In addition to its region-wide Black Hills take-over and opening the first-ever Harley-Davidson dealership in downtown Sturgis, Sonic has also been moving forward with its powersports division. Despite the financial headwinds, the group posted record revenues of $48.1 million, up 21% for Q1 2025.
“In our Powersports Segment, we are encouraged by the early results of our investment in modernizing our inventory management and marketing processes, which we believe will help make this year’s 85th Sturgis Motorcycle Rally our most successful rally yet,” claims Jeff Dyke, President of Sonic Automotive.
“While there is uncertainty around the future impact of tariffs on consumer demand, vehicle pricing, gross margins, and inventory levels, our team remains committed to executing our strategy and adapting to changes in our business, as we have done for much of our company’s history,” says Sonic’s Chairman and CEO David Smith. “I am very proud of our team’s effort in the second quarter, driving record second quarter consolidated revenues and another all-time record quarterly adjusted EBITDA…These results validate our efforts to deliver an outstanding experience for our guests and teammates, grow our long-term volume and profitability, gain market share in our franchised dealerships and powersports segments, and optimize our expense structure in order to create long-term value for our stakeholders.”
In fact, Sonic’s Board of Directors approved a 9% increase to the quarterly cash dividend, to $0.38 per share, payable on October 15, 2025, to all stockholders of record on September 15, 2025. “We remain focused on deploying capital via a diversified growth strategy across our Franchised Dealerships, EchoPark, and Powersports Segments to grow our revenue base and enhance shareholder returns,” adds CFO Heath Byrd. Powersports Segment operating results include:
• First quarter record revenues of $48.1 million, up 21%;
• Gross profit of $12.5 million, up 17%
• Segment income of $0.0 million, a 100% decrease from segment income of $0.5 million in the prior year period, and adjusted EBITDA* of $2.0 million, a 13% decrease from adjusted EBITDA* of $2.3 million in the prior year period
* Represents a non-GAAP financial measure
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ABOUT SONIC
Sonic Automotive, Inc., a Fortune 500 company based in Charlotte, North Carolina, is on a quest to become the most valuable diversified automotive/powersports retail and service brand in America. Our Company culture thrives on creating, innovating, and providing industry-leading guest experiences, driven by strategic investments in technology, teammates, and ideas that ultimately fulfill ownership dreams, enrich lives, and deliver happiness to our guests and teammates. As one of the largest automotive and powersports retailers in America, we are committed to delivering on this goal while pursuing expansive growth and taking progressive measures to be the leader in these categories. Our new platforms, programs, and people are set to drive the next generation of automotive and powersports experiences. More information about Sonic can be found at:
