Sonic Automotive (SAH) investor relations material

Executive summary

• Achieved record Q2 2025 revenues of $3.66B–$3.7B, up 6% year-over-year, and gross profit of $602M, up 12% year-over-year.

• Reported net loss of $45.6M due to a $172.4M non-cash franchise asset impairment charge, despite adjusted net income of $76.2M, up 49% year-over-year.

• Adjusted EPS was $2.19, up 49% year-over-year; reported GAAP EPS was a loss of $1.34 due to impairment charges.

• EchoPark and Powersports segments delivered record quarterly results, with EchoPark adjusted EBITDA up 128% year-over-year.

• Completed acquisition of four Jaguar Land Rover dealerships, expected to add $500M in annualized revenue.

Financial highlights

• Q2 2025 consolidated revenue was $3.66B–$3.7B, up 6% year-over-year; gross profit rose 12% to $602M.

• Adjusted EBITDA was $172.7M, up from $141.3M in Q2 2024.

• Adjusted SG&A as a percentage of gross profit improved to 68.5%–69.2% from 70.7%–72.9% year-over-year.

• Dividend per share increased 9% to $0.38.

• Cash and liquidity at quarter-end totaled $775M–$862M, with $210M–$320M in cash and floor plan deposits.

Outlook and guidance

• EchoPark segment adjusted EBITDA guidance raised to $50M–$55M for the year, with GPU in the $3,400–$3,800 range.

• FY 2025 new vehicle GPU expected at $2,800–$3,200 per unit; used vehicle GPU at $1,300–$1,500 per unit.

• New vehicle SAAR expected in the $15M–$16.3M range for the remainder of the year, barring major disruptions.

• Management remains cautious about potential impacts from tariffs, interest rates, and consumer demand.

• Lease returns and used vehicle supply expected to improve inventory and EchoPark growth in 2026 and beyond.