O’Reilly Automotive (ORLY) Q4 2024 earnings summary

Executive summary

• Achieved record revenue, operating income, and 2.9% comparable store sales growth for 2024, marking the 32nd consecutive year of growth in these metrics.

• Q4 comparable store sales grew 4.4%, driven by balanced growth in both professional and DIY segments, with strong maintenance and winter weather-related categories.

• Delivered record earnings despite a $35 million Q4 charge for self-insurance liabilities, which reduced full-year EPS growth by over 1%.

• Opened 198 net new stores and completed major distribution center relocations in Atlanta and Springfield.

• Industry headwinds persisted, especially in discretionary categories, but maintenance demand remained robust.

Financial highlights

• Q4 sales rose 7% year-over-year to $4.10 billion; full-year sales up 6% to $16.71 billion.

• Q4 gross margin was 51.3%, flat year-over-year; full-year gross margin was 51.2%, down 6 bps.

• Q4 operating income grew 3% to $739 million; full-year operating income up 2% to $3.25 billion.

• Free cash flow for 2024 was $1.99 billion, unchanged from 2023.

• Diluted EPS for 2024 increased 5.7% to $40.66.

Outlook and guidance

• 2025 comparable store sales guidance set at 2%-4%; total revenue expected between $17.4 billion and $17.7 billion.

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

• EPS guidance for 2025 is $42.60-$43.10, a 5.4% increase at midpoint.

• Free cash flow expected to be $1.6 billion-$1.9 billion in 2025.

• Plans to open 200–210 net new stores in 2025.