Sonic Automotive Stock Earnings Reports

Sonic Automotive reported a strong Q1 2026: record first-quarter revenues of $3.7B (up 1% YoY) and record total gross profit of $598.8M (up 6% YoY). Adjusted EPS was $1.62, up 9% YoY. Franchised dealerships saw flat reported revenues but a 4% same-store revenue decline driven by a 10% drop in new retail volume partially offset by a 3% increase in used retail volume. High-margin lines (fixed operations and F&I) set quarterly records and contributed over 75% of total gross profit, helping offset vehicle volume pressure. EchoPark delivered all-time records for adjusted segment income ($12.6M) and adjusted EBITDA ($18.6M); EchoPark revenues and gross profit were both up, retail unit volume rose 3% and total GPU reached a Q1 record $3,502/unit. Management expects to resume measured EchoPark store openings starting late 2026 and will begin targeted brand marketing this year (potential incremental ad spend of $10–$20M, mostly in H2). Powersports posted record revenue and gross profit (both +19% YoY) and management highlighted strategic acquisitions to expand regional coverage. Fixed operations (parts & service) showed continued mid-single-digit growth, record monthly gross performance and opportunities from hiring technicians and AI-driven efficiency. The company ended the quarter with ~$770M of available liquidity, repurchased ~2.1M shares for ~$136M (reducing shares outstanding ~6% since 12/31/25), and the Board authorized an additional $500M repurchase program and an 8% increase to the quarterly dividend to $0.41. Management reiterated caution regarding macro/industry risks (notably potential tariffs and wholesale price swings) but said their balance sheet and sourcing improvements (shift from auction to off-street/customer sourcing) provide insulation and flexibility. Key near-term drivers to watch: EchoPark unit growth/brand marketing, non-auction sourcing mix (margin benefit), fixed ops momentum, and any tariff-related impacts to new vehicle supply/pricing.