Sonic Automotive’s Adjusted Earnings Fall 8% to $1.30 per Share in Third Quarter

Key Facts

Sonic Automotive reported results for the third quarter ended September 30, 2026, with adjusted earnings per share of $1.30, down 8% from the same period a year earlier. Adjusted net income was $41.9 million, down 15% year over year. Under generally accepted accounting principles, net income was $41.1 million, down 12%, and diluted earnings per share were $1.28, a decline of 4%. The company said revenue and gross profit reached a third-quarter record. Results varied across the company’s segments, with EchoPark growing while the dealership segment faced a decline in same-store sales.

Analysts had expected earnings of $1.69 per share and revenue of $4.03 billion ahead of the results, with revenue growth of 1.5% year over year, according to Investing.com. Actual adjusted earnings per share came in below the estimate cited by the source, while the available facts do not include an actual revenue figure for comparison with analysts’ estimate. In the third quarter of 2025, revenue was $3,973.8 million, gross profit was $615.5 million, net income was $46.8 million and diluted earnings per share were $1.33. Year over year, reported net income and diluted earnings per share in the current quarter fell from their levels in the corresponding period. Adjusted net income and adjusted earnings per share also declined from the third quarter of last year.

At EchoPark, revenue rose 14% to $596.0 million, while gross profit reached a quarterly record of $58.9 million, up 8% year over year. Retail used-vehicle sales also climbed 22% to 19,923 units. By contrast, same-store revenue in the dealership segment fell 2%, and retail new-vehicle sales declined 7%. In the same segment, retail used-vehicle sales rose 3% compared with the third quarter of 2025. The chief executive said revenue and gross-profit growth at EchoPark and Powersports offset declines in the dealership segment and helped deliver record quarterly results for the company.

The company’s president said the dealership segment is operating in a “challenging environment around consumer affordability,” adding that the company is focused on opportunities to improve expense efficiency. The chief financial officer said the near-term priority is “improving expense efficiency,” while the company continues strategic investments aimed at future profitability and operating efficiency. The comments came as segment performance diverged, with growth at EchoPark and Powersports alongside sales pressures in the dealership segment. Investing.com said investors would monitor margins, vehicle profitability and management’s comments on inventory and affordability. The source also listed the company’s fourth-quarter outlook among items to watch.

The company’s shares, traded under the ticker SAH, closed at $63.12 on October 28, after closing at $63.68 the previous day. Investing.com had cited a price of $63.68 ahead of the results and said UBS cut its price target in early October from $107 to $74. Morgan Stanley also cut its target from $72 to $57 during October, according to the source. The company approved a quarterly cash dividend of $0.41 per share. The dividend is payable on January 15, 2027, to shareholders of record on December 15, 2026.