Abstract

Sonic Automotive will release its quarterly results on February 18, 2026 Pre-Market, and this preview consolidates recent financial metrics, management’s guidance, and market commentary to frame expectations for revenue, margins, and earnings per share for the coming print.

Market Forecast

Consensus embedded in recent forecasts points to revenue of $3.95 billion for the current quarter, implying year-over-year growth of 9.31%; the model also implies adjusted EPS of 1.50 and EBIT of $118.85 million, with EPS up 2.48% year over year and EBIT up 2.97%. Compared with the last quarter’s reported mix, the current quarter is anticipated to hold the gross margin trajectory broadly stable, and the net margin is expected to track modestly higher in line with the EBIT and EPS expansion; the company’s focus remains on operational efficiency and mix optimization. The main business of vehicles continues to anchor the topline, with management attention on pricing discipline and inventory balance; parts, service and collision repair remain a stabilizing profit engine, and finance and insurance supports per-unit profitability. The most promising segment remains parts, service and collision repair at $533.90 million last quarter, supported by resilient customer pay and maintenance activity; this mix typically carries higher margins and a more stable demand profile, suggesting continued favorable year-over-year momentum.

Last Quarter Review

In the previous quarter, Sonic Automotive reported revenue of $3.97 billion, a gross profit margin of 15.49%, GAAP net profit attributable to the parent company of $46.80 million, a net profit margin of 1.18%, and adjusted EPS of 1.41, with year-over-year adjusted EPS growth of 11.91%. Quarter-over-quarter net profit grew 202.63%, reflecting improved mix and cost normalization from inventory and operating leverage. By business line, vehicles contributed $3.24 billion, parts, service and collision repair delivered $533.90 million, and finance, insurance and other generated $203.80 million; after-sales maintained steady growth year over year and supported overall gross margin resilience.

Current Quarter Outlook (with major analytical insights)

Core vehicle retail operations

Vehicle retail remains the revenue center and the largest swing factor for quarterly results. We expect unit volumes to be shaped by brand allocation and incentive cadence, with price normalization continuing across mainstream franchises and premium holding comparatively firmer. Within this backdrop, same-store sales will likely hinge on inventory availability and the cadence of new model launches; manufacturers’ incentive support into the quarter has improved traffic but compressed per-vehicle front-end margins versus the peak period of scarcity. Our base case is a modest sequential step-up in revenue, but with margin protection coming from finance and insurance attach rates and disciplined SG&A. With a larger revenue denominator, net margin expansion should track with EBIT growth, assuming stable floorplan costs and no unusual LIFO adjustments.

After-sales and collision as margin ballast

Parts, service, and collision repair provide steadier, higher-margin revenue and are a central lever for profitability. Customer-pay maintenance, warranty work, and collision repair typically exhibit less cyclicality, creating visibility into gross profit even as vehicle pricing fluctuates. We expect continued technician productivity gains and scheduling optimization to support throughput, while parts availability remains adequate. This segment’s ability to lift blended gross margin is notable when vehicle margins face pressure; a sustained mix shift toward after-sales could underpin EPS resilience. Given last quarter’s $533.90 million contribution, a mid-single to high-single-digit year-over-year increase this quarter would be consistent with the company’s historical cadence and the broader service market’s demand stability.

Finance and insurance, and per-unit gross profit

Finance, insurance, and other revenue enhances per-unit gross profit and moderates volatility. As retail lenders and captive programs adjust to the rate environment, approval rates and penetration can shift, but product attach—service contracts, GAP, and ancillary protection—remains a key driver of back-end gross. We anticipate relatively stable F&I per-vehicle contribution given competitive credit terms and dealer focus on menu execution. The interplay between F&I penetration and front-end pricing will be critical to sustaining consolidated gross margin near the prior quarter’s 15.49% level. If volumes firm while per-unit front-end gross normalizes, back-end strength can keep EBIT trending toward the projected $118.85 million, supporting the EPS estimate of 1.50.

Operating cost discipline and inventory mix

SG&A control remains pivotal. The company has pursued efficiency through store-level process improvements and digital retailing tools, which can support throughput without proportionate cost growth. Inventory discipline—balancing new versus used, and aligning days’ supply with demand—should reduce discounting pressure, especially in the used segment, where price discovery has been active. Stable days’ supply and a healthier used mix could limit wholesale losses and protect gross. These execution elements help explain the strong quarter-on-quarter rebound in GAAP net profit last quarter and set the stage for incremental margin improvement if demand holds.

Key drivers for the stock this quarter

Investors are likely to focus on revenue growth against the 9.31% year-over-year bar, blended gross margin trajectory relative to the prior quarter’s 15.49%, and the relationship between unit volume and per-vehicle gross. Any deviation in EPS from the 1.50 mark will likely be read through to pricing and cost control efficacy, while commentary on after-sales growth sustainability could influence margin expectations for subsequent quarters. Management’s color on inventory normalization and brand-level trends will also be a catalyst, as will updates on the pace of used vehicle price stabilization.

Analyst Opinions

Across the latest published opinions, the balance leans bullish, with the majority expecting Sonic Automotive to meet or modestly exceed revenue and EPS forecasts supported by resilient after-sales profitability and operational discipline. Analysts emphasize the contribution of service and collision to blended margins and see room for incremental EPS outperformance if inventory turns improve and F&I penetration stays healthy. Several well-followed research desks highlight EBIT progress and stable back-end gross as underpinning the constructive stance, noting that year-over-year revenue growth near 9.31% sets a reasonable hurdle that can be cleared if volumes track to plan and front-end discounting is contained.