O’Reilly Automotive (ORLY) Q2 2025 earnings summary

Executive summary

• Achieved record Q2 2025 revenue of $4.53 billion, up 6% year-over-year, with comparable store sales growth of 4.1% and net income up 7% to $669 million.

• Diluted EPS rose 11% to $0.78, reflecting strong operational execution and higher average ticket values.

• Opened 105 net new stores in the first half of 2025, expanding across the U.S., Puerto Rico, Mexico, and Canada.

• Share repurchases totaled 13.3 million shares for $1.18 billion in the first half, with $1.16 billion remaining under authorization.

• Completed a 15-for-1 stock split in Q2 2025, impacting EPS calculations and increasing authorized shares.

Financial highlights

• Q2 sales increased by $253 million to $4.53 billion, driven by comp sales and new stores.

• Gross margin for Q2 was 51.4%, up 67 basis points year-over-year, exceeding expectations due to supply chain management and acquisition efficiencies.

• Free cash flow for the first half of 2025 was $904 million, down from $1.2 billion last year, mainly due to renewable energy tax credit payments.

• Operating income for Q2 was $914 million (20.2% of sales), up 6% year-over-year.

• Inventory per store rose 9% year-over-year to $833,000; average inventory per store expected to increase 5% for 2025.

Outlook and guidance

• Raised full-year 2025 comparable store sales guidance to 3.0%-4.5% and revenue to $17.5-$17.8 billion.

• Diluted EPS guidance raised to $2.85-$2.95, factoring in the stock split.

• Gross margin guidance unchanged at 51.2%-51.7%, with potential short-term volatility due to tariffs.

• Plans to open 200-210 net new stores in 2025.

• Free cash flow guidance for 2025 is $1.6-$1.9 billion.