Sonic Automotive Beats Q4 Estimates, Grows Technician Workforce For 2025

Sonic Automotive, Inc. SAH reported 9% year-over-year growth in fourth-quarter revenue to $3.896 billion, beating the consensus of $3.611 billion.

The Charlotte, North Carolina-based company reported:

• Adjusted earnings per share of $1.51, down from $1.63 YoY, but above the street view of $1.46.
• The Franchised Dealerships segment hit a record $3.4 billion in revenue. That’s up 12% YoY, with $517.4 million (+5% YoY) in gross profit.
• Same-store new vehicle sales rose 13%, but profit per unit fell 25% to $3,241.
• Used sales increased 5%, with profit down 3% to $1,396.
• EchoPark reported $506.2 million in revenue, down 9% year-over-year.
• Gross profit rose 14% to $49 million.
• On a same-market basis, revenue remained flat, but gross profit increased 29%.
• Retail used vehicle sales fell 5% to 16,674 units, though same-market sales rose 4%.
• The Powersports Segment boasts $30.6 million in revenue, up 13% YoY.
• $7.5 million is gross profit was up 7%, and a 24.6% gross margin.
• Powersports posted a $3.4 million loss, with an adjusted loss of $2.9 million and an adjusted EBITDA loss of $1 million.
• Gross profit rose 6.1% year over year to $574 million, and the gross margin stood at 14.7% (down 36 bps YoY).
• Operating income was $133.5 million (+31.5% YoY), and the margin expanded 60 bps to 3.4%.

During the quarter, Sonic acquired the remaining 50% stake in its North Point Volvo joint venture, along with Audi New Orleans and Motorcycles of Charlotte & Greensboro. These acquisitions are projected to contribute approximately $145 million in annual revenue.

Dividend: Sonic's Board approved a quarterly cash dividend of 35 cents per share, payable on April 15, 2025, to all stockholders of record on March 14, 2025.

In Q4, the company accelerated hiring and exceeded its goal of increasing technician headcount by 300 in 2024, according to CEO David Smith. The final net increase was 335 technicians.

As of Dec. 31, 2024, the company had approximately $384 million in cash and floor plan deposits on hand. Total liquidity was roughly $862 million.

“In 2025, we anticipate numerous opportunities to deploy our capital to grow our revenue base and enhance shareholder returns," Sonic Automotive CFO Heath Byrd said.

Price Action: Sonic Automotive shares traded higher by 0.32% at $75.00 premarket at the last check Wednesday.

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