Question · Q3 2025
Colin Lambien inquired about Lithia's full-year SG&A to gross targets, noting it's trending near the high end and asking if it could hold in Q4 despite seasonality, or if a more muted sequential increase is expected. He also asked about the longer-term outlook for SG&A and the sustainability of the low tax rate in the quarter.
Answer
Bryan DeBoer, President and CEO, stated that Lithia manages its business based on net profit and top-line growth to achieve $2 of EPS for every billion dollars of revenue, rather than solely focusing on SG&A percentages. He emphasized that the goal is to grow top-line revenue, used cars, and after-sales gross profit. Mr. DeBoer indicated that the entire foundation for this growth is built and they are 'just getting started.' He deferred the question on the tax rate to a one-on-one discussion due to time constraints.