Key Takeaways SAH posted Q2 adjusted EPS of $2.19, up 49% year over year and ahead of the $1.63 consensus estimate.Total revenues rose to $3.66B, with strong gains in new vehicles, finance, and parts and service sales.SAH raised its quarterly dividend by 9% to $0.38, payable on Oct. 15 to shareholders of record as of Sept. 15.Sonic Automotive, Inc. (SAH) posted second-quarter 2025 adjusted earnings per share of $2.19, which topped the Zacks Consensus Estimate of $1.63 and improved 49% from the year-ago quar ...

Core Insights - Sonic Automotive reported strong operational results for Q2 2025, with adjusted earnings per share of $2.19 and revenue of $3.7 billion, exceeding analyst expectations [1][2] - Despite positive operational data, the company recorded a net loss due to a significant non-cash impairment charge [1] - The quarter demonstrated solid segment trends, robust profit growth in key areas, and a higher dividend, although challenges related to costs and assets persist [1] Financial Performance - Adjusted EPS (Non-GAAP) was $2.19, surpassing the estimate of $1.63, and reflecting a 49% year-over-year increase [2] - Revenue reached $3.7 billion, slightly above the estimate of $3.68 billion, marking a 7% increase from $3.45 billion in Q2 2024 [2] - Gross profit was $602.2 million, up 12% from the previous year [2] - Adjusted EBITDA increased by 22% to $172.7 million [2] - EchoPark segment income saw a remarkable 679% increase to $10.9 million, despite a 2% decline in segment revenue [2][6] Business Model and Strategy - Sonic Automotive operates through three main segments: Franchised Dealerships, EchoPark, and Powersports [3] - The company emphasizes growth in luxury and used vehicle markets, supported by acquisitions and customer experience improvements [4] - Sonic's strategy includes expanding its store footprint, integrating new brands, and optimizing operational efficiency [4] Segment Performance - The Franchised Dealerships segment generated $3.1 billion in sales, a 7% increase, with segment income growing 74% to $91.6 million [5] - New vehicle unit sales rose by 5%, while used vehicle sales decreased by 4%, although profit per used vehicle improved by 3% [5] - The Powersports segment reported revenue of $48.1 million, but profits remained flat, with adjusted EBITDA down 13% [7] Recent Developments - Sonic completed the acquisition of four Jaguar Land Rover dealerships, expected to add approximately $500 million in annualized revenues [8] - The company raised its quarterly dividend by 9% to $0.38 per share, reflecting a commitment to capital return [10][12] Cost Management and Financial Position - SG&A as a percentage of gross profit improved to 68.5%, down from 72.9% a year ago, although absolute SG&A dollars increased by 5% [9] - The company ended the quarter with $210 million in cash and deposits, providing overall liquidity of $775 million [10] Future Outlook - Management did not provide specific financial guidance for the upcoming quarter or fiscal year, citing ongoing macroeconomic risks [11] - Investors are encouraged to monitor EchoPark's contribution to profit growth and the integration of newly acquired luxury dealerships [12]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ______________________________________ FORM 10-Q ______________________________________ (Mark One) ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2025 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to 4401 Colwick Road Charlotte, North Carolina 28211 (Address of principal execut ...

Financial Data and Key Metrics Changes - Reported GAAP EPS was a loss of $1.34 per share, primarily due to a non-cash charge related to annual franchise asset impairment testing. Adjusted EPS for the second quarter was $2.19 per share, a 49% increase year over year [4] - Consolidated total revenues reached a second quarter record, up 6% year over year, while consolidated gross profit grew 12% and consolidated adjusted EBITDA increased 22% [5] Business Line Data and Key Metrics Changes - Franchise Dealership segment generated record revenues of $3.1 billion, up 6% year over year, driven by a 5% increase in same store new retail volume and a 10% increase in same store fixed operations revenues [5] - Fixed operations gross profit and F&I gross profit set all-time quarterly records, up 1215% and 14% year over year respectively on a same store basis [6] - EchoPark segment income was an all-time quarterly record of $11.7 million, with adjusted EBITDA also at a record of $16.4 million, up 128% year over year [8] - Powersports segment generated record revenues of $48.1 million, up 21% year over year, with gross profit of $12.5 million, up 17% year over year [9] Market Data and Key Metrics Changes - Same store used vehicle GPU was $3,391, down 6% year over year but up 10% sequentially from the first quarter due to a surge in pre-tariff consumer demand [6] - EchoPark segment total GPU was an all-time quarterly record of $3,747 per unit, up $669 per unit year over year [8] Company Strategy and Development Direction - The company remains focused on deploying capital via a diversified growth strategy across franchise dealerships, EchoPark, and powersports segments to grow revenue and enhance shareholder returns [11] - The acquisition of four Jaguar Land Rover dealerships in California is expected to contribute approximately $500 million in annualized revenues to the franchise dealership segment [10] Management's Comments on Operating Environment and Future Outlook - Management noted that while there is uncertainty regarding the impact of tariffs on vehicle pricing, they have not seen a material impact to date [12] - The company is confident in its strategy and team to adapt to ongoing changes in the automotive retail environment and macroeconomic backdrop [13] Other Important Information - The Board of Directors approved a 9% increase to the quarterly cash dividend to $0.38 per share, payable on October 15, 2025 [11] - The company ended the quarter with $775 million in available liquidity, including $210 million in cash and floor plan deposits [10] Q&A Session Summary Question: What surprised you the most in Q2? - Management noted that the business picked up nicely in the back half of July, which was unexpected given the tariff noise [18] Question: Can you elaborate on the lease return expectations? - Management indicated that lease returns are expected to improve significantly in 2026, which will positively impact used vehicle inventory and volume growth [24][25] Question: What is the strategy regarding EchoPark's volume and profitability? - Management is being cautious with inventory management to maximize margins, which has resulted in strong gross dollars despite lower volume [30] Question: How did the new vehicle GPU trend throughout the quarter? - New vehicle GPUs were stronger at the beginning of the quarter, with April at approximately $3,600, May at $3,250, and June at $3,300 [40][42] Question: What are the expectations for new vehicle SAAR trajectory? - Management expects the SAAR to be in the range of 15 million to 16 million, depending on interest rates and market conditions [62]

Sonic Automotive (SAH) Q2 2025 Earnings Call July 24, 2025 11:00 AM ET Speaker0Good morning, and welcome to the Sonic Automotive Second Quarter twenty twenty five Earnings Conference Call. This conference call is being recorded today, Thursday, 07/24/2025. Presentation materials, accompany management's discussion on the conference call, can be accessed at the company's website at ir.sonicautomotive.com. At this time, I would like to refer to the Safe Harbor statement under the Private Securities and Litigat ...

Financial Performance & Segments - Sonic Automotive's total revenues were $1422 billion in FY 2024[8], a decrease of 1% compared to $1437 billion in FY 2023[71] - GAAP EPS was $618 in FY 2024[8], a 24% increase year-over-year[71] - Adjusted EPS was $681 in FY 2024[8] - Franchised Dealerships Segment revenues reached $119 billion in FY 2024[10] - EchoPark Segment revenues were $21 billion in FY 2024[10] - Powersports Segment revenues totaled $157 million in FY 2024[10] Franchised Dealerships Segment Strategy - Franchised Dealerships Segment adjusted EBITDA was $526 million in Q2 2025[19] - The company anticipates FY 2025 new vehicle GPU in the $2800 to $3200 per unit range[60] - The company anticipates used vehicle GPU in the $1300 to $1500 per unit range[60] EchoPark Segment Strategy - EchoPark Segment achieved an all-time record quarterly adjusted EBITDA in Q2 2025[44] - The company expects adjusted EBITDA between $50 million and $55 million for the EchoPark Segment in FY 2025[60]

Core Insights - Sonic Automotive reported quarterly earnings of $2.19 per share, exceeding the Zacks Consensus Estimate of $1.63 per share, and showing an increase from $1.47 per share a year ago, resulting in an earnings surprise of +34.36% [1] - The company achieved revenues of $3.66 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 0.44% and up from $3.45 billion year-over-year [2] - Sonic Automotive shares have increased approximately 26.2% year-to-date, outperforming the S&P 500's gain of 8.1% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $1.58 on revenues of $3.6 billion, and for the current fiscal year, it is $6.42 on revenues of $14.73 billion [7] - The estimate revisions trend for Sonic Automotive was favorable prior to the earnings release, leading to a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] Industry Context - The Automotive - Retail and Whole Sales industry is currently ranked in the top 39% of over 250 Zacks industries, suggesting a favorable outlook compared to the bottom 50% [8] - Penske Automotive, a competitor in the same industry, is expected to report quarterly earnings of $3.56 per share, reflecting a year-over-year change of -1.4%, with revenues anticipated to be $7.87 billion, up 2.2% from the previous year [9][10]

Exhibit 99.1 Sonic Automotive Reports Second Quarter 2025 Financial Results EchoPark Reports All-Time Record Quarterly Segment Income and Adjusted EBITDA* Previously Announced Acquisition of Four Jaguar Land Rover Dealerships in California Makes Sonic the Largest Jaguar Land Rover Volume Retailer in the U.S. and is Expected to Add Approximately $500 Million in Annualized Revenues CHARLOTTE, N.C. – July 24, 2025 – Sonic Automotive, Inc. ("Sonic Automotive," "Sonic," the "Company," "we" "us" or "our") (NYSE:S ...

Group 1 - Sonic Automotive (SAH) is a notable stock in the Retail-Wholesale sector, which consists of 204 individual stocks and holds a Zacks Sector Rank of 11 [2] - Sonic Automotive has a Zacks Rank of 2 (Buy), indicating a positive outlook based on earnings estimates and revisions, with a 2.5% increase in the consensus estimate for full-year earnings over the past quarter [3] - Year-to-date, Sonic Automotive has returned 21.8%, significantly outperforming the Retail-Wholesale sector average return of 5.8% [4] Group 2 - Sonic Automotive is part of the Automotive - Retail and Wholesale industry, which includes 10 companies and currently ranks 163 in the Zacks Industry Rank, with an average gain of 0.3% year-to-date [5] - In contrast, Stitch Fix (SFIX), another Retail-Wholesale stock, has returned 14.4% year-to-date and belongs to the Retail - Apparel and Shoes industry, which has declined by 9.4% [4][6] - Investors interested in Retail-Wholesale stocks should monitor Sonic Automotive and Stitch Fix for their continued strong performance [6]

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