Sonic Automotive Q4 Earnings Miss Expectations, Revenues Decline Y/Y

Sonic Automotive, Inc. SAH posted fourth-quarter 2025 adjusted earnings per share of $1.52, which increased 1% year over year but missed the Zacks Consensus Estimate of $1.53. Total revenues declined 1% year over year to $3.87 billion and missed the consensus estimate of $3.91 billion.

SAH’s Q4 in Detail

On a consolidated basis, revenues from new vehicles totaled $1.88 billion, down 4% year over year. Used-vehicle revenues increased 1% to $1.21 billion, while wholesale vehicle revenues declined 11% to $63.6 million. Revenues from parts, service and collision repair rose 8% to $515.3 million. Finance, insurance and other revenues grew 6% year over year to $202.3 million. Total gross profit increased 4% to $598.7 million.

In the Franchised Dealerships segment, new-vehicle revenues totaled $1.86 billion, down 4% year over year. Used-vehicle revenues rose 6% to $799.7 million, while wholesale vehicle revenues declined 16% to $41.8 million. Revenues from parts, service and collision repair increased 8% to $507.8 million, and finance, insurance and other revenues climbed 6% to $149.1 million. The segment’s same-store revenues fell 5% year over year to $3.19 billion. Same-store retail new and used vehicle units declined 4% to 55,122 compared with the year-ago quarter.

The EchoPark segment reported quarterly revenues of $480.7 million, down 5% year over year. Used-vehicle sales contributed $407.5 million, declining 7%, while wholesale vehicle revenues edged up 0.5% to $21.5 million. Finance, insurance and other revenues increased 6% to $51.7 million. During the quarter, EchoPark sold 15,743 used vehicles, down 6% year over year, and 2,365 wholesale vehicles, down 14% compared with the prior-year period.

In the Powersports segment, new-vehicle revenues rose 17% year over year to $20.4 million, while used-vehicle revenues increased 40% to $6.6 million. Wholesale vehicle revenues surged 300% to $0.4 million. Revenues from parts, service and collision repair climbed 7% to $7.5 million, and finance, insurance and other revenues totaled $1.5 million. The segment’s same-store revenues increased 17% to $33.4 million. Same-store retail new and used vehicle units grew 16% year over year to 1,584.

Sonic Automotive, Inc. Price, Consensus and EPS Surprise

Sonic Automotive, Inc. price-consensus-eps-surprise-chart | Sonic Automotive, Inc. Quote

Other Tidbits

In the fourth quarter, Sonic Automotive’s selling, general and administrative (SG&A) expenses declined 9% year over year, accounting for 72.4% of gross profit, compared with the prior-year period.

SAH had cash & cash equivalents of $6.3 million as of Dec. 31, 2025, down from $44 million as of Dec. 31, 2024. Long-term debt was $1.62 billion as of Dec. 31, 2025, up from $1.59 billion as of Dec. 31, 2024.

During the fourth quarter, Sonic Automotive repurchased approximately 0.6 million shares for $38.3 million. For full-year 2025, the company bought back roughly 1.3 million shares for a total of approximately $82.4 million.

Sonic Automotive announced a quarterly dividend of 38 cents per share, which will be paid out on April 15, 2026, to its stockholders of record as of March 13, 2026.

Sonic Provides 2026 Guidance

In the Franchised Dealerships Segment, Sonic expects new vehicle GPU in the range of $2,700 to $3,000 per unit. Used vehicle GPU is anticipated in the range of $1,300 to $1,400 per unit. The company expects F&I GPU in the range of $2,600 to $2,700 per unit.

In the EchoPark Segment, the company expects adjusted EBITDA between $25-$35 million. Total GPU is expected in the range of $3,400 to $3,600 per unit.

In the Powersports Segment, the company expects 2026 adjusted EBITDA between $12 million and $15 million.

Sonic Automotive sees FY26 SG&A in low-70% range, with floor plan interest set to rise about 10% and tax rate projected in the band of 28-29%.

Sonic’s Zacks Rank & Key Picks

SAH carries a Zacks Rank #4 (Sell) at present.

Some better-ranked stocks in the auto space are Ford Motor F, Modine Manufacturing MOD and Strattec Security STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.3% and 39.5%. The EPS estimate for 2026 and 2027 has improved 5 cents each in the past 30 days.

The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 85 cents, respectively, in the past 30 days.

The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved $1.01 and 48 cents, respectively, in the past 30 days.

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