Slide 1: Sonic Automotive Investor Presentation First Quarter 2025
SONIC AUTOMOTIVE Investor Presentation | First Quarter 2025 Updated April 24, 2025
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. These statements relate to future events, are not historical facts and are based on our current expectations and assumptions regarding our bu
Slide 3: Sonic Automotive Company Overview
Sonic Automotive Company Overview NYSE: SAH – A Fortune 300 Diversified Total Revenues and Earnings Per Share Automotive Retailer $14 $9.61 $8.46 $12 • Our Franchised Dealerships Segment is a full-service $6.81 $5.60 $10 automotive retail business with a diversified brand $3.85 $8.06 $8 $6.18 $1.48
Slide 4: Diversified Portfolio And Business Lines
Diversified Portfolio And Business Lines Geographic Distribution Brand Distribution Business Line Mix New Vehicle All Others % of % of NV 2% 7% Total Total Used Vehicle (Including Wholesale) MD 2% Category Revenue Franchised Brand Revenue Parts, Service & Collision Repair ("Fixed Operations") VA 2%
Slide 5: Strategic Focus – Franchised Dealerships Segment
Strategic Focus – Franchised Dealerships Segment Total Revenues, Segment Income*, and Adjusted EBITDA* Franchised Dealerships Strategy $11.9 $11.5 $11.8 • Manage tariff impact on inventory and $10.1 $839 pricing strategy to maintain market $8.3 $692 $675 share $526 • Focus on opportunities to offset
Slide 6: Strategic Focus – Franchised Dealerships Segment (continued)
Strategic Focus – Franchised Dealerships Segment (continued) Retail New Vehicle Unit Sales Volume, Revenue, and Gross Profit Per Unit $6,591 Retail New And Used Vehicles • Tariffs may create volatility in new and used vehicle $4,836 $4,595 pricing, volume and GPU beginning in Q2 2025 $3,722 $3,382 $
Slide 7: Strategic Focus – Franchised Dealerships Segment (continued)
Strategic Focus – Franchised Dealerships Segment (continued) Fixed Operations Gross Profit and Gross Margin % Fixed Operations And F&I • Increased technician headcount by 335 technicians in FY 2024, projected to generate approximately $100M in 49.8% 50.2% 49.5% 49.7% 50.4% 50.2% 50.7% annualized fix
Slide 8: Strategic Focus – Franchised Dealerships Segment (continued)
Strategic Focus – Franchised Dealerships Segment (continued) Hybrid vs. Electric Vehicle Trends Hybrid Vehicle vs. EV Industry Sales Volume Penetration 18.8% 20% • Industry sales volume penetration rates for combined hybrid electric 16% vehicles (HEV) and plug-in hybrid electric vehicles (PHEV) are
Slide 9: Strategic Focus – EchoPark Segment
Strategic Focus – EchoPark Segment EchoPark Strategy $40 EchoPark Segment Adjusted EBITDA* (Millions) • EchoPark Segment all-time record $15.8 quarterly adjusted EBITDA* in Q1 2025 $10 $16.7 $32.5 $9.4 $(5.7) $(27.0) $(70.1) $(49.5) $(4.9) $(2.1) $(20) • Returned to positive segment adjusted EBITDA*
Slide 10: Strategic Focus – EchoPark Segment (continued)
Strategic Focus – EchoPark Segment (continued) EchoPark Segment Adjusted EBITDA* and Total GPU (Used GPU + F&I GPU) EchoPark Strategy $2,657 $3,029 $2,955 $3,411 $2,013 $1,762 $2,183 • Focus on maintaining positive retail used vehicle GPU $27.6 $10.7 throughout FY 2025 due to faster inventory turns
Slide 11: Strategic Focus – Powersports Segment
Strategic Focus – Powersports Segment Acquisition Multiple Powersports Strategy Dealership Type Low High • Standardize operating playbooks and Luxury 6.0x 10.0x processes in existing stores to facilitate Other Luxury 3.5x 5.0x future organic and acquisition growth Import 3.0x 8.0x • Complete roll ou
Slide 12: Strategic Focus – Consolidated Company
Strategic Focus – Consolidated Company Strong Balance Sheet and Liquidity Consolidated Company Strategy $1,000 $862 $947 $846 $794 • Expect to maintain strong balance sheet and free $800 $ In Millions $703 cash flows $600 $526 $501 $399 $374 $384 $430 • Balanced capital allocation strategy prioritiz
Slide 13: Sonic Automotive FY 2025 Outlook
Sonic Automotive FY 2025 Outlook Because of changes in the market affecting our industry and the U.S. economy as a whole, in particular the potential impact of tariffs on new vehicle pricing, inventory levels, and overall consumer demand, we are issuing new guidance for FY 2025 and our previously is
Slide 14: Appendix: Financial Tables & Non-GAAP Reconciliations
Appendix: Financial Tables & Non-GAAP Reconciliations
Slide 15: Definition of Non-GAAP Financial Measures
Definition of Non-GAAP Financial Measures To supplement the Company’s financial data presented in Adjusted Net Income is defined as GAAP net income, excluding certain non-operating charges accordance with accounting principles generally accepted in the and/or benefits that may affect the comparabili
Slide 16: GAAP Income Statement – Annual Trend – Consolidated
GAAP Income Statement – Annual Trend – Consolidated FY 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Year-Over-Year Revenues: Retail new vehicles $ 6,507.5 $ 6,304.6 $ 5,622.6 $ 4,993.4 $ 4,224.4 3% Fleet new vehicles
Slide 17: Non-GAAP Reconciliation – Annual Trend – Consolidated
Non-GAAP Reconciliation – Annual Trend – Consolidated (In millions, except per share data) LTM Q1 2025 FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Reported net income (loss) from continuing operations $ 216.0 $ 178.2 $ 88.5 $ 348.9 $ (50.7) Adjustments: Impairment charges $ 3.9 $ 79.3 $ 320.4 $ - $ 269.
Slide 18: GAAP Income Statement – Quarterly Trend – Consolidated
GAAP Income Statement – Quarterly Trend – Consolidated Q1 2025 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Sequential Year-Over-Year Revenues: Retail new vehicles $ 1,656.3 $ 1,932.3 $ 1,566.8 $ 1,552.6 $ 1,455.8 (14%) 14
Slide 19: Non-GAAP Reconciliation – Quarterly Trend – Consolidated
Non-GAAP Reconciliation – Quarterly Trend – Consolidated Q1 2025 Better / (Worse) % Change (In millions, except per share data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Sequential Year-Over-Year Reported net income (loss) $ 70.6 $ 58.6 $ 74.2 $ 41.2 $ 42.0 20% 68% Adjustments: Impairment charges $ 1.
Slide 20: GAAP Income Statement – Annual Trend – Franchised Dealerships Segment
GAAP Income Statement – Annual Trend – Franchised Dealerships Segment FY 2024 Better / (Worse) % Change (In millions, except unit and per unit data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Year-Over-Year Revenues: Retail new vehicles $ 6,425.5 $ 6,215.0 $ 5,581.6 $ 4,984.4 $ 4,224.4 3% Fleet new veh
Slide 21: Non-GAAP Reconciliation – Annual Trend – Franchised Dealerships Segment
Non-GAAP Reconciliation – Annual Trend – Franchised Dealerships Segment (In millions) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Reported income (loss) before taxes $ 256.4 $ 447.0 $ 526.1 $ 530.3 $ (38.8) Impairment charges 1.2 1.0 115.5 - 270.0 Segment income (loss) $ 257.6 $ 448.0 $ 641.6 $ 530.3 $
Slide 22: GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment
GAAP Income Statement – Quarterly Trend – Franchised Dealerships Segment Q1 2025 Better / (Worse) % Change (In millions, except unit and per unit data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Sequential Year-Over-Year Revenues: Retail new vehicles $ 1,636.9 $ 1,914.8 $ 1,539.9 $ 1,530.9 $ 1,439.9 (1
Slide 23: Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment
Non-GAAP Reconciliation – Quarterly Trend – Franchised Dealerships Segment Q1 2025 Better / (Worse) % Change (In millions) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Sequential Year-Over-Year Reported income (loss) before taxes $ 91.9 $ 89.4 $ 51.6 $ 52.7 $ 62.7 3% 47% Impairment charges - 0.2 - - 1.0
Slide 24: GAAP Income Statement – Annual Trend – EchoPark Segment
GAAP Income Statement – Annual Trend – EchoPark Segment FY 2024 Better / (Worse) % Change (In millions, except unit, per unit, and per share data) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Year-Over-Year Revenues: Total new vehicles $ - $ 1.0 $ 9.2 $ 9.0 $ - (100%) Used vehicles 1,838.0 2,143.8 2,116.
Slide 25: Non-GAAP Reconciliation – Annual Trend – EchoPark Segment
Non-GAAP Reconciliation – Annual Trend – EchoPark Segment (In millions) FY 2024 FY 2023 FY 2022 FY 2021 FY 2020 Reported income (loss) before taxes $ 0.8 $ (210.8) $ (338.8) $ (72.1) $ 4.0 Impairment charges 2.7 78.3 204.9 0.1 - Segment income (loss) $ 3.5 $ (132.5) $ (133.9) $ (72.0) $ 4.0 Acquisit
Slide 26: GAAP Income Statement – Quarterly Trend – EchoPark Segment
GAAP Income Statement – Quarterly Trend – EchoPark Segment Q1 2025 Better / (Worse) % Change (In millions, except unit and per unit data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Sequential Year-Over-Year Revenues: Used vehicles $ 473.7 $ 436.0 $ 470.3 $ 448.9 $ 482.9 9% (2%) Wholesale vehicles 27.3
Slide 27: Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment
Non-GAAP Reconciliation – Quarterly Trend – EchoPark Segment Q1 2025 Better / (Worse) % Change (In millions) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Sequential Year-Over-Year Reported income (loss) before taxes $ 10.1 $ (3.9) $ 5.2 $ 2.5 $ (2.9) 358% 448% Impairment charges 0.2 1.3 - 1.4 - NM NM Seg
Slide 28: GAAP Income Statement – Annual Trend – Powersports Segment
GAAP Income Statement – Annual Trend – Powersports Segment FY 2024 Better / (Worse) % Change (In millions, except unit and per unit data) FY 2024 FY 2023 FY 2022 Year-Over-Year Revenues: Retail new vehicles $ 82.0 $ 88.6 $ 31.8 (8%) Used vehicles 22.3 19.5 7.1 14% Wholesale vehicles 2.3 2.6 0.3 (6%)
Slide 29: Non-GAAP Reconciliation – Annual Trend – Powersports Segment
Non-GAAP Reconciliation – Annual Trend – Powersports Segment (In millions) FY 2024 FY 2023 FY 2022 Reported income (loss) before taxes $ (1.1) $ 5.7 $ 2.7 Impairment charges - - - Segment income (loss) $ (1.1) $ 5.7 $ 2.7 Long-term compensation charges 0.5 - - Adjusted segment income (loss) $ (0.6)
Slide 30: GAAP Income Statement – Quarterly Trend – Powersports Segment
GAAP Income Statement – Quarterly Trend – Powersports Segment Q1 2025 Better / (Worse) % Change (In millions, except unit and per unit data) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Sequential Year-Over-Year Revenues: Retail new vehicles $ 19.4 $ 17.5 $ 26.9 $ 21.7 $ 15.9 11% 22% Used vehicles 5.7 4.
Slide 31: Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment
Non-GAAP Reconciliation – Quarterly Trend – Powersports Segment Q1 2025 Better / (Worse) % Change (In millions) Q1 2025 Q4 2024 Q3 2024 Q2 2024 Q1 2024 Sequential Year-Over-Year Reported income (loss) before taxes $ (4.6) $ (3.4) $ 4.0 $ 0.5 $ (2.3) (40%) (114%) Impairment charges 1.1 - - - - NM NM
Slide 32: Non-GAAP Reconciliation – SG&A Expenses as % of Gross Profit
Non-GAAP Reconciliation – SG&A Expenses as % of Gross Profit Franchised Dealerships Segment (In millions) FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 Q1 2024 Q1 2025 Reported: Compensation $ 598.3 $ 719.6 $ 858.0 $ 856.6 $ 892.4 $ 216.5 $ 226.4 Advertising 30.1 26.1 36.9 40.5 55.1 15.3 15.8 Rent 50.1 46
Slide 33: Investor Relations Contact: Danny Wieland
Investor Relations Contact: Danny Wieland, Vice President, Investor Relations & Financial Reporting Sonic Automotive Inc. (NYSE: SAH) Email: ir@sonicautomotive.com Investor Relations Website: ir.sonicautomotive.com