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

Rhea-AI Summary

O’Reilly Automotive (Nasdaq: ORLY) reported record Q3 results for the quarter ended September 30, 2025, with sales of $4.71B (+8%), gross profit $2.44B (51.9% of sales), and net income $726M (+9%).

Comparable store sales rose 5.6% and diluted EPS increased 12% to $0.85. Year-to-date sales were $13.37B (+6%) and diluted EPS for nine months was $2.25 (+8%).

The company completed a 15-for-1 stock split (June 10, 2025), repurchased 17.6M shares YTD for $1.60B, and updated full-year 2025 guidance: comps 4.0–5.0%, revenue $17.6–17.8B, and diluted EPS $2.90–3.00.

Positive

• Q3 revenue +8% to $4.71B
• Comparable store sales +5.6% in Q3
• Diluted EPS +12% to $0.85 in Q3
• YTD share repurchases 17.6M shares for $1.60B
• Raised full-year comps guidance to 4.0%–5.0%

Negative

• SG&A increased 8% to $1.46B (31.1% of sales)
• Shareholders’ deficit of $(894.7)M as of Sep 30, 2025
• $820M remaining under current repurchase authorization

Insights

Senior Retail Financial Analyst

O’Reilly delivered record quarterly revenue and EPS growth with raised guidance; results show operational leverage and strong cash generation.

Business mechanism: O’Reilly Automotive reported third quarter sales of $4.71 billion, up 8%, and diluted EPS of $0.85, up 12%, driven by comparable store sales growth of 5.6% and gross margin near 51.9%. Operating income rose to $976 million (about 20.7% of sales), showing the company maintained margin expansion while SG&A moved in line with sales.

Dependencies and risks: these outcomes depend on continued comparable-store momentum, execution of store openings (net 200–210 planned for the year), and effective capital allocation shown by sizable share repurchases (third-quarter repurchases of $420 million and $1.60 billion year-to-date). Cash guidance was adjusted to $2.6–3.0 billion due to accelerated tax-credit payments, which affects timing of free cash flow but not the full-year free cash flow range of $1.5–1.8 billion.

What to watch (near-term): monitor quarterly comparable-store sales trends relative to the updated full-year range of 4.0–5.0%, the cadence of share repurchases against the remaining $820 million authorization, and the company’s effective tax rate at 21.6% for any impact on net cash from operations during the rest of 2025.

• • • • • 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.

3^rd 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.

3^rd 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.

FAQ

What were O’Reilly Automotive (ORLY) third quarter 2025 sales and net income?

Q3 2025 sales were $4.71B and net income was $726M.

How much did O’Reilly (ORLY) repurchase in shares during the first nine months of 2025?

O’Reilly repurchased 17.6 million shares for a total of $1.60B through September 30, 2025.

What is O’Reilly’s updated full-year 2025 diluted EPS guidance (ORLY)?

The company updated diluted EPS guidance to $2.90 to $3.00 for full-year 2025.

How did O’Reilly’s comparable store sales (ORLY) perform in Q3 2025?

Comparable store sales increased by 5.6% for the third quarter ended September 30, 2025.

Did O’Reilly (ORLY) complete a stock split in 2025 and how does it affect reported shares?

Yes, O’Reilly completed a 15-for-1 forward stock split effective June 10, 2025; all share and per-share data were adjusted accordingly.

What revenue range did O’Reilly (ORLY) guide for full-year 2025?

Full-year 2025 total revenue guidance is $17.6 billion to $17.8 billion.