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Sep 30
Sonic Automotive Q3 2025 Earnings Report
Sonic Automotive reported record quarterly consolidated revenues and gross profit for Q3 2025, with strong performance in its Franchised Dealerships and Powersports segments, despite challenges in the EchoPark segment.
Key Takeaways
Sonic Automotive achieved all-time record quarterly total revenues of $4.0 billion and gross profit of $615.5 million in the third quarter of 2025, representing year-over-year increases of 14% and 13% respectively. However, reported net income decreased by 37% to $46.8 million, and reported EPS fell by 38% to $1.33, primarily due to increased medical expenses and a higher effective income tax rate. Adjusted net income and adjusted EPS, excluding certain items, showed growth of 13% and 12% respectively.
Sonic Automotive reported all-time record quarterly total revenues of $4.0 billion, a 14% increase year-over-year.
All-time record quarterly total gross profit reached $615.5 million, up 13% compared to the prior year.
Reported net income decreased by 37% to $46.8 million, with reported EPS at $1.33, impacted by higher medical expenses and tax rates.
The Powersports Segment achieved all-time record quarterly revenues of $84.1 million and gross profit of $23.3 million, growing 42% and 32% respectively.
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 Automotive plans to continue its diversified growth strategy across its Franchised Dealerships, EchoPark, and Powersports Segments, focusing on increasing revenue and shareholder returns. The company anticipates challenges in the EchoPark segment due to vehicle gross margin headwinds and uncertainty regarding the future impact of tariffs.
Positive Outlook
- Acquisition of Jaguar Land Rover Santa Monica is expected to add approximately $125 million in annualized revenues to the Franchised Dealerships Segment.
- Continued focus on strategic investments in the Powersports Segment, which has shown record-setting performance.
- Commitment to increasing the mix of non-auction sourced inventory in EchoPark to lower acquisition costs and benefit consumer affordability.
- Franchised Dealerships Segment generated all-time record quarterly fixed operations gross profit and F&I gross profit.
- Board of Directors approved a quarterly cash dividend of $0.38 per share, indicating confidence in future performance.
Challenges Ahead
- EchoPark segment was challenged by vehicle gross margin headwinds in the third quarter.
- Uncertainty around the future impact of tariffs on consumer demand, vehicle pricing, gross margins, and inventory levels.
- Reported net income and EPS were significantly down year-over-year due to increased medical expenses and a higher effective income tax rate.
- EchoPark Segment reported income decreased by 50% year-over-year.
- Adjusted EchoPark Segment income decreased by 7% year-over-year.
Revenue & Expenses
Visualization of income flow from segment revenue to net income