10-QPeriod: Q3 FY2025

O REILLY AUTOMOTIVE INC Quarterly Report for Q3 Ended Sep 30, 2025

Filed November 7, 2025For Securities:ORLY

Summary

O'Reilly Automotive, Inc. (ORLY) reported a strong third quarter for fiscal year 2025, demonstrating consistent growth across key financial metrics. Sales increased by 8% year-over-year for the quarter, driven by a solid 5.6% increase in comparable store sales and contributions from new store openings. This growth translated into a 9% increase in operating income and a 9% rise in net income, highlighting the company's ability to manage costs effectively while expanding its footprint. The company also reported an 8% increase in diluted earnings per share, underscoring its continued ability to deliver value to shareholders. Financially, ORLY maintained a robust balance sheet, with total assets growing and a healthy increase in inventory. While long-term debt increased, it remains well-managed within covenant limits, supported by strong operating cash flows. The company's strategic expansion, with 55 net new stores opened in the quarter, along with continued investments in store improvements and technology, positions it well for future growth. The sustained operational performance and positive outlook suggest continued strength in the automotive aftermarket sector.

Financial Highlights

46 data points
Beta

Revenue

$4.71B

51.9% Gross Margin

Net Income

$725.90M

15.4% Net Margin

EPS (Diluted)

$0.85

Total Assets

$16.28B

Cash & Equivalents

$204.51M

Free Cash Flow

$304.44M

Financial Statements
Beta
Revenue$4.71B
Cost of Revenue$2.27B
Gross Profit$2.44B
SG&A Expenses$1.46B
Operating Income$976.07M
Interest Expense$59.57M
Net Income$725.90M
EPS (Basic)$0.86
EPS (Diluted)$0.85
Shares Outstanding (Basic)848.29M
Shares Outstanding (Diluted)852.70M

Key Highlights

  • 1Sales for the third quarter of 2025 increased by 8% to $4.71 billion, compared to $4.36 billion in the prior year period.
  • 2Comparable store sales increased by 5.6% for the third quarter of 2025, indicating strong performance in existing locations.
  • 3Operating income rose by 9% to $976 million for the quarter, demonstrating effective cost management and operational efficiency.
  • 4Net income grew by 9% to $726 million for the third quarter, reflecting the company's strong profitability.
  • 5Diluted earnings per share increased by 12% to $0.85 for the quarter, signaling enhanced shareholder value.
  • 6The company opened 55 net new stores in the third quarter, continuing its strategic expansion to drive future growth.
  • 7Inventory levels increased by approximately 10% year-over-year, supporting robust sales and meeting customer demand.

Frequently Asked Questions

O'Reilly's sales growth in the third quarter of 2025 was primarily driven by a 5.6% increase in comparable store sales, reflecting strong performance in existing locations. Additionally, sales from new stores opened in 2024 and 2025 that are not yet considered comparable stores contributed significantly to the overall sales increase. The company also saw positive contributions from increases in average ticket values for both professional service provider and DIY customers, benefiting from higher average selling prices and the increasing complexity and cost of parts for modern vehicles.

O'Reilly's Selling, General, and Administrative (SG&A) expenses increased by 8% for the quarter, largely in line with sales growth. This increase was attributed to additional Team Members and operating expenses to support increased sales and store count. While SG&A as a percentage of sales saw a slight increase, primarily due to inflationary pressures in costs like medical and casualty insurance, the company's overall operating income grew by 9%, indicating effective expense management in relation to revenue generation.

O'Reilly continues its strategic expansion, opening 55 net new stores in the third quarter and 160 net new stores year-to-date in 2025. The company anticipates a total of 200 to 210 net new store openings for the full year 2025 and projects 225 to 235 net new store openings in 2026. Capital expenditures for the nine months ended September 30, 2025, increased to $899.8 million, primarily due to distribution enhancement and expansion projects and increased investments in new store growth. The company expects to fund these initiatives through operating cash flows, revolving credit facilities, and senior note offerings.

O'Reilly's long-term debt increased slightly in the nine months ended September 30, 2025, but remains well within its debt covenants. The company maintains strong liquidity, supported by substantial cash generated from operations. Net cash provided by operating activities was $2.13 billion for the nine months ended September 30, 2025. The company's debt covenants, including a fixed charge coverage ratio of 6.03 times and a leverage ratio of 1.93 times as of September 30, 2025, indicate a healthy financial position. The company expects to fund its capital requirements through its operations and available credit facilities.