O`Reilly Automotive Inc
Q2 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +1.27%.
Did ORLY Beat Earnings? Q2 2025 Results
O'Reilly Automotive delivered a broadly in-line second quarter for 2025, falling just short of Wall Street's targets as diluted EPS of $0.78 missed the $0.78 consensus by 0.26% and revenue of $4.53 billion came in 0.21% below estimates, though sales still grew 5.9% year over year. The headline numbers masked genuine underlying strength: comparable store sales rose 4.1%, gross margin expanded to 51.4% from 50.7% a year ago, and net income climbed 7% to $668.60 million, with EPS gaining 11% year over year as aggressive share repurchases, totaling $617 million during the quarter, reduced the diluted share count. The primary drag on results was SG&A, which grew 8% to $1.41 billion and crept higher as a percentage of sales, reflecting the costs of accelerated store expansion, with 105 net new locations opened in the first half alone. Encouraged by current sales trends, management raised full-year comparable store sales guidance to 3.0%-4.5% and maintained total revenue guidance of $17.50 billion to $17.80 billion, with diluted EPS expected between $2.85 and $2.95.
- 4.1% comparable store sales growth driven by solid growth in both professional and DIY channels
- Gross margin expansion to 51.4% from 50.7% year-over-year
- 11% increase in diluted EPS driven by share repurchases and revenue growth
- 105 net new store openings in first half of 2025 across 34 U.S. states, Puerto Rico, and Mexico
“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.”
O'Reilly Automotive CEO, on the earnings call
Forward Guidance & Outlook
O'Reilly raised its full-year 2025 comparable store sales guidance to a range of 3.0% to 4.5%, reflecting updated expectations based on current sales trends. Full-year 2025 guidance includes: total revenue of $17.5 billion to $17.8 billion; gross profit margin of 51.2% to 51.7%; operating income margin of 19.2% to 19.7%; effective income tax rate of 22.3%; diluted EPS of $2.85 to $2.95; net cash provided by operating activities of $2.8 billion to $3.2 billion; capital expenditures of $1.2 billion to $1.3 billion; free cash flow of $1.6 billion to $1.9 billion; and net new store openings of 200 to 210.
ORLY YoY Financials
ORLY Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.