Sonic Automotive (SAH) investor relations material

Executive summary

• Q2 2026 consolidated revenues rose 8% year-over-year to $3.93 billion, with all-time record quarterly gross profit of $616.2 million, up 2% year-over-year.

• Net income was $57.4 million ($1.79 per diluted share), reversing a prior year loss, while adjusted net income was $58.3 million ($1.82 per diluted share), down 17% year-over-year.

• The business operates across Franchised Dealerships, EchoPark, and Powersports, each contributing to diversified growth and segment record results.

• EchoPark and Powersports segments delivered strong revenue and volume growth, outpacing industry trends and supported by recent Harley-Davidson acquisitions.

• SG&A expenses increased year-over-year, driven by higher compensation, advertising, and rent.

Financial highlights

• Franchised Dealerships revenues increased 6% to $3.3 billion; EchoPark revenues rose 15% to $582.9 million; Powersports revenues surged 53% to $73.5 million.

• Gross profit margin declined to 15.7% from 16.5% year-over-year; SG&A as a percentage of gross profit was 72.2%.

• Net income was $57.4 million, with adjusted EBITDA for Q2 2026 at $157.7 million, down from $172.7 million in Q2 2025.

• Diluted EPS was $1.79, up from $(1.34) in Q2 2025; adjusted diluted EPS was $1.82, down 17% year-over-year.

• Quarterly cash dividend of $0.41 per share approved.

Outlook and guidance

• FY 2026 new vehicle GPU expected at $2,850–$3,000; EchoPark targeting total GPU of $3,100–$3,300 and 12–15% used retail unit volume growth.

• EchoPark adjusted EBITDA guidance for 2026 is $35–$40 million, including incremental brand marketing expense in Q4.

• Management expects 2026 new vehicle industry volume between 15.5 and 16.0 million units, a 2–5% decrease from 2025.

• EchoPark footprint expansion planned for Q4 2026 and into 2027.

• No material changes to risk factors or guidance were disclosed for the remainder of 2026.