Sonic Automotive (SAH) Q1 2025 earnings summary

Executive summary

• Q1 2025 delivered record consolidated revenues of $3.7B, up 8% year-over-year, and gross profit of $566.4M, with net income rising 68% to $70.6M, including a $30M cyber insurance benefit.

• Adjusted EPS was $1.48, up 9% year-over-year; adjusted net income was $51.3M.

• EchoPark segment posted all-time record income, gross profit, and adjusted EBITDA, returning to profitability.

• Franchised Dealerships achieved record Q1 revenues of $3.06B, with 9% revenue growth and 44% higher segment income.

• Powersports segment saw record Q1 revenues of $34.4M, up 24%, with a seasonally expected EBITDA loss.

Financial highlights

• Gross profit was $566.4M, up 6% year-over-year; operating income increased 36% to $145.0M.

• Adjusted EBITDA reached $144.0M, up from $134.6M year-over-year.

• SG&A expenses as a percentage of gross profit improved to 67.1% (reported) and 72.1% (adjusted).

• Available liquidity at quarter-end was $947M, including $430M in cash and floor plan deposits.

• Quarterly cash dividend of $0.35 per share approved, payable July 15, 2025.

Outlook and guidance

• Certain 2025 financial guidance items updated or withdrawn due to tariff-related uncertainty.

• Management expects stable liquidity and no material changes to cost or access to capital over the next 12 months.

• Full-year consolidated SG&A target reaffirmed in the low 70% range.

• FY 2025 new vehicle GPU expected at $2,500–$3,000 per unit; used vehicle GPU at $1,300–$1,500 per unit.

• EchoPark segment adjusted EBITDA guidance is $35–$40M, with mid-single digit growth in used retail unit sales.