Sonic Automotive

Sonic Automotive (SAH) Q2 2025 Earnings

Reported Jul 24, 2025 at 8:51 AM ET · SEC Source

Q2 25 EPS

$2.19

BEAT +36.58%

Est. $1.60

Q2 25 Revenue

$3.66B

MISS 0.03%

Est. $3.66B

vs S&P Since Q2 25

+9.1%

BEATING MARKET

SAH +27.1% vs S&P +18.0%

Market Reaction

Did SAH Beat Earnings? Q2 2025 Results

Sonic Automotive delivered a standout second quarter, with adjusted earnings per share of $2.19 beating the $1.60 consensus estimate by 36.58%, even as a $172.40 million non-cash franchise asset impairment charge pushed the company to a GAAP net loss… Read more Sonic Automotive delivered a standout second quarter, with adjusted earnings per share of $2.19 beating the $1.60 consensus estimate by 36.58%, even as a $172.40 million non-cash franchise asset impairment charge pushed the company to a GAAP net loss of $1.34 per diluted share. Revenue reached $3.66 billion, up 5.9% year-over-year and essentially in line with expectations, with the headline profit beat driven by a 49% surge in adjusted net income to $76.20 million, aided partly by the absence of the CDK Global software outage that had weighed on the prior-year quarter. The company's franchised dealership segment stood out for its fixed operations strength, where gross profit hit an all-time quarterly record with same-store margins expanding 90 basis points to 51.3%, reflecting the broader industry trend of public dealers leaning heavily into service and parts growth. EchoPark posted its second consecutive record segment income of $11.70 million. Looking ahead, Sonic targets EchoPark adjusted EBITDA of $50.00 to $55.00 million for full-year 2025, with four newly acquired Jaguar Land Rover dealerships expected to contribute roughly $500.00 million in annualized revenues.

Key Takeaways

  • All-time record quarterly fixed operations gross profit in Franchised Dealerships, up 12% same-store YoY
  • All-time record quarterly F&I gross profit in Franchised Dealerships, up 15% same-store YoY with GPU of $2,718, up 14%
  • EchoPark achieved all-time record quarterly segment income and adjusted EBITDA of $16.4 million, up 128% YoY
  • EchoPark total GPU per unit of $3,747, up 22% YoY driven by F&I optimization and used vehicle margin improvement
  • Same-store new vehicle retail unit volume up 5% YoY in Franchised Dealerships
  • Warranty gross profit up 34% same-store in Franchised Dealerships
  • Prior year quarter negatively impacted by CDK Global software outage reducing Q2 2024 net income by an estimated $22.2 million
  • Consolidated adjusted SG&A expenses as a percentage of gross profit improved to 69.2% from 70.7% YoY
24/7 Wall St

SAH YoY Financials

Q2 2025 vs Q2 2024, source: SEC Filings

24/7 Wall St

SAH Revenue by Segment

With YoY comparisons, source: SEC Filings

Q1 25 Q1 26

“I am very proud of our team's effort in the second quarter, driving record second quarter consolidated revenues and another all-time record quarterly adjusted EBITDA in our EchoPark Segment. These results validate our efforts to deliver an outstanding experience for our guests and teammates, grow our long-term EchoPark volume and profitability, gain market share in our franchised dealerships and powersports segments, and optimize our expense structure in order to create long-term value for our stakeholders.”

— David Smith, Q2 2025 Earnings Press Release