EX-99.1 2 orly-20250723xex99d1.htm EX-99.1

Exhibit 99.1

Graphic

FOR IMMEDIATE RELEASE


O’REILLY AUTOMOTIVE, INC. REPORTS SECOND QUARTER 2025 RESULTS


Second quarter comparable store sales growth of 4.1%
11% increase in second quarter diluted earnings per share to $0.78
$1.51 billion net cash provided by operating activities year-to-date

Springfield, MO, July 23, 2025O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq:  ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue and earnings for its second quarter ended June 30, 2025.

2nd Quarter Financial Results

Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank our Team of over 92,000 Professional Parts People for their tremendous hard work and commitment to providing industry-leading customer service in each of our 6,483 stores.  Team O’Reilly’s dedication was reflected in our strong top-line performance this quarter with a comparable store sales increase of 4.1%, driven by solid growth in both professional and DIY.  Our Team’s unwavering commitment to executing on the fundamentals of our business translated our top-line results into an 11% increase in diluted earnings per share, and we remain very confident in our Team’s ability to continue to profitably grow our business and gain share in all the markets in which we operate.”

Sales for the second quarter ended June 30, 2025, increased $253 million, or 6%, to $4.53 billion from $4.27 billion for the same period one year ago.  Gross profit for the second quarter increased 7% to $2.33 billion (or 51.4% of sales) from $2.17 billion (or 50.7% of sales) for the same period one year ago.  Selling, general and administrative expenses (“SG&A”) for the second quarter increased 8% to $1.41 billion (or 31.2% of sales) from $1.30 billion (or 30.5% of sales) for the same period one year ago.  Operating income for the second quarter increased 6% to $914 million (or 20.2% of sales) from $863 million (or 20.2% of sales) for the same period one year ago.  

Net income for the second quarter ended June 30, 2025, increased $46 million, or 7%, to $669 million (or 14.8% of sales) from $623 million (or 14.6% of sales) for the same period one year ago.  Diluted earnings per common share for the second quarter increased 11% to $0.78 on 858 million shares versus $0.70 on 886 million shares for the same period one year ago.  The Company completed a 15-for-1 forward stock split on June 10, 2025, and accordingly all share and per share data in current and comparable periods have been adjusted to reflect the split.

Year-to-Date Financial Results

Mr. Beckham concluded, “As a result of our solid performance in the first half of 2025, we are increasing our full-year comparable store sales guidance to a range of 3% to 4.5%, which reflects our updated expectations based on the sales trends we are currently seeing in our business.  During the first half of 2025, we opened 105 net, new stores across 34 U.S. states, Puerto Rico, and Mexico.  We are also excited to have opened our 100th store in Mexico in July, an exciting milestone for our Team.  We believe we are well positioned to achieve our target of 200 to 210 net, new stores during 2025.”

Sales for the first six months of 2025 increased $414 million, or 5%, to $8.66 billion from $8.25 billion for the same period one year ago.  Gross profit for the first six months of 2025 increased 6% to $4.45 billion (or 51.4% of sales) from $4.20


billion (or 50.9% of sales) for the same period one year ago.  SG&A for the first six months of 2025 increased 8% to $2.79 billion (or 32.2% of sales) from $2.59 billion (or 31.4% of sales) for the same period one year ago.  Operating income for the first six months of 2025 increased 2% to $1.66 billion (or 19.1% of sales) from $1.62 billion (or 19.6% of sales) for the same period one year ago.

Net income for the first six months of 2025 increased $37 million, or 3%, to $1.21 billion (or 13.9% of sales) from $1.17 billion (or 14.2% of sales) for the same period one year ago.  Diluted earnings per common share for the first six months of 2025 increased 6% to $1.40 on 861 million shares versus $1.32 on 889 million shares for the same period one year ago.

2nd Quarter Comparable Store Sales Results

Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members, as well as sales from Leap Day for the six months ended June 30, 2024.  Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation.  Comparable store sales increased 4.1% for the second quarter ended June 30, 2025, on top of 2.3% for the same period one year ago.  Comparable store sales increased 3.9% for the six months ended June 30, 2025, on top of 2.8% for the same period one year ago.

Share Repurchase Program

During the second quarter ended June 30, 2025, the Company repurchased 6.8 million shares of its common stock, at an average price per share of $90.71, for a total investment of $617 million.  During the first six months of 2025, the Company repurchased 13.3 million shares of its common stock, at an average price per share of $88.65, for a total investment of $1.18 billion.  Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $11.8 million for the six months ended June 30, 2025.  Subsequent to the end of the second quarter and through the date of this release, the Company repurchased an additional 1.7 million shares of its common stock, at an average price per share of $91.45, for a total investment of $160 million.  The Company has repurchased a total of 1.46 billion shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $18.27, for a total aggregate investment of $26.59 billion.  As of the date of this release, the Company had approximately $1.16 billion remaining under its current share repurchase authorization.

Updated Full-Year 2025 Guidance

The table below outlines the Company’s updated guidance for selected full-year 2025 financial data:

    

For the Year Ending

 

December 31, 2025

Net, new store openings

 

200 to 210

Comparable store sales

 

3.0% to 4.5%

Total revenue

 

$17.5 billion to $17.8 billion

Gross profit as a percentage of sales

 

51.2% to 51.7%

Operating income as a percentage of sales

 

19.2% to 19.7%

Effective income tax rate

 

22.3%

Diluted earnings per share (1)

$2.85 to $2.95

Net cash provided by operating activities

$2.8 billion to $3.2 billion

Capital expenditures

$1.2 billion to $1.3 billion

Free cash flow (2)

$1.6 billion to $1.9 billion

(1)Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.
(2)Free cash flow is a non-GAAP financial measure.  The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:

    

For the Year Ending

(in millions)

 

December 31, 2025

Net cash provided by operating activities

$

2,820

to

$

3,230

Less:

Capital expenditures

 

1,200

to

 

1,300

Excess tax benefit from share-based compensation payments

 

20

to

 

30

Free cash flow

$

1,600

to

$

1,900


Non-GAAP Information

This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”).  These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow.  The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information.  The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations.  The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.

Earnings Conference Call Information

The Company will host a conference call on Thursday, July 24, 2025, at 10:00 a.m. Central Time to discuss its results as well as future expectations.  Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations.”  Interested analysts are invited to join the call.  The dial-in number for the call is (888) 506-0062 and the conference call identification number is 692379.  A replay of the conference call will be available on the Company’s website through Thursday, July 23, 2026.

About O’Reilly Automotive, Inc.

O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets.  Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs.  As of June 30, 2025, the Company operated 6,483 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.

Forward-Looking Statements

The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.  You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,” “guidance,” “target,” or similar words.  In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance.  These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results.  Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; trade disputes and changes in trade policies, including the imposition of new or increased tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations.  Actual results may materially differ from anticipated results described or implied in these forward-looking statements.  Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2024, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance.  Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.


For further information contact:

Investor Relations Contacts

Leslie Skorick (417) 874-7142

Eric Bird (417) 868-4259

Media Contact

Sonya Cox (417) 829-5709


O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(In thousands, except share data)

June 30, 2025

June 30, 2024

December 31, 2024

    

(Unaudited)

    

(Unaudited)

    

(Note)

Assets

Current assets:

Cash and cash equivalents

$

198,613

$

145,042

$

130,245

Accounts receivable, net

 

428,828

 

475,596

356,839

Amounts receivable from suppliers

 

123,273

 

144,303

139,091

Inventory

 

5,399,588

 

4,788,686

5,095,804

Other current assets

 

165,504

 

125,861

117,916

Total current assets

 

6,315,806

 

5,679,488

5,839,895

Property and equipment, at cost

 

9,708,429

 

8,730,297

9,192,254

Less: accumulated depreciation and amortization

 

3,758,465

 

3,434,610

3,587,098

Net property and equipment

 

5,949,964

 

5,295,687

5,605,156

Operating lease, right-of-use assets

 

2,409,177

 

2,240,314

2,324,638

Goodwill

 

943,314

 

1,000,074

930,161

Other assets, net

 

202,358

 

177,619

193,891

Total assets

$

15,820,619

$

14,393,182

$

14,893,741

Liabilities and shareholders’ deficit

Current liabilities:

Accounts payable

$

6,858,649

$

6,226,238

$

6,524,811

Self-insurance reserves

 

158,844

 

125,859

149,387

Accrued payroll

 

145,629

 

143,194

107,495

Accrued benefits and withholdings

 

238,984

 

186,715

199,593

Income taxes payable

 

312,545

 

89,344

6,274

Current portion of operating lease liabilities

 

434,151

 

401,713

419,213

Other current liabilities

 

573,084

 

950,145

876,732

Total current liabilities

 

8,721,886

 

8,123,208

8,283,505

Long-term debt

 

5,823,744

 

5,397,774

5,520,932

Operating lease liabilities, less current portion

 

2,055,053

 

1,912,036

1,980,705

Deferred income taxes

 

211,920

 

335,600

247,599

Other liabilities

 

239,878

 

207,956

231,961

Shareholders’ equity (deficit):

Common stock, $0.01 par value:

Authorized shares – 1,250,000,000

 

Issued and outstanding shares –

850,561,094 as of June 30, 2025,

873,580,665 as of June 30, 2024, and

862,232,760 as of December 31, 2024

8,506

 

8,736

8,622

Additional paid-in capital

 

1,499,288

 

1,407,645

1,454,518

Retained deficit

 

(2,748,221)

 

(3,008,665)

(2,791,288)

Accumulated other comprehensive income (loss)

8,565

8,892

(42,813)

Total shareholders’ deficit

 

(1,231,862)

 

(1,583,392)

(1,370,961)

Total liabilities and shareholders’ deficit

$

15,820,619

$

14,393,182

$

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 Six Months Ended

 

June 30, 

 

June 30, 

    

2025

    

2024

    

2025

    

2024

Sales

$

4,525,058

$

4,272,201

$

8,661,982

$

8,248,441

Cost of goods sold, including warehouse and distribution expenses

 

2,198,520

 

2,104,141

 

4,213,959

 

4,046,209

Gross profit

 

2,326,538

 

2,168,060

 

4,448,023

 

4,202,232

Selling, general and administrative expenses

 

1,412,068

 

1,304,762

 

2,792,087

 

2,586,453

Operating income

 

914,470

 

863,298

 

1,655,936

 

1,615,779

Other income (expense):

 

  

 

  

 

  

 

  

Interest expense

 

(57,337)

 

(54,831)

 

(114,901)

 

(111,979)

Interest income

 

1,885

 

1,528

 

3,549

 

3,184

Other, net

 

2,437

 

1,561

 

1,222

 

4,962

Total other expense

 

(53,015)

 

(51,742)

 

(110,130)

 

(103,833)

Income before income taxes

 

861,455

 

811,556

 

1,545,806

 

1,511,946

Provision for income taxes

 

192,860

 

188,708

 

338,726

 

341,860

Net income

$

668,595

$

622,848

$

1,207,080

$

1,170,086

Earnings per share-basic:

 

  

 

  

 

  

 

  

Earnings per share

$

0.78

$

0.71

$

1.41

$

1.33

Weighted-average common shares outstanding – basic

 

854,003

 

880,182

 

856,768

 

882,728

Earnings per share-assuming dilution:

 

  

 

  

 

  

 

  

Earnings per share

$

0.78

$

0.70

$

1.40

$

1.32

Weighted-average common shares outstanding – assuming dilution

 

858,440

 

885,655

 

861,368

 

888,746


O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

(In thousands)

 

For the Six Months Ended

 

June 30, 

    

2025

    

2024

Operating activities:

  

  

Net income

$

1,207,080

$

1,170,086

Adjustments to reconcile net income to net cash provided by operating activities:

 

  

 

  

Depreciation and amortization of property, equipment and intangibles

 

247,159

 

222,885

Amortization of debt discount and issuance costs

 

3,667

 

3,201

Deferred income taxes

 

(36,679)

 

18,175

Share-based compensation programs

 

18,812

 

14,229

Other

 

7,945

 

5,215

Changes in operating assets and liabilities:

 

  

 

  

Accounts receivable

 

(73,966)

 

(79,475)

Inventory

 

(280,899)

 

(85,137)

Accounts payable

 

331,082

 

117,582

Income taxes payable

 

314,779

 

81,228

Other

 

(227,014)

 

185,085

Net cash provided by operating activities

 

1,511,966

 

1,653,074

Investing activities:

 

  

 

  

Purchases of property and equipment

 

(587,685)

 

(474,607)

Proceeds from sale of property and equipment

 

2,695

 

7,528

Other, including acquisitions, net of cash acquired

 

(10,008)

 

(155,376)

Net cash used in investing activities

 

(594,998)

 

(622,455)

Financing activities:

 

  

 

  

Proceeds from borrowings on revolving credit facility

 

 

30,000

Payments on revolving credit facility

 

 

(30,000)

Net proceeds (payments) of commercial paper

 

298,918

 

(173,500)

Payment of debt issuance costs

 

(3,815)

 

Payment of excise tax on share repurchases

(17,012)

Repurchases of common stock

 

(1,176,640)

 

(1,063,791)

Net proceeds from issuance of common stock

 

48,167

 

73,790

Other

 

(433)

 

(569)

Net cash used in financing activities

 

(850,815)

 

(1,164,070)

Effect of exchange rate changes on cash

2,215

(639)

Net increase (decrease) in cash and cash equivalents

 

68,368

 

(134,090)

Cash and cash equivalents at beginning of the period

 

130,245

 

279,132

Cash and cash equivalents at end of the period

$

198,613

$

145,042

Supplemental disclosures of cash flow information:

 

  

 

  

Income taxes paid

$

393,872

$

80,401

Interest paid, net of capitalized interest

 

110,374

 

110,449


O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES

SELECTED FINANCIAL INFORMATION

(Unaudited)

For the Twelve Months Ended

June 30, 

Adjusted Debt to EBITDAR:

    

2025

    

2024

(In thousands, except adjusted debt to EBITDAR ratio)

 

  

 

  

GAAP debt

$

5,823,744

$

5,397,774

Add:

Letters of credit

 

162,289

 

137,501

Unamortized discount and debt issuance costs

 

26,256

 

27,226

Six-times rent expense

 

2,834,550

 

2,625,438

Adjusted debt

$

8,846,839

$

8,187,939

GAAP net income

$

2,423,674

$

2,372,417

Add:

Interest expense

 

225,470

 

219,488

Provision for income taxes

 

655,250

 

657,727

Depreciation and amortization

 

486,166

 

440,273

Share-based compensation expense

 

33,514

 

27,169

Rent expense (i)

 

472,425

 

437,573

EBITDAR

$

4,296,499

$

4,154,647

Adjusted debt to EBITDAR

 

2.06

 

1.97

(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, 2025 and 2024 (in thousands):

For the Twelve Months Ended

June 30, 

2025

2024

Total lease cost, per ASC 842

    

$

570,733

$

520,327

Less:

Variable non-contract operating lease components, related to property taxes and insurance

 

98,308

82,754

Rent expense

$

472,425

$

437,573

June 30, 

    

2025

2024

Selected Balance Sheet Ratios:

 

  

 

  

Inventory turnover (1)

 

1.6

1.7

Average inventory per store (in thousands) (2)

$

833

$

767

Accounts payable to inventory (3)

 

127.0

%

 

130.0

%

For the Three Months Ended

For the Six Months Ended

June 30, 

June 30, 

    

2025

    

2024

    

2025

    

2024

Reconciliation of Free Cash Flow (in thousands):

 

  

 

  

 

  

 

  

Net cash provided by operating activities

$

756,846

$

948,859

$

1,511,966

$

1,653,074

Less:

Capital expenditures

 

300,734

 

225,367

 

587,685

 

474,607

Excess tax benefit from share-based compensation payments

 

7,348

 

5,258

 

20,273

 

21,378

Free cash flow

$

448,764

$

718,234

$

904,008

$

1,157,089


For the Three Months Ended

For the Six Months Ended

June 30, 

June 30, 

    

2025

    

2024

    

2025

    

2024

Revenue Disaggregation (in thousands):

Sales to do-it-yourself customers

$

2,228,566

$

2,152,680

$

4,280,425

$

4,156,485

Sales to professional service provider customers

 

2,195,840

 

2,012,164

 

4,194,433

 

3,887,350

Other sales and sales adjustments

 

100,652

107,357

 

187,124

204,606

Total sales

$

4,525,058

$

4,272,201

$

8,661,982

$

8,248,441

For the Three Months Ended

For the Six Months Ended

For the Twelve Months Ended

June 30, 

June 30, 

June 30, 

    

2025

    

2024

    

2025

   

2024

    

2025

    

2024

Store Count:

Beginning domestic store count

 

6,298

 

6,131

 

6,265

 

6,095

 

6,152

 

6,027

New stores opened

 

62

 

21

 

95

 

57

 

208

 

126

Stores closed

 

 

 

 

 

 

(1)

Ending domestic store count

6,360

6,152

6,360

6,152

6,360

6,152

Beginning Mexico store count

93

63

87

62

69

44

New stores opened

5

6

11

7

29

25

Ending Mexico store count

98

69

98

69

98

69

Beginning Canada store count

25

23

26

23

New stores opened

3

Stores acquired

23

23

Stores closed

(1)

(1)

Ending Canada store count

25

23

25

23

25

23

Total ending store count

 

6,483

 

6,244

 

6,483

 

6,244

 

6,483

 

6,244

For the Three Months Ended

For the Twelve Months Ended

June 30, 

June 30, 

    

2025

    

2024

    

2025

    

2024

Store and Team Member Information:

Total employment

 

92,810

 

91,874

 

  

Square footage (in thousands) (4)

50,238

47,500

Sales per weighted-average square foot (4)(5)

$

88.76

$

87.88

$

342.83

$

341.51

Sales per weighted-average store (in thousands) (4)(6)

$

698

$

677

$

2,672

$

2,613

(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.