Financial Data and Key Metrics Changes - Total revenue for FY 2025 was just under $2.5 billion, slightly ahead of FY 2024, driven by a decline in the new car market but mitigated by strong performance in used cars, finance and insurance, and service [3][19] - EBITDA was just over $110 million, with underlying profit before tax of $22.3 million, in line with guidance [3][19] - Net debt decreased to $46.7 million, down $14 million from the previous year, with a net debt to property ratio of 20% [4][27] Business Line Data and Key Metrics Changes - Used vehicle sales increased by 14% to 9,702 units, offsetting declines in new car sales [20] - Service and parts revenue grew to $422 million, up 4% from the previous year [20] - New car margins decreased by 0.8 percentage points from 16.9% to 16.1%, but margins in other service lines remained favorable [22][25] Market Data and Key Metrics Changes - The new car market remains highly competitive with an influx of new brands, leading to margin pressures [9][29] - Chinese brands now represent around 20% of the company's brand portfolio, with significant consumer acceptance noted [6][70] Company Strategy and Development Direction - The company aims to be Australia's most valued automotive group, focusing on innovation, customer centricity, organic growth, and acquisitions [12][13] - Emphasis on improving efficiencies through technology, including automation and AI, to enhance customer service and operational performance [15][18] - The strategy includes a balanced approach to managing used cars, service, parts, and finance to mitigate risks associated with new car market fluctuations [10][29] Management's Comments on Operating Environment and Future Outlook - Management noted that the automotive industry is undergoing significant transformation, with a focus on adapting to new vehicle emission standards and increasing competition [8][9] - The outlook for FY 2026 includes expectations for continued growth in higher-margin service lines and a stable new car market [29][30] - Management expressed confidence in the company's ability to grow earnings and maintain a strong performance culture [30][33] Other Important Information - The company successfully reduced new vehicle inventory from $382 million to $351 million, reflecting disciplined inventory management [5] - A fully frank final dividend of $0.04 per share was declared, bringing the total dividend for the year to $0.56 per share [27][28] Q&A Session Summary Question: What drove the stronger used car sales performance? - Management highlighted the focus on acquiring the right level of stock and maximizing opportunities in used car sales [37][38] Question: How much of the OpEx improvement came from lower commissions? - A significant portion of the OpEx reduction was attributed to lower commissions, with expectations for continued cost savings in FY 2026 [40][42] Question: What is the business performance outlook for the first seven weeks of FY 2026? - Management indicated that gross margins have remained stable at 16.1%, with a slight increase in overall market activity [43][44] Question: Have gross margins found a sustainable base? - Management confirmed that margins have stabilized and are expected to remain consistent into FY 2026 [48][49] Question: What is the outlook for new vehicle sales and OEM responses? - Management noted that several OEMs are releasing new models, which should positively impact sales, with stable order rates observed [56][60] Question: Can you provide details on the new Chinese brands onboarded? - The company currently represents brands such as LDV, MG, and GWM, with positive market reception noted [67][70]

Financial Performance - Revenue reached $2482.6 million in FY25, comparable to $2475.1 million in FY24[43] - Underlying Profit Before Tax (PBT) was $22.3 million, compared to $56.8 million in FY24[5] - EBITDA was $110.1 million in FY25, down from $135.0 million in FY24[5] - Net tangible assets (NTA) stood at $1.42 per share[5] Operational Highlights - New car and demo inventory reduced to $343.1 million at FY25, excluding acquisitions since FY24[7,8] - Reduction in new car and demo inventory resulted in $32 million (-8%) decrease[7] - The company has 14+ Chinese brand dealerships[7] - Headcount reduced from 2300 to 1900, leading to lower costs[7] Sales Performance - New vehicle units sold were 31,242 in FY25, compared to 32,429 in FY24[20] - Used vehicle units sold increased to 9,702 in FY25, up from 8,520 in FY24[20] - Service & Parts Revenue increased to $422 million in FY25, compared to $405 million in FY24[20]

Core Insights - Sonic Automotive, Inc. (SAH) reported second-quarter 2025 adjusted earnings per share of $2.19, exceeding the Zacks Consensus Estimate of $1.63 and reflecting a 49% increase from the previous year [1] - Total revenues reached $3.66 billion, surpassing the Zacks Consensus Estimate by 0.44% and increasing from $3.45 billion in the same quarter last year [1] Revenue Breakdown - Consolidated revenues from new vehicle sales amounted to $1.7 billion, up 7% year over year; used vehicle sales were $1.18 billion, nearly flat; and wholesale vehicle sales totaled $83.3 million, up 17% [2] - Revenues from parts, service, and collision repair increased by 12% to $495.6 million, while finance, insurance, and other revenues rose 17% year over year to $202.1 million [2] Franchised Dealerships Segment - In the Franchised Dealerships segment, revenues from new vehicle sales were $1.66 billion (up 7% year over year), used vehicle sales were $745 million (up 2%), and wholesale vehicle sales were $57.8 million (up 19%) [3] - Parts, service, and collision repair revenues increased by 12% to $484.9 million, and finance, insurance, and other revenues rose 16% to $144.3 million [3] - Same-store revenues increased by 6% to over $3 billion, with same-store retail units of new and used vehicles totaling 52,451, up 1% from the same quarter of 2024 [3] EchoPark Segment - The EchoPark segment reported quarterly revenues of $508.6 million, down 2% year over year, with used vehicle sales contributing $427.4 million (down 5%), wholesale vehicle sales at $25.4 million (up 16%), and finance, insurance, and other revenues at $55.8 million (up 20%) [4] - The segment sold 16,742 used vehicles and 3,097 wholesale vehicles, reflecting a 1% and 19% increase year over year, respectively [4] Powersports Segment - In the Powersports segment, revenues from new vehicle sales totaled $26.9 million (up 24% year over year), used vehicle sales were $8.3 million (up 57%), while wholesale vehicle sales decreased to $0.3 million (down 67%) [5] - Parts, service, and collision repair revenues rose by 9% to $10.6 million, with finance, insurance, and other revenues at $2 million [5] - Same-store revenues increased by 12% to $42.2 million, with same-store retail units of new and used vehicles totaling 1,962, up 19% year over year [5] Financial Metrics - Selling, general, and administrative expenses decreased by 5% year over year to 68.5% of gross profit [6] - Cash and cash equivalents stood at $110.4 million as of June 30, 2025, up from $44 million as of December 31, 2024; long-term debt decreased to $1.47 billion from $1.51 billion over the same period [6] Dividend Announcement - Sonic Automotive increased its quarterly dividend by 9% to $0.38 per share, payable on October 15, 2025, to shareholders of record as of September 15 [7]

Core Viewpoint - Wolters Kluwer has signed a binding agreement to divest its Finance, Risk and Regulatory Reporting (FRR) unit to Regnology Group GmbH for an enterprise value of approximately €450 million, allowing the company to focus on its core banking compliance and corporate legal services [1][2]. Financial Performance - In 2024, the FRR unit generated revenues of €123 million, accounting for about 10% of the total revenues of the FCC division [3]. - Wolters Kluwer reported annual revenues of €5.9 billion for 2024 [5]. Strategic Rationale - The divestment will enable Wolters Kluwer Financial & Corporate Compliance to concentrate on developing its existing positions in U.S. banking compliance and corporate legal and compliance services [2]. - Regnology aims to leverage FRR's expertise to enhance its regulatory and risk solutions, expanding into new territories and accelerating its vision for unified reporting solutions [3]. Transaction Details - The transaction is subject to regulatory approval and employee consultations, with an expected completion date in fall 2025 [3]. - Wolters Kluwer anticipates recording a non-benchmark capital gain upon completion of the divestment [3].