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, 2025
Net, new store openings
200 to 210
Comparable store sales
3.0% to 4.5%
Total revenue
$17.5 billion to $17.8 billion
Gross 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 $2.95
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
$
2,820
to
$
3,230
Less:
Capital expenditures
1,200
to
1,300
Excess tax benefit from share-based compensation payments
20
to
30
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, 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
