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 FY 2025 was $6.60, up 18% year-over-year; GAAP EPS was $5.60.

• Net income from continuing operations was $118.7 million, down 45% year-over-year, due to significant non-cash impairment charges and higher SG&A expenses.

• Adjusted net income for the year was $229.2 million, up 17% year-over-year.

• 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.

Financial highlights

• Q4 adjusted EPS was $1.52, up 1% year-over-year; Q4 adjusted net income was $52.2 million, down 2%.

• Full-year adjusted EBITDA was $614.6 million, with segment records in EchoPark ($49.2 million) and Powersports ($11.5 million).

• Franchised Dealerships segment 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, returning to positive EBITDA after three years of industry headwinds.

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

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

• EchoPark store openings to resume in late 2026, with accelerated growth and brand investment expected to drive volume and EBITDA leverage in 2027.

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