O’Reilly Automotive(US:ORLY)2025-07-23 20:34Financial Performance - Second quarter sales increased by $253 million, or 6%, to $4.53 billion compared to $4.27 billion in the same period last year[3] - Gross profit for the second quarter rose 7% to $2.33 billion, representing 51.4% of sales, up from 50.7% a year ago[3] - Net income for the second quarter increased by $46 million, or 7%, to $669 million, which is 14.8% of sales[4] - Diluted earnings per share for the second quarter increased 11% to $0.78, adjusted for a 15-for-1 stock split[4] - Total sales for the three months ended June 30, 2025, increased to $4,525,058, up from $4,272,201 in the same period of 2024, representing a growth of 5.9%[20] - Gross profit for the six months ended June 30, 2025, was $4,448,023, compared to $4,202,232 for the same period in 2024, reflecting an increase of 5.8%[20] - Net income for the six months ended June 30, 2025, reached $1,207,080, up from $1,170,086 in 2024, indicating a growth of 3.2%[21] - Earnings per share for the three months ended June 30, 2025, was $0.78, compared to $0.71 for the same period in 2024, marking an increase of 9.9%[20] Cash Flow and Guidance - Year-to-date net cash provided by operating activities reached $1.51 billion[6] - Total revenue guidance for 2025 is projected to be between $17.5 billion and $17.8 billion[11] - Free cash flow guidance for 2025 is estimated to be between $1.6 billion and $1.9 billion[11] - The company reported a net cash provided by operating activities of $1,511,966 for the six months ended June 30, 2025, compared to $1,653,074 in 2024, a decrease of 8.5%[21] - Free cash flow for the six months ended June 30, 2025, was $904,008, down from $1,157,089 in 2024, representing a decrease of 22%[23] Store Expansion and Employment - The company opened 105 net new stores in the first half of 2025, including its 100th store in Mexico[5] - Full-year comparable store sales guidance was increased to a range of 3% to 4.5%[5] - The company opened 62 new domestic stores in the three months ended June 30, 2025, compared to 21 in the same period of 2024[24] - Total employment increased to 92,810 as of June 30, 2025, from 91,874 in 2024[24] - The ending domestic store count reached 6,360 as of June 30, 2025, up from 6,152 in 2024[24] Assets and Liabilities - Total current assets as of June 30, 2025, amounted to $6,315,806, an increase from $5,679,488 as of June 30, 2024, representing a growth of 11.2%[18] - Total assets increased to $15,820,619 as of June 30, 2025, compared to $14,393,182 as of June 30, 2024, reflecting a growth of 9.9%[18] - Total current liabilities rose to $8,721,886 as of June 30, 2025, from $8,123,208 as of June 30, 2024, indicating an increase of 7.4%[18] - Cash and cash equivalents at the end of the period increased to $198,613 from $145,042 in the previous year, a rise of 36.9%[21] Stock Repurchase - The company repurchased 6.8 million shares in the second quarter at an average price of $90.71, totaling $617 million[10] - The company repurchased common stock amounting to $1,176,640 during the six months ended June 30, 2025, compared to $1,063,791 in the same period of 2024, an increase of 10.6%[21] Inventory and Costs - Average inventory per store rose to $833,000 for the twelve months ended June 30, 2025, compared to $767,000 in 2024[23] - Total lease cost per ASC 842 for the twelve months ended June 30, 2025, was $570,733, an increase from $520,327 in 2024[23] - Inventory turnover decreased to 1.6 for the twelve months ended June 30, 2025, down from 1.7 in 2024[23] Debt and Financial Ratios - Adjusted debt to EBITDAR ratio increased to 2.06 for the twelve months ended June 30, 2025, up from 1.97 in 2024[23]