Sonic Automotive announced the purchase of five Harley‑Davidson dealerships located in California, Florida, Georgia and North Carolina, bringing the company’s total powersports network to 20 locations nationwide. The deal adds nine full‑service Harley‑Davidson dealerships and four apparel and accessories outlets, expanding Sonic’s presence in some of the country’s most active riding markets.
The acquisition follows Sonic’s record 2025 performance, in which the powersports segment generated $202.9 million in revenue and $11.5 million in adjusted EBITDA. However, the segment’s Q4 2025 revenue fell 5 % year‑over‑year to $480.7 million, reflecting broader headwinds in the Harley‑Davidson market, including declining sales and an aging customer base. By adding these five dealerships, Sonic aims to strengthen its geographic reach and capture additional market share in high‑growth riding regions.
Management highlighted the strategic fit of the transaction. “This acquisition represents a pivotal step in our long‑term growth plan for Sonic Automotive, extending our reach within the high‑growth powersports business and further diversifying our business portfolio,” said Chairman and CEO David B. Smith. The move positions Sonic as a leading powersports retailer while leveraging its existing retail infrastructure to support the new locations.
The broader powersports landscape remains challenging. Harley‑Davidson has reported declining shipments and revenue in recent quarters, and competition from more affordable brands is intensifying. Sonic’s acquisition is expected to mitigate these headwinds by integrating the new dealerships into its established operations, potentially improving economies of scale and customer reach.
Financial terms of the deal were not disclosed, and no specific dealership names were provided. Sonic’s overall financial health remains strong, with record annual revenue of $15.2 billion and gross profit of $2.4 billion in 2025. The acquisition is expected to contribute to future revenue growth, though the company’s Q4 2025 earnings missed analyst estimates by $0.01 per share, reflecting the ongoing impact of market headwinds on the powersports segment.
The transaction underscores Sonic’s strategy to diversify beyond automotive retail and capitalize on the high‑growth powersports market. While the deal adds significant geographic coverage and potential revenue upside, the company must navigate the challenges facing Harley‑Davidson dealerships, including declining sales and increased competition. Nonetheless, the acquisition strengthens Sonic’s position as a leading powersports retailer and supports its long‑term growth objectives.
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