Oreilly Automotive — Income Statement, Cash Flows & Balance Sheet
Is O'Reilly Automotive profitable?
O'Reilly has grown revenue steadily and continues to expand its profit margins.
| Metric | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| Sales ($M) | $15,812 | $16,708 | $17,782 | +6.4% |
| Gross Profit ($M) | $8,105 | $8,554 | $9,174 | +7.3% |
| Gross Margin | 51.3% | 51.2% | 51.6% | +0.4 pts |
| Operating Income ($M) | $3,186 | $3,251 | $3,461 | +6.5% |
| Net Income ($M) | $2,347 | $2,387 | $2,538 | +6.3% |
| Net Margin | 14.8% | 14.3% | 14.3% | Flat |
O'Reilly has posted three consecutive years of revenue growth while holding gross margins above 51% — a hallmark of its strong supplier relationships and pricing power. Net income crossed $2.5 billion in 2025, with earnings per share rising each year as a shrinking share count (from buybacks) amplifies per-share gains.
Where does O'Reilly's revenue come from?
Professional (commercial) customers are growing faster than the do-it-yourself side, narrowing the gap between the two channels.
| Customer Type | 2023 | 2024 | 2025 | Change (2024→2025) |
|---|---|---|---|---|
| DIY customers ($M) | $8,248 | $8,473 | $8,766 | +3.5% |
| Professional customers ($M) | $7,246 | $7,836 | $8,652 | +10.4% |
| Total Sales ($M) | $15,812 | $16,708 | $17,782 | +6.4% |
The professional (shop and mechanic) channel is clearly the growth engine, expanding at roughly three times the rate of the DIY segment in 2025. The two channels are now nearly equal in size, suggesting O'Reilly is successfully competing in the more competitive but faster-growing commercial market.
Does O'Reilly generate cash?
O'Reilly is a reliable cash generator, though operating cash flow dipped as the company built inventory for its growth push.
| Metric | 2023 | 2024 | 2025 | Change |
|---|---|---|---|---|
| Operating Cash Flow ($M) | $3,034 | $3,050 | $2,762 | -9.4% |
| Capital Expenditures ($M) | ($1,006) | ($1,023) | ($1,169) | +14.3% |
| Free Cash Flow ($M) | $2,028 | $2,026 | $1,593 | -21.4% |
| Share Buybacks ($M) | ($3,151) | ($2,077) | ($2,097) | +1.0% |
The dip in free cash flow (operating cash flow minus capital spending) reflects two deliberate choices: a significant inventory build-up as O'Reilly expands its store network, and increased capital spending on new locations. Despite this, the company still returned over $2 billion to shareholders via buybacks — funded comfortably by operations and existing liquidity.
How strong is O'Reilly's balance sheet?
O'Reilly carries meaningful debt, but its earnings power makes it very manageable — and a negative book value is by design, not distress.
| Metric | 2024 | 2025 | Change |
|---|---|---|---|
| Long-Term Debt ($M) | $5,521 | $6,017 | +$496 |
| Cash ($M) | $130 | $194 | +$64 |
| Shareholders' Deficit ($M) | ($1,371) | ($763) | Improving |
| Net Income ($M) | $2,387 | $2,538 | +6.3% |
O'Reilly's negative shareholders' equity — meaning total liabilities exceed total assets on paper — is entirely explained by years of aggressive share buybacks, not business losses. With over $2.5 billion in annual net income and a $2.25 billion untapped revolving credit facility, the company has ample financial flexibility. Two tranches of senior notes ($1.25 billion combined) mature in 2026, which will require refinancing, though the company states it has the ability and intent to do so.