EarningsQ2 2026 Earnings Report

Driveway Vehicle Solutions (LMO) Q2 2026 Earnings Report

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Previous Report: Q1 2026

CH:LMO Q2 2026 EPS Results

Actual EPSCHF8.33

Consensus EPSCHF7.25

Beat/MissBeat by +CHF1.08

One Year Ago EPSCHF8.51

CH:LMO Q2 2026 Revenue Results

Actual RevenueCHF8.13B

Expected RevenueCHF8.01B

Beat/MissBeat by +CHF126.67M

YoY Revenue Growth+2.17%

Earnings Announcement Details

QuarterQ2 2026

Date07/29/2026

TimeBefore Open

Conference CallWednesday, July 29, 2026

CH:LMO Upcoming Earnings

Driveway Vehicle Solutions's next earnings date is estimated for October 21, 2026, based on past reporting schedules.

Q2 2026 Earnings Call Audio

CH:LMO Q2 2026 Earnings Call

0:00 / 0:00

Q2 2026 Earnings Slide Deck

Q2 2026 Earnings Call Summary

Q2 2026

Earnings Call Date:Jul 29, 2026|

% Change Since:

Earnings Call Sentiment|Positive

The call highlighted multiple meaningful positives: record revenue and EPS, substantial sequential and YoY improvements in vehicle GPUs (notably used), strong aftersales margins, rapid scaling and profitability of Driveway Finance Corporation, significant cash generation and shareholder returns, and tangible SG&A progress driven by AI and operational changes (with UK performance validating the technology pathway). Lowlights were largely manageable: modest declines in same-store revenue and gross profit versus an unusually strong prior-year quarter, slight new vehicle volume pressure, and SG&A still above the company’s long-term target. Overall, the positive operational momentum, financial outcomes and clear execution plan outweigh the transitory headwinds and remaining work to reach longer-term SG&A goals.

Company Guidance

Management said momentum should continue into H2 with explicit targets and near‑term expectations: long‑term earnings leverage of $2 of EPS per $1B of revenue, a sub‑60% SG&A target (adjusted SG&A was 68.6% this quarter, down 290 bps sequentially from Q1 with personnel costs improving ~30 bps), and DFC penetration targeted at 20%+ (North American penetration at 18% this quarter). Key operating and financials cited as context and guidance drivers include revenue of $9.8B, adjusted diluted EPS $10.03 (+9% YoY), same‑store revenues -1.6% and total gross profit -2.7%, total vehicle GPU $4,119 (up ~$200 sequentially) with new GPU $2,718 (stable) and used GPU $2,019 (up $339 sequentially), used GP +1.2% and aftersales GP +3.1% with aftersales margin 59.2% (+120 bps YoY). DFC guidance/trajectory: record originations $884M, financing operations income $37M, NIM 4.8% (+20 bps YoY), managed receivables >$5B, avg origination FICO 748 and front‑end LTV 96%, and expectations that margins and penetration will keep building. Capital allocation guidance remains opportunistic: repurchases are top priority (Q2 buybacks $242M, ~4% of shares retired; share count down ~17% YoY; avg repurchase price $284), dividend raised 23% to $0.70, H1 acquisitions added $765M revenue (divestitures $120M), M&A buy price targets 15–30% of revenue or 3–6x normalized EBITDA (historical returns >25% vs 15% hurdle), and a stated plan to balance ~1/3 buybacks, ~1/3 M&A and the remainder for dividends/internal investment.

Record Revenue and Earnings

Revenue of $9.8 billion and adjusted diluted EPS of $10.03, up 9% year-over-year, marking another record quarter for Lithia & Driveway.

Strong Used Vehicle Profitability

Used vehicle GPU improved to $2,019, up $339 sequentially from Q1, driving a 1.2% increase in used vehicle gross profit; dynamic pricing and AI initiatives cited as key drivers.

Total Vehicle GPU Momentum

Total vehicle GPU rose to $4,119, nearly $200 higher sequentially from Q1, underpinning margin and earnings improvements.

Aftersales Resilience and Margin Expansion

Aftersales gross profit grew 3.1% on revenue growth of 1%, with margins expanding 120 basis points year-over-year to 59.2%; aftersales contributed 42.2% of total gross profit and showed customer-paid gross profit up 2.6% and warranty up 5.4%.

Driveway Finance Corporation (DFC) Scaling Rapidly

DFC delivered record originations of $884 million, financing operations income of $37 million, net interest margin of 4.8% (up 20 bps YoY), managed receivables over $5 billion, North American penetration ~18%, and materially higher profitability (more than doubled).

Cash Generation and Capital Returns

Adjusted cash flow from operations of $228 million for the quarter (up 76% YoY) and H1 discretionary cash of $609 million (adjusted); returned >$560 million to shareholders in H1 via buybacks and dividends; repurchased $242 million of stock in Q2 (~4% of shares) and reduced share count 17% vs. a year ago; raised dividend 23% to $0.70 per share.

SG&A and Cost Structure Progress

Adjusted SG&A as a percentage of gross profit improved to 68.6% (290 bps improvement vs. Q1); same-store SG&A dollars declined year-over-year with personnel costs improving (nearly 3% reduction in personnel dollars and ~30 bps improvement as a % of gross), and June SG&A percent improved vs prior year—management reiterates path toward sub-60% SG&A.

United Kingdom Operational Execution

U.K. gross profit grew 12% and adjusted pretax income rose 78%; SG&A as a percentage of gross improved 200 bps YoY; used gross profit up ~33% and new vehicle units grew 16%; Pinewood.AI integration drove roughly half of the U.K. SG&A improvement.

Technology and AI Initiatives

Pinewood.AI deployment (industry DMS + AI) delivering productivity gains in the U.K. with planned North American rollout; company cites potential ~10x scale multiplier and significant long-term cost savings, and expects a meaningful valuation gain from Ridgeview Partners' acquisition of Pinewood.AI.

CH:LMO Earnings History

Report Date	Fiscal Quarter	Forecast / EPS	Last Year's EPS	EPS YoY Change
Oct 21, 2026	2026 (Q3)	8.19 / -	7.892	―
Jul 29, 2026	2026 (Q2)	7.25 / 8.33	8.506	-2.05% (-0.17)
Apr 29, 2026	2026 (Q1)	5.71 / 6.10	6.363	-4.18% (-0.27)
Feb 11, 2026	2025 (Q4)	6.74 / 5.60	6.471	-13.48% (-0.87)
Oct 22, 2025	2025 (Q3)	7.12 / 7.89	6.82	15.71% (+1.07)
Jul 29, 2025	2025 (Q2)	7.67 / 8.51	6.538	30.11% (+1.97)
Apr 23, 2025	2025 (Q1)	6.53 / 6.36	5.076	25.37% (+1.29)
Feb 12, 2025	2024 (Q4)	5.95 / 6.47	6.845	-5.46% (-0.37)
Oct 23, 2024	2024 (Q3)	6.31 / 6.82	7.684	-11.24% (-0.86)
Aug 01, 2024	2024 (Q2)	5.81 / 6.54	9.063	-27.86% (-2.53)

The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.

Beat

Missed