Sonic Automotive, Inc. (NYSE:SAH) announced its third-quarter results on Thursday before the market opened, missing earnings estimates but surpassing revenue expectations.
The company reported third-quarter 2025 adjusted earnings of $1.41 per share, falling short of $1.73 consensus estimate but increasing 12% year over year from $1.26 a year earlier.
Quarterly revenue hit $3.97 billion, exceeding expectations of $3.62 billion and rising 14% year-over-year from $3.49 billion in the prior-year period.
Also Read: Sonic Automotive Q2 EPS Tops Estimates As Sales Miss, EchoPark Gross Profit Surges 22%
The operating income for the quarter increased 8% to $122.7 million from $113.6 million during the year-ago period.
The company had approximately $264 million in cash and floor-plan deposits as of September 30, 2025.
Segment Performance
Sonic Automotive's Franchised Dealerships segment delivered strong performance in the quarter, with same-store revenue up 11% and gross profit rising 8%. New vehicle sales volume increased 8%, though gross profit per unit declined 7% to $2,852, while used vehicle volume grew 3% with gross profit per unit improving 10% to $1,530.
The company said that the previously announced acquisition of Jaguar Land Rover Santa Monica, completed on August 18, 2025, is expected to contribute approximately $125 million in annualized revenue to Sonic Automotive's Franchised Dealerships segment.
The EchoPark segment reported revenue of $522.5 million, down 4% year over year, and gross profit of $54.4 million, down 1%. Retail used-vehicle unit sales totalled 16,353 units, a 8% decrease from the prior-year period.
Powersports segment achieved a record quarterly revenue of $84.1 million, up 42% year over year, and a record gross profit of $23.3 million, representing a 32% increase from the prior-year period.
Dividend
Alongside its quarterly results, the company announced that its Board of Directors approved a quarterly cash dividend of 38 cents per share, payable on January 15, 2026, to stockholders of record on December 15, 2025.
Management Commentary
David Smith, Chairman and Chief Executive Officer of Sonic Automotive, stated, "The acquisition of our latest Jaguar Land Rover store in Santa Monica cements Sonic as the largest Jaguar Land Rover volume retailer in the U.S. and enhances our brand portfolio in the coveted California luxury market."
Jeff Dyke, president of Sonic Automotive, commented, “While there is uncertainty around the future impact of tariffs on consumer demand, vehicle pricing, gross margins, and inventory levels, the Sonic team remains committed to executing our strategy and adapting to changes in our business.”
Price Action: SAH shares were trading lower by 11.88% to $68.59 at last check Thursday.
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