Sonic Automotive (SAH) Q4 2024 earnings summary

Executive summary

• Achieved record Q4 2024 consolidated revenues of $3.9B, up 9% year-over-year, and full-year revenues of $14.2B, down 1% year-over-year; net income from continuing operations was $216M, up 21% year-over-year.

• EchoPark segment returned to profitability for the full year, with adjusted EBITDA of $27.6M after three years of losses and $2.1B in revenues.

• Powersports segment generated $157M in revenues and $6.3M in adjusted EBITDA, despite a net loss before taxes.

• Announced major Q4 acquisitions, adding $145M in annualized revenues, and signaled intent for further M&A in 2025.

• Exceeded technician hiring goal with a net increase of 335 in 2024, supporting record customer satisfaction scores.

Financial highlights

• Q4 GAAP EPS was $1.67, up 50% year-over-year; adjusted EPS was $1.51, down 7%; full-year adjusted EPS was $5.60, down 18% year-over-year.

• Q4 net income was $58.6M, up 51% year-over-year; adjusted Q4 net income was $53.1M, down 7%.

• Consolidated revenues up 9% in Q4; gross profit up 6%; adjusted EBITDA up 5%.

• Franchise dealership segment Q4 revenues hit $3.4B, up 12% year-over-year; full-year revenues $11.9B, up 1%.

• EchoPark Q4 revenues were $506M (down 9% year-over-year), but gross profit rose 14%; full-year gross profit was $207.9M, up 28%.

Outlook and guidance

• 2025 guidance calls for low single-digit revenue and gross profit growth in franchised dealerships, with new vehicle GPU in the $2,500–$3,000 range.

• EchoPark targets adjusted EBITDA of $30–$33M and mid-single-digit growth in used retail unit sales.

• Powersports expects adjusted EBITDA of $7–$8M, with majority in Q3 due to seasonality.

• EchoPark store expansion expected to resume in 2026, contingent on improved affordability and used car supply.

• Fixed operations expected to benefit from increased technician headcount, with $100M annualized gross profit potential.