Sonic Automotive Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −5.50%.
Did SAH Beat Earnings? Q4 2025 Results
Sonic Automotive narrowly missed expectations in Q4 2025, reporting adjusted EPS of $1.52 against a $1.53 consensus estimate while revenue of $3.87 billion fell just short of the $3.88 billion forecast, declining 0.6% year-over-year. The headline miss masked a more nuanced story underneath: same-store new vehicle retail volume dropped 11% and new vehicle GPU slipped 7% to $3,033 per unit, pressuring top-line results, yet the company still managed a fourth-quarter record gross profit of $598.70 million, up 4%. A bright spot was EchoPark, which swung to $3.60 million in segment income from a $2.60 million loss a year earlier, a milestone that underscores the unit's improving profitability trajectory. For 2026, management guided new vehicle GPU in the $2,700 to $3,000 range, flagging tariff uncertainty as a meaningful risk to vehicle pricing and consumer demand, a caution that has drawn scrutiny from analysts weighing the stock's valuation against softening near-term fundamentals. EchoPark adjusted EBITDA is expected between $25 million and $35 million, with disciplined expansion resuming late in the year.
- Record fixed operations gross profit driven by customer pay gross profit growth of 6% same-store
- Record F&I gross profit with F&I GPU of $2,551 for the full year, up 7% same-store
- EchoPark turnaround to profitability with $49.2 million annual adjusted EBITDA, up 78% year-over-year
- Powersports segment revenue growth of 29% for full year driven by acquisition integration
- SG&A expense leverage improvement across all three segments
- Strong used vehicle GPU improvement at EchoPark to $3,484 per unit for the full year from $3,029
“Our fourth quarter results reflect the strength of Sonic Automotive's diversified business model and the disciplined execution of our long-term strategy. Despite a dynamic operating environment throughout 2025, our team delivered record performance across all three segments of our business. As we enter the new year, we remain focused on operational excellence, cost control, and continuing to deliver exceptional value to our guests and shareholders.”
Sonic Automotive CEO, on the earnings call
Forward Guidance & Outlook
For FY 2026, Sonic expects Franchised Dealerships new vehicle GPU of $2,700-$3,000 per unit (second half potentially lower due to tariff impact on pricing), used vehicle GPU of $1,300-$1,400, mid-single-digit fixed operations gross profit growth, and F&I GPU of $2,600-$2,700. Consolidated adjusted SG&A as a percent of gross profit is expected in the low 70% range. Floor plan interest expense expected to increase approximately 10% from FY 2025. Effective tax rate projected at 28.0%-29.0%. EchoPark adjusted EBITDA expected between $25-$35 million with $10-$20 million in incremental advertising, high single digit used retail unit volume growth, and total GPU in the $3,400-$3,600 range. Disciplined EchoPark expansion expected to resume in late 2026. Powersports adjusted EBITDA expected between $12-$15 million. Management flagged tariffs as a key risk factor potentially affecting vehicle pricing, inventory, and consumer demand across all segments.
SAH YoY Financials
SAH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.