O’Reilly Automotive (ORLY) Q4 2025 earnings summary

Executive summary

• Achieved record revenue, operating income, and EPS for the 33rd consecutive year, with 5.6% comparable store sales growth in Q4 and 4.7% for the full year, exceeding expectations.

• Total sales rose 6.4% to $17.8 billion, marking over 50% growth in five years.

• Opened 207 net new stores and a new distribution center in Virginia, expanding presence in the U.S., Mexico, and Canada.

• Professional business led growth with over 10% comp sales increase for the second straight quarter, while DIY business saw low single-digit comp growth and stabilization.

• Record 15-for-1 forward stock split completed in June 2025.

Financial highlights

• Q4 sales rose 8% year-over-year to $4.41 billion; full-year sales up 6% to $17.78 billion.

• Q4 gross profit increased 9% to $2.29 billion (51.8% of sales); full-year gross profit up 7% to $9.17 billion (51.6% of sales).

• Operating profit reached $3.5 billion, up 6.4% year-over-year, representing 19.5% of sales.

• Diluted EPS was $0.71 in Q4 (up 13%) and $2.97 for the year (up 10%).

• Free cash flow was $1.6 billion, down from $2 billion in 2024, due to timing of tax credit payments and higher CapEx.

Outlook and guidance

• 2026 guidance: 225–235 net new store openings, comparable store sales growth of 3%-5%.

• Total revenue expected between $18.7–$19.0 billion; gross margin 51.5%–52.0%.

• Operating income as a percentage of sales projected at 19.2%–19.7%; diluted EPS guidance of $3.10–$3.20.

• Free cash flow expected between $1.8–$2.1 billion.

• CapEx guidance for 2026 is $1.3-$1.4 billion, focused on new store growth and distribution investments.