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Sonic Automotive Reports Record Gross Profit Despite Revenue Decline

Sonic Automotive, Inc. has released its financial results for the fourth quarter and full year ending December 31, 2025. The company reported total revenues of $3.9 billion for the fourth quarter, representing a 1% decrease from the previous year. However, the total gross profit for the quarter reached a record high of $598.7 million, marking a 4% increase year-over-year.

The reported net income for the fourth quarter of 2025 was $46.9 million, down 20% from the previous year. Excluding certain items, adjusted net income was $52.2 million, down 2% from the previous year. The franchised dealerships segment saw revenues remaining flat year-over-year at $3.4 billion, with a record gross profit of $535.8 million, up 4% from the previous year.

The Echopark segment experienced a 5% decrease in revenues, amounting to $480.7 million, while achieving a record gross profit of $53.5 million, up 9% year-over-year. The segment also achieved a 238% improvement in income, reaching $3.6 million, compared to a loss in the prior year period.

For the full year 2025, Sonic Automotive reported all-time record annual total revenues of $15.2 billion, representing a 7% increase from the previous year. The total gross profit for the year also reached an all-time high of $2.4 billion, up 9% year-over-year. Reported net income for the full year 2025 was $118.7 million, down 45% from the previous year. However, adjusted net income showed a significant increase, reaching $229.2 million, up 17% year-over-year.

The franchised dealerships segment achieved all-time record annual revenues of $12.9 billion, up 8% year-over-year, with a gross profit of $2.1 billion, also up 8% year-over-year. The Echopark segment saw revenues decrease by 3% to $2.1 billion, but achieved an all-time record annual gross profit of $233.9 million, up 13% year-over-year. Additionally, the Powersports segment achieved all-time record annual revenues of $202.9 million, up 29% year-over-year, and a gross profit of $53.8 million, up 23% year-over-year.

Sonic Automotive's board of directors approved a quarterly cash dividend of $0.38 per share, payable on April 15, 2026, to all stockholders of record on March 13, 2026. The company also repurchased approximately 1.3 million shares of its class A common stock for an aggregate purchase price of approximately $82.4 million during 2025.

Following these announcements, the company's shares moved -2.24%, and are now trading at a price of $62.92. If you want to know more, read the company's complete 8-K report here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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