Sonic Automotive(US:SAH)2026-02-18 13:37Revenue Performance - Full year total revenues reached an all-time record of $15.2 billion, up 7% year-over-year[4] - Fourth quarter total revenues were $3.9 billion, down 1% year-over-year, with a record gross profit of $598.7 million, up 4% year-over-year[2] - EchoPark Segment revenues for the full year were $2.1 billion, down 3% year-over-year, but gross profit reached an all-time record of $233.9 million, up 13% year-over-year[11] - Franchised Dealerships Segment revenues for the full year were $12.9 billion, up 8% year-over-year, with gross profit of $2.1 billion, also up 8% year-over-year[4] - Total revenues for the twelve months ended December 31, 2025, increased by 7% to $15,153.6 million, up from $14,224.3 million in 2024[23] - Retail new vehicle revenues decreased by 4% to $1,852.2 million for the three months ended December 31, 2025, compared to $1,932.3 million in 2024[23] - Used vehicle revenues increased by 6% to $799.7 million for the three months ended December 31, 2025, compared to $757.0 million in 2024, contributing to total revenues of $12,879.1 million for the twelve months ended December 31, 2025, an 8% increase from $11,939.2 million in 2024[24] - EchoPark segment total revenues decreased by 5% to $480.7 million for the three months ended December 31, 2025, compared to $506.2 million in 2024[26] - Powersports segment total revenues rose by 19% to $36.4 million in Q4 2025, with retail new vehicle revenues increasing by 17% to $20.4 million[28] Profitability Metrics - Reported full year net income was $118.7 million, down 45% year-over-year, with adjusted net income of $229.2 million, up 17% year-over-year[4] - Fourth quarter EchoPark Segment income was $3.6 million, a 238% improvement year-over-year, with adjusted EBITDA of $8.8 million, up 110% year-over-year[2] - Total gross profit increased by 4% to $535.8 million for the three months ended December 31, 2025, compared to $517.4 million in 2024, with a total gross profit of $2,095.2 million for the twelve months ended December 31, 2025, an 8% increase from $1,941.2 million in 2024[24] - The gross profit for the same store segment decreased by 2% to $503.9 million for the three months ended December 31, 2025, compared to $515.0 million in 2024, with a total gross profit of $2,016.4 million for the twelve months, a 4% increase from $1,934.3 million[25] - Total gross profit for the Franchised Dealerships Segment rose to $2,095.2 million in 2025, an increase of $154.0 million or 8% compared to $1,941.2 million in 2024[33] - Total gross profit for the EchoPark Segment increased to $53.5 million in Q4 2025, up by $4.5 million or 9% from $49.0 million in Q4 2024[34] - Total gross profit for the Powersports segment increased by 25% to $9.4 million in Q4 2025, compared to $7.5 million in Q4 2024[36] Expenses and Cost Management - Total SG&A expenses as a percentage of gross profit were 70.4% for the full year, with 72.4% for the fourth quarter[4] - Total SG&A expenses reported at $433.7 million for the three months ended December 31, 2025, reflecting a 9% increase from $399.6 million in 2024[30] - Total adjusted SG&A expenses decreased by 6% to $433.7 million for the three months ended December 31, 2025, from $408.6 million in 2024[30] - Total SG&A expenses for the Franchised Dealerships Segment increased to $1,463.6 million in 2025 from $1,375.4 million in 2024, reflecting a change of $88.2 million or 6%[33] - Total SG&A expenses for the EchoPark Segment decreased slightly to $42.2 million in Q4 2025 from $42.6 million in Q4 2024, showing a change of $0.4 million or 1%[34] - Total SG&A expenses for the Powersports segment were reported at $9.0 million in Q4 2025, a 6% increase from $8.5 million in Q4 2024[36] Shareholder Returns - Sonic repurchased approximately 1.3 million shares of its Class A Common Stock for an aggregate purchase price of approximately $82.4 million during 2025[8] - A quarterly cash dividend of $0.38 per share was approved, payable on April 15, 2026[14] - Dividends declared per common share increased by 9% to $0.38 for the three months ended December 31, 2025, compared to $0.35 in 2024[23] Income and Earnings - Net income for the three months ended December 31, 2025, was $46.9 million, a decrease of 20% from $58.6 million in 2024[23] - Basic earnings per share for the three months ended December 31, 2025, decreased by 19% to $1.39, compared to $1.72 in 2024[23] - Reported net income for Q4 2025 was $46.9 million, with diluted earnings per share of $1.36, compared to $58.6 million and $1.67 per share in Q4 2024[41] - Adjusted net income for Q4 2025 was $52.2 million, resulting in adjusted diluted earnings per share of $1.52, slightly up from $53.1 million and $1.51 per share in Q4 2024[41] - For the full year 2025, reported net income was $118.7 million, with diluted earnings per share of $3.42, down from $216.0 million and $6.18 per share in 2024[41] - Adjusted net income for the full year 2025 reached $229.2 million, translating to adjusted diluted earnings per share of $6.60, compared to $195.8 million and $5.60 per share in 2024[41] Adjusted Metrics - Adjusted EBITDA for Q4 2025 was $148.5 million, compared to $149.3 million in Q4 2024, indicating a slight decrease[42] - For the full year 2025, adjusted EBITDA was $614.6 million, an increase from $560.1 million in 2024[42] - Total pre-tax adjustments for the full year 2025 amounted to $145.1 million, with a tax effect of $(39.9) million[41] - The company reported a non-recurring tax item of $5.3 million for the full year 2025[41] - Cyber insurance proceeds contributed $(40.0) million to the adjusted EBITDA for the full year 2025[42] - The company experienced storm damage charges of $5.0 million for the full year 2025, compared to $8.3 million in 2024[42]