EX-99.12orly-20251022xex99d1.htmEX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
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, October 22, 2025 – 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, G1we 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
G2Net, new store openings
200 to 210
Comparable store sales
4.0% to 5.0%
G3Total revenue
$17.6 billion to $17.8 billion
G4Gross profit as a percentage of sales
51.2% to 51.7%
G5Operating income as a percentage of sales
19.2% to 19.7%
Effective income tax rate
21.6%
G6Diluted earnings per share (1)
$2.90 to $3.00
Net cash provided by operating activities
$2.6 billion to $3.0 billion
G7Capital expenditures
$1.1 billion to $1.2 billion
G8Free 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 G9reduction to its full-year net cash provided by operating activities guidance to the updated range of $2.6 billion to $3.0 billion. G10The 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.
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 1 | — | — |
| Buybacks share repurchase, buyback program | 5 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor