O’Reilly Automotive (ORLY) Q4 2025 earnings summary

Executive summary

• Achieved record revenue, operating income, and EPS for the 33rd consecutive year, with 5.6% comparable store sales growth in Q4 and 4.7% for full year 2025, at the high end of guidance.

• Total sales rose 6.4% to $17.8 billion, marking over 50% growth in five years.

• Opened 207 net new stores and a new distribution center in Virginia, expanding presence in the U.S., Mexico, and Canada.

• Professional business led growth, with over 10% comp sales increase for the second straight quarter.

• DIY business saw low single-digit comp growth, with stabilization in demand despite some negative traffic comps.

Financial highlights

• Q4 sales rose 8% year-over-year to $4.41 billion; full-year sales up 6% to $17.78 billion.

• Q4 diluted EPS was $0.71, up 13% year-over-year; full-year EPS was $2.97, up 10%.

• Operating profit reached $3.5 billion, up 6.4% year-over-year, with a margin of 19.5%.

• Gross margin for Q4 was 51.8% (up 49 bps), and full year was 51.6% (up 39 bps).

• Free cash flow was $1.56 billion for 2025, down from $2 billion in 2024 due to timing of tax credits and higher CapEx.

Outlook and guidance

• 2026 guidance: 225–235 net new store openings, comparable store sales growth of 3%-5%.

• Total revenue expected between $18.7 billion and $19 billion.

• EPS guidance for 2026 is $3.10-$3.20, a 6.1% increase at midpoint.

• Gross margin guidance for 2026 is 51.5%-52%.

• Free cash flow expected to rise to $1.8-$2.1 billion in 2026.