Sonic Automotive, Inc.

Second-quarter revenue was a record $3.9 billion, up 8% year over year. Gross profit was a quarterly record $616.2 million, up 2% year over year. GAAP EPS was $1.79 per diluted share; adjusted EPS was $1.82. In franchise dealerships, reported revenue rose 6% to $3.3 billion, same-store revenue increased 2%, and same-store gross profit decreased 3%. Franchise new vehicle GPU was $3.02 thousand, down 11%, and same-store new vehicle GPU was $2.87 thousand, down 16%; reported used vehicle GPU was $13.99, down 12%, and same-store used GPU was $14.01, down 13%. Fixed operations gross profit increased 6% to a record $263.8 million, and franchise F&I gross profit increased 2% to a record $147.9 million. EchoPark revenue rose 15% to $582.9 million and gross profit increased 4% to a record $64.3 million; retail used volume increased 17% to 19.6 thousand units. EchoPark segment income was $7.2 million and adjusted EBITDA was $13.9 million. Powersports revenue increased 53% to a record $73.5 million and gross profit increased 57% to a record $19.7 million; segment income was $2.3 million and adjusted EBITDA was $4.9 million. The company ended the quarter with about $676 million of total available liquidity, including about $294 million of cash and floor plan deposits. For full-year 2026, management raised franchise new-vehicle GPU guidance to $2.85 thousand to $3 thousand per unit, reiterated used-vehicle GPU at $13.50 to $14.50, expects same-store fixed operations gross profit to grow mid-single digits, expects EchoPark total GPU of $3.1 thousand to $3.3 thousand per unit and used retail unit growth of 12% to 15%, and maintained EchoPark adjusted EBITDA guidance of $35 million to $40 million. Management also said it expects to open 1 EchoPark location in Orlando in Q4 and 2 to 4 more in 2027.

David Bruton Smith emphasized that Sonic’s quarter showed the benefit of its diversified model: fixed operations, F&I, EchoPark, and powersports all helped offset lower new-vehicle per-unit profitability. His tone was confident and upbeat, especially on EchoPark and powersports, but he repeatedly framed the backdrop as challenged by affordability and tariff-related pressure on new-car pricing. He also highlighted disciplined capital allocation, noting the board approved a $0.41 quarterly cash dividend.

Heath Byrd focused on the balance sheet and capital allocation, saying Sonic ended Q2 with approximately $676 million of total available liquidity, including approximately $294 million of cash and floor plan deposits. He pointed to the company’s flexibility to fund operations, organic investments, acquisitions, and returns to shareholders. He also underscored the board-approved dividend of $0.41 per share payable October 15, 2026, and said capital will be allocated based on returns, strategic fit, and market conditions.

Analysts pressed on why Sonic outperformed in new and used retail versus peers, and management said it was a mix of aggressive margin management, careful inventory turns, and higher F&I penetration. EchoPark was a major focus: management said the advertising-budget timing change was not about being public versus private, but about staging the spend, finishing website work for AI/answer-engine search, and aligning with the planned fourth-quarter rollout; they reiterated the initial branding budget remains $20 million. Questions also centered on fixed ops softness and used sourcing; management blamed a pricing issue and affordability, said the market still has huge untapped service-drive opportunity, and noted non-auction sourcing rose to 42% of EchoPark sales versus 32% in Q1.