Sonic Automative | 8-K: FY2026 Q2 Revenue Beats Estimate at USD 3.934 B

Revenue: As of FY2026 Q2, the actual value is USD 3.934 B, beating the estimate of USD 3.783 B.

EPS: As of FY2026 Q2, the actual value is USD 1.79, missing the estimate of USD 1.8105.

EBIT: As of FY2026 Q2, the actual value is USD 131.6 M.

Consolidated Financial Summary (Three Months Ended June 30, 2026 vs. 2025)

• Total gross profit was an all-time record of $616.2 million, up 2% year-over-year.
• Reported net income was $57.4 million, an increase of 226% year-over-year.
• Adjusted net income was $58.3 million, a decrease of 23% year-over-year.
• Reported selling, general and administrative (“SG&A”) expenses as a percentage of gross profit were 72.2%.
• Adjusted SG&A expenses as a percentage of gross profit were 72.0%.
• Operating income was $131.6 million, compared to an operating loss of - $23.3 million in the prior year period, representing a 665% increase.
• Interest expense, floor plan, was - $20.9 million, a decrease of 14% year-over-year from - $18.3 million.
• Interest expense, other, net, was - $30.4 million, a decrease of 11% year-over-year from - $27.4 million.
• Income before taxes was $80.3 million, compared to a loss of - $69.1 million in the prior year period, representing a 216% increase.
• Provision for income taxes was - $22.9 million, compared to a benefit of $23.5 million in the prior year period, a decrease of 197%.
• Adjusted EBITDA was $157.7 million, compared to $172.7 million in the prior year period.

Liquidity (Three Months Ended June 30, 2026)

• Sonic Automotive, Inc. ended the quarter with approximately $294 million of cash and floor plan deposits and approximately $676 million of total available liquidity resources.

Dividend

• The Board of Directors approved a quarterly cash dividend of $0.41 per share, payable on October 15, 2026.

Consolidated Financial Summary (Six Months Ended June 30, 2026 vs. 2025)

• Total gross profit was $1,214.9 million, up 4% year-over-year.
• Reported net income was $118.3 million, an increase of 373% year-over-year.
• Adjusted net income was $113.2 million, compared to $127.5 million in the prior year period.
• Reported SG&A expenses as a percentage of gross profit were 71.7%.
• Adjusted SG&A expenses as a percentage of gross profit were 72.4%.
• Operating income was $264.3 million, compared to $121.6 million in the prior year period, an increase of 117%.
• Interest expense, floor plan, was - $40.2 million, a decrease of 5% year-over-year from - $38.3 million.
• Interest expense, other, net, was - $58.7 million, a decrease of 7% year-over-year from - $55.0 million.
• Income before taxes was $165.4 million, compared to $28.3 million in the prior year period, an increase of 484%.
• Provision for income taxes was - $47.1 million, compared to - $3.3 million in the prior year period, a decrease of 1,327%.
• Adjusted EBITDA was $306.6 million, compared to $316.7 million in the prior year period.

Franchised Dealerships Segment (Second Quarter 2026 vs. 2025)

• Total gross profit was $532.1 million, up 1% year-over-year.
• Same store gross profit decreased by 3%.
• Operating income was $117.3 million, compared to an operating loss of - $32.6 million in the prior year period, an increase of 460%.
• Reported segment income was $70.7 million, a decrease of 23% year-over-year.
• Adjusted segment income was $71.9 million, compared to $88.1 million in the prior year period, a decrease of 18%.
• Same store retail new vehicle unit sales volume was flat.
• Same store retail new vehicle gross profit per unit was $2,872, down 16%.
• Same store retail used vehicle unit sales volume increased by 7%.
• Same store retail used vehicle gross profit per unit was $1,401, down 13%.
• Same store parts, service and collision repair (“Fixed Operations”) gross profit increased by 2%.
• Same store Fixed Operations gross profit margin decreased by 30 basis points to 51.0%.
• Same store finance and insurance (“F&I”) gross profit decreased by 1%.
• Same store F&I gross profit per retail unit was $2,619, down 4%.
• The segment had 56 days’ supply of new vehicle inventory (including in-transit) and 35 days’ supply of used vehicle inventory on a trailing quarter cost of sales basis.

EchoPark Segment (Second Quarter 2026 vs. 2025)

• Total gross profit was a record $64.3 million, up 4% year-over-year.
• Retail used vehicle unit sales volume increased by 17% to 19,601 units.
• Reported segment income was $7.2 million, a decrease of 38% year-over-year from $11.7 million.
• Adjusted segment income was $7.2 million, a decrease of 34% year-over-year from $10.9 million.
• Adjusted EBITDA was $13.9 million, a decrease of 15% year-over-year from $16.4 million.
• The segment had 47 days’ supply of used vehicle inventory on a trailing quarter cost of sales basis.

Powersports Segment (Second Quarter 2026 vs. 2025)

• Gross profit reached a second quarter record of $19.7 million, up 58% year-over-year.
• Segment income was $2.3 million, compared to breakeven in the prior year period.
• Adjusted EBITDA was $4.9 million, a 145% improvement from $2.0 million in the prior year period.

Consolidated Financial Performance (FY 2025, Q2 2026, Q2 2025)

• Net Income (Loss): FY 2025 was $118.7 million; Q2 2026 was $57.4 million; Q2 2025 was - $45.6 million.
• Adjusted Net Income: FY 2025 was $229.2 million.
• Operating Income (Loss): FY 2025 was $367.5 million; Q2 2026 was $131.6 million; Q2 2025 was - $23.3 million.
• Total Gross Profit: FY 2025 was $2,382.9 million; Q2 2026 was $616.2 million; Q2 2025 was $602.2 million.
• SG&A Expenses: FY 2025 was - $1,678.2 million; Q2 2026 was - $444.6 million; Q2 2025 was - $412.6 million.
• Adjusted EBITDA: FY 2025 was $614.6 million; LTM Q2 2026 was $604.4 million; Q2 2026 was $157.7 million; Q2 2025 was $172.7 million.
• Net Debt to Adjusted EBITDA Ratio: LTM Q2 2026 was 2.42; FY 2025 was 2.13.
• Total Liquidity: June 30, 2026 was $676 million; December 31, 2025 was $702 million.

Capital Allocation (YTD Q2 2026)

• Acquisitions: $142 million.
• Cap Ex: $35 million.
• Share Repurchases: $49 million.
• Dividends: $25 million.

Franchised Dealerships Segment (FY 2025, Q2 2026, Q2 2025)

• Segment Income: FY 2025 was $316 million; Q2 2026 was $71 million; Q2 2025 was $92 million.
• Adjusted EBITDA: FY 2025 was $554 million; Q2 2026 was $139 million; Q2 2025 was $154 million.
• Reported SG&A Expenses as % of Gross Profit: FY 2025 was 69.9%; Q2 2026 was 71.9%; Q2 2025 was 68.3%.
• Adjusted SG&A Expenses as % of Gross Profit: FY 2025 was 71.2%; Q2 2026 was 71.7%; Q2 2025 was 68.9%.
• Retail New Vehicle Unit Sales Volume (Thousands): FY 2025 was 116.0; Q2 2026 was 28.4; Q2 2025 was 28.1.
• Retail New Vehicle GPU: FY 2025 was $3,170; Q2 2026 was $3,024; Q2 2025 was $3,391.
• Retail Used Vehicle Unit Sales Volume (Thousands): FY 2025 was 104.2; Q2 2026 was 26.4; Q2 2025 was 25.0.
• Retail Used Vehicle GPU: FY 2025 was $1,514; Q2 2026 was $1,399; Q2 2025 was $1,583.
• F&I Gross Profit Per Unit (GPU): FY 2025 was $2,596; Q2 2026 was $2,697; Q2 2025 was $2,721.
• Fixed Operations Gross Profit (Millions): FY 2025 was $1,006; Q2 2026 was $264; Q2 2025 was $249.
• Fixed Operations Gross Margin %: FY 2025 was 51.1%; Q2 2026 was 51.2%; Q2 2025 was 51.3%.

EchoPark Segment (FY 2025, Q2 2026, Q2 2025)

• Income (Loss) Before Taxes: FY 2025 was $27.9 million; Q2 2026 was $7.2 million; Q2 2025 was $11.7 million.
• Adjusted EBITDA (Total EchoPark Segment): FY 2025 was $49.2 million, up 78% YoY; Q2 2026 was $13.9 million; Q2 2025 was $16.4 million.
• Retail Used Unit Sales Volume: FY 2025 was 67,636; Q2 2026 was 19,601; Q2 2025 was 16,742.
• Average Monthly Unit Volume Per Store: Q2 2026 was 363; Q2 2025 was 310.
• Total GPU (Used GPU + F&I GPU): FY 2025 was $3,484; Q2 2026 was $3,292; Q2 2025 was $3,747.

Powersports Segment (FY 2025, Q2 2026, Q2 2025)

• Income (Loss) Before Taxes: FY 2025 was - $5.3 million; Q2 2026 was $2.3 million; Q2 2025 was - $6.5 million.
• Adjusted EBITDA: FY 2025 was $11.5 million; Q2 2026 was $4.9 million; Q2 2025 was $2.0 million.
• Retail New Vehicle GPU: FY 2025 was $3,050; Q2 2026 was $3,107; Q2 2025 was $2,828.
• Retail Used Vehicle GPU: FY 2025 was $1,980; Q2 2026 was $2,402; Q2 2025 was $2,014.
• F&I GPU: FY 2025 was $959; Q2 2026 was $1,125; Q2 2025 was $889.

FY 2026 Outlook

Sonic Automotive, Inc. expects new vehicle gross profit per unit (GPU) to range from $2,850 to $3,000 and used vehicle GPU between $1,350 to $1,450 for FY 2026. The company anticipates mid-single-digit percentage growth in same-store fixed operations gross profit and F&I GPU in the $2,600 to $2,700 range. EchoPark projects a 12% to 15% increase in used retail unit sales volume with total GPU between $3,100 and $3,300, and the Powersports segment expects adjusted EBITDA between $14 million and $17 million, including recent acquisitions.