O'Reilly Automotive, Inc. Reports Fourth Quarter and Full-Year 2024 Results

Fourth quarter comparable store sales growth of 4.4%, full-year increase of 2.9%$3.0 billion net cash provided by operating activities in 2024 SPRINGFIELD, Mo., Feb. 05, 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 fourth quarter and full-year ended December 31, 2024. The results represent 32 consecutive years of comparable store sales growth and record revenue and operating income for O’Reilly since becoming a public company in April of 1993. 4th Quarter Financial Results Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a strong finish to 2024 in the fourth quarter, highlighted by 4.4% growth in comparable store sales, driven by solid growth in both professional and DIY. Our Team is relentlessly focused on executing our industry-leading model at a high level, which we believe continues to generate market share gains on both sides of our business. I would like to take this opportunity to commend Team O’Reilly on their performance in the fourth quarter and thank each of you for your hard work and continued commitment to providing excellent customer service.” Sales for the fourth quarter ended December 31, 2024, increased $264 million, or 7%, to $4.10 billion from $3.83 billion for the same period one year ago. Gross profit for the fourth quarter increased 7% to $2.10 billion (or 51.3% of sales) from $1.97 billion (or 51.3% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the fourth quarter increased 9% to $1.36 billion (or 33.3% of sales) from $1.25 billion (or 32.6% of sales) for the same period one year ago. Operating income for the fourth quarter increased 3% to $739 million (or 18.0% of sales) from $719 million (or 18.8% of sales) for the same period one year ago. SG&A expenses for the fourth quarter included a charge of $35 million to adjust reserves relating to our self-insurance liabilities for historic auto liability claims. The adjustment relates to claims that occurred prior to 2024 and reflects adverse claim development experience and revised assumptions used to estimate future liabilities for these claim years. Net income for the fourth quarter ended December 31, 2024, decreased $1 million to $551 million (or 13.5% of sales) from $553 million (or 14.4% of sales) for the same period one year ago. Diluted earnings per common share for the fourth quarter increased 3% to $9.50 on 58 million shares versus $9.26 on 60 million shares for the same period one year ago. The self-insurance reserve adjustment, net of tax, impacted fourth quarter net income and diluted earnings per share by $27 million and $0.46, respectively. Full-Year Financial Results Mr. Beckham continued, “Our strong performance in the fourth quarter lifted our full-year comparable store sales growth to 2.9%, at the high end of our revised guidance range of 2% to 3%. While our 2024 results were below our expectations entering the year, we are pleased with our Team’s ability to deliver solid comparable store sales growth despite tough market conditions. 2024 represents our 32nd consecutive year of annual comparable store sales growth and record earnings, and I want to congratulate Team O’Reilly on their consistent performance and unwavering commitment to our customers. Our Team also delivered a strong finish to our expansion efforts in 2024, meeting our new store opening target with the successful opening of 198 net, new stores and completing our planned distribution expansion with the relocation of our Atlanta, Georgia distribution center to a larger, modern facility in the fourth quarter.” Sales for the year ended December 31, 2024, increased $896 million, or 6%, to $16.71 billion from $15.81 billion for the same period one year ago. Gross profit for the year ended December 31, 2024, increased 6% to $8.55 billion (or 51.2% of sales) from $8.10 billion (or 51.3% of sales) for the same period one year ago. SG&A for the year ended December 31, 2024, increased 8% to $5.30 billion (or 31.7% of sales) from $4.92 billion (or 31.1% of sales) for the same period one year ago. Operating income for the year ended December 31, 2024, increased 2% to $3.25 billion (or 19.5% of sales) from $3.19 billion (or 20.2% of sales) for the same period one year ago. Net income for the year ended December 31, 2024, increased $40 million, or 2%, to $2.39 billion (or 14.3% of sales) from $2.35 billion (or 14.8% of sales) for the same period one year ago. Diluted earnings per common share for the year ended December 31, 2024, increased 6% to $40.66 on 59 million shares versus $38.47 on 61 million shares for the same period one year ago. 4th Quarter and Full-Year 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 year ended December 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 4.4% for the fourth quarter ended December 31, 2024, on top of 3.4% for the same period one year ago. Comparable store sales increased 2.9% for the year ended December 31, 2024, on top of 7.9% for the same period one year ago. Share Repurchase Program During the fourth quarter ended December 31, 2024, the Company repurchased 0.4 million shares of its common stock, at an average price per share of $1,207.43, for a total investment of $472 million. During the year ended December 31, 2024, the Company repurchased 1.9 million shares of its common stock, at an average price per share of $1,072.47, for a total investment of $2.08 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $20.8 million for the year ended December 31, 2024. Subsequent to the end of the fourth 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 $1,232.37, for a total investment of $181 million. The Company has repurchased a total of 96.2 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 $264.49, for a total aggregate investment of $25.44 billion. As of the date of this release, the Company had approximately $2.31 billion remaining under its current share repurchase authorizations. Full-Year 2025 Guidance The table below outlines the Company’s guidance for selected full-year 2025 financial data: For the Year Ending December 31, 2025Net, new store openings 200 to 210Comparable store sales 2.0% to 4.0%Total revenue $17.4 billion to $17.7 billionGross profit as a percentage of sales 51.2% to 51.7%Operating income as a percentage of sales 19.2% to 19.7%Effective income tax rate 22.6%Diluted earnings per share (1) $42.60 to $43.10Net cash provided by operating activities $2.8 billion to $3.2 billionCapital expenditures $1.2 billion to $1.3 billionFree 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, 2025Net 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 20Free 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, February 06, 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” and then “News Room.” 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 186296. A replay of the conference call will be available on the Company’s website through Thursday, February 05, 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 December 31, 2024, the Company operated 6,378 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; 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, 2023, 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) December 31, 2024 December 31, 2023 (Unaudited) (Note)Assets Current assets: Cash and cash equivalents$ 130,245 $279,132 Accounts receivable, net 356,839 375,049 Amounts receivable from suppliers 139,091 140,443 Inventory 5,095,804 4,658,367 Other current assets 117,916 105,311 Total current assets 5,839,895 5,558,302 Property and equipment, at cost 9,192,254 8,312,367 Less: accumulated depreciation and amortization 3,587,098 3,275,387 Net property and equipment 5,605,156 5,036,980 Operating lease, right-of-use assets 2,324,638 2,200,554 Goodwill 930,161 897,696 Other assets, net 193,891 179,463 Total assets$ 14,893,741 $13,872,995 Liabilities and shareholders’ deficit Current liabilities: Accounts payable$ 6,524,811 $6,091,700 Self-insurance reserves 149,387 128,548 Accrued payroll 107,495 138,122 Accrued benefits and withholdings 199,593 174,650 Income taxes payable 6,274 7,860 Current portion of operating lease liabilities 419,213 389,536 Other current liabilities 876,732 730,937 Total current liabilities 8,283,505 7,661,353 Long-term debt 5,520,932 5,570,125 Operating lease liabilities, less current portion 1,980,705 1,881,344 Deferred income taxes 247,599 295,471 Other liabilities 231,961 203,980 Shareholders’ equity (deficit): Common stock, $0.01 par value: Authorized shares – 245,000,000 Issued and outstanding shares – 57,482,184 as of December 31, 2024, and 59,072,792 as of December 31, 2023 575 591 Additional paid-in capital 1,462,565 1,352,275 Retained deficit (2,791,288) (3,131,532)Accumulated other comprehensive (loss) income (42,813) 39,388 Total shareholders’ deficit (1,370,961) (1,739,278) Total liabilities and shareholders’ deficit$ 14,893,741 $13,872,995 Note: The balance sheet at December 31, 2023, 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(In thousands, except per share data) For the Three Months Ended For the Year Ended December 31, December 31, 2024 2023 2024 2023 (Unaudited) (Unaudited) (Unaudited) (Note)Sales$4,095,601 $3,832,015 $16,708,479 $15,812,250 Cost of goods sold, including warehouse and distribution expenses 1,994,569 1,864,586 8,153,990 7,707,447 Gross profit 2,101,032 1,967,429 8,554,489 8,104,803 Selling, general and administrative expenses 1,362,382 1,248,693 5,303,332 4,918,427 Operating income 738,650 718,736 3,251,157 3,186,376 Other income (expense): Interest expense (55,403) (56,148) (222,548) (201,668)Interest income 2,056 1,980 7,295 4,900 Other, net (106) 6,963 9,160 15,142 Total other expense (53,453) (47,205) (206,093) (181,626) Income before income taxes 685,197 671,531 3,045,064 3,004,750 Provision for income taxes 134,067 119,027 658,384 658,169 Net income$ 551,130 $552,504 $ 2,386,680 $2,346,581 Earnings per share-basic: Earnings per share$9.56 $9.33 $40.91 $38.80 Weighted-average common shares outstanding – basic 57,673 59,200 58,339 60,475 Earnings per share-assuming dilution: Earnings per share$ 9.50 $9.26 $ 40.66 $38.47 Weighted-average common shares outstanding – assuming dilution 57,997 59,673 58,705 60,998 Note: The income statement for the year ended December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (In thousands) For the Year Ended December 31, 2024 2023 (Unaudited) (Note)Operating activities: Net income$ 2,386,680 $2,346,581 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, equipment and intangibles 461,892 409,061 Amortization of debt discount and issuance costs 6,613 4,954 Deferred income taxes (50,238) 48,232 Share-based compensation programs 28,931 27,511 Other 6,360 2,116 Changes in operating assets and liabilities: Accounts receivable 30,495 (35,539)Inventory (403,886) (288,323)Accounts payable 421,364 207,061 Income taxes payable (8,690) 33,889 Other 170,055 278,541 Net cash provided by operating activities 3,049,576 3,034,084 Investing activities: Purchases of property and equipment (1,023,387) (1,006,264)Proceeds from sale of property and equipment 16,350 17,689 Return of (investment in) tax credit equity investments 1,490 (4,150)Other, including acquisitions, net of cash acquired (161,258) (3,211)Net cash used in investing activities (1,166,805) (995,936) Financing activities: Proceeds from borrowings on revolving credit facility 30,000 3,227,000 Payments on revolving credit facility (30,000) (3,227,000)Net (payments) proceeds of commercial paper (547,604) 746,789 Proceeds from the issuance of long-term debt 498,910 749,655 Principal payments on long-term debt — (300,000)Payment of debt issuance costs (4,076) (4,989)Payment of excise tax on share repurchases (28,830) — Repurchases of common stock (2,076,529) (3,151,155)Net proceeds from issuance of common stock 128,981 91,316 Other (569) (354)Net cash used in financing activities (2,029,717) (1,868,738) Effect of exchange rate changes on cash (1,941) 1,139 Net (decrease) increase in cash and cash equivalents (148,887) 170,549 Cash and cash equivalents at beginning of the period 279,132 108,583 Cash and cash equivalents at end of the period$ 130,245 $279,132 Supplemental disclosures of cash flow information: Income taxes paid$ 640,426 $315,060 Interest paid, net of capitalized interest 209,094 189,611 Note: The cash flow statement for the year ended December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements. O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIESSELECTED FINANCIAL INFORMATION (Unaudited) For the Year Ended December 31, Adjusted Debt to EBITDAR:2024 2023(In thousands, except adjusted debt to EBITDAR ratio) GAAP debt$ 5,520,932 $5,570,125 Add:Letters of credit 127,310 112,163 Unamortized discount and debt issuance costs 29,068 30,775 Six-times rent expense 2,715,174 2,548,890 Adjusted debt$ 8,392,484 $8,261,953 GAAP net income$ 2,386,680 $2,346,581 Add:Interest expense 222,548 201,668 Provision for income taxes 658,384 658,169 Depreciation and amortization 461,892 409,061 Share-based compensation expense 28,931 27,511 Rent expense (i) 452,529 424,815 EBITDAR$ 4,210,964 $4,067,805 Adjusted debt to EBITDAR 1.99 2.03 (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 year ended December 31, 2024 and 2023 (in thousands): For the Year Ended December 31, 2024 2023Total lease cost, per ASC 842 $543,495 $503,151Less:Variable non-contract operating lease components, related to property taxes and insurance 90,966 78,336Rent expense $452,529 $424,815 December 31, 2024 2023Selected Balance Sheet Ratios: Inventory turnover (1) 1.7 1.7Average inventory per store (in thousands) (2)$ 799 $757Accounts payable to inventory (3) 128.0% 130.8% For the Three Months Ended For the Year Ended December 31, December 31, 2024 2023 2024 2023Reconciliation of Free Cash Flow (in thousands): Net cash provided by operating activities $ 624,487 $516,429 $ 3,049,576 $3,034,084Less:Capital expenditures 290,471 252,306 1,023,387 1,006,264 Excess tax benefit from share-based compensation payments 4,827 8,098 39,871 35,950 (Return of) investment in tax credit equity investments (1,490) — (1,490) 4,150Free cash flow $ 330,679 $256,025 $ 1,987,808 $1,987,720 For the Three Months Ended For the Year Ended December 31, December 31, 2024 2023 2024 2023Revenue Disaggregation (in thousands): Sales to do-it-yourself customers$ 2,092,414 $1,993,233 $ 8,459,084 $8,248,213Sales to professional service provider customers 1,894,666 1,765,535 7,796,486 7,245,747Other sales, sales adjustments, and sales from the acquired Vast Auto stores 108,521 73,247 452,909 318,290Total sales $ 4,095,601 $3,832,015 $ 16,708,479 $15,812,250 For the Three Months Ended For the Year Ended December 31, December 31, 2024 2023 2024 2023 Store Count: Beginning domestic store count 6,187 6,063 6,095 5,929 New stores opened 78 33 170 169 Stores closed — (1) — (3)Ending domestic store count 6,265 6,095 6,265 6,095 Beginning Mexico store count 78 48 62 42 New stores opened 9 14 25 20 Ending Mexico store count 87 62 87 62 Beginning Canada store count 26 — — — Stores acquired — — 23 — New stores opened — — 3 — Ending Canada store count 26 — 26 — Total ending store count 6,378 6,157 6,378 6,157 For the Three Months Ended For the Year Ended December 31, December 31, 2024 2023 2024 2023Store and Team Member Information: Total employment 93,176 90,189 Square footage (in thousands) (4) 48,809 46,681 Sales per weighted-average square foot (4)(5)$ 82.70 $81.06 $ 342.32 $340.23Sales per weighted-average store (in thousands) (4)(6)$ 642 $619 $ 2,642 $2,578 (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.

O'Reilly Automotive, Inc. Reports Fourth Quarter and Full-Year 2024 Results

FAQ

Why Bullish?

How important is it?

Why Long Term?

Related Companies

Related News