O’Reilly Automotive, Inc., a leading retailer in the automotive aftermarket industry, announced record revenue and earnings for its fourth quarter and full-year ended December 31, 2025.
The results represent 33 consecutive years of comparable store sales growth and record revenue and operating income for O’Reilly since becoming a public company in April of 1993.
Brad Beckham, O’Reilly’s CEO, commented, “I would like to thank our over 93,000 Team Members for their tremendous hard work and commitment while delivering a strong finish to 2025. Our Team continues to drive share gains on both sides of our business through excellent customer service and industry-leading parts availability, resulting in our fourth quarter comparable store sales growth of 5.6%. Our top-line results, coupled with strong gross margin performance, drove a 12% increase in operating profit dollars and a 13% increase in diluted earnings per share for the fourth quarter.
“We are pleased with our Team’s ability to capitalize on the investments we are making in our business and manage operating costs to provide exceptional customer service and capture market share; however, SG&A expenses again exceeded our expectations in the fourth quarter due to pressure from heightened inflation in team member health care and casualty claim costs. We remain intensely focused on managing expenses and mitigating these cost pressures but will always prioritize delivering the service levels and parts availability in our stores that are critical to winning share and driving industry-leading results.”
In the earnings call, Beckham highlighted opportunities in Canada, saying “We are also pleased to have opened our first greenfield location in Canada in the fourth quarter of 2025. We anticipate a handful of our projected 2026 new store openings to be opened in Canada as we see the early fruits from the development of our organic growth machine in this expansion market.”
Also highlighted in the call was some cost-pressures as a result of the U.S. initiated tariff regime.
“As we have noted throughout 2025, the pricing environment has remained rational in response to tariff-induced product cost pressures. After a significant ramp in these cost pressures and corresponding price changes in the third quarter, the fourth quarter leveled out and the inflation benefit was realized in a very consistent — was very consistent month-to-month. This dynamic aligned with our expectations given the timing of the impact we have seen in tariff and acquisition costs, and we believe also reflects a stable pricing environment in the aftermarket.”
However, the most significant cost pressures noted in the call were primarily non-product related and attributed to rising costs related to team member health care and self-insurance programs.
“We are certainly not pleased that these headwinds dampened an otherwise strong finish for our company in 2025.”
4th Quarter Financial Results
Sales for the fourth quarter ended December 31, 2025, increased $319 million, or 8%, to $4.41 billion from $4.10 billion for the same period one year ago. Gross profit for the fourth quarter increased 9% to $2.29 billion (or 51.8% of sales) from $2.10 billion (or 51.3% of sales) for the same period one year ago.
Selling, general and administrative expenses (“SG&A”) for the fourth quarter increased 7% to $1.46 billion (or 33.0% of sales) from $1.36 billion (or 33.3% of sales) for the same period one year ago. Operating income for the fourth quarter increased 12% to $829 million (or 18.8% of sales) from $739 million (or 18.0% of sales) for the same period one year ago.
Figures in USD.
Net income for the fourth quarter ended December 31, 2025, increased $54 million, or 10%, to $605 million (or 13.7% of sales) from $551 million (or 13.5% of sales) for the same period one year ago. Diluted earnings per common share for the fourth quarter increased 13% to $0.71 on 848 million shares versus $0.63 on 870 million shares for the same period one year ago. The Company completed a 15-for-1 forward stock split on June 10, 2025, and accordingly all share and per share data in current and comparable periods have been adjusted to reflect the split.
Full-Year Financial Results
Mr. Beckham concluded, “Thanks to our Team’s dedication to providing unsurpassed levels of customer service, 2025 is now O’Reilly’s 33rd consecutive year of annual comparable store sales growth and record revenue and operating income. Our full-year comparable store sales result of 4.7% was at the high end of our revised guidance range of 4.0% to 5.0%. This solid top-line performance translated into a full-year earnings per share increase of 10%.
“Team O’Reilly also achieved our expansion targets during 2025, opening 207 net, new stores in the U.S., Mexico and Canada, and a new, state-of-the-art greenfield distribution center in Virginia that unlocks exciting store growth opportunities in the mid-Atlantic region. I would like to congratulate Team O’Reilly on their strong performance in 2025, and we look forward to continuing our track record of long-term profitable growth in 2026.”
Sales for the year ended December 31, 2025, increased $1.07 billion, or 6%, to $17.78 billion from $16.71 billion for the same period one year ago. Gross profit for the year ended December 31, 2025, increased 7% to $9.17 billion (or 51.6% of sales) from $8.55 billion (or 51.2% of sales) for the same period one year ago. SG&A for the year ended December 31, 2025, increased 8% to $5.71 billion (or 32.1% of sales) from $5.30 billion (or 31.7% of sales) for the same period one year ago. Operating income for the year ended December 31, 2025, increased 6% to $3.46 billion (or 19.5% of sales) from $3.25 billion (or 19.5% of sales) for the same period one year ago.
Net income for the year ended December 31, 2025, increased $152 million, or 6%, to $2.54 billion (or 14.3% of sales) from $2.39 billion (or 14.3% of sales) for the same period one year ago. Diluted earnings per common share for the year ended December 31, 2025, increased 10% to $2.97 on 856 million shares versus $2.71 on 881 million shares for the same period one year ago.
4th Quarter and Full-Year Comparable Store Sales Results
Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members, as well as sales from Leap Day for the year ended December 31, 2024. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 5.6% for the fourth quarter ended December 31, 2025, on top of 4.4% for the same period one year ago. Comparable store sales increased 4.7% for the year ended December 31, 2025, on top of 2.9% for the same period one year ago.
Share Repurchase Program
During the fourth quarter ended December 31, 2025, the Company repurchased 5.2 million shares of its common stock, at an average price per share of $96.69, for a total investment of $500 million. During the year ended December 31, 2025, the Company repurchased 22.7 million shares of its common stock, at an average price per share of $92.26, for a total investment of $2.10 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $21.0 million for the year ended December 31, 2025. Subsequent to the end of the fourth quarter and through the date of this release, the Company repurchased an additional 1.4 million shares of its common stock, at an average price per share of $93.86, for a total investment of $134 million. The Company has repurchased a total of 1.46 billion shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $18.77, for a total aggregate investment of $27.49 billion. As of the date of this release, the Company had approximately $2.26 billion remaining under its current share repurchase authorizations.
Full-Year 2026 Guidance
The table below outlines the Company’s guidance for selected full-year 2026 financial data:
| For the Year Ending | |
| December 31, 2026 | |
| Net, new store openings | 225 to 235 |
| Comparable store sales | 3.0% to 5.0% |
| Total revenue | $18.7 billion to $19.0 billion |
| Gross profit as a percentage of sales | 51.5% to 52.0% |
| Operating income as a percentage of sales | 19.2% to 19.7% |
| Effective income tax rate | 22.6% |
| Diluted earnings per share (1) | $3.10 to $3.20 |
| Net cash provided by operating activities | $3.1 billion to $3.5 billion |
| Capital expenditures | $1.3 billion to $1.4 billion |
| Free cash flow (2) | $1.8 billion to $2.1 billion |
(1) Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.
(2) Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:
| For the Year Ending | ||||||
| (in millions) | December 31, 2026 | |||||
| Net cash provided by operating activities | $ | 3,110 | to | $ | 3,520 | |
| Less: | Capital expenditures | 1,300 | to | 1,400 | ||
| Excess tax benefit from share-based compensation payments | 10 | to | 20 | |||
| Free cash flow | $ | 1,800 | to | $ | 2,100 | |
Earnings Conference Call Information
The Company will host a conference call on Thursday, February 5, 2026, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 873967. A replay of the conference call will be available on the Company’s website through Thursday, February 4, 2027.
About O’Reilly Automotive, Inc.
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of December 31, 2025, the Company operated 6,585 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
Great to see O’Reilly delivering strong top-line growth and record earnings! It would be interesting to learn more about how they plan to address the ongoing SG&A and healthcare cost pressures going forward to protect margins further. Are there specific cost-management initiatives or pricing strategies in play to offset these headwinds while maintaining customer value?