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

Second quarter comparable store sales growth of 4.1%11% increase in second quarter diluted earnings per share to $0.78$1.51 billion net cash provided by operating activities year-to-date SPRINGFIELD, Mo., July 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 and earnings for its second quarter ended June 30, 2025. 2nd Quarter Financial Results Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank our Team of over 92,000 Professional Parts People for their tremendous hard work and commitment to providing industry-leading customer service in each of our 6,483 stores. Team O’Reilly’s dedication was reflected in our strong top-line performance this quarter with a comparable store sales increase of 4.1%, driven by solid growth in both professional and DIY. Our Team’s unwavering commitment to executing on the fundamentals of our business translated our top-line results into an 11% increase in diluted earnings per share, and we remain very confident in our Team’s ability to continue to profitably grow our business and gain share in all the markets in which we operate.” Sales for the second quarter ended June 30, 2025, increased $253 million, or 6%, to $4.53 billion from $4.27 billion for the same period one year ago. Gross profit for the second quarter increased 7% to $2.33 billion (or 51.4% of sales) from $2.17 billion (or 50.7% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the second quarter increased 8% to $1.41 billion (or 31.2% of sales) from $1.30 billion (or 30.5% of sales) for the same period one year ago. Operating income for the second quarter increased 6% to $914 million (or 20.2% of sales) from $863 million (or 20.2% of sales) for the same period one year ago. Net income for the second quarter ended June 30, 2025, increased $46 million, or 7%, to $669 million (or 14.8% of sales) from $623 million (or 14.6% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 11% to $0.78 on 858 million shares versus $0.70 on 886 million shares for the same period one year ago. The Company completed a 15-for-1 forward stock split on June 10, 2025, and accordingly all share and per share data in current and comparable periods have been adjusted to reflect the split. Year-to-Date Financial Results Mr. Beckham concluded, “As a result of our solid performance in the first half of 2025, we are increasing our full-year comparable store sales guidance to a range of 3% to 4.5%, which reflects our updated expectations based on the sales trends we are currently seeing in our business. During the first half of 2025, we opened 105 net, new stores across 34 U.S. states, Puerto Rico, and Mexico. We are also excited to have opened our 100th store in Mexico in July, an exciting milestone for our Team. We believe we are well positioned to achieve our target of 200 to 210 net, new stores during 2025.” Sales for the first six months of 2025 increased $414 million, or 5%, to $8.66 billion from $8.25 billion for the same period one year ago. Gross profit for the first six months of 2025 increased 6% to $4.45 billion (or 51.4% of sales) from $4.20 billion (or 50.9% of sales) for the same period one year ago. SG&A for the first six months of 2025 increased 8% to $2.79 billion (or 32.2% of sales) from $2.59 billion (or 31.4% of sales) for the same period one year ago. Operating income for the first six months of 2025 increased 2% to $1.66 billion (or 19.1% of sales) from $1.62 billion (or 19.6% of sales) for the same period one year ago. Net income for the first six months of 2025 increased $37 million, or 3%, to $1.21 billion (or 13.9% of sales) from $1.17 billion (or 14.2% of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2025 increased 6% to $1.40 on 861 million shares versus $1.32 on 889 million shares for the same period one year ago. 2nd 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 six months ended June 30, 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 4.1% for the second quarter ended June 30, 2025, on top of 2.3% for the same period one year ago. Comparable store sales increased 3.9% for the six months ended June 30, 2025, on top of 2.8% for the same period one year ago. Share Repurchase Program During the second quarter ended June 30, 2025, the Company repurchased 6.8 million shares of its common stock, at an average price per share of $90.71, for a total investment of $617 million. During the first six months of 2025, the Company repurchased 13.3 million shares of its common stock, at an average price per share of $88.65, for a total investment of $1.18 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $11.8 million for the six months ended June 30, 2025. Subsequent to the end of the second quarter and through the date of this release, the Company repurchased an additional 1.7 million shares of its common stock, at an average price per share of $91.45, for a total investment of $160 million. The Company has repurchased a total of 1.46 billion 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 $18.27, for a total aggregate investment of $26.59 billion. As of the date of this release, the Company had approximately $1.16 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 openings 200 to 210Comparable store sales 3.0% to 4.5%Total revenue $17.5 billion to $17.8 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 22.3%Diluted earnings per share (1) $2.85 to $2.95Net 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 $2,820 to $3,230Less:Capital expenditures 1,200 to 1,300 Excess tax benefit from share-based compensation payments 20 to 30Free 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, July 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 692379. A replay of the conference call will be available on the Company’s website through Thursday, July 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 June 30, 2025, the Company operated 6,483 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 and changes in trade policies, 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) June 30, 2025 June 30, 2024 December 31, 2024 (Unaudited) (Unaudited) (Note)Assets Current assets: Cash and cash equivalents $ 198,613 $145,042 $130,245 Accounts receivable, net 428,828 475,596 356,839 Amounts receivable from suppliers 123,273 144,303 139,091 Inventory 5,399,588 4,788,686 5,095,804 Other current assets 165,504 125,861 117,916 Total current assets 6,315,806 5,679,488 5,839,895 Property and equipment, at cost 9,708,429 8,730,297 9,192,254 Less: accumulated depreciation and amortization 3,758,465 3,434,610 3,587,098 Net property and equipment 5,949,964 5,295,687 5,605,156 Operating lease, right-of-use assets 2,409,177 2,240,314 2,324,638 Goodwill 943,314 1,000,074 930,161 Other assets, net 202,358 177,619 193,891 Total assets $ 15,820,619 $14,393,182 $14,893,741 Liabilities and shareholders’ deficit Current liabilities: Accounts payable $ 6,858,649 $6,226,238 $6,524,811 Self-insurance reserves 158,844 125,859 149,387 Accrued payroll 145,629 143,194 107,495 Accrued benefits and withholdings 238,984 186,715 199,593 Income taxes payable 312,545 89,344 6,274 Current portion of operating lease liabilities 434,151 401,713 419,213 Other current liabilities 573,084 950,145 876,732 Total current liabilities 8,721,886 8,123,208 8,283,505 Long-term debt 5,823,744 5,397,774 5,520,932 Operating lease liabilities, less current portion 2,055,053 1,912,036 1,980,705 Deferred income taxes 211,920 335,600 247,599 Other liabilities 239,878 207,956 231,961 Shareholders’ equity (deficit): Common stock, $0.01 par value: Authorized shares – 1,250,000,000 Issued and outstanding shares – 850,561,094 as of June 30, 2025, 873,580,665 as of June 30, 2024, and 862,232,760 as of December 31, 2024 8,506 8,736 8,622 Additional paid-in capital 1,499,288 1,407,645 1,454,518 Retained deficit (2,748,221) (3,008,665) (2,791,288)Accumulated other comprehensive income (loss) 8,565 8,892 (42,813)Total shareholders’ deficit (1,231,862) (1,583,392) (1,370,961) Total liabilities and shareholders’ deficit $ 15,820,619 $14,393,182 $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 For the Six Months Ended June 30, June 30, 2025 2024 2025 2024 Sales $ 4,525,058 $4,272,201 $ 8,661,982 $8,248,441 Cost of goods sold, including warehouse and distribution expenses 2,198,520 2,104,141 4,213,959 4,046,209 Gross profit 2,326,538 2,168,060 4,448,023 4,202,232 Selling, general and administrative expenses 1,412,068 1,304,762 2,792,087 2,586,453 Operating income 914,470 863,298 1,655,936 1,615,779 Other income (expense): Interest expense (57,337) (54,831) (114,901) (111,979)Interest income 1,885 1,528 3,549 3,184 Other, net 2,437 1,561 1,222 4,962 Total other expense (53,015) (51,742) (110,130) (103,833) Income before income taxes 861,455 811,556 1,545,806 1,511,946 Provision for income taxes 192,860 188,708 338,726 341,860 Net income $ 668,595 $622,848 $ 1,207,080 $1,170,086 Earnings per share-basic: Earnings per share $ 0.78 $0.71 $ 1.41 $1.33 Weighted-average common shares outstanding – basic 854,003 880,182 856,768 882,728 Earnings per share-assuming dilution: Earnings per share $ 0.78 $0.70 $ 1.40 $1.32 Weighted-average common shares outstanding – assuming dilution 858,440 885,655 861,368 888,746 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(Unaudited) (In thousands) For the Six Months Ended June 30, 2025 2024 Operating activities: Net income $ 1,207,080 $1,170,086 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property, equipment and intangibles 247,159 222,885 Amortization of debt discount and issuance costs 3,667 3,201 Deferred income taxes (36,679) 18,175 Share-based compensation programs 18,812 14,229 Other 7,945 5,215 Changes in operating assets and liabilities: Accounts receivable (73,966) (79,475)Inventory (280,899) (85,137)Accounts payable 331,082 117,582 Income taxes payable 314,779 81,228 Other (227,014) 185,085 Net cash provided by operating activities 1,511,966 1,653,074 Investing activities: Purchases of property and equipment (587,685) (474,607)Proceeds from sale of property and equipment 2,695 7,528 Other, including acquisitions, net of cash acquired (10,008) (155,376)Net cash used in investing activities (594,998) (622,455) Financing activities: Proceeds from borrowings on revolving credit facility — 30,000 Payments on revolving credit facility — (30,000)Net proceeds (payments) of commercial paper 298,918 (173,500)Payment of debt issuance costs (3,815) — Payment of excise tax on share repurchases (17,012) — Repurchases of common stock (1,176,640) (1,063,791)Net proceeds from issuance of common stock 48,167 73,790 Other (433) (569)Net cash used in financing activities (850,815) (1,164,070) Effect of exchange rate changes on cash 2,215 (639)Net increase (decrease) in cash and cash equivalents 68,368 (134,090)Cash and cash equivalents at beginning of the period 130,245 279,132 Cash and cash equivalents at end of the period $ 198,613 $145,042 Supplemental disclosures of cash flow information: Income taxes paid $ 393,872 $80,401 Interest paid, net of capitalized interest 110,374 110,449 O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIESSELECTED FINANCIAL INFORMATION (Unaudited) For the Twelve Months Ended June 30, Adjusted Debt to EBITDAR: 2025 2024(In thousands, except adjusted debt to EBITDAR ratio) GAAP debt $ 5,823,744 $5,397,774Add:Letters of credit 162,289 137,501 Unamortized discount and debt issuance costs 26,256 27,226 Six-times rent expense 2,834,550 2,625,438Adjusted debt $ 8,846,839 $8,187,939 GAAP net income $ 2,423,674 $2,372,417Add:Interest expense 225,470 219,488 Provision for income taxes 655,250 657,727 Depreciation and amortization 486,166 440,273 Share-based compensation expense 33,514 27,169 Rent expense (i) 472,425 437,573EBITDAR $ 4,296,499 $4,154,647 Adjusted debt to EBITDAR 2.06 1.97 (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 June 30, 2025 and 2024 (in thousands): For the Twelve Months Ended June 30, 2025 2024Total lease cost, per ASC 842 $570,733 $520,327Less:Variable non-contract operating lease components, related to property taxes and insurance 98,308 82,754Rent expense $472,425 $437,573 June 30, 2025 2024Selected Balance Sheet Ratios: Inventory turnover (1) 1.6 1.7Average inventory per store (in thousands) (2) $ 833 $767Accounts payable to inventory (3) 127.0% 130.0% For the Three Months Ended For the Six Months Ended June 30, June 30, 2025 2024 2025 2024Reconciliation of Free Cash Flow (in thousands): Net cash provided by operating activities $ 756,846 $948,859 $ 1,511,966 $1,653,074Less:Capital expenditures 300,734 225,367 587,685 474,607 Excess tax benefit from share-based compensation payments 7,348 5,258 20,273 21,378Free cash flow $ 448,764 $718,234 $ 904,008 $1,157,089 For the Three Months Ended For the Six Months Ended June 30, June 30, 2025 2024 2025 2024Revenue Disaggregation (in thousands): Sales to do-it-yourself customers$ 2,228,566 $2,152,680 $ 4,280,425 $4,156,485Sales to professional service provider customers 2,195,840 2,012,164 4,194,433 3,887,350Other sales and sales adjustments 100,652 107,357 187,124 204,606Total sales $ 4,525,058 $4,272,201 $ 8,661,982 $8,248,441 For the Three Months Ended For the Six Months Ended For the Twelve Months Ended June 30, June 30, June 30, 2025 2024 2025 2024 2025 2024 Store Count: Beginning domestic store count 6,298 6,131 6,265 6,095 6,152 6,027 New stores opened 62 21 95 57 208 126 Stores closed — — — — — (1)Ending domestic store count 6,360 6,152 6,360 6,152 6,360 6,152 Beginning Mexico store count 93 63 87 62 69 44 New stores opened 5 6 11 7 29 25 Ending Mexico store count 98 69 98 69 98 69 Beginning Canada store count 25 23 26 — 23 — New stores opened — — — — 3 — Stores acquired — — — 23 — 23 Stores closed — — (1) — (1) — Ending Canada store count 25 23 25 23 25 23 Total ending store count 6,483 6,244 6,483 6,244 6,483 6,244 For the Three Months Ended For the Twelve Months Ended June 30, June 30, 2025 2024 2025 2024Store and Team Member Information: Total employment 92,810 91,874 Square footage (in thousands) (4) 50,238 47,500 Sales per weighted-average square foot (4)(5) $ 88.76 $87.88 $ 342.83 $341.51Sales per weighted-average store (in thousands) (4)(6) $ 698 $677 $ 2,672 $2,613 (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 Second Quarter 2025 Results

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