SAH SONIC AUTOMOTIVE INC

Overview and Growth

SONIC AUTOMOTIVE INC generated $15.15B of revenue in fiscal 2025, with net income of $118.70M and an operating cash inflow of $567.40M. Revenue of $15.15B sets the scale for evaluating how effectively sales translated into profit and cash during the year. The top line expanded 6.5% from $14.22B in fiscal 2024, increasing the company’s operating scale. On a per-share basis, diluted EPS was $3.42, which connects the reported earnings outcome with the company’s diluted share count. The per-share result recorded a 44.7% decrease from fiscal 2024 diluted EPS of $6.18. Asset turnover was 2.54x, relating the company’s annual revenue directly to the total assets reported at the period end.

Profitability

Gross profit was $2.38B, representing the portion of revenue remaining after the reported cost of revenue and before operating expenses. The gross-profit relationship equaled 15.7% of revenue, quantifying the portion retained before operating expenses were recognized. Operations produced $367.50M of income after the reported operating expense base, before the remaining non-operating and tax effects. The operating result equaled 2.4% of revenue, placing the absolute operating-income figure in the context of the company’s sales base. Net income came to $118.70M, completing the progression from revenue through gross and operating profitability to the final reported result. Measured against reported revenue, net income produced a 0.8% margin after operating costs and the remaining recognized items. Pretax income was $172.80M, isolating the reported earnings outcome before the income-tax provision recognized for the fiscal year. Measured against revenue, pretax income equaled 1.1%, adding a pre-tax profitability layer between revenue and net income. An income-tax benefit of $54.10M improved the final result relative to pretax income or loss. Relative to positive pretax income, the tax benefit measured 31.3%.

Liquidity and Capital Structure

The company held $5.97B of assets against $4.90B of liabilities and $1.07B of equity, revealing how the asset base was financed. At period end, current assets of $2.83B compared with current liabilities of $2.60B, defining the company’s short-term resource position. At 1.09x, the current ratio shows that short-term assets were greater than short-term liabilities at period end. Cash and equivalents totaled $6.30M, identifying the most liquid reported component available within the broader current-asset balance. The cash balance equaled 0.2% of current liabilities, showing how much near-term coverage came from cash alone. Total debt was $1.62B, establishing the amount of borrowing carried within the company’s capital structure. The debt-to-equity relationship was 1.51x, showing how much debt the company carried for each unit of book equity. Debt represented 27.1% of total assets, placing borrowing in the context of the company’s full resource base. The liabilities-to-assets relationship was 82.1%, placing reported obligations against the full positive asset balance. Cash and equivalents equaled 0.1% of total assets, showing the liquid cash component within the company’s broader resource base.

Cash Flow and Earnings Quality

Operating activities produced a cash inflow of $567.40M, giving the cash-flow counterpart to the accrual-based profit measures reported for the year. The operating-cash-flow-to-net-income relationship was 4.78x, comparing cash generated by operations with the bottom-line earnings result. Capital expenditures used $149.90M, identifying the reported investment outflow deducted from operating cash flow in the free-cash-flow calculation. Capital spending absorbed 26.4% of operating cash flow, quantifying the share of cash from operations directed to investment. The combination of operating cash flow and capital spending produced $417.50M of positive free cash flow for the period. Relative to revenue, free cash flow equaled 2.8%, showing how much sales converted into cash after investment. The free-cash-flow-to-assets relationship was 7.0%, comparing post-investment cash with the balance-sheet asset base.

Based on the annual report for the fiscal year ending Dec 31, 2025. Analysis generated Oct 21, 2026.