Sonic Automotive Posts Record Revenue as Profit Falls

The Tip Desk · October 31, 2026 · 3 min read

Third-quarter revenue reached a record $4.0 billion, up 0.4% year over year, while net income was $41.1 million, or $1.28 a share.

Sonic Automotive, Inc. (SAH), one of the nation’s largest automotive retailers, reported all-time record quarterly total revenues of $4.0 billion and record quarterly gross profit of $617.5 million for the third quarter ended September 30, 2026, even as year-over-year revenue growth slowed to 0.4% after 8% growth in the second quarter.

Reported net income was $41.1 million, or $1.28 a share, down 12% from a year earlier. Adjusted net income was $41.9 million, or $1.30 a share, down 15%. Chairman and Chief Executive Officer David Smith said revenue and gross profit growth in EchoPark and Powersports offset declines in Franchised Dealerships.

The EchoPark used-vehicle platform was the volume engine. Retail used-vehicle unit sales volume rose 22% year over year to 19,923 units, accelerating from 17% growth in the second quarter. Segment revenues were $596.0 million, up 14%. Gross profit of $58.9 million was a third-quarter record. Combined gross profit per unit fell 12% to $2,972. Reported EchoPark segment income was $2.0 million, down 23% from $2.6 million a year earlier. Adjusted EBITDA was $7.9 million. President Jeff Dyke said the company is launching a new EchoPark brand campaign and an Orlando market opening in the coming weeks.

Powersports posted all-time record quarterly revenues of $113.7 million, up 35%, and record gross profit of $29.3 million, up 26%. Segment income was $7.9 million. Dyke attributed the quarter to a record Sturgis Motorcycle Rally and the integration of recent acquisitions. Retail new-vehicle volume in the segment was 2,211 units; used-vehicle volume was 1,898. SG&A in Powersports was $17.8 million.

Franchised Dealerships, the largest segment, remained under pressure. Segment revenues were $3.28 billion. Same-store revenues fell 2% and same-store gross profit fell 1%. Same-store retail new-vehicle unit sales volume declined 7%, with new-vehicle gross profit per unit flat at $3,000. Same-store used-vehicle volume rose 3%, with used-vehicle gross profit per unit down 3% to $1,506. Same-store Fixed Operations gross profit margin rose 20 basis points to 51.4%. Segment income was $47.6 million, down 22% from $60.8 million a year earlier.

Consolidated SG&A as a percentage of gross profit rose to 75.6% from 72.2% in the second quarter. Dyke said Franchised Dealerships is emphasizing expense leverage while navigating a challenging consumer affordability environment. Chief Financial Officer Heath Byrd said the company is taking action to prioritize improved expense leverage in the near term while maintaining certain strategic investments.

The board approved a quarterly cash dividend of $0.41 a share, payable January 15, 2027 to holders of record on December 15, 2026, unchanged from the prior two quarterly declarations.