Like AutoNation, a major retailer of new and used cars and automotive services.

Think of it as CarMax, but also owning many traditional new car dealerships.

The "Walmart of cars," offering a wide range of new and used vehicles, parts, and service.

• New and Used Vehicle Sales: Sonic Automotive sells new cars and light trucks through its franchised dealerships and used cars and light trucks through both franchised dealerships and EchoPark stores.
• Vehicle Parts Sales: The company sells replacement parts for vehicles.
• Vehicle Repair and Maintenance Services: Services include vehicle maintenance, manufacturer warranty repair, and paint and collision repair.
• Financial and Aftermarket Product Arrangement Services: Sonic Automotive arranges extended warranties, service contracts, financing, insurance, and other aftermarket products for its customers.

Sonic Automotive (SAH) sells primarily to individuals.

The company serves the following categories of individual customers:

1. New Vehicle Purchasers: Individuals looking to buy brand-new cars and light trucks from the various franchises Sonic Automotive operates. These customers often prioritize the latest models, manufacturer warranties, and specific brand experiences.
2. Used Vehicle Purchasers: Individuals seeking pre-owned cars and light trucks. This category includes customers buying used vehicles from both the franchised dealerships and the specialized EchoPark and Northwest Motorsport stores, often prioritizing value, a wider selection of makes/models, or specific budget considerations.
3. Vehicle Service and Parts Customers: Individuals who require maintenance, repairs (including manufacturer warranty repairs and collision repair), or replacement parts for their vehicles. These customers utilize the service departments of Sonic Automotive's dealerships regardless of where they originally purchased their vehicle.

• General Motors (GM)
• Ford Motor Company (F)
• Stellantis N.V. (STLA)
• Toyota Motor Corporation (TM)
• Honda Motor Co., Ltd. (HMC)
• Hyundai Motor Company (HYMTF)
• Kia Corporation (KICPY)
• Nissan Motor Co., Ltd. (NSANY)
• Mazda Motor Corporation (MZDAY)
• Subaru Corporation (FUJHY)
• Volkswagen AG (VWAGY)
• Porsche AG (DRPRF)
• Bayerische Motoren Werke AG (BMWYY)
• Mercedes-Benz Group AG (MBGAF)
• Tata Motors Limited (TTM)
• Volvo Car AB (VLVLY)

David Bruton Smith, Chairman and Chief Executive Officer

David Bruton Smith was elected Chief Executive Officer of Sonic Automotive in September 2018 and Chairman of the Board in July 2022. He has served in Sonic's organization since 1998, holding various roles including Executive Vice Chairman and Chief Strategic Officer, Vice Chairman, Executive Vice President, Senior Vice President of Corporate Development, Vice President of Corporate Strategy, and Dealer Operator and General Manager of several Sonic dealerships. Mr. Smith is also a director and officer of Sonic Financial Corporation, the largest stockholder of Sonic, and a co-owner and director of Speedway Motorsports.

Heath R. Byrd, Executive Vice President, Chief Financial Officer

Heath R. Byrd has served as Sonic's Executive Vice President and Chief Financial Officer since April 2013. He joined Sonic in 2007, initially serving as Vice President and Chief Information Officer from December 2007 to March 2013. Prior to joining Sonic, Mr. Byrd held various management positions at HR America, Inc., a workforce management firm, including a director, President and Chief Operating Officer, and Chief Financial Officer and Chief Information Officer. He also previously served as a Manager in the Management Consulting Division of Ernst & Young LLP. Mr. Byrd and his partners sold HR America in 2007.

Jeff Dyke, President, Director

Jeff Dyke has over 25 years of experience in the automotive retail industry. He has served as President of Sonic Automotive since October 2018 and was elected to the company's Board of Directors in July 2019. Mr. Dyke joined Sonic in October 2005 as the Vice President of Retail Strategy. His previous roles at Sonic include Division Vice President - Eastern Division, Division Chief Operating Officer – Southeast Division, and Executive Vice President of Operations, where he oversaw Sonic's retail automotive operations and EchoPark Automotive. Before joining Sonic, Mr. Dyke worked at AutoNation from 1996 to 2005, holding several leadership positions.

B. Scott Smith, Director, Co-Founder

B. Scott Smith has been a director of Sonic since July 2022. He is a co-owner of Speedway Motorsports and a director and officer of Sonic Financial Corporation. Mr. Smith previously served as Sonic's Chief Executive Officer from July 2015 to September 2018, and as President and Chief Strategic Officer from March 2007 to July 2015. He was also previously a director of Sonic from its organization in January 1997 until September 2018.

Here are the key risks to Sonic Automotive (symbol: SAH):

1. Economic Fluctuations and Interest Rate Sensitivity: Sonic Automotive's business is highly susceptible to general economic conditions, including fluctuations in interest rates, inflation, vehicle valuations, employment levels, consumer spending, and credit availability. Downturns in these areas can significantly impact consumer demand for both new and used vehicles, as well as the availability and cost of financing for vehicle purchases. Given the company's significant indebtedness, rising interest rates also increase its borrowing costs, further affecting financial health and profitability.

2. Competitive Pressures and Automotive Industry Disruption: The automotive retail industry faces intense competition from both traditional dealerships and new entrants, including technology-focused companies. There is an increasing shift towards online vehicle sales and direct-to-consumer models by manufacturers, which poses a threat to the traditional dealership operational model. Furthermore, the transition to electric vehicles (EVs) presents challenges as these vehicles may require less maintenance, potentially reducing the company's service revenue, and necessitate significant adaptation to changing consumer demand and manufacturer production capabilities.

3. Supply Chain Disruptions and Reliance on Manufacturer Relationships: Sonic Automotive's operations are vulnerable to disruptions in the global supply chain, which can hinder the ability of vehicle manufacturers to produce and deliver sufficient new vehicles and parts. The company also heavily relies on vehicle manufacturers for sales incentives, warranties, new vehicle models, and approvals for acquisitions and expansions. A reduction or discontinuation of manufacturer incentive programs, the awarding of franchises to competitors in the same markets, or changes in manufacturer relationships could materially and adversely affect Sonic Automotive's profitability and growth strategy.

• Direct-to-consumer (DTC) sales models by automotive manufacturers, potentially bypassing traditional franchised dealerships for new vehicle sales.
• Reduced vehicle maintenance and service revenue streams due to the increasing adoption of electric vehicles (EVs), which require less routine maintenance compared to internal combustion engine vehicles.

The addressable markets for Sonic Automotive's main products and services in the U.S. region are as follows:

• Used Cars and Light Trucks: The United States used car market was valued at approximately USD 852.80 billion in 2025 and is estimated to grow to USD 871.30 billion in 2026.
• Automotive Aftermarket (Replacement Parts, Vehicle Maintenance, Manufacturer Warranty Repair, and Paint and Collision Repair Services): The U.S. automotive aftermarket size was USD 238.40 billion in 2025 and is projected to reach around USD 364.49 billion by 2035. Additionally, the U.S. light-duty automotive aftermarket was projected at USD 405 billion in 2024.
• Automotive Finance (including Extended Warranties, Service Contracts): The U.S. automotive finance market was valued at USD 690.9 billion in 2024.
• Automotive Insurance: The United States motor insurance market size is projected to be USD 487.65 billion in 2025 and USD 532.45 billion in 2026.

For the sale of new cars and light trucks, while Sonic Automotive operates in this segment, a specific total market value for new car sales in the U.S. was not explicitly identified. However, total light vehicle sales in the United States reached 15.80 million units in February 2026.

Sonic Automotive (SAH) is expected to drive future revenue growth over the next 2-3 years through several strategic initiatives and improving market conditions:

1. EchoPark Expansion and Store Openings: Sonic Automotive plans to significantly expand its EchoPark used-car network, with new store openings resuming in late 2026 and accelerating throughout 2027. The long-term goal for the EchoPark segment is to achieve 90% U.S. market coverage and sell over 1 million used vehicles annually.
2. Increased EchoPark Brand Investment and E-commerce Development: The company intends to invest between $10 million and $20 million in an advertising campaign beginning in 2026 to enhance the EchoPark brand and launch a new e-commerce app. This investment aims to boost brand awareness and drive higher sales volume.
3. Improved Used Vehicle Inventory from Lease Returns: A significant increase in lease maturities is anticipated starting in the latter half of 2026 and continuing into 2027. This influx of late-model used vehicles will address previous inventory shortages that hindered EchoPark's growth, providing a crucial and cost-effective source of inventory. Sonic also plans to source more vehicles internally from its franchised dealerships.
4. Growth in Fixed Operations (Service and Parts) within Franchised Dealerships: The Franchised Dealerships segment has demonstrated consistent growth in high-margin fixed operations revenue, which includes vehicle maintenance, repairs, and parts sales. This growth is supported by strategic increases in technician headcount and efforts to retain and develop skilled labor.
5. Strategic Acquisitions in the Franchised Dealership Segment: Recent strategic acquisitions, such as the four Jaguar Land Rover dealerships in California, are expected to contribute approximately $500 million in annualized revenues to the Franchised Dealerships segment. This indicates an ongoing strategy to grow this segment through targeted acquisitions.

Capital Allocation Decisions (2021-2026)

Share Repurchases

• Sonic Automotive actively engaged in share repurchases, reducing its total shares outstanding by more than a fifth between the first quarter of 2020 and the first quarter of 2024.
• As of March 31, 2024, the company had $260 million remaining from its current buyback authorization, with no specified expiry date.
• In 2025, Sonic Automotive repurchased approximately 1.3 million shares of its Class A Common Stock for an aggregate purchase price of approximately $82.4 million.

Outbound Investments

• Sonic Automotive made significant cash acquisitions totaling $1,018.9 million in 2021.
• The company continued to make cash acquisitions, with $102.3 million in 2022, $75.1 million in 2023, $54.8 million in 2024, and $440.3 million in 2025.
• These investments are part of the company's strategy for active portfolio optimization, including acquisitions, and aim to grow both franchised dealerships and EchoPark used-vehicle stores.

Capital Expenditures

• The latest value for Sonic Automotive's capital expenditure (Last Twelve Months) was $202 million as of June 15, 2025.
• Capital expenditures peaked in 2021, with a significant annual jump of 134%, then saw a decline of 24% in 2022.
• These expenditures are focused on maintaining existing property, plant, and equipment, as well as expanding into new properties.