O’Reilly Automotive (ORLY) Q1 2025 earnings summary

Executive summary

• Achieved record Q1 2025 revenue of $4.14 billion, up 4% year-over-year, with 3.6% comparable store sales growth at the high end of expectations, driven by both professional and DIY segments.

• Opened 38 net new stores in Q1, bringing the total to 6,416 across the U.S., Puerto Rico, Mexico, and Canada.

• Net income for Q1 2025 was $538 million, down 2% from Q1 2024, while diluted EPS rose 2% to $9.35 due to share repurchases.

• Raised full-year diluted EPS guidance to $42.90-$43.40, reflecting Q1 performance, lower expected tax rate, and share repurchases.

• Announced a proposed 15-for-1 stock split, subject to shareholder approval, to make shares more accessible to employees.

Financial highlights

• Gross profit increased 4% to $2.12 billion (51.3% of sales), with gross margin up 12 bps year-over-year.

• Free cash flow for Q1 was $455 million, up from $439 million in 2024, with full-year guidance unchanged at $1.6-$1.9 billion.

• Inventory per store ended Q1 at $806,000, up 4.3% year-over-year; inventory turns at 1.6x.

• Adjusted debt to EBITDA/EBITDAR was 2.03x at Q1 end, below the 2.5x target.

• Repurchased 431,000 shares in Q1 at an average price of $1,297, totaling $559 million.

Outlook and guidance

• Maintained full-year comparable store sales guidance of 2%-4% and revenue guidance of $17.4-$17.7 billion.

• Gross margin guidance for 2025 remains at 51.2%-51.7%; operating profit margin at 19.2%-19.7%.

• Diluted EPS guidance raised to $42.90–$43.40; free cash flow expected at $1.6–$1.9 billion.

• Plans 200–210 net new store openings in 2025.

• Capital expenditures for 2025 projected at $1.2-$1.3 billion.