Financial Data and Key Metrics Changes - Reported GAAP EPS was a loss of $1.34 per share, while adjusted EPS for the second quarter was $2.19 per share, representing a 49% increase year over year [5] - Consolidated total revenues reached a record of $3.1 billion, up 6% year over year, with consolidated gross profit growing 12% and adjusted EBITDA increasing 22% [6] 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 [6] - Same store new vehicle gross profit per unit (GPU) was $3,391, down 6% year over year but up 10% sequentially [7] - EchoPark segment reported revenues of $509 million, down 2% year over year, but achieved a record gross profit of $62 million, up 22% year over year [10] - Powersports segment generated record revenues of $48.1 million, up 21% year over year, with gross profit increasing 17% [11] Market Data and Key Metrics Changes - Same store fixed operations gross profit increased by 12% year over year, with warranty gross profit up 34% and customer pay gross profit growing 9% year over year [9] - EchoPark segment retail unit sales volume increased by 1% year over year, with total GPU reaching a record of $3,747 per unit, up $669 year over year [10] Company Strategy and Development Direction - The company remains focused on a diversified growth strategy across franchise dealerships, EchoPark, and powersports segments to enhance revenue and shareholder returns [13] - The acquisition of four Jaguar Land Rover dealerships is expected to contribute approximately $500 million in annualized revenues, positioning the company as the largest Jaguar Land Rover retailer in the U.S. [12] Management's Comments on Operating Environment and Future Outlook - Management noted that while there are uncertainties due to tariffs, they have not seen a material impact on vehicle pricing to date [14] - The company is optimistic about the second half of the year, with expectations of improved performance in July and beyond [18] - Management expressed confidence in the EchoPark business model and its potential for disciplined long-term growth [10][21] Other Important Information - The Board of Directors approved a 9% increase in the quarterly cash dividend to $0.38 per share, payable on October 15, 2025 [13] - The company ended the quarter with $775 million in available liquidity, including $210 million in cash and floor plan deposits [12] 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: How do you view lease returns impacting your business? - Management indicated that lease returns are at a low point now, and as they increase, it will significantly benefit used vehicle inventory and sales volume [24] Question: Can you elaborate on the changes in your F&I agreements? - Management explained that they renegotiated positions with product providers, leading to cost savings and improved margins [36] Question: How did new vehicle GPU trend throughout the quarter? - New vehicle GPU was stronger at the beginning of the quarter, with figures around $3,600 in April, dropping to approximately $3,300 by June [40][42] Question: What are your expectations for new vehicle SAAR trajectory? - Management suggested that the SAAR could be in the range of 15 million to 16 million, depending on interest rates and market conditions [64]

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]

[Second Quarter 2025 Financial Results Overview](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Results%20Overview) [Executive Summary](index=1&type=section&id=Second%20Quarter%202025%20Financial%20Summary) Sonic Automotive reported record revenues and gross profit in Q2 2025, though a significant net loss resulted from a one-time non-cash impairment charge Key Financial Metrics (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | YoY Change | | :--- | :--- | :--- | | Total Revenues | $3.7 Billion | +6% | | Total Gross Profit | $602.2 Million | +12% | | Reported Net Loss | $(45.6) Million | -211% | | Reported Diluted Loss Per Share | $(1.34) | -214% | | Adjusted Net Income | $76.2 Million | +49% | | Adjusted Diluted Earnings Per Share | $2.19 | +49% | | Reported SG&A as a % of Gross Profit | 68.5% | -440 bps | | Adjusted SG&A as a % of Gross Profit | 69.2% | -150 bps | - The reported net loss was primarily driven by a **$172.4 million** non-cash, pre-tax franchise rights impairment charge[2](index=2&type=chunk) [Management Commentary](index=2&type=section&id=Commentary) Management highlighted record consolidated revenues and record adjusted EBITDA from the EchoPark segment, praising the team's performance and strategic execution - CEO David Smith expressed pride in the team for achieving record consolidated revenues and a record quarterly adjusted EBITDA for the EchoPark segment[3](index=3&type=chunk) - President Jeff Dyke noted the Franchised Dealerships segment achieved record total revenues, with fixed operations and F&I gross profit accounting for nearly **75% of total gross profit**[3](index=3&type=chunk) - CFO Heath Byrd emphasized the company's strong balance sheet, with approximately **$775 million in total liquidity**, and a focus on deploying capital through a diversified growth strategy[3](index=3&type=chunk)[5](index=5&type=chunk) [Strategic Developments and Shareholder Returns](index=2&type=section&id=Strategic%20Developments%20and%20Shareholder%20Returns) The company expanded its market leadership by acquiring four Jaguar Land Rover dealerships and increased its quarterly cash dividend by 9% - The company completed the acquisition of four Jaguar Land Rover dealerships, expected to add approximately **$500 million in annualized revenues**, making Sonic the largest Jaguar Land Rover retailer in the U.S[1](index=1&type=chunk)[3](index=3&type=chunk)[4](index=4&type=chunk) - The Board of Directors approved a **9% increase** in the quarterly cash dividend to **$0.38 per share**, payable on October 15, 2025[4](index=4&type=chunk)[7](index=7&type=chunk) [Second Quarter 2025 Segment Highlights](index=3&type=section&id=Second%20Quarter%202025%20Segment%20Highlights) [Franchised Dealerships Segment](index=3&type=section&id=Franchised%20Dealerships%20Segment) The Franchised Dealerships segment delivered higher total revenue and gross profit, driven by strong performance in fixed operations and F&I [Reported Operating Performance](index=7&type=section&id=Franchised%20Dealerships%20Segment%20-%20Reported) Franchised Dealerships Segment Reported Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues (in millions) | $3,100.5 | $2,896.2 | +7% | | Total Gross Profit (in millions) | $527.6 | $477.3 | +11% | | Retail New Vehicle Sales (Units) | 28,084 | 26,512 | +6% | | Retail Used Vehicle Sales (Units) | 24,953 | 25,668 | -3% | | Fixed Operations Gross Profit (in millions) | $248.9 | $219.0 | +14% | | F&I Gross Profit (in millions) | $144.3 | $124.2 | +16% | | Retail New PVR | $3,391 | $3,579 | -5% | | Retail Used PVR | $1,583 | $1,508 | +5% | | F&I PVR | $2,721 | $2,380 | +14% | [Same Store Operating Performance](index=8&type=section&id=Franchised%20Dealerships%20Segment%20-%20Same%20Store) Franchised Dealerships Segment Same Store Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Same Store Total Revenues (in millions) | $3,065.8 | $2,887.2 | +6% | | Same Store Total Gross Profit (in millions) | $521.2 | $477.3 | +9% | | Same Store Retail New Vehicle Sales (Units) | 27,867 | 26,432 | +5% | | Same Store Retail Used Vehicle Sales (Units) | 24,584 | 25,545 | -4% | | Same Store Fixed Operations Gross Profit | | | +12% | | Same Store F&I Gross Profit | | | +15% | | Same Store Retail New PVR | $3,391 | $3,603 | -6% | | Same Store Retail Used PVR | $1,590 | $1,541 | +3% | | Same Store F&I PVR | $2,718 | $2,383 | +14% | - As of June 30, 2025, the Franchised Dealerships segment had a **54-day supply** of new vehicles and a **35-day supply** of used vehicles[9](index=9&type=chunk) [EchoPark Segment](index=2&type=section&id=EchoPark%20Segment) The EchoPark segment achieved record gross profit, segment income, and adjusted EBITDA, reflecting strong operational efficiency and profitability gains [Reported Operating Performance](index=9&type=section&id=EchoPark%20Segment%20operating%20results%20include%3A) EchoPark Segment Reported Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues (in millions) | $508.6 | $517.3 | -2% | | Total Gross Profit (in millions) | $62.1 | $51.1 | +22% | | Retail Used Vehicle Sales (Units) | 16,742 | 16,641 | +1% | | Reported Segment Income (in millions) | $11.7 | $3.9 | +200% | | Adjusted Segment Income (in millions) | $10.9 | $1.4 | +679% | | Adjusted EBITDA (in millions) | $16.4 | $7.2 | +128% | | Used Vehicle & F&I PVR | $3,747 | $3,078 | +22% | [Same Market Operating Performance](index=10&type=section&id=EchoPark%20Segment%20-%20Same%20Market) EchoPark Segment Same Market Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Same Market Total Revenues (in millions) | $509.0 | $518.1 | -2% | | Same Market Total Gross Profit (in millions) | $61.6 | $51.9 | +19% | | Same Market Used Vehicle Sales (Units) | 16,742 | 16,641 | +1% | | Used Vehicle & F&I PVR | $3,717 | $3,127 | +19% | - As of June 30, 2025, the EchoPark segment had a **41-day supply** of used vehicles[9](index=9&type=chunk) [Powersports Segment](index=3&type=section&id=Powersports%20Segment) The Powersports segment delivered record revenue and gross profit, though impairment charges led to a decline in reported segment income and adjusted EBITDA [Reported Operating Performance](index=11&type=section&id=Powersports%20Segment%20operating%20results%20include%3A) Powersports Segment Reported Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues (in millions) | $48.1 | $39.6 | +21% | | Total Gross Profit (in millions) | $12.5 | $10.7 | +17% | | Retail New Vehicle Sales (Units) | 1,394 | 1,193 | +17% | | Used Vehicle Sales (Units) | 817 | 522 | +57% | | Segment Income (in millions) | $0.0 | $0.5 | -100% | | Adjusted EBITDA (in millions) | $2.0 | $2.3 | -13% | [Same Store Operating Performance](index=12&type=section&id=Powersports%20Segment%20-%20Same%20Store) Powersports Segment Same Store Performance (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Same Store Total Revenues (in millions) | $42.2 | $37.7 | +12% | | Same Store Total Gross Profit (in millions) | $11.4 | $10.3 | +11% | | Same Store Retail New Vehicle Sales (Units) | 1,237 | 1,159 | +7% | | Same Store Used Vehicle Sales (Units) | 725 | 495 | +46% | [Company Information](index=4&type=section&id=Company%20Information) [About Sonic Automotive](index=4&type=section&id=About%20Sonic%20Automotive) Sonic Automotive is a Fortune 500 company aiming to be the most valued diversified automotive retail and service brand in the United States - Sonic Automotive's goal is to become the **most valued diversified automotive retail and service brand** in America[11](index=11&type=chunk) - The company's culture is centered on creating an industry-leading customer experience through strategic investments in technology, its team, and its philosophy[11](index=11&type=chunk) [About EchoPark Automotive](index=4&type=section&id=About%20EchoPark%20Automotive) EchoPark Automotive is a leading retailer of nearly-new used vehicles, offering a best-in-class guest experience through a unique business model - EchoPark Automotive is one of the most comprehensive retailers of nearly-new pre-owned vehicles, offering a best-in-class shopping experience and innovative technology-driven sales process[12](index=12&type=chunk) - The company's guest-centric buying process provides savings of up to **$3,000 versus the competition** and earned it the 2023 DealerRater Consumer Satisfaction Award[12](index=12&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This report contains forward-looking statements subject to various risks and uncertainties that could cause actual results to differ materially from expectations - Forward-looking statements involve the company's future goals, plans, objectives, and operational performance[13](index=13&type=chunk) - These statements are not guarantees of future performance and are subject to risks such as tariffs, economic conditions, supply chain disruptions, inflation, and interest rate changes[13](index=13&type=chunk) [Non-GAAP Financial Measures](index=5&type=section&id=Non-GAAP%20Financial%20Measures) This release includes non-GAAP financial measures, and the company has provided reconciliations to the most directly comparable GAAP measures - Non-GAAP financial measures include adjusted net income, adjusted diluted EPS, adjusted SG&A as a percentage of gross profit, adjusted segment income, and adjusted EBITDA[14](index=14&type=chunk) - The company provides reconciliations for these measures to enhance disclosure transparency and provide a meaningful presentation of performance[14](index=14&type=chunk) [Company Contacts](index=5&type=section&id=Company%20Contacts) Contact information is provided for investor and media inquiries - Investor inquiries can be directed to Heath Byrd (EVP and CFO) or Danny Wieland (VP, Investor Relations & Financial Reporting) at ir@sonicautomotive.com[15](index=15&type=chunk) - Media inquiries can be directed to Sonic Automotive Media Relations at media.relations@sonicautomotive.com[15](index=15&type=chunk) [Second Quarter 2025 Earnings Conference Call Details](index=3&type=section&id=Second%20Quarter%202025%20Earnings%20Conference%20Call) Senior management will host a conference call on July 24, 2025, at 11:00 AM Eastern Time to discuss the second quarter financial results - The conference call will be held on **July 24, 2025, at 11:00 AM (Eastern Time)**[8](index=8&type=chunk) - Investors can access the live webcast at ir.sonicautomotive.com or by dialing (877) 407-8289 (domestic) or +1 (201) 689-8341 (international)[8](index=8&type=chunk)[10](index=10&type=chunk) [Financial Statements and Non-GAAP Reconciliations](index=6&type=section&id=Results%20of%20Operations%20(Unaudited)) [Consolidated Results of Operations](index=6&type=section&id=Results%20of%20Operations%20-%20Consolidated) Total revenues grew 6% to $3.66 billion, but a $172.4 million impairment charge led to a reported net loss of $45.6 million Consolidated Results of Operations (Q2 2025 vs Q2 2024) | Metric (in millions, except per share data) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Total Revenues | $3,657.2 | $3,453.0 | 6% | | Total Gross Profit | $602.2 | $539.1 | 12% | | Income (Loss) from Operations | $(23.3) | $107.7 | (122)% | | Income (Loss) Before Taxes | $(69.1) | $55.7 | (224)% | | Net Income (Loss) | $(45.6) | $41.2 | (211)% | | Diluted Earnings (Loss) Per Share | $(1.34) | $1.18 | (214)% | | Dividends Per Share | $0.35 | $0.30 | 17% | - Q2 2025 results include a **$172.4 million impairment charge**, compared to a $1.4 million charge in Q2 2024[17](index=17&type=chunk) [Non-GAAP Reconciliations - SG&A Expenses](index=13&type=section&id=Non-GAAP%20Reconciliations%20-%20SG&A%20Expenses) This section provides reconciliations of reported SG&A expenses to adjusted SG&A expenses for the consolidated company and its operating segments [Consolidated SG&A Expenses](index=13&type=section&id=Non-GAAP%20Reconciliation%20-%20Consolidated%20-%20SG&A%20Expenses) Consolidated SG&A Expense Reconciliation (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Reported Total SG&A Expenses (in millions) | $412.6 | $393.0 | (5)% | | Adjusted Total SG&A Expenses (in millions) | $416.9 | $382.7 | (9)% | | Reported SG&A as a % of Gross Profit | 68.5% | 72.9% | 440 bps | | Adjusted SG&A as a % of Gross Profit | 69.2% | 70.7% | 150 bps | - Adjustments to Q2 2025 SG&A include a **$10.0 million cyber insurance recovery** and **$4.1 million in storm damage expenses**[25](index=25&type=chunk) [Franchised Dealerships Segment SG&A Expenses](index=15&type=section&id=Non-GAAP%20Reconciliation%20-%20Franchised%20Dealerships%20Segment%20-%20SG&A%20Expenses) Franchised Dealerships Segment SG&A Expense Reconciliation (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Reported Total SG&A Expenses (in millions) | $360.2 | $347.9 | (4)% | | Adjusted Total SG&A Expenses (in millions) | $363.7 | $335.1 | (9)% | | Reported SG&A as a % of Gross Profit | 68.3% | 72.9% | 460 bps | | Adjusted SG&A as a % of Gross Profit | 68.9% | 69.9% | 100 bps | - Adjustments to Q2 2025 SG&A include a **$10.0 million cyber insurance recovery** and **$4.1 million in storm damage expenses**[27](index=27&type=chunk) [EchoPark Segment SG&A Expenses](index=17&type=section&id=Non-GAAP%20Reconciliation%20-%20EchoPark%20Segment%20-%20SG&A%20Expenses) EchoPark Segment SG&A Expense Reconciliation (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Reported Total SG&A Expenses (in millions) | $42.2 | $37.2 | (13)% | | Adjusted Total SG&A Expenses (in millions) | $43.0 | $39.7 | (8)% | | Reported SG&A as a % of Gross Profit | 68.0% | 72.9% | 490 bps | | Adjusted SG&A as a % of Gross Profit | 69.3% | 77.7% | 840 bps | [Powersports Segment SG&A Expenses](index=19&type=section&id=Non-GAAP%20Reconciliation%20-%20Powersports%20Segment%20-%20SG&A%20Expenses) Powersports Segment SG&A Expense Reconciliation (Q2 2025 vs Q2 2024) | Metric | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Reported Total SG&A Expenses (in millions) | $10.2 | $7.9 | (29)% | | Reported SG&A as a % of Gross Profit | 81.1% | 73.7% | (740) bps | [Non-GAAP Reconciliations - Segment Income (Loss)](index=20&type=section&id=Non-GAAP%20Reconciliations%20-%20Segment%20Income%20(Loss)) This section reconciles income (loss) before taxes to segment income (loss) and adjusted segment income (loss) for each operating segment [Franchised Dealerships Segment Income (Loss)](index=20&type=section&id=Non-GAAP%20Reconciliation%20-%20Franchised%20Dealerships%20Segment%20-%20Income%20(Loss)%20Before%20Taxes%20and%20Segment%20Income%20(Loss)) Franchised Dealerships Segment Income (Loss) Reconciliation (Q2 2025 vs Q2 2024) | Metric (in millions) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Reported Income (Loss) Before Taxes | $(74.3) | $52.7 | (241)% | | Segment Income (Loss) | $91.6 | $52.7 | 74% | | Adjusted Segment Income (Loss) | $88.1 | $67.5 | 31% | - Q2 2025 adjustments include a **$165.9 million impairment charge** and a **$10.0 million cyber insurance recovery**[34](index=34&type=chunk) [EchoPark Segment Income (Loss)](index=20&type=section&id=Non-GAAP%20Reconciliation%20-%20EchoPark%20Segment%20-%20Income%20(Loss)%20Before%20Taxes%20and%20Segment%20Income%20(Loss)) EchoPark Segment Income (Loss) Reconciliation (Q2 2025 vs Q2 2024) | Metric (in millions) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Reported Income (Loss) Before Taxes | $11.7 | $2.5 | 368% | | Segment Income (Loss) | $11.7 | $3.9 | 200% | | Adjusted Segment Income (Loss) | $10.9 | $1.4 | 679% | [Powersports Segment Income (Loss)](index=21&type=section&id=Non-GAAP%20Reconciliation%20-%20Powersports%20Segment%20-%20Income%20(Loss)%20Before%20Taxes%20and%20Segment%20Income%20(Loss)) Powersports Segment Income (Loss) Reconciliation (Q2 2025 vs Q2 2024) | Metric (in millions) | Q2 2025 | Q2 2024 | YoY Change | | :--- | :--- | :--- | :--- | | Reported Income (Loss) Before Taxes | $(6.5) | $0.5 | (1400)% | | Segment Income (Loss) | $0.0 | $0.5 | (100)% | | Adjusted Segment Income (Loss) | $0.0 | $0.5 | (100.0)% | - Q2 2025 adjustments include a **$6.5 million impairment charge**[35](index=35&type=chunk) [Non-GAAP Reconciliation - Consolidated Net Income (Loss) and Diluted Earnings (Loss) Per Share](index=22&type=section&id=Non-GAAP%20Reconciliation%20-%20Consolidated%20-%20Net%20Income%20(Loss)%20and%20Diluted%20Earnings%20(Loss)%20Per%20Share) Adjusted net income was $76.2 million, or $2.19 per diluted share, a 49% year-over-year increase after excluding special items Consolidated Net Income (Loss) and Diluted EPS Reconciliation (Q2 2025 vs Q2 2024) | Metric (in millions, except per share data) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Reported Net Income (Loss) | $(45.6) | $41.2 | | Reported Diluted Earnings (Loss) Per Share | $(1.34) | $1.18 | | Total Pre-Tax Adjustments | $168.1 | $13.7 | | Tax Impact of Above Items | $(46.3) | $(3.6) | | Adjusted Net Income (Loss) | $76.2 | $51.3 | | Adjusted Diluted Earnings (Loss) Per Share | $2.19 | $1.47 | - **Adjusted diluted earnings per share increased 49%** year-over-year[2](index=2&type=chunk) - Key pre-tax adjustments include a **$172.4 million impairment charge** and a **$10.0 million cyber insurance recovery**[36](index=36&type=chunk) [Non-GAAP Reconciliation - Adjusted EBITDA](index=23&type=section&id=Non-GAAP%20Reconciliation%20-%20Adjusted%20EBITDA) Consolidated adjusted EBITDA for Q2 2025 was $172.7 million, driven by strong performance from the Franchised Dealerships and EchoPark segments Adjusted EBITDA Reconciliation (Q2 2025 vs Q2 2024) | Segment (in millions) | Q2 2025 | Q2 2024 | | :--- | :--- | :--- | | Franchised Dealerships Segment | $154.3 | $131.8 | | EchoPark Segment | $16.4 | $7.2 | | Powersports Segment | $2.0 | $2.3 | | **Total Adjusted EBITDA** | **$172.7** | **$141.3** | - EchoPark segment adjusted EBITDA **increased 128%** year-over-year[4](index=4&type=chunk)[37](index=37&type=chunk) - Powersports segment adjusted EBITDA **decreased 13%** year-over-year[9](index=9&type=chunk)[37](index=37&type=chunk)

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]

Rallygoers can Purchase or Win One of 26 Exclusive Sturgis Edition Motorcycles and Join the Sturgis Harley-Davidson Founders Club CHARLOTTE, N.C. and STURGIS, S.D., July 22, 2025 /PRNewswire/ -- Sonic Automotive, Inc. ("Sonic" or the "Company") (NYSE: SAH), one of the nation's largest automotive and powersports retailers, is kicking off a milestone celebration for the 85th Sturgis Motorcycle Rally with a regionwide push across all five of its Harley- Davidson dealerships in the Black Hills, including the fi ...

Here at Zacks, we focus on our proven ranking system, which places an emphasis on earnings estimates and estimate revisions, to find winning stocks. But we also understand that investors develop their own strategies, so we are constantly looking at the latest trends in value, growth, and momentum to find strong companies for our readers.Of these, perhaps no stock market trend is more popular than value investing, which is a strategy that has proven to be successful in all sorts of market environments. Value ...

Core Insights - Auto retail ecosystem companies have shown strong performance year-to-date despite the announcement of auto tariffs and weakening industry fundamentals [1] - JPMorgan analyst Rajat Gupta has made several rating changes for key automotive stocks [1] Cars.com - JPMorgan upgraded Cars.com Inc (CARS) from Neutral to Overweight with a price target of $14 [2] - The company has made significant progress in developing new products that integrate into dealers' workflows, which is expected to help retain dealer customers [3] Sonic Automotive - Sonic Automotive Inc (SAH) was downgraded from Overweight to Underweight, with a price target increase from $65 to $72 [4] - Despite a strong luxury brand mix and exposure to key markets like California and Texas, Sonic has underperformed its peers and trades at a premium [4] Group 1 Automotive - Group 1 Automotive Inc (GPI) was downgraded from Overweight to Neutral, with a price target reduction from $435 to $415 [5] - The company's solid execution has been aided by favorable Texas exposure, but regional concentration increases volatility [5] Asbury Automotive Group - Asbury Automotive Group Inc (ABG) was downgraded from Neutral to Underweight, with a price target cut from $235 to $225 [5] - While the company is positioned for long-term growth through strategic acquisitions and digital investments, risks related to integration, execution, and elevated leverage are concerning [6]

Technical Analysis - Sonic Automotive, Inc. (SAH) has reached a key level of support, indicated by a "golden cross" where the 50-day simple moving average has crossed above the 200-day simple moving average [1] - A golden cross is a bullish technical chart pattern that suggests a potential breakout, typically involving the 50-day and 200-day moving averages [2] Market Performance - Over the past four weeks, shares of SAH have increased by 9.1%, indicating positive market momentum [4] - The company currently holds a 3 (Hold) rating on the Zacks Rank, suggesting it may be poised for further breakout [4] Earnings Expectations - There have been five upward revisions in earnings expectations for the current quarter, with no downward changes in the past 60 days, which supports the bullish outlook for SAH [4] - The Zacks Consensus Estimate for SAH has also moved higher, reinforcing investor confidence in the stock's upward trend [4] Investment Consideration - Given the significant technical indicator and the positive movement in earnings estimates, SAH is recommended for inclusion on investors' watchlists [6]

Company Overview - Sonic Automotive (SAH) is headquartered in Charlotte and operates in the Retail-Wholesale sector [3] - The stock has experienced a price change of 5.57% since the beginning of the year [3] Dividend Information - Sonic Automotive currently pays a dividend of $0.35 per share, resulting in a dividend yield of 2.09% [3] - This yield is significantly higher than the Automotive - Retail and Wholesale industry's yield of 0.23% and the S&P 500's yield of 1.57% [3] - The company's annualized dividend of $1.40 has increased by 12% from the previous year [4] - Over the last 5 years, Sonic Automotive has raised its dividend 4 times, averaging an annual increase of 35.72% [4] - The current payout ratio is 24%, indicating that the company pays out 24% of its trailing 12-month EPS as dividends [4] Earnings Growth - Earnings growth for Sonic Automotive appears strong, with the Zacks Consensus Estimate for 2025 at $6.43 per share, reflecting a 14.82% increase from the previous year [5] Investment Considerations - Dividends are favored by investors for various reasons, including improving stock investing profits and providing tax advantages [6] - High-yielding stocks may face challenges during periods of rising interest rates, but Sonic Automotive presents a compelling investment opportunity as a strong dividend play [7] - The stock currently holds a Zacks Rank of 3 (Hold) [7]