Advance Auto Parts, Inc. , a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers, announced its financial results for the third quarter ended October 4, 2025.

“We delivered our strongest quarterly performance in over two years, thanks to the team’s determination, commitment to our turnaround objectives, and their dedication to serving our customers,” said Shane O’Kelly, president and chief executive officer.

“Our comparable sales performance was led by growth in the Pro channel. The DIY channel also delivered positive comparable sales growth in the quarter. We continue to make progress on our strategic priorities, and based on our updated guidance we are on track to deliver approximately 200-basis points of annual margin expansion in the first year of our turnaround. Our initiatives are geared toward delivering sustained, profitable growth and we remain committed to advancing our strategic priorities to create shareholder value over the long-term.”

Third Quarter 2025 Results 

Third quarter 2025 net sales totaled $2.0 billion, compared with $2.1 billion in the third quarter of the prior year. Comparable store sales for the third quarter 2025 increased 3.0%.

All figures in USD.

Advance Auto Parts’ third quarter 2025 gross profit was $0.9 billion, or 43.3% of net sales compared with $0.9 billion, or 42.3% in the third quarter of the prior year. Adjusted gross profit was $0.9 billion, or 44.8% of net sales compared with $0.9 billion, or 42.3% in the third quarter of the prior year. The margin expansion was driven by savings associated with the footprint optimization activity completed in March and reduction in product costs driven by strategic sourcing initiatives.

The company’s third quarter 2025 selling, general and administrative (SG&A) expenses were $0.9 billion, or 42.2% of net sales compared with $0.9 billion, or 42.3% in the third quarter of the prior year.

Adjusted SG&A expenses were $0.8 billion, or 40.4% of net sales in the third quarter of 2025 compared with $0.9 billion, or 41.5% in the third quarter of 2024. The reduction in SG&A expenses was primarily related to operation of fewer stores compared to last year.

Advance Auto Parts’ third quarter 2025 operating income was $22 million, or 1.1% of net sales, compared with break-even operating income, or 0.0% in the third quarter of the prior year.

Adjusted operating income was $90 million, or 4.4% of net sales, compared with adjusted operating income of $16 million, or 0.7% in the third quarter of 2024.

The Company’s diluted earnings (loss) per share for the quarter was $(0.02), compared with $(0.42) in the third quarter of 2024. The Company’s adjusted diluted earnings (loss) per share was $0.92 compared with adjusted diluted earnings per share of $(0.05) in the third quarter of 2024.

Net cash used in operating activities was $118 million through the third quarter of 2025 versus $81 million of cash provided by operating activities in the same period of the prior year.

Free cash flow through the third quarter of 2025 was an outflow of $277 million compared with an outflow of $49 million in the same period of the prior year. Free cash flow through the third quarter of 2025 includes approximately $130 million of cash charges related to restructuring and other related expenses.

Capital Allocation

On October 27, 2025, the Company declared a regular cash dividend of $0.25 per share to be paid on January 23, 2026, to all common stockholders of record as of January 9, 2026.

Full Year 2025 Guidance (53 weeks)

The Company has updated full year guidance to reflect operating assumptions for the fourth quarter of 2025 along with reaffirming the midpoint of its prior full year comparable store sales and adjusted operating income margin expectations. Full year 2025 guidance assumes current tariffs remain in place for the remainder of 2025.

		As of October 30, 2025				Prior Guidance
($ in millions, except per share data)		Low		High		Low		High
Net sales from continuing operations (1)		$8,550		$8,600		$8,400		$8,600
Comparable store sales (52 weeks) (2)		0.7%		1.3%		0.5%		1.5%
Adjusted operating income margin from continuing operations (3)		2.4%		2.6%		2.0%		3.0%
Adjusted diluted EPS from continuing operations		$1.75		$1.85		$1.20		$2.20
Capital expenditure		Approx. $250				Approx. $300
Free cash flow		($90) – ($80)				($85) – ($25)
New store growth
Store openings		30 new stores				30 new stores
Market hub openings		14 new market hubs				10 new market hubs

Investor Conference Call

Advance Auto Parts detailed its results for the third quarter ended October 4, 2025, via a webcast scheduled at 8 a.m. Eastern Time on Thursday, October 30, 2025. The webcast will be accessible via the Investor Relations page of the Company’s website (ir.AdvanceAutoParts.com).

To join by phone, please pre-register online for dial-in and passcode information. Upon registering, participants will receive a confirmation with call details and a registrant ID. While registration is open through the live call, the Company suggests registering a day in advance or at minimum 10 minutes before the start of the call. A replay of the conference call will be available on the Company’s Investor Relations website for one year.