Sonic Automotive, Inc. reported a total revenue of $3.66 billion for the second quarter of 2025, marking a 6% increase from $3.45 billion in the same period of 2024. The company's net loss for the quarter was $45.6 million, compared to a net income of $41.2 million in the prior year. This decline in profitability was attributed to significant impairment charges of $172.4 million related to franchise assets, which overshadowed the overall revenue growth. For the first half of 2025, Sonic's total revenue reached $7.31 billion, up from $6.84 billion in the first half of 2024, while net income fell to $25 million from $83.2 million year-over-year.
In terms of operational performance, Sonic's Franchised Dealerships Segment saw a 7% increase in total new vehicle revenue, reaching $1.67 billion, driven by a 6% rise in retail new vehicle unit sales. However, gross profit from retail new vehicles decreased by 1% due to increased price competition and higher inventory costs. The EchoPark Segment experienced a 2% decline in total revenues, primarily due to a decrease in average selling prices for used vehicles, although it reported a 22% increase in gross profit. The Powersports Segment reported a 24% increase in retail new vehicle revenue, reflecting strong unit sales growth.
Sonic Automotive's strategic developments included the acquisition of four businesses in the Franchised Dealerships Segment for approximately $359.9 million, which contributed to an increase in goodwill on the balance sheet. The company also expanded its operations, with a total of 111 stores in the Franchised Dealerships Segment, 18 in the EchoPark Segment, and 14 in the Powersports Segment as of June 30, 2025. The total employee headcount increased to 6,500, reflecting the company's growth initiatives.
The company reported a significant increase in customer engagement metrics, with total retail new and used vehicle unit sales volume rising to 145,882 for the first half of 2025, compared to 140,734 in the same period of 2024. Sonic's finance and insurance (F&I) revenue also increased by 17% in the second quarter, driven by higher gross profit per retail unit. However, the company noted challenges in maintaining profitability due to rising costs and competitive pressures in the automotive market.
Looking ahead, Sonic Automotive anticipates continued revenue growth driven by its diversified dealership portfolio and strategic acquisitions. However, the company remains cautious about potential market fluctuations and the impact of economic conditions on consumer demand. The management emphasized the importance of maintaining operational efficiency and adapting to changing market dynamics to sustain profitability in the future.
About SONIC AUTOMOTIVE INC
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