Sonic Automotive has released its third-quarter results, and despite some headwinds, the company is still setting records. Joining us on the latest episode of Inside Automotive to break down the numbers and share his outlook on what’s next is Jeff Dyke, President of Sonic Automotive.
According to Dyke, Sonic Automotive reported a record quarterly revenue of $4.40 billion in the third quarter, a 14% increase from the same period last year, while total gross profit reached $615.5 million, up 13% year-over-year. Despite strong top-line performance, net income declined 37% year over year to $46.8 million, driven by a higher effective tax rate and a higher medical expense ratio.
“With five JLR stores added to our portfolio mix, now makes us the largest Jaguar Land Rover dealer in the country.”
Strategic acquisitions have also fueled Sonic’s growth, including the purchase of Jaguar Land Rover (JLR) stores in Santa Monica, which is expected to add approximately $125 million in annualized revenue. Notably, Dyke says that the company continues to pursue acquisitions across its franchise network, Echo Park, and Power Sports operations to further expand its portfolio.
Sonic’s used-vehicle division, EchoPark, also saw revenue decline 4% to $522 million, with gross profit down 1% to $54 million. Challenges in sourcing used vehicles, including the loss of rental-car inventory and limited third-quarter performance. However, the company expects improvements in 2026 as more lease returns come off and plans to reopen and expand EchoPark stores in the latter half of 2026, with additional growth projected for 2027.
Moreover, the PowerSports segment achieved its best quarter ever, although inventory limitations constrained sales. Sonic plans to expand Harley-Davidson inventory and pre-owned options next year, supported by enhanced technology and operational improvements.
In the EV segment, the company reduced Q3 profit by approximately $150 per vehicle while selling more than 4,000 BEVs. EVs currently account for less than 4% of total sales and inventory. Sonic is shifting to a strategy of gradual, natural growth in EVs rather than aggressive, incentive-driven sales.
Looking ahead, Sonic expects a moderate sequential increase in fourth-quarter volume of about 5%, compared with the typical 10%. Overall results will depend on manufacturer incentives and inventory management, with new store openings contributing to year-over-year performance. The company remains focused on expanding across franchise operations, EchoPark, PowerSports, and fixed operations in the coming years.
