O’Reilly Automotive posts record Q2 2026 results
O’Reilly Automotive reported record second-quarter 2026 results, with sales of $4.89 billion, up 8% year over year, and net income of $715 million, up 7%.
Rhea-AI Filing Summary
O’Reilly Automotive reported record second-quarter 2026 results, with sales of $4.89 billion, up 8% year over year, and net income of $715 million, up 7%. Diluted EPS rose 10% to $0.86, alongside a 6.0% comparable store sales increase and gross margin of 51.4% of sales.
For the first six months of 2026, sales were $9.45 billion, up 9%, and net income was $1.32 billion, up 9%, with diluted EPS up 13% to $1.58. The company repurchased 26.7 million shares for $2.43 billion year to date and raised full-year 2026 guidance, now expecting $18.9–$19.2 billion in revenue, comparable store sales growth of 4–6%, diluted EPS of $3.20–$3.30, and free cash flow of $1.8–$2.1 billion.
Positive
- Diluted EPS grew 10% in Q2 2026 to $0.86 and full-year 2026 guidance was raised, including higher comparable store sales of 4–6% and total revenue of $18.9–$19.2 billion.
Negative
- None.
Filing Explained
After June 30, O’Reilly completed another 7.3 million-share repurchase, while $1.33 billion of authorization remained available.
A Form 8-K reports specified material events; here, O’Reilly Automotive used Item 2.02 to disclose its second-quarter 2026 results and related financial information.
After June 30, the company reported a completed repurchase of
8-K Event Classification
Key Figures
Key Terms
comparable store sales financial
free cash flow financial
adjusted debt to EBITDAR financial
ASC 842 technical
Earnings Snapshot
Updated 2026 guidance includes net new store openings of 225–235, comparable store sales growth of 4.0%–6.0%, total revenue of $18.9–$19.2 billion, gross profit margin of 51.5%–52.0%, operating margin of 19.3%–19.8%, effective tax rate of 22.5%, diluted EPS of $3.20–$3.30, net cash from operations of $3.1–$3.5 billion, capital expenditures of $1.3–$1.4 billion, and free cash flow of $1.8–$2.1 billion.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were O’Reilly Automotive (ORLY) second quarter 2026 sales and earnings?
How did O’Reilly Automotive (ORLY) comparable store sales perform in Q2 2026?
What full-year 2026 guidance did O’Reilly Automotive (ORLY) provide?
How much stock did O’Reilly Automotive (ORLY) repurchase in 2026 year to date?
What was O’Reilly Automotive (ORLY) free cash flow in the first half of 2026?
How many stores does O’Reilly Automotive (ORLY) operate as of June 30, 2026?
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, DC 20549
FORM
CURRENT REPORT PURSUANT TO
SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (date of earliest event reported):
(Exact name of registrant as specified in its charter)
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(
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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2):
Securities registered pursuant to Section 12(b) of the Act:
(NASDAQ Global Select Market) |
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of Securities Act of 1933 (230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (240.12b-2).
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐
Section 2 – Financial Information
Item 2.02 – Results of Operations and Financial Condition
On July 29, 2026, O’Reilly Automotive Inc. (the “Company”) issued a press release announcing its second quarter 2026 earnings. The text of the press release is attached hereto as Exhibit 99.1.
Section 9 – Financial Statements and Exhibits
Item 9.01 – Financial Statements and Exhibits
Exhibit Number | | Description |
99.1 | Press release dated July 29, 2026 | |
104 | Cover Page Interactive Data File – the cover page XBRL tags are embedded within the Inline XBRL document |
The information in this Current Report on Form 8-K shall not be deemed “filed” for the purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liabilities of that section, nor shall it be deemed incorporated by reference in any filing under the Securities Act of 1933, as amended.
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, as amended, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Exhibit 99.1
FOR IMMEDIATE RELEASE
O’REILLY AUTOMOTIVE, INC. REPORTS SECOND QUARTER 2026 RESULTS
| ● | Second quarter comparable store sales growth of 6.0% |
| ● | 10% increase in second quarter diluted earnings per share to $0.86 |
| ● | $2.4 billion of share repurchases and $2.0 billion net cash provided by operating activities year-to-date |
Springfield, MO, July 29, 2026 – 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, 2026.
2nd Quarter Financial Results
Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank all of Team O’Reilly for their tremendous hard work and unwavering commitment to taking care of our customers each and every day. We are very pleased to report another quarter of strong performance, highlighted by a comparable store sales increase of 6.0% and a 10% increase in diluted earnings per share. Our Team continues to consistently execute our proven dual market strategy at a high level and delivered solid growth in both professional and DIY during the quarter. We remain committed to taking market share by providing unsurpassed levels of service to our customers, supported by best-in-class parts availability.”
Sales for the second quarter ended June 30, 2026, increased $367 million, or 8%, to $4.89 billion from $4.53 billion for the same period one year ago. Gross profit for the second quarter increased 8% to $2.52 billion (or 51.4% of sales) from $2.33 billion (or 51.4% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the second quarter increased 8% to $1.53 billion (or 31.3% of sales) from $1.41 billion (or 31.2% of sales) for the same period one year ago. Operating income for the second quarter increased 8% to $986 million (or 20.2% of sales) from $914 million (or 20.2% of sales) for the same period one year ago.
Net income for the second quarter ended June 30, 2026, increased $46 million, or 7%, to $715 million (or 14.6% of sales) from $669 million (or 14.8% of sales) for the same period one year ago. Diluted earnings per common share for the second quarter increased 10% to $0.86 on 829 million shares versus $0.78 on 858 million shares for the same period one year ago.
Year-to-Date Financial Results
Mr. Beckham concluded, “As a result of our strong performance in the first half of 2026, we are raising our full-year 2026 comparable store sales guidance to a range of 4% to 6%. Our updated full-year sales outlook reflects our confidence in the strength of the underlying demand drivers within our industry, as well as our Team’s focus on providing the excellent customer service that drives long-term profitable growth. Year-to-date, we have opened 110 net, new stores across North America, and we are on track to achieve our goal of 225 to 235 net, new store openings in 2026.”
Sales for the first six months of 2026 increased $791 million, or 9%, to $9.45 billion from $8.66 billion for the same period one year ago. Gross profit for the first six months of 2026 increased 9% to $4.86 billion (or 51.5% of sales) from $4.45 billion (or 51.4% of sales) for the same period one year ago. SG&A expenses for the first six months of 2026 increased 9% to $3.04 billion (or 32.1% of sales) from $2.79 billion (or 32.2% of sales) for the same period one year ago. Operating
income for the first six months of 2026 increased 10% to $1.83 billion (or 19.3% of sales) from $1.66 billion (or 19.1% of sales) for the same period one year ago.
Net income for the first six months of 2026 increased $112 million, or 9%, to $1.32 billion (or 14.0% of sales) from $1.21 billion (or 13.9% of sales) for the same period one year ago. Diluted earnings per common share for the first six months of 2026 increased 13% to $1.58 on 836 million shares versus $1.40 on 861 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. 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 6.0% for the second quarter ended June 30, 2026, on top of 4.1% for the same period one year ago. Comparable store sales increased 7.0% for the six months ended June 30, 2026, on top of 3.9% for the same period one year ago.
Share Repurchase Program
During the second quarter ended June 30, 2026, the Company repurchased 16.7 million shares of its common stock, at an average price per share of $90.40, for a total investment of $1.51 billion. During the first six months of 2026, the Company repurchased 26.7 million shares of its common stock, at an average price per share of $91.17, for a total investment of $2.43 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $24.3 million for the six months ended June 30, 2026. Subsequent to the end of the second quarter and through the date of this release, the Company repurchased an additional 7.3 million shares of its common stock, at an average price per share of $86.81, for a total investment of $632 million. The Company has repurchased a total of 1.50 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 $20.32, for a total aggregate investment of $30.42 billion. As of the date of this release, the Company had approximately $1.33 billion remaining under its current share repurchase authorization.
Updated Full-Year 2026 Guidance
The table below outlines the Company’s updated guidance for selected full-year 2026 financial data:
| | For the Year Ending |
|
| December 31, 2026 |
Net, new store openings |
| 225 to 235 |
Comparable store sales |
| 4.0% to 6.0% |
Total revenue |
| $18.9 billion to $19.2 billion |
Gross profit as a percentage of sales |
| 51.5% to 52.0% |
Operating income as a percentage of sales |
| 19.3% to 19.8% |
Effective income tax rate |
| 22.5% |
Diluted earnings per share (1) | | $3.20 to $3.30 |
Net cash provided by operating activities | | $3.1 billion to $3.5 billion |
Capital expenditures | | $1.3 billion to $1.4 billion |
Free cash flow (2) | | $1.8 billion to $2.1 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, 2026 | |||||||
Net cash provided by operating activities | | $ | 3,110 | | to | | $ | 3,520 | |
Less: | Capital expenditures | |
| 1,300 | | to | |
| 1,400 |
| Excess tax benefit from share-based compensation payments | |
| 10 | | to | |
| 20 |
Free cash flow | | $ | 1,800 | | to | | $ | 2,100 | |
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 30, 2026, 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 532005. A replay of the conference call will be available on the Company’s website through Thursday, July 29, 2027.
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, 2026, the Company operated 6,695 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, 2025, 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.
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
| | June 30, 2026 | | June 30, 2025 | | December 31, 2025 | |||
| | (Unaudited) | | (Unaudited) | | (Note) | |||
Assets | | | | | | | | | |
Current assets: | | | | | | | | | |
Cash and cash equivalents | | $ | 262,181 | | $ | 198,613 | | $ | 193,793 |
Accounts receivable, net | |
| 457,785 | |
| 428,828 | | | 389,793 |
Amounts receivable from suppliers | |
| 170,728 | |
| 123,273 | | | 159,900 |
Inventory | |
| 5,971,856 | |
| 5,399,588 | | | 5,731,385 |
Other current assets | |
| 337,082 | |
| 165,504 | | | 269,406 |
Total current assets | |
| 7,199,632 | |
| 6,315,806 | | | 6,744,277 |
| | | | | | | | | |
Property and equipment, at cost | |
| 10,741,816 | |
| 9,708,429 | | | 10,222,249 |
Less: accumulated depreciation and amortization | |
| 4,191,571 | |
| 3,758,465 | | | 3,964,824 |
Net property and equipment | |
| 6,550,245 | |
| 5,949,964 | | | 6,257,425 |
| | | | | | | | | |
Operating lease, right-of-use assets | |
| 2,484,413 | |
| 2,409,177 | | | 2,391,150 |
Goodwill | |
| 955,211 | |
| 943,314 | | | 948,208 |
Other assets, net | |
| 199,615 | |
| 202,358 | | | 197,193 |
Total assets | | $ | 17,389,116 | | $ | 15,820,619 | | $ | 16,538,253 |
| | | | | | | | | |
Liabilities and shareholders’ deficit | | | | | | | | | |
Current liabilities: | | | | | | | | | |
Accounts payable | | $ | 7,384,958 | | $ | 6,858,649 | | $ | 7,103,684 |
Self-insurance reserves | |
| 214,311 | |
| 158,844 | | | 297,304 |
Accrued payroll | |
| 176,174 | |
| 145,629 | | | 119,603 |
Accrued benefits and withholdings | |
| 275,493 | |
| 238,984 | | | 240,072 |
Income taxes payable | |
| — | |
| 312,545 | | | 13,957 |
Current portion of operating lease liabilities | |
| 452,275 | |
| 434,151 | | | 439,907 |
Other current liabilities | |
| 1,071,463 | |
| 573,084 | | | 561,294 |
Total current liabilities | |
| 9,574,674 | |
| 8,721,886 | | | 8,775,821 |
| | | | | | | | | |
Long-term debt | |
| 7,014,543 | |
| 5,823,744 | | | 6,016,904 |
Operating lease liabilities, less current portion | |
| 2,120,615 | |
| 2,055,053 | | | 2,034,688 |
Deferred income taxes | |
| 238,615 | |
| 211,920 | | | 211,210 |
Other liabilities | |
| 276,394 | |
| 239,878 | | | 262,982 |
| | | | | | | | | |
Shareholders’ equity (deficit): | | | | | | | | | |
Common stock, $0.01 par value: | | | | | | | | | |
Authorized shares – 1,250,000,000 | |
| | | | | | | |
Issued and outstanding shares – | | | | | | | | | |
816,165,813 as of June 30, 2026, | | | | | | | | | |
850,561,094 as of June 30, 2025, and | | | | | | | | | |
841,909,238 as of December 31, 2025 | | | 8,162 | |
| 8,506 | | | 8,419 |
Additional paid-in capital | |
| 1,536,955 | |
| 1,499,288 | | | 1,530,292 |
Retained deficit | |
| (3,416,414) | |
| (2,748,221) | | | (2,328,817) |
Accumulated other comprehensive income | | | 35,572 | | | 8,565 | | | 26,754 |
Total shareholders’ deficit | |
| (1,835,725) | |
| (1,231,862) | | | (763,352) |
| | | | | | | | | |
Total liabilities and shareholders’ deficit | | $ | 17,389,116 | | $ | 15,820,619 | | $ | 16,538,253 |
Note: The balance sheet at December 31, 2025, 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 Six Months Ended | ||||||||
|
| June 30, |
| June 30, | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | ||||
Sales | | $ | 4,892,013 | | $ | 4,525,058 | | $ | 9,452,552 | | $ | 8,661,982 |
Cost of goods sold, including warehouse and distribution expenses | |
| 2,375,273 | |
| 2,198,520 | |
| 4,588,601 | |
| 4,213,959 |
Gross profit | |
| 2,516,740 | |
| 2,326,538 | |
| 4,863,951 | |
| 4,448,023 |
| | | | | | | | | | | | |
Selling, general and administrative expenses | |
| 1,530,994 | |
| 1,412,068 | |
| 3,036,597 | |
| 2,792,087 |
Operating income | |
| 985,746 | |
| 914,470 | |
| 1,827,354 | |
| 1,655,936 |
| | | | | | | | | | | | |
Other income (expense): | |
| | |
| | |
| | |
| |
Interest expense | |
| (69,871) | |
| (57,337) | |
| (132,616) | |
| (114,901) |
Interest income | |
| 1,589 | |
| 1,885 | |
| 3,337 | |
| 3,549 |
Other, net | |
| 6,611 | |
| 2,437 | |
| 6,089 | |
| 1,222 |
Total other expense | |
| (61,671) | |
| (53,015) | |
| (123,190) | |
| (110,130) |
| | | | | | | | | | | | |
Income before income taxes | |
| 924,075 | |
| 861,455 | |
| 1,704,164 | |
| 1,545,806 |
Provision for income taxes | |
| 209,011 | |
| 192,860 | |
| 384,919 | |
| 338,726 |
Net income | | $ | 715,064 | | $ | 668,595 | | $ | 1,319,245 | | $ | 1,207,080 |
| | | | | | | | | | | | |
Earnings per share-basic: | |
| | |
| | |
| | |
| |
Earnings per share | | $ | 0.87 | | $ | 0.78 | | $ | 1.59 | | $ | 1.41 |
Weighted-average common shares outstanding – basic | |
| 825,197 | |
| 854,003 | |
| 831,853 | |
| 856,768 |
| | | | | | | | | | | | |
Earnings per share-assuming dilution: | |
| | |
| | |
| | |
| |
Earnings per share | | $ | 0.86 | | $ | 0.78 | | $ | 1.58 | | $ | 1.40 |
Weighted-average common shares outstanding – assuming dilution | |
| 828,875 | |
| 858,440 | |
| 835,661 | |
| 861,368 |
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
(In thousands)
|
| For the Six Months Ended | ||||
|
| June 30, | ||||
| | 2026 | | 2025 | ||
Operating activities: | | | | | | |
Net income | | $ | 1,319,245 | | $ | 1,207,080 |
Adjustments to reconcile net income to net cash provided by operating activities: | |
| | |
| |
Depreciation and amortization of property, equipment and intangibles | |
| 273,643 | |
| 247,159 |
Amortization of debt discount and issuance costs | |
| 3,818 | |
| 3,667 |
Deferred income taxes | |
| 27,504 | |
| (36,679) |
Share-based compensation programs | |
| 17,512 | |
| 18,812 |
Other | |
| 5,722 | |
| 7,945 |
Changes in operating assets and liabilities: | |
| | |
| |
Accounts receivable | |
| (75,256) | |
| (73,966) |
Inventory | |
| (239,312) | |
| (280,899) |
Accounts payable | |
| 284,815 | |
| 331,082 |
Income taxes payable | |
| (33,836) | |
| 314,779 |
Other | |
| 455,557 | |
| (227,014) |
Net cash provided by operating activities | |
| 2,039,412 | |
| 1,511,966 |
| | | | | | |
Investing activities: | |
| | |
| |
Purchases of property and equipment | |
| (552,050) | |
| (587,685) |
Proceeds from sale of property and equipment | |
| 5,142 | |
| 2,695 |
Other, including acquisitions, net of cash acquired | |
| (2,767) | |
| (10,008) |
Net cash used in investing activities | |
| (549,675) | |
| (594,998) |
| | | | | | |
Financing activities: | |
| | |
| |
Net proceeds of commercial paper | |
| 651,888 | |
| 298,918 |
Proceeds from the issuance of long-term debt | |
| 847,365 | |
| — |
Principal payments on long-term debt | | | (500,000) | |
| — |
Payment of debt issuance costs | |
| (6,655) | |
| (3,815) |
Payment of excise tax on share repurchases | | | (18,718) | | | (17,012) |
Repurchases of common stock | |
| (2,433,023) | |
| (1,176,640) |
Net proceeds from issuance of common stock | |
| 37,763 | |
| 48,167 |
Other | |
| (270) | |
| (433) |
Net cash used in financing activities | |
| (1,421,650) | |
| (850,815) |
| | | | | | |
Effect of exchange rate changes on cash | | | 301 | | | 2,215 |
Net increase in cash and cash equivalents | |
| 68,388 | |
| 68,368 |
Cash and cash equivalents at beginning of the period | |
| 193,793 | |
| 130,245 |
Cash and cash equivalents at end of the period | | $ | 262,181 | | $ | 198,613 |
| | | | | | |
Supplemental disclosures of cash flow information: | |
| | |
| |
Income taxes paid | | $ | 100,317 | | $ | 393,872 |
Interest paid, net of capitalized interest | |
| 119,269 | |
| 110,374 |
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
| | For the Twelve Months Ended | |||||
| | June 30, | |||||
Adjusted Debt to EBITDAR: | | 2026 | | 2025 | |||
(In thousands, except adjusted debt to EBITDAR ratio) |
| | |
| | | |
GAAP debt | | $ | 7,014,543 | | $ | 5,823,744 | |
Add: | Letters of credit | |
| 197,809 | |
| 162,289 |
| Unamortized discount and debt issuance costs | |
| 30,457 | |
| 26,256 |
| Six-times rent expense | |
| 3,030,750 | |
| 2,834,550 |
Adjusted debt | | $ | 10,273,559 | | $ | 8,846,839 | |
| | | | | | | |
GAAP net income | | $ | 2,650,374 | | $ | 2,423,674 | |
Add: | Interest expense | |
| 252,779 | |
| 225,470 |
| Provision for income taxes | |
| 748,155 | |
| 655,250 |
| Depreciation and amortization | |
| 537,714 | |
| 486,166 |
| Share-based compensation expense | |
| 33,815 | |
| 33,514 |
| Rent expense (i) | |
| 505,125 | |
| 472,425 |
EBITDAR | | $ | 4,727,962 | | $ | 4,296,499 | |
| | | | | | | |
Adjusted debt to EBITDAR | |
| 2.17 | |
| 2.06 | |
| (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, 2026 and 2025 (in thousands): |
| | For the Twelve Months Ended | |||||
| | June 30, | |||||
| | 2026 | | 2025 | |||
Total lease cost, per ASC 842 | | $ | 606,667 | | $ | 570,733 | |
Less: | Variable non-contract operating lease components, related to property taxes and insurance | |
| 101,542 | | | 98,308 |
Rent expense | | $ | 505,125 | | $ | 472,425 | |
| | June 30, | ||||||
| | 2026 | | 2025 | ||||
Selected Balance Sheet Ratios: |
| | |
| | | | |
Inventory turnover (1) |
| | 1.6 | | | 1.6 | ||
Average inventory per store (in thousands) (2) | | $ | 892 | | $ | 833 | ||
Accounts payable to inventory (3) | |
| 123.7 | % | |
| 127.0 | % |
| | | For the Three Months Ended | | For the Six Months Ended | ||||||||
| | | June 30, | | June 30, | ||||||||
| | | 2026 | | 2025 | | 2026 | | 2025 | ||||
Reconciliation of Free Cash Flow (in thousands): |
| | |
| | |
| | |
| | | |
Net cash provided by operating activities | | $ | 1,006,499 | | $ | 756,846 | | $ | 2,039,412 | | $ | 1,511,966 | |
Less: | Capital expenditures | |
| 307,603 | |
| 300,734 | |
| 552,050 | |
| 587,685 |
| Excess tax benefit from share-based compensation payments | |
| 6,194 | |
| 7,348 | |
| 9,546 | |
| 20,273 |
Free cash flow | | $ | 692,702 | | $ | 448,764 | | $ | 1,477,816 | | $ | 904,008 | |
| | For the Three Months Ended | | For the Six Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | ||||
Revenue Disaggregation (in thousands): | | | | | | | | | | | | |
Sales to do-it-yourself customers | $ | 2,336,858 | | $ | 2,228,566 | | $ | 4,526,990 | | $ | 4,280,425 | |
Sales to professional service provider customers |
| | 2,469,582 |
| | 2,195,840 |
| | 4,760,366 |
| | 4,194,433 |
Other sales and sales adjustments |
| | 85,573 | | | 100,652 |
| | 165,196 | | | 187,124 |
Total sales | | $ | 4,892,013 | | $ | 4,525,058 | | $ | 9,452,552 | | $ | 8,661,982 |
| | For the Three Months Ended | | For the Six Months Ended | | For the Twelve Months Ended | ||||||
| | June 30, | | June 30, | | June 30, | ||||||
| | 2026 | | 2025 | | 2026 | | 2025 | | 2026 | | 2025 |
Store Count: | | | | | | | | | | | | |
Beginning domestic store count |
| 6,495 |
| 6,298 |
| 6,447 |
| 6,265 |
| 6,360 |
| 6,152 |
New stores opened |
| 46 |
| 62 |
| 94 |
| 95 |
| 181 |
| 208 |
Stores closed |
| — |
| — |
| — |
| — |
| — |
| — |
Ending domestic store count | | 6,541 | | 6,360 | | 6,541 | | 6,360 | | 6,541 | | 6,360 |
| | | | | | | | | | | | |
Beginning Mexico store count | | 121 | | 93 | | 112 | | 87 | | 98 | | 69 |
New stores opened | | 5 | | 5 | | 14 | | 11 | | 28 | | 29 |
Stores closed | | — | | — | | — | | — | | — | | — |
Ending Mexico store count | | 126 | | 98 | | 126 | | 98 | | 126 | | 98 |
| | | | | | | | | | | | |
Beginning Canada store count | | 28 | | 25 | | 26 | | 26 | | 25 | | 23 |
New stores opened | | — | | — | | 2 | | — | | 3 | | 3 |
Stores closed | | — | | — | | — | | (1) | | — | | (1) |
Ending Canada store count | | 28 | | 25 | | 28 | | 25 | | 28 | | 25 |
| | | | | | | | | | | | |
Total ending store count |
| 6,695 |
| 6,483 |
| 6,695 |
| 6,483 |
| 6,695 |
| 6,483 |
| | For the Three Months Ended | | For the Twelve Months Ended | ||||||||
| | June 30, | | June 30, | ||||||||
| | 2026 | | 2025 | | 2026 | | 2025 | ||||
Store and Team Member Information: | | | | | | | | | | | | |
Total employment |
| | 95,822 |
| | 92,810 |
| | | | | |
Square footage (in thousands) (4) | | | 52,697 | | | 50,238 | | | | | | |
Sales per weighted-average square foot (4)(5) | | $ | 91.10 | | $ | 88.76 | | $ | 351.82 | | $ | 342.83 |
Sales per weighted-average store (in thousands) (4)(6) | | $ | 733 | | $ | 698 | | $ | 2,811 | | $ | 2,672 |
| (1) | Calculated as cost of goods sold for the last 12 months divided by average inventory. |
| (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. |