Sonic Automotive reported record quarterly revenue and gross profit for the three months ended Sept. 30, 2026, while net income declined from a year earlier. The company also highlighted growth at its used-vehicle retailer EchoPark and record quarterly results in its Powersports segment, and said a quarterly cash dividend had been approved.
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Record top line, lower earnings: Revenue reached $4.0 billion, up 0.4% year over year, and gross profit was a record $617.5 million, up 0.3%. Net income fell 12% to $41.1 million, or $1.28 per diluted share, down 4%. Adjusted net income declined 15% to $41.9 million, or $1.30 per diluted share, down 8%.
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Selling costs: Selling, general and administrative expenses were 75.6% of gross profit overall. The ratio was 75.7% at franchised dealerships, 82.1% at EchoPark and 60.7% in Powersports. On an adjusted basis, the overall ratio was 75.4%, with EchoPark at 81.1%; the other segment ratios were 75.6% for franchised dealerships and 60.7% for Powersports.
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EchoPark growth: Segment revenue rose 14% to $596.0 million. Gross profit reached a third-quarter record of $58.9 million, up 8%, while retail unit sales volume increased 22% year over year.
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Powersports records: Sonic said the segment achieved record unit sales volume at the 86th annual Sturgis Motorcycle Rally, contributing to all-time quarterly records for segment revenue and income.
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Dividend: Sonic said a quarterly cash dividend had been approved.
The results show that record revenue and gross profit did not translate into higher net income: reported and adjusted earnings were both below year-earlier levels. EchoPark’s sales volume and Powersports’ reported records were notable areas of growth.