Sonic Automotive (SAH) Q2 2026 earnings summary

Executive summary

• Q2 2026 consolidated revenues rose 8% year-over-year to $3.93 billion, with record gross profit of $616.2 million, and net income of $57.4 million ($1.79 per diluted share); adjusted net income was $58.3 million ($1.82 per diluted share, down 17% YoY).

• FY 2025 revenues reached $15.15 billion, with adjusted EPS of $6.60 and adjusted net income of $229 million.

• EchoPark segment retail unit sales volume increased 17% YoY, driving segment record gross profit, while Powersports delivered record revenue and gross profit, supported by recent acquisitions.

• Franchised Dealerships revenue grew 6% YoY, but segment income declined due to margin compression.

• SG&A expenses increased 8% YoY, driven by higher compensation, advertising, and rent.

Financial highlights

• Q2 2026 new vehicle gross profit per unit was $3,024 (down 11% YoY), used vehicle GPU was $1,399 (down 12% YoY), and F&I GPU was $2,697 (down 1% YoY).

• Q2 2026 net income was $57.4 million, reversing a $45.6 million loss in Q2 2025; diluted EPS was $1.79, up from $(1.34) in Q2 2025.

• Adjusted EBITDA for Q2 2026 was $157.7 million, down from $172.7 million in Q2 2025.

• SG&A as a percentage of gross profit: 72.2% reported, 72.0% adjusted.

• FY 2025 segment revenues: Franchised Dealerships $12.9B, EchoPark $2.1B, Powersports $203M.

Outlook and guidance

• FY 2026 new vehicle GPU expected at $2,850–$3,000; used vehicle GPU at $1,350–$1,450; F&I GPU at $2,600–$2,700.

• EchoPark FY 2026 adjusted EBITDA guidance: $35–$40 million; used retail unit sales volume to increase 12–15%; total GPU $3,100–$3,300.

• Powersports FY 2026 adjusted EBITDA expected at $14–$17 million, with $100 million in annualized revenue from recent Harley-Davidson acquisitions.

• Management remains focused on disciplined capital allocation, organic investment, and strategic acquisitions, with EchoPark expansion planned for Q4 2026.

• Guidance for mid-single-digit percentage growth in same-store fixed operations gross profit for the full year.