Core Viewpoint - Sonic Automotive's fourth-quarter earnings report showed a mixed performance, with adjusted earnings per share slightly missing expectations and total revenues declining year over year, raising concerns about future performance [2][3]. Financial Performance - Fourth-quarter 2025 adjusted earnings per share were $1.52, a 1% increase year over year, but below the consensus estimate of $1.53 [2]. - Total revenues for the quarter were $3.87 billion, down 1% year over year, and also missed the consensus estimate of $3.91 billion [2]. - Consolidated revenues from new vehicles were $1.88 billion, a 4% decline year over year, while used-vehicle revenues increased by 1% to $1.21 billion [3]. - Wholesale vehicle revenues decreased by 11% to $63.6 million, while revenues from parts, service, and collision repair rose 8% to $515.3 million [3]. Segment Performance - In the Franchised Dealerships segment, new-vehicle revenues were $1.86 billion, down 4% year over year, while used-vehicle revenues rose 6% to $799.7 million [4]. - The EchoPark segment reported revenues of $480.7 million, down 5% year over year, with used-vehicle sales contributing $407.5 million, a 7% decline [5]. - The Powersports segment saw new-vehicle revenues increase by 17% to $20.4 million, and used-vehicle revenues rose by 40% to $6.6 million [6]. Cost Management - Selling, general and administrative (SG&A) expenses decreased by 9% year over year, accounting for 72.4% of gross profit [7]. Shareholder Returns - Sonic Automotive repurchased approximately 0.6 million shares for $38.3 million in the fourth quarter and bought back roughly 1.3 million shares for a total of approximately $82.4 million for the full year [8]. - A quarterly dividend of 38 cents per share was announced, payable on April 15, 2026 [8]. Future Guidance - For 2026, Sonic expects new vehicle gross profit per unit (GPU) in the range of $2,700 to $3,000 and used vehicle GPU in the range of $1,300 to $1,400 [9]. - The company anticipates adjusted EBITDA for the EchoPark segment between $25 million and $35 million and for the Powersports segment between $12 million and $15 million [10]. Market Sentiment - There has been a downward trend in estimates, with the consensus estimate shifting by 10.29% recently [11]. - Sonic Automotive currently holds a Zacks Rank 4 (Sell), indicating expectations of below-average returns in the coming months [13].

Core Insights - Sonic Automotive, Inc. (SAH) reported fourth-quarter 2025 adjusted earnings per share of $1.52, a 1% increase year over year, but below the Zacks Consensus Estimate of $1.53. Total revenues decreased by 1% year over year to $3.87 billion, missing the consensus estimate of $3.91 billion [1][9]. Revenue Breakdown - Revenues from new vehicles totaled $1.88 billion, down 4% year over year. Used-vehicle revenues increased by 1% to $1.21 billion, while wholesale vehicle revenues declined by 11% to $63.6 million. Revenues from parts, service, and collision repair rose by 8% to $515.3 million. Finance, insurance, and other revenues grew by 6% year over year to $202.3 million. Total gross profit increased by 4% to $598.7 million [2]. - In the Franchised Dealerships segment, new-vehicle revenues were $1.86 billion, down 4% year over year. Used-vehicle revenues rose by 6% to $799.7 million, while wholesale vehicle revenues declined by 16% to $41.8 million. Revenues from parts, service, and collision repair increased by 8% to $507.8 million, and finance, insurance, and other revenues climbed by 6% to $149.1 million. Same-store revenues fell by 5% year over year to $3.19 billion, with same-store retail new and used vehicle units declining by 4% to 55,122 [3]. - The EchoPark segment reported revenues of $480.7 million, down 5% year over year. Used-vehicle sales contributed $407.5 million, declining by 7%, while wholesale vehicle revenues edged up by 0.5% to $21.5 million. Finance, insurance, and other revenues increased by 6% to $51.7 million. EchoPark sold 15,743 used vehicles, down 6% year over year, and 2,365 wholesale vehicles, down 14% compared to the prior-year period [4]. - In the Powersports segment, new-vehicle revenues rose by 17% year over year to $20.4 million, while used-vehicle revenues increased by 40% to $6.6 million. Wholesale vehicle revenues surged by 300% to $0.4 million. Revenues from parts, service, and collision repair climbed by 7% to $7.5 million, and finance, insurance, and other revenues totaled $1.5 million. Same-store revenues increased by 17% to $33.4 million, with same-store retail new and used vehicle units growing by 16% year over year to 1,584 [5]. Financial Metrics - Selling, general, and administrative (SG&A) expenses declined by 9% year over year, accounting for 72.4% of gross profit. Cash and cash equivalents were $6.3 million as of December 31, 2025, down from $44 million as of December 31, 2024. Long-term debt increased to $1.62 billion as of December 31, 2025, up from $1.59 billion as of December 31, 2024 [6]. - During the fourth quarter, Sonic Automotive repurchased approximately 0.6 million shares for $38.3 million. For the full year 2025, the company bought back roughly 1.3 million shares for a total of approximately $82.4 million. A quarterly dividend of 38 cents per share was announced, to be paid on April 15, 2026, to stockholders of record as of March 13, 2026 [7]. Future Guidance - For 2026, in the Franchised Dealerships Segment, Sonic expects new vehicle gross profit per unit (GPU) in the range of $2,700 to $3,000, and used vehicle GPU anticipated in the range of $1,300 to $1,400. The company expects finance and insurance GPU in the range of $2,600 to $2,700 per unit [8]. - In the EchoPark Segment, adjusted EBITDA is expected to be between $25 million and $35 million, with total GPU anticipated in the range of $3,400 to $3,600 per unit. In the Powersports Segment, adjusted EBITDA is expected to be between $12 million and $15 million. Sonic Automotive sees FY26 SG&A in the low-70% range, with floor plan interest set to rise about 10% and tax rate projected in the band of 28-29% [10].

SONIC AUTOMOTIVE Investor Presentation | Fourth Quarter 2025 Updated February 18, 2026 Forward-Looking Statements This presentation contains "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and assumptions regarding our business, the economy and other future conditions. These statements can generally be identified by lead-in words such as "may," ...

Core Insights - Sonic Automotive, Inc. (SAH) reported Q3 2025 adjusted earnings per share of $1.41, missing the Zacks Consensus Estimate of $1.82 but showing an 11.9% increase from the previous year [1][9] - Total revenues reached $4 billion, exceeding the Zacks Consensus Estimate of $3.67 billion and rising 14% from $3.5 billion in the same quarter last year [1][9] Revenue Breakdown - Consolidated revenues from new vehicle sales were $1.9 billion, up 19% year over year; used vehicle sales generated $1.25 billion, up 6%; and wholesale vehicle sales totaled $84.2 million, up 25% [2] - Revenues from parts, service, and collision repair increased 11% to $533.9 million, while finance, insurance, and other revenues rose 16% to $203.8 million [2] - Total gross profit increased 13% to $615.5 million [2] Franchised Dealerships Segment - Revenues from new vehicle sales in this segment were $1.86 billion, up 19% year over year; used vehicle sales were $796.7 million, up 14%; and wholesale vehicle sales reached $52.8 million, up 25% [3] - Parts, service, and collision repair revenues increased 11% to $510.1 million, and finance, insurance, and other revenues jumped 21% to $147.6 million [3] - Same-store revenues rose 11% to over $3 billion, with same-store retail units of new and used vehicles totaling 54,897, a 5% increase from the same quarter of 2024 [3] EchoPark Segment - The EchoPark segment reported quarterly revenues of $522.5 million, down 4% year over year, with used vehicle sales at $439.2 million (down 7%) and wholesale vehicle sales at $30.4 million (up 28%) [4] - The segment sold 16,353 used vehicles and 3,224 wholesale vehicles, reflecting a decrease of 8% and an increase of 19%, respectively, year over year [4] Powersports Segment - Revenues from new vehicle sales in the Powersports segment totaled $38.8 million, up 44% year over year; used vehicle sales reached $17.2 million, up 91%; while wholesale vehicle sales were $1 million, down 9% [5] - Parts, service, and collision repair revenues rose 18% to $23.8 million, with same-store revenues up 35% to $78.3 million [5] - Same-store retail units of new and used vehicles were 2,822, a 42% increase year over year [5] Financial Metrics - Selling, general, and administrative expenses increased 15% year over year to 73.4% of gross profit [6] - Cash and cash equivalents stood at $89.4 million as of September 30, 2025, up from $44 million as of December 31, 2024 [6] - Long-term debt decreased to $1.44 billion as of September 30, 2025, down from $1.51 billion as of December 31, 2024 [6] Dividend Announcement - Sonic Automotive announced a quarterly dividend of 38 cents per share, payable on January 15, 2025, to stockholders of record as of December 15 [7] Market Position - Sonic Automotive currently holds a Zacks Rank 3 (Hold) [8] - Other better-ranked stocks in the auto sector include Cooper-Standard Holdings Inc. (CPS), OPENLANE, Inc. (KAR), and Garrett Motion Inc. (GTX), each with a Zacks Rank 1 (Strong Buy) [8]

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]

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]