Sonic Automotive (NYSE:SAH) reported record fourth-quarter gross profit despite a slight dip in total revenue, as the company’s EchoPark used-vehicle segment continued its dramatic profitability turnaround.
The automotive retailer posted total revenues of $3.9 billion for the quarter ended December 31, 2025, a 1 percent decline from the prior year.
However, the company achieved a fourth-quarter record for total gross profit, which climbed 4 percent to $598.7 million.
On an adjusted basis, net income was $52.2 million, or $1.52 per diluted share, narrowly missing the Zacks consensus estimate of $1.53 but representing a 1 percent increase in per-share earnings year-over-year.
The standout performer was the EchoPark segment, which reported adjusted income of $3.6 million—a 300 percent improvement from the loss reported in the same period last year.
EchoPark’s adjusted EBITDA reached a record $8.8 million, up 110 percent, signaling that management’s efforts to optimize the used-car business are gaining significant traction despite a 6 percent decrease in retail unit volume.
Within its core Franchised Dealerships segment, revenues remained flat at $3.4 billion, though gross profit hit a quarterly record of $535.8 million.
The segment continues to lean heavily on luxury and import brands, which typically command higher margins and show more resilience during periods of consumer affordability pressure.
Meanwhile. Sonic’s management remains aggressive in its capital allocation.
During the fourth quarter, the company repurchased approximately 0.6 million shares of its Class A Common Stock for $38.3 million.
Following the close of the fiscal year, the Board of Directors approved a quarterly cash dividend of $0.38 per share, payable on April 15, 2026.