Sonic Automotive Reports Third Quarter 2026 Financial Results
SONIC AUTOMOTIVE INC (SAH) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 Sonic Automotive Reports Third Quarter 2026 Financial Results All-Time Record Quarterly Total Revenues Of $4.0 Billion, All-Time Record Quarterly Gross Profit Of $617.5 Million EchoPark Segment Retail Unit Sales Volume Increased 22% Year-Over-Year, Driving Third Quar
How this was made
The 30-second read
Why it matters
The earnings release provides fresh data on revenue, profit margins, and dividend, influencing short‑term price action.
Market read
First‑day earnings data may trigger immediate price movement; investors will focus on profit miss versus revenue record.
What to watch
Strong EchoPark unit growth and Powersports record may offset profit decline over longer horizon.
All-Time Record Quarterly Total Revenues Of $4.0 Billion, All-Time Record Quarterly Gross Profit Of $617.5 Million
Record consolidated revenue and gross profit were driven by EchoPark and Powersports growth, but reported net income, diluted EPS, operating income, and Franchised Dealerships segment income declined year-over-year while consolidated SG&A as a percentage of gross profit increased.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Q3 2026 total revenuesGAAP | $3.99B | – | — % |
| Q3 2026 total new vehicle revenuesGAAP | $1.78B | – | (6) % |
| Q3 2026 used vehicle revenuesGAAP | $1.38B | – | 10 % |
| Q3 2026 total vehicle revenuesGAAP | $3.24B | – | — % |
| Q3 2026 parts, service and collision repair revenuesGAAP | $543.3M | – | 2 % |
| Q3 2026 finance, insurance and other, net revenuesGAAP | $202.2M | – | (1) % |
| Q3 2026 gross profitGAAP | $617.5M | – | — % |
| Q3 2026 selling, general and administrative expensesGAAP | $466.8M | – | (3) % |
| Q3 2026 total SG&A expenses as a % of gross profitGAAP | 75.6 % | – | (220) bps |
| Q3 2026 total adjusted SG&A expensesnon-GAAP | $465.7M | – | (4) % |
| Q3 2026 total adjusted SG&A expenses as a % of gross profitnon-GAAP | 75.4 % | – | (260) bps |
| Q3 2026 operating incomeGAAP | $112.4M | – | (8) % |
| Q3 2026 income before taxesGAAP | $ 57.5 | – | (19) % |
| Q3 2026 net incomeGAAP | $ 41.1 | – | (12) % |
| Q3 2026 diluted earnings per common shareGAAP | $ 1.28 | – | (4) % |
| Q3 2026 adjusted net incomenon-GAAP | $ 41.9 | – | (15) % |
| Q3 2026 adjusted diluted earnings per sharenon-GAAP | $ 1.30 | – | (8) % |
| Q3 2026 adjusted EBITDAnon-GAAP | $134.4M | – | – |
| Nine months 2026 total revenuesGAAP | $11.61B | – | 3 % |
| Nine months 2026 gross profitGAAP | $1.83B | – | 3 % |
| Nine months 2026 operating incomeGAAP | $376.7M | – | 54 % |
| Nine months 2026 net incomeGAAP | $159.4M | – | 122 % |
| Nine months 2026 diluted earnings per common shareGAAP | $ 4.87 | – | 136 % |
| Nine months 2026 adjusted net incomenon-GAAP | $155.1M | – | – |
| Nine months 2026 adjusted diluted earnings per sharenon-GAAP | $ 4.74 | – | – |
| Nine months 2026 adjusted EBITDAnon-GAAP | $441M | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| Franchised Dealerships SegmentSame store revenues were down 2%; same store retail new vehicle unit sales volume was down 7%, while same store retail used vehicle unit sales volume was up 3%. | $3.28B | – | (3) % |
| EchoPark SegmentRetail used vehicle unit sales volume was 19,923, up 22%; total combined gross profit per unit was $ 2,972, down 12%. | $596M | – | 14 % |
| Powersports SegmentAll-time record quarterly revenues were supported by retail new vehicle revenue growth of 37%, used vehicle revenue growth of 53%, and parts, service and collision repair revenue growth of 18%. | $113.7M | – | 35 % |
Amounts quoted below without a unit are in millions, as in the filing’s tables. Per-share figures are as printed.
Capital returns
- Sonic’s Board of Directors approved a quarterly cash dividend of $0.41 per share, payable on January 15, 2027 to all stockholders of record on December 15, 2026.
- Q3 2026 dividends declared per common share were $ 0.41, compared with $ 0.38 in Q3 2025, an 8 % increase.
- Nine months 2026 dividends declared per common share were $ 1.20, compared with $ 1.08 in the prior-year period, an 11 % increase.
What drove it
- Consolidated used vehicle revenues increased 10 % to $ 1,381.2, while total new vehicle revenues decreased 6 % to $ 1,782.0.
- Parts, service and collision repair revenues increased 2 % to $ 543.3.
- EchoPark retail used vehicle unit sales volume increased 22 % to 19,923.
- Powersports total revenues increased 35 % to $ 113.7 and total gross profit increased 26 % to $ 29.3.
- Same store Franchised Dealerships Fixed Operations gross profit increased 1%, and same store Fixed Operations gross profit margin increased 20 basis points to 51.4%.
Concerns
- Franchised Dealerships Segment total revenues decreased 3 % to $ 3,279.1, total gross profit decreased 2 % to $ 529.3, and segment income decreased 22 % to $ 47.6.
- Consolidated operating income decreased 8 % to $ 112.4 and reported net income decreased 12 % to $ 41.1.
- EchoPark total combined gross profit per unit decreased 12 % to $ 2,972 despite 22% retail used vehicle unit sales volume growth.
- Consolidated total SG&A expenses as a percentage of gross profit increased to 75.6 % from 73.4 %.
- Powersports total SG&A expenses as a percentage of gross profit increased to 60.7 % from 55.8 %.
What to watch
- Franchised Dealerships same store retail new vehicle unit sales volume, which declined 7% in the third quarter.
- EchoPark gross profit per unit and expense leverage, with adjusted SG&A expenses as a percentage of gross profit at 81.1 %.
- The planned EchoPark brand campaign and Orlando market opening in the coming weeks.
- Powersports performance following recent acquisitions and its record-setting Sturgis Motorcycle Rally.
- Management’s stated actions to prioritize improved expense leverage while maintaining strategic investments.
Balance sheet and cash flow
- Franchised Dealerships Segment had 65 days’ supply of new vehicle inventory (including in-transit) and 34 days’ supply of used vehicle inventory on a trailing quarter cost of sales basis.
- EchoPark Segment had 41 days’ supply of used vehicle inventory on a trailing quarter cost of sales basis.
Analysis
Sonic reported record quarterly consolidated revenue of $ 3,988.8 and record gross profit of $ 617.5. Revenue was flat year-over-year as 10 % growth in used vehicle revenue, 2 % growth in parts, service and collision repair revenue, and 14 % growth at EchoPark offset a 6 % decline in total new vehicle revenue. Consolidated gross profit was also flat year-over-year, while operating income declined 8 % to $ 112.4 and net income declined 12 % to $ 41.1.
The Franchised Dealerships Segment was the principal drag. Segment revenue decreased 3 % to $ 3,279.1, gross profit decreased 2 % to $ 529.3, and segment income decreased 22 % to $ 47.6. Same store new-vehicle unit volume fell 7%, although same store new-vehicle gross profit per unit was flat at $3,000 per unit. Same store used-vehicle unit volume rose 3%, but used-vehicle gross profit per unit declined 3% to $1,506 per unit. Fixed Operations remained comparatively resilient, with same store gross profit up 1% and gross profit margin up 20 basis points to 51.4%.
EchoPark delivered growth in revenue and volume but faced unit-economics and expense pressure. Segment revenue increased 14 % to $ 596.0, and retail used unit volume increased 22 % to 19,923. Total gross profit increased 8 % to $ 58.9, trailing volume and revenue growth as total combined gross profit per unit declined 12 % to $ 2,972. Reported segment income fell 23 % to $ 2.0, while adjusted segment income decreased 4 % to $ 2.6. EchoPark reported SG&A expenses equal to 82.1 % of gross profit and adjusted SG&A expenses equal to 81.1 % of gross profit.
Powersports produced the strongest reported segment growth. Revenue increased 35 % to $ 113.7, gross profit increased 26 % to $ 29.3, and segment income increased 1 % to $ 7.9. Retail new vehicle revenue rose 37%, used vehicle revenue rose 53%, and segment performance was attributed to record unit sales volume at the 86th Annual Sturgis Motorcycle Rally and integration of recent acquisitions. Its expense ratio rose, however, with SG&A expenses as a percentage of gross profit increasing to 60.7 % from 55.8 %.
Consolidated expense leverage weakened in the quarter. SG&A expense rose to $ 466.8 from $ 451.6, raising reported SG&A as a percentage of gross profit to 75.6 % from 73.4 %. Adjusted SG&A as a percentage of gross profit was 75.4 % compared with 72.8 %. Management said it is taking action to prioritize improved near-term expense leverage while maintaining strategic investments. Capital returns were limited in the release to a quarterly cash dividend of $0.41 per share, payable January 15, 2027. The filing did not provide numerical forward guidance.
Management, verbatim
Our third quarter results reflect the value of Sonic’s diversified business, as revenue and gross profit growth in our EchoPark and Powersports segments offset declines in our Franchised Dealerships segment, driving all-time record quarterly consolidated revenues and gross profit.
David Smith, Chairman and Chief Executive Officer of Sonic Automotive
Within our Franchised Dealerships segment, we continue to focus on strengthening performance across our core operations, emphasizing expense leverage opportunities while navigating a challenging consumer affordability environment.
Jeff Dyke, President of Sonic Automotive
We are taking action to prioritize improved expense leverage in the near term, while maintaining certain strategic investments that we expect to drive future profitability and operational efficiency across our business.
Heath Byrd, Chief Financial Officer of Sonic Automotive
Not in the filing
stated, not guessed- Forward revenue, gross margin, operating expense, tax-rate, EPS, or other numerical guidance
- Comparison with prior guidance
- Operating cash flow
- Free cash flow
- Cash balance
- Debt balance
- Share repurchases
- Consolidated gross margin
- Prior-quarter comparisons for reported metrics
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
Sonic Automotive is one of the largest U.S. auto retailers, reporting Q3 2026 results via an SEC 8‑K filing.
Ticker impact
Sonic Automotive filed its Q3 2026 earnings on Form 8‑K, reporting record $4.0B revenue but a 12% drop in net income.
likely downside as investors price in weaker profit and modest dividend
Revenue growth is marginal (0.4%) while net income fell 12%; guidance was not highlighted, so market may react negatively.
Market effects
Automotive retail sector may see modest pressure as earnings highlight consumer affordability challenges.
U.S. dealer stocks could see slight pullback in the near term.
Limited; impact confined to U.S. automotive retail segment.
Counterpoint
Dividend increase and record segment profits could support a short‑term bounce.
Key entities
- companySonic Automotive
U.S. automotive retailer (NYSE:SAH) reporting Q3 2026 results.
