Q1 26 EPS
$1.62
BEAT +15.46%
Est. $1.40
Q1 26 Revenue
$3.69B
MISS 1.10%
Est. $3.73B
vs S&P Since Q1 26
+25.7%
BEATING MARKET
SAH +30.0% vs S&P +4.3%
Market Reaction
Did SAH Beat Earnings? Q1 2026 Results
Sonic Automotive posted a mixed but largely encouraging first quarter for 2026, delivering an adjusted earnings beat even as revenue fell modestly short of expectations. Adjusted diluted EPS came in at $1.62, clearing the $1.40 consensus estimate by … Read more Sonic Automotive posted a mixed but largely encouraging first quarter for 2026, delivering an adjusted earnings beat even as revenue fell modestly short of expectations. Adjusted diluted EPS came in at $1.62, clearing the $1.40 consensus estimate by 15.46%, while consolidated revenue of $3.69 billion rose 1.0% year-over-year but trailed the $3.73 billion Wall Street had anticipated by 1.10%. The headline driver was a standout performance in the EchoPark pre-owned vehicle segment, which generated record quarterly pre-tax income of $16.20 million, up 57% year-over-year, and total GPU of $3,502 per unit, helping offset a 22% decline in Franchised Dealerships segment income that reflected the absence of $30.00 million in prior-year cyber insurance proceeds. Capital returns were aggressive, with Sonic repurchasing roughly 2.1 million shares for $135.70 million and raising its quarterly dividend 8% to $0.41 per share. Looking ahead, management raised EchoPark adjusted EBITDA guidance to $35.00 million-$40.00 million, though tariff uncertainty clouds the outlook for second-half vehicle pricing, a concern some analysts covering the stock have flagged as a meaningful headwind.
Key Takeaways
- • EchoPark segment achieved all-time record quarterly pre-tax income, gross profit, and adjusted EBITDA driven by strong tax refund season
- • Franchised Dealerships fixed operations gross profit up 10% YoY to first quarter record, driven by technician hiring and retention
- • Franchised Dealerships F&I gross profit per unit up 9% YoY to record $2,670
- • Used vehicle unit sales volume growth of 3% across both Franchised and EchoPark segments
- • Powersports segment narrowed losses with revenue growth of 19% YoY
- • Share repurchases reduced diluted share count by 2% YoY, improving per-share metrics
SAH Forward Guidance & Outlook
For FY 2026, Sonic anticipates Franchised Dealerships new vehicle GPU of $2,700-$3,000 per unit (H2 potentially lower due to tariff impact), used vehicle GPU of $1,350-$1,450 per unit (raised from $1,300-$1,400), mid-single-digit same-store fixed operations gross profit growth, and F&I GPU of $2,600-$2,700 per unit. Adjusted SG&A as a percent of gross profit is expected in the low 70% range. Floor plan interest expense is anticipated to increase approximately 10% from FY 2025. Effective income tax rate is expected at 28.0%-29.0%. For EchoPark, the company expects adjusted EBITDA of $35-$40 million (raised from $25-$35 million), high-single-digit used retail unit volume growth, total GPU of $3,400-$3,600, and plans to resume disciplined expansion in Q4 2026 supported by $10-$20 million in incremental brand marketing beginning mid-2026. The Powersports segment is expected to deliver FY 2026 adjusted EBITDA of $14-$17 million (raised from $12-$15 million), including recent Harley-Davidson acquisitions expected to generate approximately $100 million in annualized revenue. Management flagged tariff uncertainty as a key risk to H2 2026 vehicle pricing and consumer demand.
SAH YoY Financials
Q1 2026 vs Q1 2025, source: SEC Filings
SAH Revenue by Segment
With YoY comparisons, source: SEC Filings
“I am grateful for our team's efforts in the first quarter, which delivered several first quarter and all-time quarterly records across our operating segments. Our Franchised Dealerships built on fourth quarter momentum to deliver record consolidated first quarter revenue, and our EchoPark team capitalized on a strong tax refund season to deliver an all-time record adjusted EBITDA of $18.6 million while continuing to provide a world-class guest experience. We are also excited to expand our Powersports segment in the great riding states of California, Florida, Georgia, and North Carolina. The acquisition of five new Harley-Davidson dealerships establishes Sonic Powersports as one of the fastest growing powersports retailers in the country and reinforces our commitment to diversifying our revenue base and enhancing shareholder returns.”
— David Smith, Q1 2026 Earnings Press Release
SAH Earnings Trends
SAH vs Market 30 Day Price Reactions
30-day stock return vs benchmark after each earnings
SAH EPS Trend
Earnings per share: estimate vs actual
SAH Revenue Trend
Quarterly revenue: estimate vs actual
SAH Quarterly Results
5 quarters of earnings data
| Quarter | EPS Est. | EPS Act. | Surprise | Revenue | Rev. Surprise |
|---|---|---|---|---|---|
| Q1 26 BEAT | $1.40 | $1.62 | +15.46% | $3.69B | -1.10% |
| Q4 25 BEAT FY | $1.50 | $1.52 | +1.66% | $3.87B | -1.69% |
| FY Full Year | $6.60 | $6.60 | -0.01% | $15.15B | -0.05% |
| Q3 25 MISS | $1.74 | $1.41 | -18.74% | $3.97B | +9.52% |
| Q2 25 BEAT | $1.60 | $2.19 | +36.58% | $3.66B | -0.03% |
| Q1 25 BEAT | $1.44 | $1.48 | +3.04% | $3.65B | +3.78% |