8 Add: Income tax expense 228.4 282.5 255.0 350.6 468.4 422.1 Add: Depreciation and amortization 212.3 262.4 245.6 195.8 163.2 124.8 EBITDA $ 1,650.6 $ 2,076.6 $ 2,054.0 $ 2,080.7 $ 2,113.3 $ 1,740.1 Less: Flooring interest expense (195.9) (228.2) (278.8) (150.9) (38.8) (22.3) Less: Financing operations interest expense (161.4) (202.1) (200.5) (170.5) (52.2) (4.8) Less: Used vehicle line of credit interest (1.5) (12.9) (24.2) (19.6) (9.6) (0.1) Less: Net (gain) on disposal of stores (9.2) (20.3) (8.2) (31.2) (66.0) — Less/Add: Net (gain) loss on investments (43.7) 23.8 (30.2) 1.7 — 66.4 Add: Insurance reserves 3.2 6.7 6.1 5.4 4.9 5.8 Add: Acquisition expenses 0.7 17.0 10.0 27.2 15.0 20.2 Add: Loss on redemption of senior notes — — — — — 10.3 Add: Asset impairments — 5.8 — — — 1.9 Add: Contract buyouts 20.3 — — 14.3 — — Adjusted EBITDA $ 1,263.1 $ 1,666.4 $ 1,528.2 $ 1,757.1 $ 1,966.6 $ 1,817.5 Total Debt 16,256.2 14,821.9 13,265.7 10,900.5 7,647.5 4,599.5 Less: Floor plan related debt (6,570.3) (6,051.9) (5,878.4) (4,538.3) (2,993.8) (1,690.1) Less: Financing operations related debt (4,509.2) (3,724.9) (2,943.3) (2,292.6) (1,352.2) (407.6) Less: Unrestricted cash and cash equivalents (108.1) (109.2) (225.1) (825.0) (168.1) (153.0) Less: Marketable securities (76.1) (56.4) (53.4) — — — Less: Availability on used vehicle and service loaner facility (0.4) (15.4) (23.3) (25.5) (17.9) (267.4) Net Debt $ 4,992.1 $ 4,864.1 $ 4,142.2 $ 3,219.1 $ 3,115.5 $ 2,081.4 S U P P L E M E N T A L I N F O R M A T I O N 21
Slide 22 — Segment and Brand Mix
N Y S E : L A D Brand Mix Segment Segment %4 Brand Brand Revenue Brand Unit Sales Import 42% Honda 11% 15% Toyota 11% 12% Hyundai 6% 8% Subaru 5% 6% Kia 3% 5% Volkswagen 2% 2% Other Imports 1,5 4% 6% Luxury 34% BMW/MINI 8% 6% Audi 5% 5% Mercedes-Benz 5% 5% Porsche 4% 1% Jaguar/Land Rover 4% 2% Lexus 2% 2% Acura 2% 2% Other Luxury 2 4% 2% Domestic 24% Ford 10% 10% Stellantis 8% 6% GM 6% 5% Other Domestic 3 <1% <1% For the three-months ending September 30, 2026. Includes Lithia UK and Canada. 1 Other import brands include Changan, Chery, Citroen, Dacia, Jaecoo, Geely, Leapmotor, Mazda, Nissan, Omoda, Peugeot, and Vauxhall. 2 Other luxury brands include Alpine, Aston Martin, Bentley, Bugatti, BYD, Ducati, Ferrari, Genesis, Infiniti, Lamborghini, Lotus, Maserati, McLaren, MG Motors, Pagani, Rolls-Royce, and Volvo. 3 Other domestic brands include Fiat, Harley-Davidson, Airstream, Bontrager. 4 Segment % is based on total revenue by brand. 5 Chinese OEMs represent 1% of total brand mix Segment and Brand Mix 22 S U P P L E M E N T A L I N F O R M A T I O N
Slide 23 — Used Vehicle Mix
N Y S E : L A D Q3 2026 NORTH AMERICA SAME STORE METRICS Used Vehicle Mix 23 CPO 19% CORE 23% VALUE 58% Used Vehicle Market 36M units1 § LAD retails vehicles up to 20 years old § Value autos are highest gross margin and fastest-turning in a normalized environment § 60-70% of LAD's used vehicle inventory procured from consumers Average Selling Price % Mix CPO $35,170 25% Core 2 $32,452 52% Value Autos $15,778 23% 1 TTM, as of 08/31/26, S&P Global Mobility US used vehicle registration data grouped by vehicle age (CPO 0-3 years, Core 4-8 years, Value Autos 9+ years). 2 LAD Core includes 1-3 year old vehicles with less than 40,000 miles. S U P P L E M E N T A L I N F O R M A T I O N
Slide 24 — Aftersales Mix
N Y S E : L A D SAME STORE AFTERSALES REVENUE MIX 2019 vs YTD 2026 Aftersales Mix SAME STORE AFTERSALES REVENUE & GROSS PROFIT MIX Q3 2026 24 S U P P L E M E N T A L I N F O R M A T I O N 56% 65% 26% 26% 14% 5% 4% 4% Revenue Gross Profit Collision center Parts wholesale Warranty Customer Pay 54% 56% 25% 26% 15% 14% 6% 4% 2019 YTD 2026 Collision center Parts wholesale Warranty Customer Pay
Slide 25 — Thank You
N Y S E : L A D Thank You