Sonic Automotive (SAH) investor relations material

Executive summary

• Achieved record Q1 2026 consolidated revenues of $3.7 billion, up 1% year-over-year, and record gross profit of $598.8 million, up 6% year-over-year.

• Adjusted EPS rose 9% year-over-year to $1.62; adjusted net income was $54.9 million, up 7% year-over-year; reported GAAP EPS was $1.79.

• EchoPark and Powersports segments delivered all-time record results, with EchoPark segment income up 57% year-over-year and Powersports benefiting from recent Harley-Davidson acquisitions.

• Repurchased 2.1 million shares for $136 million, reducing share count by 6% since year-end, and increased quarterly dividend by 8% to $0.41 per share.

• Diversified business model spans franchised dealerships, EchoPark, and Powersports, with 107, 18, and 20 locations respectively as of April 2026.

Financial highlights

• Franchised dealership segment reported Q1 2026 revenues of $3.07 billion, flat year-over-year; same-store revenues down 4%.

• New vehicle retail volume down 10% year-over-year; used vehicle retail volume up 3%.

• Fixed operations gross profit up 10% and F&I gross profit up 7% year-over-year, both setting quarterly records.

• EchoPark revenues up 4% to $581 million; gross profit up 6% to $68 million; segment retail unit sales up 3%.

• Powersports segment revenues up 19% to $41 million; gross profit up 19% to $10 million; retail volume up 25%.

Outlook and guidance

• FY 2026 guidance anticipates new vehicle GPU of $2,700–$3,000 and used vehicle GPU of $1,350–$1,450 per unit.

• EchoPark segment adjusted EBITDA expected at $35–$40 million, with high single-digit growth in used retail unit sales volume.

• Powersports segment adjusted EBITDA projected at $14–$17 million, including recent Harley-Davidson acquisitions.

• Plans to increase advertising expenses by $10–$20 million in 2026, mainly in the second half, to support EchoPark brand awareness and store expansion.

• Confident in maintaining guidance for new vehicle GPU and overall margin despite some mix-driven fluctuations.