Sonic Automotive(US:SAH)2025-10-23 20:02Revenue Growth - Same store retail new vehicle revenue increased by 13% and 11% for the three and nine months ended September 30, 2025, driven by an 8% increase in retail new vehicle unit sales volume[104]. - Same store retail used vehicle revenue increased by 10% and 4% during the three and nine months ended September 30, 2025, primarily due to a 6% and 5% increase in retail used vehicle average selling prices[105]. - Same store Fixed Operations revenue increased by 6% and 7% during the three and nine months ended September 30, 2025, driven by increased service capacity and higher parts and labor costs[106]. - Same store F&I revenue increased by 13% and 12% during the three and nine months ended September 30, 2025, supported by a 7% and 8% increase in F&I gross profit per retail unit[107]. - Reported retail new vehicle revenue increased by 44% and 32% for the three and nine months ended September 30, 2025, respectively, driven by a 32% and 23% increase in retail new vehicle unit sales volume[112]. - Reported retail used vehicle revenue surged 91% and 77% during the three and nine months ended September 30, 2025, primarily due to an 81% and 64% increase in unit sales volume[114]. - Total new vehicle revenue reached $1,898.8 million for the three months ended September 30, 2025, a 19% increase from the previous year[127]. - Total new vehicle revenue reached $5,272.6 million, reflecting a 14% increase compared to $4,643.2 million in the previous year[128]. - Retail new vehicle revenue for Q3 2025 was $1,834.0 million, a 19% increase from $1,539.9 million in Q3 2024[142]. - Total retail used vehicle revenue for the nine months ended September 30, 2025, was $3,658.8 million, a 2% increase from $3,582.5 million in 2024[130]. Profitability Metrics - Retail new vehicle gross profit per unit decreased by $215 per unit, or 7%, to $2,852 per unit during the three months ended September 30, 2025[104]. - Retail new vehicle gross profit increased 49% and 37% during the three and nine months ended September 30, 2025, with gross profit per unit rising to $3,655 for the three months and $3,133 for the nine months[112]. - Fixed Operations revenue increased 18% and 13% during the three and nine months ended September 30, 2025, with gross profit rising 21% and 15% respectively[116]. - Retail new vehicle gross profit decreased by 3% to $263.9 million, with gross profit per unit declining by 10% to $3,114[148]. - Retail used vehicle gross profit increased by 13% to $39.2 million for the three months ended September 30, 2025, with gross profit per unit rising by 10% to $1,530[151]. - Gross profit for Fixed Operations reached $272.4 million in Q3 2025, reflecting a 14% increase from $239.9 million in Q3 2024[135]. - Total gross profit for the nine months ended September 30, 2025, increased by approximately $60.0 million, or 9%, compared to the same period in 2024[161]. Vehicle Sales Performance - Retail new vehicle unit sales increased by 10% to 90,639 units in 2025, compared to 82,504 units in 2024[128]. - Total combined retail new and used vehicle unit sales increased by 6% to 76,253 units in Q3 2025, compared to 72,131 units in Q3 2024[138]. - Retail used vehicle unit sales for the three months ended September 30, 2025, were 44,167, a 2% increase from 43,474 units in 2024[130]. - Retail new vehicle unit sales increased by 9% to 86,581 units for the nine months ended September 30, 2025, up from 79,200 units in 2024[144]. - Total new vehicle unit sales for Q3 2025 reached 30,994 units, reflecting a 12% increase from 27,797 units in Q3 2024[142]. - Total wholesale vehicle unit sales for the three months ended September 30, 2025, increased by 676 units, or 14%, totaling 5,649 units sold[153]. Inventory Management - The Franchised Dealerships Segment new vehicle inventory days' supply was approximately 51 days as of September 30, 2025, compared to 57 days as of September 30, 2024[104]. - EchoPark Segment used vehicle inventory days' supply was approximately 37 days as of September 30, 2025, compared to 33 days as of September 30, 2024[111]. Financial Position and Cash Flow - Cash flows from operating activities provided approximately $500.5 million in the nine months ended September 30, 2025, significantly up from approximately $21.5 million in the same period of 2024[245]. - Total available liquidity resources as of September 30, 2025, were approximately $815.0 million, down from $861.6 million as of December 31, 2024[235]. - Net cash provided by combined trade and non-trade floor plan financing was approximately $222.1 million in the nine months ended September 30, 2025, compared to $107.4 million in 2024[248]. - Net cash used in investing activities for the nine months ended September 30, 2025, was approximately $494.3 million, a significant increase from $87.0 million in the same period of 2024[249]. Segment Performance - Total Franchised Dealerships Segment revenues reached $3,367.2 million, an increase of 17% compared to $2,887.2 million in the previous year[211]. - EchoPark Segment revenues decreased by 2% to $1,590.9 million, down from $1,621.6 million[213]. - Powersports Segment revenues increased by 42% to $84.1 million, up from $59.4 million[211]. Expenses and Cost Management - For the nine months ended September 30, 2025, Sonic Automotive reported a total SG&A expense of $1,244.5 million, an increase of $67.1 million or 6% compared to $1,177.4 million for the same period in 2024[218][221]. - Compensation expenses for the nine months ended September 30, 2025, were $806.8 million, an increase of $56.5 million or 8% compared to $750.3 million for the same period in 2024[218][221]. - Advertising expenses for the nine months ended September 30, 2025, increased to $74.6 million, a rise of $9.1 million or 14% compared to $65.5 million in 2024[218][221]. Interest and Taxation - Interest expense for new vehicles decreased by $5.7 million for the nine months ended September 30, 2025, driven by a decrease in the average interest rate applied to the new vehicle floor plan[228]. - The overall effective income tax rate was 34.3% for the three months ended September 30, 2025, compared to a benefit of 22.0% for the same period in 2024[232]. Future Outlook - The company anticipates continued consumer demand for electric vehicles, contributing to future sales growth[147]. - The company does not anticipate any materially negative changes to its cost of, or access to, capital over the next 12 months[258].