01—Abstract
Summary
Summary of the 10-K filed February 28, 2025. Cited figures are marked; the original filing is the authoritative source.
O'Reilly Automotive, Inc. (ORLY) filed its 2024 10-K report on February 27, 2025, detailing its business operations, financial performance, and strategic outlook.
The company continues its expansion, opening 198 net new stores in 2024 and planning for 200-210 net new stores in 2025, including its entry into Canada with the acquisition of Vast Auto. ORLY maintained its "dual market strategy," serving both "do-it-yourself" (DIY) and professional service provider customers, with DIY customers accounting for approximately 52% of sales and professional customers 48%. Despite a slight decrease in comparable store sales growth to 2.9% in 2024 from 7.9% in 2023, driven by a decrease in DIY customer transaction counts, the company reported a 6% increase in total sales to $16.71 billiona.
Net income grew to $2.39 billionb, a 2% increase from the prior year, and diluted earnings per share rose to $40.66. The company's strong balance sheet and consistent operational execution remain key strengths, although it acknowledges risks related to economic conditions, competition, and supply chain disruptions. O'Reilly's competitive advantages stem from its integrated dual-market strategy, a focus on superior customer service delivered by technically proficient "Professional Parts People," a robust tiered distribution network, and an experienced management team.
The company's growth strategy emphasizes aggressive new store openings, same-store sales growth, selective strategic acquisitions, continuous store enhancements, and an evolving omnichannel approach. The financial review highlights sound liquidity, with substantial operating cash flow supporting capital expenditures and strategic initiatives. The company also actively engages in share repurchases, demonstrating a commitment to returning value to shareholders.
02—Key points
Key Highlights
- O'Reilly reported a 6% increase in total sales to $16.71 billion for the year ended December 31, 2024.
- Net income grew by 2% to $2.39 billion, and diluted earnings per share increased to $40.66.
- Comparable store sales grew by 2.9% in 2024, with an increase in average ticket value for both customer segments, though DIY transaction counts decreased.
- The company expanded its store footprint by opening 198 net new stores in 2024 and plans for 200-210 net new stores in 2025.
- O'Reilly successfully acquired Groupe Del Vasto (Vast Auto), marking its entry into the Canadian market with 23 stores.
- The company generated strong operating cash flow of $3.05 billion, supporting investments in growth and capital expenditures.
- O'Reilly continues to repurchase its common stock, demonstrating a commitment to shareholder returns, with $2.5 billion remaining under its share repurchase program as of December 31, 2024.
03—One dollar
Follow one dollar
Of each $1.00 of revenue in FY2024, O Reilly Automotive Inc kept $0.14.
- Revenue$16.71B100.0%
- Cost of revenue−$8.15B48.8%
- Gross profit$8.55B51.2%
- Operating costs−$5.30B31.7%
- Operating income$3.25B19.5%
- Interest, other & tax−$864.5M5.2%
- Net income$2.39B14.3%
Where FY2024 revenue went
$16.71B- Cost of revenue: $8.15B, 49% of revenue
- SG&A: $5.30B, 32% of revenue
- Net income: $2.39B, 14% of revenue
- Interest, other & tax: $864.5M, 5.2% of revenue
Kept 14% as net income
Full revenue history →04—Financials
Financial Highlights
Figures from 10-KFY2024filed February 28, 2025Financial Statements
FY2024 against FY2023
| Line item | FY2024FY2023 | Change |
|---|---|---|
| Revenue | $16.71B$15.81B | +5.7% |
| Cost of Revenue | $8.15B$7.71B | +5.8% |
| Gross Profit | $8.55B$8.10B | +5.5% |
| SG&A Expenses | $5.30B$4.92B | +7.8% |
| Operating Income | $3.25B$3.19B | +2.0% |
| Interest Expense | $222.55M$201.67M | +10.4% |
| Net Income | $2.39B$2.35B | +1.7% |
| EPS (Basic) | $2.73$2.59 | +5.4% |
| EPS (Diluted) | $2.71$2.56 | +5.9% |
| Shares Outstanding (Basic) | 875.08M907.13M | −3.5% |
| Shares Outstanding (Diluted) | 880.57M914.98M | −3.8% |
05—Questions
Frequently Asked Questions
What was O'Reilly's total sales performance for the fiscal year 2024?
O'Reilly reported a 6% increase in total sales, reaching $16.71 billion for the year ended December 31, 2024, up from $15.81 billion in 2023. This growth was driven by comparable store sales increases and the addition of new and acquired stores.
How did the company's profitability change in 2024?
O'Reilly's net income increased by 2% to $2.39 billion in 2024, compared to $2.35 billion in 2023. Diluted earnings per share rose to $40.66 from $38.47 in the prior year. This growth was achieved despite a slight moderation in comparable store sales growth.
What is O'Reilly's strategy for store expansion and growth?
O'Reilly's growth strategy focuses on aggressively opening new stores, with 198 net new stores opened in 2024 and plans for 200-210 net new stores in 2025. The company also emphasizes growing sales in existing stores through superior customer service and expanding its omnichannel capabilities. The recent acquisition of Vast Auto in Canada is a key part of its international expansion strategy.
What are the key risks identified in the 10-K filing?
The company identifies several key risks, including deteriorating economic conditions impacting customer spending, intense competition in the automotive aftermarket, sensitivity to regional economic and weather conditions, supply chain disruptions, the need to protect its brand and reputation, potential IT system failures or cyber-attacks, and the risks associated with international operations and increased debt levels.
06—Continue