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O'Reilly Automotive, Inc. Reports First Quarter 2025 Results

1. O'Reilly reported record Q1 revenue of $4.14 billion, up 4%. 2. Comparable store sales grew 3.6%, exceeding expectations. 3. Net income slightly decreased by 2% to $538 million in Q1. 4. Full-year guidance for sales remains steady at 2.0% to 4.0%. 5. The company repurchased $559 million in shares during the quarter.

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Why Bullish?

Despite a slight dip in net income, revenue and comparable sales growth suggests strong market position. Historical precedence shows similar patterns led to stock price increases, indicating potential for investor optimism.

How important is it?

The article contains critical financial disclosures that directly impact ORLY's market perception. Revenue growth and share buybacks indicate strong management and a robust operational strategy, magnifying its potential positive influence on the stock price.

Why Short Term?

The immediate financial performance could lead to stock movement, especially with earnings call on the horizon. Investors might react quickly to Q1 results and future outlook guidance.

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First quarter comparable store sales growth of 3.6%$755 million net cash provided by operating activities in first quarter 2025 SPRINGFIELD, Mo., April 23, 2025 (GLOBE NEWSWIRE) -- O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue for its first quarter ended March 31, 2025. 1st Quarter Financial Results Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a solid start to 2025, highlighted by a 3.6% comparable store sales increase, which was at the high end of our expectations for the quarter. Our comparable store sales increase was comprised of solid growth in both professional and DIY, which grew mid-single digit and low-single digit, respectively, in the first quarter. We are confident in the strength of the fundamental demand drivers in our business, and our Team’s strong execution continues to generate share gains. I would like to express my appreciation to each of our over 93,000 Team Members for their hard work and unwavering dedication to our business and customers.” Mr. Beckham concluded, “We are maintaining our full-year comparable store sales guidance range of 2.0% to 4.0% and have not changed the key assumptions behind this guidance range from our original guidance. The changing tariff landscape brings with it a high degree of uncertainty, and the fluid nature of the implementation of tariff adjustments makes it difficult for us to predict the impact to our business and our customers. What we know for certain is that our Team remains absolutely dedicated to providing the highest levels of customer service and best-in-class parts availability, regardless of external market conditions. We also continue to be optimistic about our growth opportunities and are pressing forward with our store and distribution expansion plans with 38 net, new store openings in the first quarter. Our unrelenting daily commitment to excellent customer service is the key to our past and future success, and we believe it will fuel the growth we have planned for 2025.” Sales for the first quarter ended March 31, 2025, increased $161 million, or 4%, to $4.14 billion from $3.98 billion for the same period one year ago. Gross profit for the first quarter increased 4% to $2.12 billion (or 51.3% of sales) from $2.03 billion (or 51.2% of sales) for the same period one year ago. Selling, general and administrative expenses for the first quarter increased 8% to $1.38 billion (or 33.4% of sales) from $1.28 billion (or 32.2% of sales) for the same period one year ago. Operating income for the first quarter decreased 1% to $741 million (or 17.9% of sales) from $752 million (or 18.9% of sales) for the same period one year ago. Net income for the first quarter ended March 31, 2025, decreased $9 million, or 2%, to $538 million (or 13.0% of sales) from $547 million (or 13.8% of sales) for the same period one year ago. Diluted earnings per common share for the first quarter increased 2% to $9.35 on 58 million shares versus $9.20 on 59 million shares for the same period one year ago. 1st Quarter Comparable Store Sales Results Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members, as well as sales from Leap Day for the three months ended March 31, 2024. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 3.6% for the first quarter ended March 31, 2025, on top of 3.4% for the same period one year ago. Share Repurchase Program During the first quarter ended March 31, 2025, the Company repurchased 0.4 million shares of its common stock, at an average price per share of $1,297.15, for a total investment of $559 million. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $5.6 million for the three months ended March 31, 2025. Subsequent to the end of the first quarter and through the date of this release, the Company repurchased an additional 0.1 million shares of its common stock, at an average price per share of $1,378.80, for a total investment of $122 million. The Company has repurchased a total of 96.5 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $268.65, for a total aggregate investment of $25.94 billion.   As of the date of this release, the Company had approximately $1.81 billion remaining under its current share repurchase authorization. Updated Full-Year 2025 Guidance The table below outlines the Company’s updated guidance for selected full-year 2025 financial data:    For the Year Ending December 31, 2025Net, new store openings200 to 210 Comparable store sales2.0% to 4.0% Total revenue$17.4 billion to $17.7 billion Gross profit as a percentage of sales51.2% to 51.7% Operating income as a percentage of sales19.2% to 19.7% Effective income tax rate22.4% Diluted earnings per share (1)$42.90 to $43.40 Net cash provided by operating activities$2.8 billion to $3.2 billion Capital expenditures$1.2 billion to $1.3 billion Free cash flow (2)$1.6 billion to $1.9 billion  (1)   Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.(2)   Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:    For the Year Ending (in millions)December 31, 2025 Net cash provided by operating activities$2,810  to $3,220  Less:Capital expenditures 1,200  to  1,300   Excess tax benefit from share-based compensation payments 10  to  20  Free cash flow$1,600  to $1,900             Non-GAAP Information This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below. Earnings Conference Call Information The Company will host a conference call on Thursday, April 24, 2025, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 256299. A replay of the conference call will be available on the Company’s website through Thursday, April 23, 2026. About O’Reilly Automotive, Inc. O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of March 31, 2025, the Company operated 6,416 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada. Forward-Looking Statements The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” “guidance,” “target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; trade disputes, including the imposition of new or increased tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations. Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2024, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.   For further information contact:Investor Relations Contacts Leslie Skorick (417) 874-7142 Eric Bird (417) 868-4259   Media Contact Sonya Cox (417) 829-5709   O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(In thousands, except share data)          March 31, 2025 March 31, 2024 December 31, 2024 (Unaudited) (Unaudited) (Note)Assets        Current assets:        Cash and cash equivalents$ 191,248  $89,264  $130,245 Accounts receivable, net  392,168   437,821   356,839 Amounts receivable from suppliers  129,921   139,267   139,091 Inventory  5,172,436   4,805,164   5,095,804 Other current assets  143,694   128,181   117,916 Total current assets  6,029,467   5,599,697   5,839,895          Property and equipment, at cost  9,450,387   8,555,556   9,192,254 Less: accumulated depreciation and amortization  3,684,666   3,360,351   3,587,098 Net property and equipment  5,765,721   5,195,205   5,605,156          Operating lease, right-of-use assets  2,374,177   2,227,783   2,324,638 Goodwill  933,130   1,009,857   930,161 Other assets, net  191,380   180,512   193,891 Total assets$ 15,293,875  $14,213,054  $14,893,741          Liabilities and shareholders’ deficit        Current liabilities:        Accounts payable$ 6,535,532  $6,117,068  $6,524,811 Self-insurance reserves  154,013   130,974   149,387 Accrued payroll  132,965   127,704   107,495 Accrued benefits and withholdings  214,547   174,125   199,593 Income taxes payable  137,142   147,645   6,274 Current portion of operating lease liabilities  425,330   399,245   419,213 Other current liabilities  910,977   791,633   876,732 Total current liabilities  8,510,506   7,888,394   8,283,505          Long-term debt  5,651,821   5,288,632   5,520,932 Operating lease liabilities, less current portion  2,026,668   1,900,200   1,980,705 Deferred income taxes  236,572   321,323   247,599 Other liabilities  225,764   205,703   231,961          Shareholders’ equity (deficit):        Common stock, $0.01 par value:        Authorized shares – 245,000,000        Issued and outstanding shares –        57,113,515 as of March 31, 2025,        58,982,123 as of March 31, 2024, and        57,482,184 as of December 31, 2024  571   590   575 Additional paid-in capital  1,484,737   1,410,756   1,462,565 Retained deficit  (2,805,929)  (2,849,108)  (2,791,288)Accumulated other comprehensive (loss) income  (36,835)  46,564   (42,813)Total shareholders’ deficit  (1,357,456)  (1,391,198)  (1,370,961)         Total liabilities and shareholders’ deficit$ 15,293,875  $14,213,054  $14,893,741              Note: The balance sheet at December 31, 2024, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.  O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(Unaudited)(In thousands, except per share data)       For the Three Months Ended  March 31,  2025 2024Sales$ 4,136,924  $3,976,240 Cost of goods sold, including warehouse and distribution expenses  2,015,439   1,942,068 Gross profit  2,121,485   2,034,172       Selling, general and administrative expenses  1,380,019   1,281,691 Operating income  741,466   752,481       Other income (expense):     Interest expense  (57,564)  (57,148)Interest income  1,664   1,656 Other, net  (1,215)  3,401 Total other expense  (57,115)  (52,091)      Income before income taxes  684,351   700,390 Provision for income taxes  145,866   153,152 Net income$ 538,485  $547,238       Earnings per share-basic:     Earnings per share$ 9.40  $9.27 Weighted-average common shares outstanding – basic  57,304   59,017       Earnings per share-assuming dilution:     Earnings per share$ 9.35  $9.20 Weighted-average common shares outstanding – assuming dilution  57,622   59,454          O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) (In thousands)       For the Three Months Ended  March 31,  2025  2024 Operating activities:     Net income$ 538,485  $547,238 Adjustments to reconcile net income to net cash provided by operating activities:     Depreciation and amortization of property, equipment and intangibles  122,224   109,648 Amortization of debt discount and issuance costs  1,851   1,593 Deferred income taxes  (11,159)  2,374 Share-based compensation programs  8,444   7,022 Other  3,191   2,997 Changes in operating assets and liabilities:     Accounts receivable  (37,758)  (36,954)Inventory  (75,081)  (92,042)Accounts payable  9,952   6,107 Income taxes payable  138,513   140,025 Other  56,458   16,207 Net cash provided by operating activities  755,120   704,215       Investing activities:     Purchases of property and equipment  (286,951)  (249,240)Proceeds from sale of property and equipment  1,948   3,853 Other, including acquisitions, net of cash acquired  —   (155,366)Net cash used in investing activities  (285,003)  (400,753)      Financing activities:     Proceeds from borrowings on revolving credit facility  —   30,000 Net proceeds (payments) of commercial paper  129,288   (310,805)Payment of debt issuance costs  (3,801)  — Repurchases of common stock  (559,432)  (270,019)Net proceeds from issuance of common stock  24,926   57,815 Other  (433)  (569)Net cash used in financing activities  (409,452)  (493,578)      Effect of exchange rate changes on cash  338   248 Net increase (decrease) in cash and cash equivalents  61,003   (189,868)Cash and cash equivalents at beginning of the period  130,245   279,132 Cash and cash equivalents at end of the period$ 191,248  $89,264       Supplemental disclosures of cash flow information:     Income taxes paid$ 16,904  $9,798 Interest paid, net of capitalized interest  39,424   34,671          O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIESSELECTED FINANCIAL INFORMATION (Unaudited)          For the Twelve Months Ended March 31, Adjusted Debt to EBITDAR:2025 2024(In thousands, except adjusted debt to EBITDAR ratio)       GAAP debt$ 5,651,821  $5,288,632 Add:Letters of credit  127,264   137,848  Unamortized discount and debt issuance costs  27,679   28,368  Six-times rent expense  2,771,640   2,587,056 Adjusted debt$ 8,578,404  $8,041,904         GAAP net income$ 2,377,927  $2,376,934 Add:Interest expense  222,964   214,244  Provision for income taxes  651,098   650,786  Depreciation and amortization  474,468   424,962  Share-based compensation expense  30,353   27,098  Rent expense (i)  461,940   431,176 EBITDAR$ 4,218,750  $4,125,200         Adjusted debt to EBITDAR  2.03   1.95  (i)   The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the twelve months ended March 31, 2025 and 2024 (in thousands):      For the Twelve Months Ended   March 31,   2025 2024 Total lease cost, per ASC 842$558,415  $510,208  Less:Variable non-contract operating lease components, related to property taxes and insurance 96,475   79,032  Rent expense$461,940  $431,176    March 31,  2025 2024Selected Balance Sheet Ratios:       Inventory turnover (1)  1.6   1.7 Average inventory per store (in thousands) (2)$ 806  $773 Accounts payable to inventory (3)  126.4%   127.3%            For the Three Months Ended   March 31,   2025 2024Reconciliation of Free Cash Flow (in thousands):       Net cash provided by operating activities$ 755,120  $704,215 Less:Capital expenditures  286,951   249,240  Excess tax benefit from share-based compensation payments  12,925   16,120 Free cash flow$ 455,244  $438,855           For the Three Months Ended  March 31,  2025 2024Revenue Disaggregation (in thousands):       Sales to do-it-yourself customers$ 2,051,859   $2,003,805 Sales to professional service provider customers  1,998,593    1,875,186 Other sales and sales adjustments  86,472     97,249 Total sales$4,136,924   $3,976,240           For the Three Months Ended  For the Twelve Months Ended March 31,  March 31,  2025 2024 2025 2024Store Count:         Beginning domestic store count  6,265   6,095    6,131   5,986 New stores opened  33   36    167   146 Stores closed  —   —    —   (1)Ending domestic store count  6,298   6,131    6,298   6,131           Beginning Mexico store count  87   62    63   43 New stores opened  6   1    30   20 Ending Mexico store count  93   63    93   63           Beginning Canada store count  26   —    23   — New stores opened  —   —    3   — Stores acquired  —   23    —   23 Stores closed  (1)  —    (1)  — Ending Canada store count  25   23    25   23           Total ending store count  6,416   6,217    6,416   6,217                   For the Three Months Ended  For the Twelve Months Ended March 31,  March 31,  2025 2024 2025 2024Store and Team Member Information:               Total employment  93,419   90,601         Square footage (in thousands) (4)  49,371   47,143         Sales per weighted-average square foot (4)(5)$ 82.22  $82.59  $ 341.85  $341.62 Sales per weighted-average store (in thousands) (4)(6)$ 643  $634  $ 2,650  $2,601  (1)Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator.(2)Calculated as inventory divided by store count at the end of the reported period.(3)Calculated as accounts payable divided by inventory.(4)Represents O’Reilly’s U.S. and Puerto Rico operations only.(5)Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures.(6)Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.  

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