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Jun 30
Sonic Automotive Q2 2025 Earnings Report
Sonic Automotive reported a net loss due to impairment charges despite record revenues and gross profit in Q2 2025.
Key Takeaways
Sonic Automotive delivered record Q2 revenues and gross profit, but a large non-cash impairment charge resulted in a net loss. EchoPark achieved record segment income and adjusted EBITDA, while Franchised Dealerships posted strong F&I and fixed operations growth.
Record Q2 revenues of $3.66 billion and gross profit of $602.2 million
Reported net loss of $45.6 million due to a $172.4 million non-cash impairment charge
Adjusted net income rose 49% YoY to $76.2 million
EchoPark achieved all-time record adjusted EBITDA of $16.4 million
Sonic Automotive
Sonic Automotive
Sonic Automotive Revenue by Segment
Revenue by Segment
Franchised Dealerships Revenue
CapyFin.comEchoPark Revenue
CapyFin.comPowersports Revenue
CapyFin.com Forward Guidance
Sonic expects continued growth from its recent acquisitions and investments in franchised dealerships, EchoPark, and Powersports, but remains cautious about potential tariff impacts and macroeconomic uncertainty.
Positive Outlook
- Jaguar Land Rover acquisitions expected to add $500M in annualized revenue
- EchoPark targeting long-term volume and profitability growth
- Strong liquidity position with $775M available
- Ongoing optimization of expense structure
- F&I and fixed operations strength driving gross profit mix
Challenges Ahead
- Tariff uncertainty may affect consumer demand and vehicle pricing
- Potential margin pressure from changing inventory levels
- Macroeconomic uncertainty could impact sales volumes
- Used vehicle sales softness at franchised dealerships
- Powersports segment profitability remains under pressure
Revenue & Expenses
Visualization of income flow from segment revenue to net income