Oreilly Automotive — Financial Results
Sales Growth Accelerated in 2025, Driven by Both New Stores and Existing Locations
| Metric | 2025 | 2024 |
|---|---|---|
| Total sales | $17.78B | $16.71B |
| Comparable store sales growth | 4.7% | 2.9% |
| Net new stores opened | 207 | 198 |
Sales grew 6% year-over-year, and the acceleration in comparable store sales (sales at locations open at least one year, a cleaner measure of organic growth) from 2.9% to 4.7% is a healthy sign. Growth was helped by higher average transaction values — partly because tariff-driven cost increases were passed on to customers — and by stronger spending from professional service provider customers. The one soft spot was fewer transactions from DIY customers, reflecting pressure on discretionary consumer spending.
Gross Margin Ticked Up While Operating Expenses Rose Faster
| Metric | 2025 | 2024 |
|---|---|---|
| Gross profit margin | 51.6% | 51.2% |
| SG&A as % of sales | 32.1% | 31.7% |
| Operating income margin | 19.5% | 19.5% |
The company squeezed slightly more profit out of each dollar of sales at the product level, thanks to better purchasing costs and distribution efficiencies. However, selling, general and administrative (SG&A) expenses — the costs of running stores, paying staff, and insurance — grew 8%, faster than the 6% sales increase, driven by higher medical and casualty insurance costs and improved employee compensation. The two effects roughly cancelled out, leaving the operating margin flat at 19.5%.
Earnings Per Share Rose 10% Thanks in Part to Share Buybacks
| Metric | 2025 | 2024 |
|---|---|---|
| Net income | $2.54B | $2.39B |
| Diluted EPS | $2.97 | $2.71 |
| Shares used in EPS calculation | 856M | 881M |
Net income grew 6%, in line with sales, but diluted earnings per share (EPS) — profit divided by the number of shares outstanding — grew 10%. The extra boost came from the company buying back its own shares, which reduces the share count and means each remaining share represents a larger slice of the profit pie. This is a consistent pattern in O'Reilly's financial history.
Free Cash Flow Fell Meaningfully Despite Strong Profits
| Metric | 2025 | 2024 |
|---|---|---|
| Operating cash flow | $2.76B | $3.05B |
| Capital expenditures | $1.17B | $1.02B |
| Free cash flow | $1.56B | $1.99B |
Free cash flow — the cash left over after maintaining and expanding the business — dropped from $1.99B to $1.56B. Two things drove this: operating cash flow fell partly due to the timing of payments for renewable energy tax credits, and capital spending rose as the company invested more in new stores and distribution infrastructure. This is worth watching, as free cash flow is ultimately what funds share buybacks and debt repayment.
Store Expansion Continues at a Steady Pace With International Growth
O'Reilly opened 207 net new stores in 2025, bringing the total to 6,585 across the U.S., Mexico, and Canada. Mexico grew from 87 to 112 stores, representing a meaningful push into that market. The company has guided for 225–235 net new store openings in 2026, stepping up the pace slightly. Each new owned store costs an estimated $3.2M–$3.5M to open, so this expansion requires significant ongoing capital commitment.