Q1 2026 Sonic Automotive Inc Earnings Call Transcript
Key Points
- Sonic Automotive Inc (SAH) reported record first quarter total revenues of $3.7 billion, up 1% from the previous year.
- The company achieved a record first quarter total gross profit of $598.8 million, up 6% year over year.
- EchoPark segment reported an all-time record adjusted segment income of $12.6 million, up 25% year over year.
- The Powersports segment generated first quarter record revenues of $41 million, up 19% year over year.
- Sonic Automotive Inc (SAH) ended the quarter with $770 million in available liquidity, including $381 million in combined cash and floor plan deposits on hand.
- Same-store revenues for the franchise dealership segment were down 4% year over year, largely due to a 10% decrease in new vehicle retail volume.
- Same-store used vehicle gross profit per unit (GPU) decreased 4% year over year to $1,533 per unit.
- The company faces potential headwinds from tariffs on vehicle production, pricing, and volume forecasts.
- Sonic Automotive Inc (SAH) plans to increase advertising expenses by $10 million to $20 million, which could impact short-term profitability.
- The company is experiencing some shrinkage in front-end margin for new vehicles in April.
Good morning, and welcome to the Sonic Automotive first quarter 2026 earnings conference call. This conference call is being recorded today, Thursday, April 30, 2026. Presentation materials which accompany management's discussion on the conference call can be accessed at the company's website at ir.sonicautomotive.com.
At this time, I would like to refer to the Safe Harbor statement under the Private Securities and Litigation Reform Act of 1995. During this conference call, management may discuss financial projections, information, or expectations about the company's products or market or otherwise make statements about the future. Such statements are forward-looking and subject to a number of risks and uncertainties that could cause actual results to differ materially from these statements made. These risks and uncertainties are detailed in the company's filings with the Securities and Exchange Commission.
In addition, management may discuss certain non-GAAP financial measures as defined by the Securities and Exchange Commission. Please refer to the non-GAAP reconciliation tables in the
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