Sonic Automotive beats revenue estimates despite EPS miss in Q3

NEW YORK - On Thursday, Sonic Automotive, Inc. (NYSE:SAH) reported record quarterly revenues of $4 billion for the third quarter of 2025, exceeding analyst expectations of $3.62 billion despite posting earnings that fell short of estimates.

The automotive retailer’s shares edged up 0.21% in pre-market trading following the announcement.

The company reported adjusted earnings of $1.41 per share, missing analyst expectations of $1.74. While earnings were below forecasts, Sonic’s total revenue jumped 14% YoY, driven by strong performance across its business segments, particularly in its Powersports division which achieved all-time record quarterly revenues and adjusted EBITDA.

Sonic’s Franchised Dealerships Segment saw same-store revenues increase 11% YoY, with retail new vehicle unit sales volume up 8%. The company’s total gross profit reached an all-time record of $615.5 million, up 13% from the same period last year.

"I am very proud of our team’s effort in the third quarter, driving all-time record quarterly consolidated revenues and gross profit," said David Smith, Chairman and Chief Executive Officer of Sonic Automotive. "Our team remains focused on delivering an outstanding experience for our guests and adapting our business to ongoing changes in the automotive retail environment."

The EchoPark Segment faced challenges with revenues of $522.5 million, down 4% YoY, and retail used vehicle unit sales volume declining 8%. Meanwhile, the Powersports Segment shined with a 42% revenue increase to $84.1 million and segment income nearly doubling to $7.8 million.

The company’s Board of Directors approved a quarterly cash dividend of $0.38 per share, payable on January 15, 2026, to stockholders of record on December 15, 2025.

Jeff Dyke, President of Sonic Automotive, noted, "In addition to reporting all-time record quarterly revenues, our Franchised Dealerships Segment generated all-time record quarterly fixed operations gross profit and F&I gross profit, which combined to account for over 75% of our total gross profit mix."

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