Sonic Automotive Reports Record Q4 2025 Earnings and Strategic Expansion Plans
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 1 hour ago
0mins
Should l Buy SAH?
Source: seekingalpha
- Strong Performance: In Q4 2025, Sonic Automotive reported a GAAP EPS of $1.36 and an adjusted EPS of $1.52, reflecting a 1% year-over-year increase, while the full-year adjusted EPS reached $6.60, an 18% rise from 2024, indicating sustained profitability.
- Revenue Growth: Although total revenues for Q4 were $3.9 billion, down 1% year-over-year, the annual revenue hit an all-time high of $15.2 billion, up 7%, demonstrating the company's solid market position and growth potential.
- EchoPark Expansion: The EchoPark segment achieved adjusted income of $3.6 million and adjusted EBITDA of $8.8 million in Q4, with plans to begin new store openings in late 2026, aiming to cover 90% of U.S. car buyers and sell over 1 million vehicles annually.
- Strong Liquidity: The company maintains a robust liquidity position with $702 million available and $306 million in cash and floor plan deposits, alongside a quarterly cash dividend of $0.38 per share, reflecting financial health while pursuing expansion investments.
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Analyst Views on SAH
Wall Street analysts forecast SAH stock price to rise
6 Analyst Rating
3 Buy
2 Hold
1 Sell
Moderate Buy
Current: 58.280
Low
68.00
Averages
77.67
High
90.00
Current: 58.280
Low
68.00
Averages
77.67
High
90.00
About SAH
Sonic Automotive, Inc. is an automotive and powersports retailer in America. The Company's segments include Franchised Dealerships Segment, EchoPark Segment and Powersports Segment. The Franchised Dealerships Segment provides comprehensive sales and services, including sales of both new and used cars and light trucks; sales of replacement parts and performance of vehicle maintenance, manufacturer warranty repairs and paint and collision repair services, and arrangement of third-party financing, extended warranties, service contracts, insurance and other aftermarket products (collectively, F&I) for its guests. The EchoPark Segment sells used cars and light trucks and arranges third-party F&I product sales for its guests in pre-owned vehicle specialty retail locations, and does not offer customer-facing Fixed Operations services. The Powersports Segment offers guests sales of both new and used powersports vehicles; Fixed Operations activities, and third-party F&I services.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Sonic Automotive Reports Record Q4 2025 Earnings and Strategic Expansion Plans
- Strong Performance: In Q4 2025, Sonic Automotive reported a GAAP EPS of $1.36 and an adjusted EPS of $1.52, reflecting a 1% year-over-year increase, while the full-year adjusted EPS reached $6.60, an 18% rise from 2024, indicating sustained profitability.
- Revenue Growth: Although total revenues for Q4 were $3.9 billion, down 1% year-over-year, the annual revenue hit an all-time high of $15.2 billion, up 7%, demonstrating the company's solid market position and growth potential.
- EchoPark Expansion: The EchoPark segment achieved adjusted income of $3.6 million and adjusted EBITDA of $8.8 million in Q4, with plans to begin new store openings in late 2026, aiming to cover 90% of U.S. car buyers and sell over 1 million vehicles annually.
- Strong Liquidity: The company maintains a robust liquidity position with $702 million available and $306 million in cash and floor plan deposits, alongside a quarterly cash dividend of $0.38 per share, reflecting financial health while pursuing expansion investments.
See More
Sonic Automotive Q4 2025 Earnings Highlights
- Earnings Beat: Sonic Automotive reported a Q4 2025 non-GAAP EPS of $1.52, beating estimates by $0.02, indicating stable profitability despite slight revenue declines.
- Revenue Decline: The company’s revenue for Q4 was $3.87 billion, down 0.8% year-over-year and missing market expectations, reflecting the impact of an 11% drop in retail new vehicle sales on overall performance.
- Segment Performance Variance: The EchoPark segment generated revenues of $480.7 million, down 5% year-over-year, yet achieved a record gross profit of $53.5 million, up 9%, showcasing resilience in the used car market.
- Dividend Announcement: The Board approved a quarterly cash dividend of $0.38 per share, payable on April 15, 2026, indicating confidence in future cash flows and aiming to enhance shareholder returns.
See More
Sonic Automotive Reports Decline in Q4 Profit
- Profit Decline: Sonic Automotive's Q4 net profit fell to $46.9 million, or $1.36 per share, representing a 20.5% decrease from last year's $58.6 million and $1.67 per share, indicating a significant weakening in the company's profitability.
- Adjusted Earnings: Excluding items, Sonic reported adjusted earnings of $52.2 million, or $1.52 per share, which, despite a decline from the previous year, still demonstrates some degree of earnings resilience amid challenging conditions.
- Slight Revenue Drop: The company's revenue for the fourth quarter was $3.871 billion, down 0.6% from $3.895 billion last year, reflecting a slight softening in market demand that could impact future sales strategies.
- Uncertain Market Outlook: With both profit and revenue declining, Sonic Automotive faces greater market challenges and may need to reassess its operational strategies to cope with competitive pressures and market changes.
See More
Sonic Automotive Reports Q4 Earnings Below Expectations
- Disappointing Earnings: Sonic Automotive reported a fourth-quarter net profit of $46.9 million, translating to earnings of $1.36 per share, which, despite an adjusted figure of $1.52, fell short of Wall Street's expectation of $1.53, indicating pressure on the company's profitability.
- Revenue Miss: The company's fourth-quarter revenue was $3.87 billion, missing analysts' expectations of $3.91 billion, reflecting weakened market demand and intensified competition impacting sales performance.
- Annual Performance Overview: For the full year, Sonic Automotive reported a net profit of $118.7 million, or $3.42 per share, with total revenue reaching $15.15 billion, yet the lack of significant profit growth may undermine investor confidence moving forward.
- Market Reaction Anticipation: Given the earnings and revenue shortfalls, analysts may revise down their future profit forecasts for the company, potentially exerting negative pressure on its stock price and increasing market uncertainty.
See More
Sonic Automotive Reports Strong Q4 and FY 2025 Results
- Strong Financial Performance: In Q4 2025, Sonic Automotive reported total revenues of $3.87 billion, a 1% decline from Q4 2024, yet achieved an annual revenue of $15.15 billion, reflecting an 8% growth, showcasing the company's resilience and growth potential under a diversified business model.
- Cash Flow and Liquidity: As of December 31, 2025, the company had over $700 million in available liquidity, indicating strong cash flow generation and a robust balance sheet, providing ample financial support for future strategic investments.
- Dividend Distribution: The Board approved a quarterly cash dividend of $0.38 per share, payable on April 15, 2026, demonstrating the company's commitment to shareholder returns while reflecting its ongoing profitability.
- Management Outlook: Management emphasized a continued focus on operational excellence and cost control, with expectations to further optimize EchoPark's inventory and pricing strategies in 2026 to enhance customer experience and strengthen market competitiveness.
See More
Sonic Automotive Set to Announce Q4 Earnings on February 18
- Earnings Announcement Preview: Sonic Automotive is set to release its Q4 earnings on February 18 before market open, with a consensus EPS estimate of $1.50, reflecting a 0.7% year-over-year decline, which may impact investor confidence in the company's future profitability.
- Revenue Forecast Analysis: The expected Q4 revenue stands at $3.94 billion, representing a modest 1.0% year-over-year growth, indicating the company's ability to maintain stable revenue streams in a competitive market.
- Historical Performance Review: Over the past two years, Sonic Automotive has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, suggesting a degree of reliability in its financial performance.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with five downward adjustments, while revenue estimates also saw no upward revisions and two downward adjustments, reflecting a cautious market outlook on the company's future performance.
See More
Sonic Automotive Reports Record Q4 2025 Earnings and Strategic Expansion Plans
- Strong Performance: In Q4 2025, Sonic Automotive reported a GAAP EPS of $1.36 and an adjusted EPS of $1.52, reflecting a 1% year-over-year increase, while the full-year adjusted EPS reached $6.60, an 18% rise from 2024, indicating sustained profitability.
- Revenue Growth: Although total revenues for Q4 were $3.9 billion, down 1% year-over-year, the annual revenue hit an all-time high of $15.2 billion, up 7%, demonstrating the company's solid market position and growth potential.
- EchoPark Expansion: The EchoPark segment achieved adjusted income of $3.6 million and adjusted EBITDA of $8.8 million in Q4, with plans to begin new store openings in late 2026, aiming to cover 90% of U.S. car buyers and sell over 1 million vehicles annually.
- Strong Liquidity: The company maintains a robust liquidity position with $702 million available and $306 million in cash and floor plan deposits, alongside a quarterly cash dividend of $0.38 per share, reflecting financial health while pursuing expansion investments.
See More
Sonic Automotive Q4 2025 Earnings Highlights
- Earnings Beat: Sonic Automotive reported a Q4 2025 non-GAAP EPS of $1.52, beating estimates by $0.02, indicating stable profitability despite slight revenue declines.
- Revenue Decline: The company’s revenue for Q4 was $3.87 billion, down 0.8% year-over-year and missing market expectations, reflecting the impact of an 11% drop in retail new vehicle sales on overall performance.
- Segment Performance Variance: The EchoPark segment generated revenues of $480.7 million, down 5% year-over-year, yet achieved a record gross profit of $53.5 million, up 9%, showcasing resilience in the used car market.
- Dividend Announcement: The Board approved a quarterly cash dividend of $0.38 per share, payable on April 15, 2026, indicating confidence in future cash flows and aiming to enhance shareholder returns.
See More
Sonic Automotive Reports Decline in Q4 Profit
- Profit Decline: Sonic Automotive's Q4 net profit fell to $46.9 million, or $1.36 per share, representing a 20.5% decrease from last year's $58.6 million and $1.67 per share, indicating a significant weakening in the company's profitability.
- Adjusted Earnings: Excluding items, Sonic reported adjusted earnings of $52.2 million, or $1.52 per share, which, despite a decline from the previous year, still demonstrates some degree of earnings resilience amid challenging conditions.
- Slight Revenue Drop: The company's revenue for the fourth quarter was $3.871 billion, down 0.6% from $3.895 billion last year, reflecting a slight softening in market demand that could impact future sales strategies.
- Uncertain Market Outlook: With both profit and revenue declining, Sonic Automotive faces greater market challenges and may need to reassess its operational strategies to cope with competitive pressures and market changes.
See More
Sonic Automotive Reports Q4 Earnings Below Expectations
- Disappointing Earnings: Sonic Automotive reported a fourth-quarter net profit of $46.9 million, translating to earnings of $1.36 per share, which, despite an adjusted figure of $1.52, fell short of Wall Street's expectation of $1.53, indicating pressure on the company's profitability.
- Revenue Miss: The company's fourth-quarter revenue was $3.87 billion, missing analysts' expectations of $3.91 billion, reflecting weakened market demand and intensified competition impacting sales performance.
- Annual Performance Overview: For the full year, Sonic Automotive reported a net profit of $118.7 million, or $3.42 per share, with total revenue reaching $15.15 billion, yet the lack of significant profit growth may undermine investor confidence moving forward.
- Market Reaction Anticipation: Given the earnings and revenue shortfalls, analysts may revise down their future profit forecasts for the company, potentially exerting negative pressure on its stock price and increasing market uncertainty.
See More
Sonic Automotive Reports Strong Q4 and FY 2025 Results
- Strong Financial Performance: In Q4 2025, Sonic Automotive reported total revenues of $3.87 billion, a 1% decline from Q4 2024, yet achieved an annual revenue of $15.15 billion, reflecting an 8% growth, showcasing the company's resilience and growth potential under a diversified business model.
- Cash Flow and Liquidity: As of December 31, 2025, the company had over $700 million in available liquidity, indicating strong cash flow generation and a robust balance sheet, providing ample financial support for future strategic investments.
- Dividend Distribution: The Board approved a quarterly cash dividend of $0.38 per share, payable on April 15, 2026, demonstrating the company's commitment to shareholder returns while reflecting its ongoing profitability.
- Management Outlook: Management emphasized a continued focus on operational excellence and cost control, with expectations to further optimize EchoPark's inventory and pricing strategies in 2026 to enhance customer experience and strengthen market competitiveness.
See More
Sonic Automotive Set to Announce Q4 Earnings on February 18
- Earnings Announcement Preview: Sonic Automotive is set to release its Q4 earnings on February 18 before market open, with a consensus EPS estimate of $1.50, reflecting a 0.7% year-over-year decline, which may impact investor confidence in the company's future profitability.
- Revenue Forecast Analysis: The expected Q4 revenue stands at $3.94 billion, representing a modest 1.0% year-over-year growth, indicating the company's ability to maintain stable revenue streams in a competitive market.
- Historical Performance Review: Over the past two years, Sonic Automotive has beaten EPS estimates 63% of the time and revenue estimates 50% of the time, suggesting a degree of reliability in its financial performance.
- Estimate Revision Dynamics: In the last three months, there have been no upward revisions to EPS estimates, with five downward adjustments, while revenue estimates also saw no upward revisions and two downward adjustments, reflecting a cautious market outlook on the company's future performance.
See More
