Sonic Automotive(NYSE) SAH

Sonic helps people buy, service, and finance vehicles for their daily lives. It sells new and used cars, trucks, and motorcycles across the United States. The company also fixes vehicles and offers parts to keep them running.

Beyond the Showroom Floor

• Franchised Dealerships: Sales of new and used vehicles plus repair services for 24 different brands; includes 127 franchises across 17 states.
• EchoPark: Used car and light truck sales through a specialized retail network across 10 states.
• Powersports: New and used motorcycles, personal watercraft, and all-terrain vehicles sold through locations in three states.
• Fixed Operations: Vehicle maintenance, manufacturer warranty repairs, and paint and collision services provided at dealership locations.
• Finance and Insurance: Arrangement of third-party financing, extended warranties, and service contracts for vehicle buyers.

Making Moves in 2026

• Acquired San Diego Harley-Davidson, Falcon's Fury Harley-Davidson, Space Coast Harley-Davidson, Treasure Coast Harley-Davidson, Raging Bull Harley-Davidson, and Cocoa Beach Harley-Davidson in April 2026.
• Disposed of four franchised dealerships and related real estate in the first quarter of 2026, generating gross proceeds of $58.7 million.
• Repurchased approximately 2.1 million shares of Class A Common Stock for $135.7 million during the first quarter of 2026.

Diverse Brands and Services

Sonic operates a large portfolio of 127 new vehicle franchises and 16 collision repair centers. The company maintains a mix of luxury, mid-line import, and domestic brands to serve a wide range of consumer budgets.

By the Numbers

• Total revenue reached $3.7 billion in the first quarter of 2026, up 1.0% from the previous year.
• Net income was $60.8 million in the first quarter of 2026, down 13.9% year-over-year.
• Operating cash flow was $35.5 million in the first quarter of 2026, down 82.7% from $204.8 million in the first quarter of 2025.
• Free cash flow worsened to -$1.5 million in the first quarter of 2026 from $159.8 million in the same period of 2025.
• The company increased its share repurchase authorization by $500 million in April 2026 following the first-quarter report.

Bottom Line

Sonic has evolved from a traditional car dealer into a multi-segment retailer that includes specialized used-car hubs and a growing motorcycle division. Its broad brand mix and regional footprint allow it to adapt to changing consumer demand across the automotive and powersports markets.