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, with adjusted EPS of $6.60 and GAAP EPS of $5.60.

• Fourth quarter revenues were $3.9 billion, down 1% year-over-year, but gross profit reached a quarterly record of $598.7 million, up 4% year-over-year; Q4 adjusted EPS was $1.52, up 1%.

• Adjusted net income for the year was $229.2 million, up 17% year-over-year, while reported net income was $118.7 million, down 45% due to significant non-cash impairment charges and higher SG&A.

• All segments posted record or improved results, with EchoPark returning to positive adjusted EBITDA after three years of losses.

Financial highlights

• Full-year adjusted EBITDA reached $615 million, with segment records in EchoPark ($49.2 million) and Powersports ($11.5 million).

• Franchised Dealerships generated $12.9 billion in revenue (up 8%), 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 gross profit of $53.8 million and adjusted EBITDA of $11.5 million.

• SG&A expenses as a percentage of gross profit were 70.4% for the year, with adjusted SG&A at 71.6%.

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; store openings to resume in late 2026.

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

• Consolidated SG&A as a percentage of gross profit expected in the low 70% range for FY 2026.

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