O’Reilly Automotive(US:ORLY)2026-02-04 21:34Financial Performance - Fourth quarter sales increased by $319 million, or 8%, to $4.41 billion from $4.10 billion year-over-year[3] - Fourth quarter gross profit rose 9% to $2.29 billion, representing 51.8% of sales, compared to 51.3% of sales in the same period last year[3] - Fourth quarter diluted earnings per share increased 13% to $0.71, while full-year diluted earnings per share rose 10% to $2.97[5][7] - Full-year sales increased by $1.07 billion, or 6%, to $17.78 billion from $16.71 billion year-over-year[6] - Full-year comparable store sales growth was 4.7%, with fourth quarter growth at 5.6%[5][8] - Net income for the year ended December 31, 2025, was $2.54 billion, compared to $2.39 billion in 2024, reflecting a growth of 6.4%[21] - Sales for the year ended December 31, 2025, reached $17.78 billion, an increase of 6.4% from $16.71 billion in 2024[21] - Gross profit for the year ended December 31, 2025, was $9.17 billion, up from $8.55 billion in 2024, indicating a growth of 7.3%[21] - Operating income for the year ended December 31, 2025, was $3.46 billion, compared to $3.25 billion in 2024, marking an increase of 6.5%[21] - Earnings per share (basic) for the year ended December 31, 2025, was $2.98, up from $2.73 in 2024, an increase of 9.2%[21] Cash Flow and Debt - Net cash provided by operating activities for 2025 was $2.8 billion[5] - Net cash provided by operating activities for the year ended December 31, 2025, was $2.76 billion, compared to $3.05 billion in 2024, a decrease of 9.5%[23] - Free cash flow for the year ended December 31, 2025, was $1,563,250 thousand, down from $1,987,808 thousand in 2024, representing a decrease of 21.3%[25] - Long-term debt increased to $6.02 billion in 2025 from $5.52 billion in 2024, reflecting a growth of 9.0%[19] - Adjusted debt increased to $9,137,784 thousand in 2025 from $8,392,484 thousand in 2024, resulting in an adjusted debt to EBITDAR ratio of 2.03, up from 1.99[25] Store Operations - The company opened 207 net new stores in 2025, including a new distribution center in Virginia[6] - The company opened 182 new stores in 2025, increasing the total domestic store count to 6,447, up from 6,265 in 2024[26] - Average inventory per store increased to $870 thousand in 2025 from $799 thousand in 2024, indicating a rise of 8.9%[25] - Total employment remained stable at 93,072 in 2025, compared to 93,176 in 2024[26] Inventory and Sales Metrics - Sales to do-it-yourself customers rose to $8,765,647 thousand in 2025, compared to $8,473,041 thousand in 2024, reflecting a growth of 3.4%[26] - Sales per weighted-average square foot increased to $345.73 in 2025 from $342.32 in 2024, reflecting a growth of 1.4%[26] - The company’s inventory turnover ratio decreased to 1.6 in 2025 from 1.7 in 2024[25] Guidance - Full-year 2026 guidance includes total revenue of $18.7 billion to $19.0 billion and diluted earnings per share of $3.10 to $3.20[10] Assets and Liabilities - Total assets increased to $16.54 billion as of December 31, 2025, up from $14.89 billion in 2024, representing an increase of 11.0%[19] - Total current liabilities rose to $8.78 billion in 2025, compared to $8.28 billion in 2024, an increase of 6.0%[19] - Cash and cash equivalents at the end of the period increased to $193.79 million from $130.25 million, a rise of 48.6%[23] Expenses - SG&A expenses for the fourth quarter increased 7% to $1.46 billion, representing 33.0% of sales[3] - EBITDAR for 2025 was reported at $4,511,937 thousand, an increase from $4,210,964 thousand in 2024, marking a growth of 7.2%[25]