Sonic Automotive, Inc. (SAH Quick QuoteSAH - Free Report) posted first-quarter 2026 adjusted earnings per share of $1.62, which increased 9.5% year over year and beat the Zacks Consensus Estimate of $1.46 by 11.34%. Total revenues rose 1.02% year over year to $3.69 billion but missed the Zacks Consensus Estimate of $3.74 billion by 1.41%.

Results reflected solid profitability even though demand was uneven across parts of the vehicle market. Strong performance in higher-margin areas helped balance the weaker spots. In particular, same-store finance and insurance profit per vehicle at franchised dealerships rose 6% year over year to $2,594.

SAH Results Show Mixed Revenue Trends by Line Item

On a consolidated basis, SAH’s revenue mix was uneven across categories. New-vehicle revenues totaled $1.63 billion, down 3% year over year, while used-vehicle revenues increased 4% to $1.27 billion.

The higher-growth areas were Service and F&I businesses. Revenues from parts, service and collision repair increased 9% to $516.6 million, while finance, insurance and other income rose 6% to $202.4 million. These areas helped support overall revenue growth even as new-vehicle sales remained weak.

Sonic's Franchised Stores Lean on Service and Unit Mix

Sonic’s Franchised Dealerships segment produced revenues of $3.07 billion, essentially flat year over year. Within the segment, parts, service and collision repair revenues climbed 9% to $509.3 million, while finance, insurance and other revenues improved 7% to $139.3 million.

Same-store revenues declined 4% year over year to $2.91 billion, with same-store retail new vehicle unit volume down 10% to 24,725 and same-store retail used vehicle unit volume up 3% to 25,636. Same-store fixed operations gross profit increased 5% to $247.1 million, and the same-store fixed operations gross profit margin improved 40 basis points to 51.1%, supporting profitability even as new-vehicle trends softened.

SAH's EchoPark Delivers Record Profitability Metrics

SAH’s EchoPark segment remained a bright spot. Segment revenues increased 4% year over year to $580.5 million, and total gross profit grew 6% to $67.9 million, supported by higher finance and insurance contribution alongside modest vehicle gross profit improvement.

Profitability improved significantly compared to the previous year. EchoPark reported segment income of $16.2 million versus $10.3 million in the prior-year quarter, while adjusted segment income rose to $12.6 million from $10.1 million.

Adjusted EBITDA improved to $18.6 million compared with $15.8 million a year ago. SG&A expenses as a percentage of gross profit improved to 62.9% from 70.1%.

Sonic Powersports Expands, Seasonal Loss Improves

Sonic’s Powersports segment continued to scale from a smaller base, with first-quarter revenues increasing 19% year over year to $40.9 million. Gross profit rose 19% to $10.1 million, reflecting growth across vehicle sales and service activity.

Loss metrics improved noticeably compared to the same period last year, in line with seasonal patterns, as the first quarter is typically weaker before demand picks up later in the year.

The segment posted a loss of $2 million, better than the $3.5 million loss a year ago, while adjusted EBITDA loss narrowed to $0.1 million from $0.7 million. Sonic also pointed to an April 2026 acquisition of five Harley-Davidson dealerships that is expected to add roughly $100 million in annualized revenues to the Powersports segment.

SAH Steps Up Buybacks and Raises Quarterly Dividend

In the first quarter, the company repurchased about 2.1 million shares for approximately $135.7 million.

Liquidity remained strong, supporting ongoing capital deployment activities. As of March 31, 2026, SAH had about $381 million in cash and floor plan deposits, with total liquidity of roughly $770 million. In April 2026, the board approved an additional $500 million in share repurchase authorization, lifting total remaining authorization to $528 million.

Sonic also approved an 8% dividend increase to $0.41 per share payable July 15, 2026, to shareholders of record on June 15, 2026.

Peer Releases

Lithia Motors (LAD Quick QuoteLAD - Free Report) posted first-quarter 2026 adjusted earnings of $7.34 per share, down 4% from $7.66 a year ago. However, the bottom line beat the Zacks Consensus Estimate of $7.06 by 4%. Quarterly revenues rose 1% year over year to $9.27 billion but came in below the Zacks Consensus Estimate of $9.36 billion by 0.9%.

As of March 31, 2026, Lithia’s cash, restricted cash and cash equivalents totaled $421.3 million, up from $341.8 million at year-end 2025. The board approved a quarterly dividend of 57 cents per share, expected to be paid on May 22, 2026, to shareholders of record on May 8, 2026. 

Penske Automotive Group, Inc. (PAG Quick QuotePAG - Free Report) reported first-quarter 2026 adjusted earnings of $3.05 per share, which declined 15.0% year over year but topped the Zacks Consensus Estimate of $2.91 by 4.8%. Total revenues of $7.86 billion dipped 1.1% from the year-ago quarter and missed the consensus mark of $7.95 billion by 1.1%.

The company paid $92.6 million in dividends and repurchased 170,393 shares for $26.4 million. Liquidity was approximately $1.3 billion, including $83.7 million in cash and $1.2 billion of availability under credit agreements and revolving mortgage facilities. Balance sheet leverage increased, with long-term debt rising to $2.21 billion as of March 31, 2026.