O’Reilly Automotive(US:ORLY)2025-10-22 20:32Financial Performance - Third quarter revenue increased by $341 million, or 8%, to $4.71 billion compared to $4.36 billion in the same period last year[2] - Gross profit for the third quarter rose 8% to $2.44 billion, representing 51.9% of sales, up from 51.6% a year ago[2] - Net income for the third quarter increased by $60 million, or 9%, to $726 million, which is 15.4% of sales[3] - Diluted earnings per share for the third quarter increased by 12% to $0.85, adjusted for a 15-for-1 stock split[3] - Year-to-date sales increased by $755 million, or 6%, to $13.37 billion compared to $12.61 billion for the same period last year[4] - Net income for the nine months ended September 30, 2025, was $1,932,976, compared to $1,835,550 in 2024, representing an increase of 5.3%[23] - Earnings per share for the nine months ended September 30, 2025, was $2.26, up from $2.09 in 2024, indicating an increase of 8.1%[22] - The company reported GAAP net income of $2,484,106 thousand for the twelve months ended September 30, 2025, compared to $2,388,054 thousand in 2024[25] Sales and Store Performance - Comparable store sales grew by 5.6% in the third quarter, following a 1.5% increase in the same period last year[8] - The company raised its full-year 2025 comparable store sales guidance to a range of 4.0% to 5.0%[4] - Total sales for the three months ended September 30, 2025, reached $4,705,696, an increase of 7.8% compared to $4,364,437 for the same period in 2024[22] - Sales to do-it-yourself customers rose to $2,304,804 thousand in Q3 2025, up from $2,219,727 thousand in Q3 2024, while sales to professional service provider customers increased to $2,307,782 thousand from $2,043,394 thousand[26] - The company opened 141 new stores in the nine months ended September 30, 2025, compared to 92 in the same period of 2024, bringing the total domestic store count to 6,406[26] Cash Flow and Guidance - Free cash flow guidance for 2025 is set between $1.5 billion and $1.8 billion[11] - The company repurchased 4.3 million shares at an average price of $98.08 during the third quarter, totaling $420 million[9] - The updated guidance for total revenue for 2025 is projected to be between $17.6 billion and $17.8 billion[10] - The company reported a net cash provided by operating activities of $2,128,501 for the nine months ended September 30, 2025, compared to $2,425,089 in 2024[23] - Free cash flow for the nine months ended September 30, 2025, was $1,201,004 thousand, down from $1,657,129 thousand in 2024[25] Assets and Liabilities - Cash and cash equivalents increased to $204,513 as of September 30, 2025, from $115,613 a year earlier, marking a growth of 76.7%[23] - Total assets as of September 30, 2025, amounted to $16,279,627, a rise of 11.7% from $14,577,522 in 2024[20] - Total current liabilities increased to $8,709,759 as of September 30, 2025, compared to $8,185,165 in 2024, reflecting a growth of 6.4%[20] - The total shareholders' deficit improved to $(894,676) as of September 30, 2025, from $(1,439,064) in 2024, indicating a reduction of 37.9%[20] Operational Efficiency - Operating income for the three months ended September 30, 2025, was $976,067, an increase of 8.8% from $896,728 in the same period of 2024[22] - Average inventory per store rose to $858 thousand in 2025 from $781 thousand in 2024, indicating a 9.9% increase[25] - The inventory turnover ratio decreased to 1.6 in 2025 from 1.7 in 2024, suggesting a slight decline in inventory management efficiency[25] - Total lease cost per ASC 842 for the twelve months ended September 30, 2025, was $581,898 thousand, compared to $530,689 thousand in 2024[25] - Adjusted debt increased to $8,990,839 thousand in 2025 from $8,182,230 thousand in 2024, resulting in an adjusted debt to EBITDAR ratio of 2.04 compared to 1.96 in the previous year[25]