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O’Reilly Automotive, Inc. Reports Third Quarter 2025 Results

          • Third quarter comparable store sales growth of 5.6%
          • 9% increase in third quarter operating income
          • 12% increase in third quarter diluted earnings per share to $0.85

SPRINGFIELD, Mo., Oct. 22, 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 third quarter ended September 30, 2025.

3rd Quarter Financial Results

Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report another quarter of solid performance and profitable growth, highlighted by a 5.6% increase in comparable store sales and a 12% increase in diluted earnings per share for the third quarter. Our Team continues to execute our proven business model at a very high level, generating robust sales growth by delivering share gains on both sides of our business. Team O’Reilly’s commitment to providing unparalleled service to our customers drove our strong results, and I would like to thank each of our over 93,000 Team Members for their unrelenting hard work and dedication.”

Sales for the third quarter ended September 30, 2025, increased $341 million, or 8%, to $4.71 billion from $4.36 billion for the same period one year ago. Gross profit for the third quarter increased 8% to $2.44 billion (or 51.9% of sales) from $2.25 billion (or 51.6% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the third quarter increased 8% to $1.46 billion (or 31.1% of sales) from $1.35 billion (or 31.0% of sales) for the same period one year ago. Operating income for the third quarter increased 9% to $976 million (or 20.7% of sales) from $897 million (or 20.5% of sales) for the same period one year ago.

Net income for the third quarter ended September 30, 2025, increased $60 million, or 9%, to $726 million (or 15.4% of sales) from $665 million (or 15.2% of sales) for the same period one year ago. Diluted earnings per common share for the third quarter increased 12% to $0.85 on 853 million shares versus $0.76 on 875 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 year-to-date performance and updated outlook for the remainder of 2025, we are raising our full-year 2025 comparable store sales guidance to a range of 4.0% to 5.0%. We remain confident in the underlying demand drivers of our industry and our Team’s ability to grow our share of the market by delivering industry-leading customer service.”

Sales for the first nine months of 2025 increased $755 million, or 6%, to $13.37 billion from $12.61 billion for the same period one year ago. Gross profit for the first nine months of 2025 increased 7% to $6.89 billion (or 51.5% of sales) from $6.45 billion (or 51.2% of sales) for the same period one year ago. SG&A for the first nine months of 2025 increased 8% to $4.26 billion (or 31.8% of sales) from $3.94 billion (or 31.2% of sales) for the same period one year ago. Operating income for the first nine months of 2025 increased 5% to $2.63 billion (or 19.7% of sales) from $2.51 billion (or 19.9% of sales) for the same period one year ago.

Net income for the first nine months of 2025 increased $97 million, or 5%, to $1.93 billion (or 14.5% of sales) from $1.84 billion (or 14.6% of sales) for the same period one year ago. Diluted earnings per common share for the first nine months of 2025 increased 8% to $2.25 on 858 million shares versus $2.08 on 884 million shares for the same period one year ago.

3rd 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 nine months ended September 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 5.6% for the third quarter ended September 30, 2025, on top of 1.5% for the same period one year ago. Comparable store sales increased 4.5% for the nine months ended September 30, 2025, on top of 2.4% for the same period one year ago.

Share Repurchase Program

During the third quarter ended September 30, 2025, the Company repurchased 4.3 million shares of its common stock, at an average price per share of $98.08, for a total investment of $420 million. During the first nine months of 2025, the Company repurchased 17.6 million shares of its common stock, at an average price per share of $90.95, for a total investment of $1.60 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $16.0 million for the nine months ended September 30, 2025. Subsequent to the end of the third quarter and through the date of this release, the Company repurchased an additional 0.8 million shares of its common stock, at an average price per share of $102.96, for a total investment of $79 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 $18.46, for a total aggregate investment of $26.93 billion.   As of the date of this release, the Company had approximately $820 million 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 4.0% to 5.0%
Total revenue $17.6 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 21.6%
Diluted earnings per share(1) $2.90 to $3.00
Net cash provided by operating activities $2.6 billion to $3.0 billion
Capital expenditures $1.1 billion to $1.2 billion
Free cash flow(2) $1.5 billion to $1.8 billion
   

During the third quarter, the Company accelerated the payment timing of transferable renewable energy tax credits that were originally planned to settle in early 2026, resulting in a reduction to its full-year net cash provided by operating activities guidance to the updated range of $2.6 billion to $3.0 billion. The Company has also revised its expected full-year income tax rate from 22.3% to 21.6%, reflecting incremental benefits received from the accelerated payment.

(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 $2,625 to $3,035
Less:Capital expenditures  1,100 to  1,200
 Excess tax benefit from share-based compensation payments  25 to  35
Free cash flow $1,500 to $1,800
         

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, October 23, 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 674813. A replay of the conference call will be available on the Company’s website through Thursday, October 22, 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 September 30, 2025, the Company operated 6,538 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 SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
 
          
  September 30, 2025 September 30, 2024 December 31, 2024
  (Unaudited) (Unaudited) (Note)
Assets         
Current assets:         
Cash and cash equivalents $204,513  $115,613  $130,245 
Accounts receivable, net  422,849   401,950   356,839 
Amounts receivable from suppliers  178,155   154,300   139,091 
Inventory  5,610,118   4,913,237   5,095,804 
Other current assets  181,340   113,187   117,916 
Total current assets  6,596,975   5,698,287   5,839,895 
          
Property and equipment, at cost  9,982,785   8,969,137   9,192,254 
Less: accumulated depreciation and amortization  3,849,021   3,532,755   3,587,098 
Net property and equipment  6,133,764   5,436,382   5,605,156 
          
Operating lease, right-of-use assets  2,404,612   2,269,929   2,324,638 
Goodwill  945,587   997,226   930,161 
Other assets, net  198,689   175,698   193,891 
Total assets $16,279,627  $14,577,522  $14,893,741 
          
Liabilities and shareholders’ deficit         
Current liabilities:         
Accounts payable $7,060,609  $6,359,619  $6,524,811 
Self-insurance reserves  180,138   123,505   149,387 
Accrued payroll  154,288   141,361   107,495 
Accrued benefits and withholdings  256,835   201,351   199,593 
Income taxes payable  10,696   206,776   6,274 
Current portion of operating lease liabilities  436,672   408,571   419,213 
Other current liabilities  610,521   743,982   876,732 
Total current liabilities  8,709,759   8,185,165   8,283,505 
          
Long-term debt  5,915,530   5,359,810   5,520,932 
Operating lease liabilities, less current portion  2,049,454   1,938,162   1,980,705 
Deferred income taxes  240,728   325,869   247,599 
Other liabilities  258,832   207,580   231,961 
          
Shareholders’ equity (deficit):         
Common stock, $0.01 par value:         
Authorized shares – 1,250,000,000         
Issued and outstanding shares –         
846,832,348 as of September 30, 2025,         
867,583,800 as of September 30, 2024, and         
862,232,760 as of December 31, 2024  8,468   8,676   8,622 
Additional paid-in capital  1,519,584   1,441,349   1,454,518 
Retained deficit  (2,438,352)  (2,875,955)  (2,791,288)
Accumulated other comprehensive income (loss)  15,624   (13,134)  (42,813)
Total shareholders’ deficit  (894,676)  (1,439,064)  (1,370,961)
          
Total liabilities and shareholders’ deficit $16,279,627  $14,577,522  $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 SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)
(In thousands, except per share data)
 
             
  For the Three Months Ended For the Nine Months Ended
  September 30, September 30,
  2025  2024  2025  2024 
Sales $4,705,696  $4,364,437  $13,367,678  $12,612,878 
Cost of goods sold, including warehouse and distribution expenses  2,265,750   2,113,212   6,479,709   6,159,421 
Gross profit  2,439,946   2,251,225   6,887,969   6,453,457 
             
Selling, general and administrative expenses  1,463,879   1,354,497   4,255,966   3,940,950 
Operating income  976,067   896,728   2,632,003   2,512,507 
             
Other income (expense):            
Interest expense  (59,566)  (55,166)  (174,467)  (167,145)
Interest income  1,780   2,055   5,329   5,239 
Other, net  5,369   4,304   6,591   9,266 
Total other expense  (52,417)  (48,807)  (162,547)  (152,640)
             
Income before income taxes  923,650   847,921   2,469,456   2,359,867 
Provision for income taxes  197,754   182,457   536,480   524,317 
Net income $725,896  $665,464  $1,932,976  $1,835,550 
             
Earnings per share-basic:            
Earnings per share $0.86  $0.76  $2.26  $2.09 
Weighted-average common shares outstanding – basic  848,292   869,971   853,909   878,442 
             
Earnings per share-assuming dilution:            
Earnings per share $0.85  $0.76  $2.25  $2.08 
Weighted-average common shares outstanding – assuming dilution  852,704   875,023   858,452   884,135 
                 

O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
       
  For the Nine Months Ended
  September 30,
  2025  2024 
Operating activities:      
Net income $1,932,976  $1,835,550 
Adjustments to reconcile net income to net cash provided by operating activities:      
Depreciation and amortization of property, equipment and intangibles  375,825   339,324 
Amortization of debt discount and issuance costs  5,502   4,870 
Deferred income taxes  (7,873)  8,536 
Share-based compensation programs  27,108   21,600 
Other  7,381   5,928 
Changes in operating assets and liabilities:      
Accounts receivable  (66,898)  (9,175)
Inventory  (486,368)  (212,491)
Accounts payable  532,599   252,454 
Income taxes payable  (1,882)  198,780 
Other  (189,869)  (20,287)
Net cash provided by operating activities  2,128,501   2,425,089 
       
Investing activities:      
Purchases of property and equipment  (899,783)  (732,916)
Proceeds from sale of property and equipment  16,882   10,268 
Other, including acquisitions, net of cash acquired  (13,664)  (160,960)
Net cash used in investing activities  (896,565)  (883,608)
       
Financing activities:      
Proceeds from borrowings on revolving credit facility     30,000 
Payments on revolving credit facility     (30,000)
Net proceeds (payments) of commercial paper  389,796   (706,850)
Proceeds from the issuance of long-term debt     498,910 
Payment of debt issuance costs  (3,829)  (3,900)
Payment of excise tax on share repurchases  (17,012)   
Repurchases of common stock  (1,596,650)  (1,604,509)
Net proceeds from issuance of common stock  68,280   112,825 
Other  (433)  (569)
Net cash used in financing activities  (1,159,848)  (1,704,093)
       
Effect of exchange rate changes on cash  2,180   (907)
Net increase (decrease) in cash and cash equivalents  74,268   (163,519)
Cash and cash equivalents at beginning of the period  130,245   279,132 
Cash and cash equivalents at end of the period $204,513  $115,613 
       
Supplemental disclosures of cash flow information:      
Income taxes paid $876,513  $419,331 
Interest paid, net of capitalized interest  152,090   139,228 
         

O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
        
  For the Twelve Months Ended
  September 30,
Adjusted Debt to EBITDAR: 2025 2024
(In thousands, except adjusted debt to EBITDAR ratio)      
GAAP debt $5,915,530 $5,359,810
Add:Letters of credit  156,259  127,234
 Unamortized discount and debt issuance costs  24,470  30,190
 Six-times rent expense  2,894,580  2,664,996
Adjusted debt $8,990,839 $8,182,230
       
GAAP net income $2,484,106 $2,388,054
Add:Interest expense  229,870  223,293
 Provision for income taxes  670,547  643,344
 Depreciation and amortization  498,393  451,802
 Share-based compensation expense  34,439  27,163
 Rent expense(i)  482,430  444,166
EBITDAR $4,399,785 $4,177,822
       
Adjusted debt to EBITDAR  2.04  1.96

(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 September 30, 2025 and 2024 (in thousands):

  For the Twelve Months Ended
  September 30,
  2025 2024
Total lease cost, per ASC 842 $581,898 $530,689
Less:Variable non-contract operating lease components, related to property taxes and insurance  99,468  86,523
Rent expense $482,430 $444,166
       

         
  September 30,
  2025 2024
Selected Balance Sheet Ratios:        
Inventory turnover(1)  1.6  1.7
Average inventory per store (in thousands)(2) $858 $781
Accounts payable to inventory(3)  125.9%  129.4%
         

              
   For the Three Months Ended For the Nine Months Ended
   September 30, September 30,
   2025 2024 2025 2024
Reconciliation of Free Cash Flow (in thousands):            
Net cash provided by operating activities $616,535 $772,015 $2,128,501 $2,425,089
Less:Capital expenditures  312,098  258,309  899,783  732,916
 Excess tax benefit from share-based compensation payments  7,441  13,666  27,714  35,044
Free cash flow $296,996 $500,040 $1,201,004 $1,657,129
             

             
  For the Three Months Ended For the Nine Months Ended
  September 30, September 30,
  2025 2024 2025 2024
Revenue Disaggregation (in thousands):           
Sales to do-it-yourself customers$2,304,804 $2,219,727 $6,585,229 $6,376,212
Sales to professional service provider customers  2,307,782  2,043,394  6,502,215  5,930,744
Other sales and sales adjustments  93,110  101,316  280,234  305,922
Total sales $4,705,696 $4,364,437 $13,367,678 $12,612,878
             

             
  For the Three Months Ended For the Nine Months Ended For the Twelve Months Ended
  September 30, September 30, September 30,
  2025 2024 2025  2024 2025  2024 
Store Count:            
Beginning domestic store count 6,360 6,152 6,265  6,095 6,187  6,063 
New stores opened 46 35 141  92 219  125 
Stores closed        (1)
Ending domestic store count 6,406 6,187 6,406  6,187 6,406  6,187 
             
Beginning Mexico store count 98 69 87  62 78  48 
New stores opened 9 9 20  16 29  30 
Ending Mexico store count 107 78 107  78 107  78 
             
Beginning Canada store count 25 23 26   26   
New stores opened  3   3   3 
Stores acquired     23   23 
Stores closed   (1)  (1)  
Ending Canada store count 25 26 25  26 25  26 
             
Total ending store count 6,538 6,291 6,538  6,291 6,538  6,291 
                

             
  For the Three Months Ended For the Twelve Months Ended
  September 30, September 30,
  2025 2024 2025 2024
Store and Team Member Information:            
Total employment  93,269  92,709      
Square footage (in thousands)(4)  50,980  47,949      
Sales per weighted-average square foot(4)(5) $90.80 $89.17 $344.65 $340.84
Sales per weighted-average store (in thousands)(4)(6) $720 $689 $2,701 $2,620

(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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