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Sonic Automotive SAH Powersports Dealerships — Asset impairment charges

Other segment segments

Franchised Dealership Impairment
-$165.9M-13,925%
Echo Park
$675K-96.6%
Franchise
$400K

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Other financials

Income statement

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Revenue$3.7B+1.0%
Gross profit$598.8M+5.7%
Operating income$132.7M-8.5%
Net income$60.8M-13.9%
EPS (diluted)$1.79-12.3%

Balance sheet

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Cash & equivalents$5.7M-91.2%
Total debt$2.4B+12.2%
Total equity$981.3M-10.0%
Total assets$6.1B+4.1%

Cash flow

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Operating cash flow$35.5M-81.9%
CapEx$37.0M-17.8%
Free cash flow-$1.5M-101%

Valuation

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Market cap$2.68B+5.6%
Enterprise value$5.11B+11.0%
P/E24.6×+8.5×
P/S0.2×0.0×

Profitability

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Gross margin15.9%+0.6pp
Operating margin2.3%-1.1pp
Net margin0.7%-1.0pp
FCF margin1.7%

Returns & leverage

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Return on equity10.5%-14.0pp
Debt / equity2.5×+0.5×
Current ratio-0.1×

Where this comes from

Reported directly by Sonic Automotive in its filing.

Tagged under the XBRL concept us-gaap:AssetImpairmentCharges.

The source filing: Sonic Automotive’s 10-K, filed February 23, 2026.

Filed
Feb 23, 2026, 4:02 PM EST
Fiscal year
FY2025
Accession
0001628280-26-010570

(5) For 2025, amount includes approximately $165.9 million of non-cash pre-tax franchise asset impairment charges for the Franchised Dealerships Segment, approximately $0.2 million of non-cash pre-tax property and equipment impairment charges for real estate held for sale in the EchoPark Segment, and approximately $0.4 million of non-cash pre-tax property, equipment and right-of-use asset impairment charges, and approximately $7.2 million of non-cash pre-tax franchise asset impairment charges for the Powersports Segment. For 2024, amount includes approximately $1.2 million of pre-tax franchise asset and property and equipment impairment charges for the Franchised Dealerships Segment and approximately $2.7 million of pre-tax property and equipment charges for real estate held for sale in the EchoPark Segment. For 2023, amount includes approximately $1.0 million of pre-tax franchise asset and property and equipment impairment charges for the Franchised Dealerships Segment and approximately $78.3 million of pre-tax impairment charges related to fixed assets, lease right-of-use assets, and other contractual obligations related to abandoned property for the EchoPark Segment.

Item 16. Form 10-K Summary.

FAQ

What is Sonic Automotive's powersports dealerships — asset impairment charges?
Sonic Automotive (SAH) reported powersports dealerships — asset impairment charges of -$1.8M in Q4 2025.
What does powersports dealerships — asset impairment charges mean?
Non-cash charges recognized when the carrying amount of powersports segment assets exceeds their fair value. These impairments often signal a decline in the expected future economic benefits of specific dealerships or intangible assets. High or frequent impairment charges may indicate operational challenges or an overvaluation of past acquisitions.

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