SAH · Sonic Automotive, Inc.

Sonic Automotive delivered record first quarter 2026 consolidated revenue ($3.7B, +1% YoY) and gross profit ($598.8M, +6% YoY), driven by strength across all three operating segments. The Franchised Dealerships segment maintained record revenue despite same-store sales declines, supported by 10% growth in Fixed Operations gross profit and 6% growth in F&I gross profit per unit. EchoPark achieved all-time highs in segment income ($16.2M, +57% YoY) and adjusted EBITDA ($18.6M, +18% YoY), with used vehicle unit volume up 3% and gross profit up 6%, underscoring the scalability of its model. Powersports posted record Q1 revenue ($40.9M, +19%) and narrowed its segment loss to $2.0M (a 43% improvement YoY), aided by recent Harley-Davidson acquisitions expected to add $100M in annualized revenue. Management attributed results to disciplined execution: technician hiring boosted Fixed Operations, F&I optimization lifted per-unit profitability, and EchoPark’s guest-centric model drove industry-leading returns. The $500M incremental buyback authorization—raising total remaining capacity to $528M—and 8% dividend hike signal strong capital return confidence, reinforced by $381M in cash and $770M in total liquidity as of March 31, 2026. While reported net income declined 14% YoY due to unfavorable comparables (including a $30M cyber insurance gain in Q1 2025), adjusted net income grew 7% YoY, reflecting underlying operational improvement. Forward-looking commentary emphasized continued focus on Fixed Operations and F&I leverage, disciplined EchoPark expansion beginning in late 2026, and strategic Powersports growth—all aligned with Sonic’s diversified portfolio strategy to enhance shareholder returns amid evolving macro and industry dynamics.