Sonic Automative | 10-Q: FY2025 Q3 Revenue Beats Estimate at USD 3.974 B

Revenue: As of FY2025 Q3, the actual value is USD 3.974 B, beating the estimate of USD 3.628 B.

EPS: As of FY2025 Q3, the actual value is USD 1.33, missing the estimate of USD 1.678.

EBIT: As of FY2025 Q3, the actual value is USD 174.1 M.

Franchised Dealerships Segment

• Revenue: Total new vehicle revenue was $1,860.0 million, a 19% increase from $1,562.1 million.
• Gross Profit: Total new vehicle gross profit was $91.3 million, a 9% increase from $84.1 million.
• Unit Sales: Total new vehicle unit sales were 30,994, a 12% increase from 27,797.

EchoPark Segment

• Revenue: Used vehicle revenue was $439.2 million, a decrease from $470.3 million. Wholesale vehicle revenue was $30.4 million, up from $23.8 million. Finance, insurance, and other net revenue was $52.9 million, up from $50.8 million.
• Gross Profit: Segment gross profit was $54.4 million, a slight decrease from $55.2 million. Gross profit per retail unit increased to $3,359, an 8% increase from $3,111.

Powersports Segment

• Revenue: Retail new vehicle revenue was $38.8 million, up from $26.9 million. Used vehicle revenue was $17.2 million, up from $9.0 million. Parts, service, and collision repair revenue was $23.8 million, up from $20.1 million.
• Gross Profit: Segment gross profit was $23.3 million, up from $17.7 million. Gross profit per new retail unit increased to $3,655, a 12% increase from $3,249.

Cash Flow

• Operating Cash Flow: Net cash provided by operating activities was $500.5 million, a significant increase from $21.5 million in the previous year.
• Free Cash Flow: Net cash used in investing activities was - $494.3 million, compared to - $87.0 million in the previous year.

Future Outlook and Strategy

• Core Business Focus: Sonic Automotive, Inc. plans to continue expanding its EchoPark segment and enhancing its digital retailing capabilities to improve customer experience and operational efficiency.
• Non-Core Business: The company is exploring opportunities in the Powersports segment, focusing on expanding its franchise network and increasing market share.