Sonic Automotive (SAH) Q4 2025 earnings summary

Executive summary

• Achieved record annual revenues of $15.2 billion, up 7% year-over-year, and record annual gross profit of $2.4 billion, up 9% year-over-year.

• Adjusted EPS for the year was $6.60, up 18%, with adjusted net income of $229.2 million; reported net income was $118.7 million, down 45% due to non-cash impairment charges.

• Fourth quarter revenues were $3.9 billion, down 1% year-over-year, but gross profit reached a quarterly record, up 4%.

• EchoPark segment delivered record profitability and returned to positive adjusted EBITDA after three years of losses, despite a decline in revenue and unit sales.

• Customer satisfaction reached record levels for the third consecutive year in franchise dealerships and EchoPark.

Financial highlights

• Franchised Dealerships generated $12.9 billion in revenue, up 8% year-over-year, with segment adjusted EBITDA of $553.9 million.

• EchoPark segment revenue was $2.1 billion, with adjusted EBITDA of $49.2 million, and gross profit up 13%.

• Powersports segment revenue reached $202.9 million, up 29%, with adjusted EBITDA of $11.5 million.

• Consolidated gross profit rose 9% to $2.38 billion; SG&A expenses increased 6% to $1.68 billion.

• Quarterly dividend increased to $0.38 per share, up 9% year-over-year.

Outlook and guidance

• FY 2026 guidance anticipates new vehicle GPU of $2,700–$3,000 and used vehicle GPU of $1,300–$1,400 per unit in Franchised Dealerships.

• EchoPark expects adjusted EBITDA of $25–$35 million and high single-digit growth in used retail unit sales volume.

• Powersports projected FY 2026 adjusted EBITDA of $12–$15 million, with most earnings in Q3 due to seasonality.

• EchoPark store expansion to resume in late 2026, with $10–$20 million brand marketing investment planned.

• Management remains focused on operational excellence, cost control, and strategic investments to drive growth and maintain resilience.