AI Takeaway
O'Reilly Automotive (ORLY) delivered solid FY2025 results with revenue growing 6.4% to $17.8B and net income rising 6.3% to $2.5B, supported by stable margins and continued share buybacks, though operating cash flow declined 9.4% year-over-year.
Revenue
$17.78B
++6.42% YoY
EPS (Basic)
$2.98
++9.16% YoY
Gross Margin
51.6%
++0.39% YoY
Operating Income
$3.46B
++6.44% YoY
Filed · Analysis updated · Source: SEC EDGAR 10-K filing
Total revenue increased 6.4% YoY to $17.78B in FY2025, up from $16.71B in the prior year, reflecting continued store network expansion and demand for automotive parts across both DIY and professional service channels.
Source: Source: 10-K Income Statement
Gross margin improved modestly to 51.59% from 51.20% in the prior year, a 39 basis point improvement, suggesting effective inventory management and favorable product mix despite cost pressures in the supply chain.
Source: Source: 10-K Income Statement
SG&A expenses rose 7.7% YoY to $5.71B, slightly faster than the 6.4% revenue growth rate, reflecting investments in labor, store operations, and technology infrastructure that modestly pressured operating leverage.
Source: Source: 10-K Income Statement
2 more insights available
Upgrade to unlockO'Reilly carries negative stockholders' equity of -$763M, a direct result of its aggressive share repurchase program funded by debt. While improving from -$1.37B in the prior year, this balance sheet structure increases financial vulnerability in a downturn and limits flexibility for additional capital allocation.
Source: Source: 10-K Balance Sheet
Unlock 4 more detailed risk analysis
Upgrade to unlockReported EPS of $0.71 versus the $0.74 analyst consensus — a -4.0% miss for FY2025.
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Revenue | $17.78B | $16.71B | +6.42% |
Cost of Revenue | $8.61B | $8.15B | +5.57% |
Gross Profit | $9.17B | $8.55B | +7.24% |
Operating Income | $3.46B | $3.25B | +6.44% |
Net Income | $2.54B | $2.39B | +6.35% |
EPS (Basic) | $2.98 | $2.73 | +9.16% |
EPS (Diluted) | $2.97 | $2.71 | +9.59% |
SG&A Expense | $5.71B | $5.3B | +7.73% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Total Assets | $16.54B | $14.89B | +11.04% |
Current Assets | $6.74B | $5.84B | +15.49% |
Current Liabilities | $8.78B | $8.28B | +5.94% |
Stockholders' Equity | $-763.35M | $-1.37B | +44.32% |
Cash & Equivalents | $193.79M | $130.25M | +48.79% |
Long-Term Debt | $6.02B | $5.52B | +8.98% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Operating Cash Flow | $2.76B | $3.05B | -9.43% |
Investing Cash Flow | $-1.15B | $-1.17B | +1.24% |
Financing Cash Flow | $-1.55B | $-2.03B | +23.69% |
Share Buybacks | $2.1B | $2.08B | +0.98% |
D&A | $511.23M | $461.89M | +10.68% |
| Metric | Current | Previous | YoY Change |
|---|---|---|---|
Gross Margin | 51.6% | 51.2% | +0.39% |
Operating Margin | 19.5% | 19.5% | +0.00% |
Net Margin | 14.3% | — | — |
ROE | -332.5% | — | — |
ROA | 15.3% | — | — |
Current Ratio | $0.769 | — | — |
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O'Reilly Automotive reported FY2025 revenue of $17.78B, up 6.4% year-over-year, with net income of $2.54B, up 6.3%. Basic EPS grew 9.2% to $2.98, boosted by the company's $2.1B share repurchase program.
The key takeaways are steady top-line growth of 6.4%, a modest gross margin improvement to 51.59%, and continued aggressive capital return via $2.1B in buybacks. However, operating cash flow declined 9.4% to $2.76B and SG&A grew faster than revenue, signaling some cost pressure.
Based on the financial data, the most notable risks include O'Reilly's negative stockholders' equity of -$763M driven by debt-funded buybacks, a current ratio below 1.0 at 0.77 indicating short-term liquidity reliance on credit facilities, and long-term debt growing 9.0% to $6.02B. SG&A expense growth outpacing revenue also poses a risk to future operating margin.
O'Reilly's revenue grew 6.4% in FY2025 to $17.78B from $16.71B in the prior year, driven by store network expansion and consistent demand across DIY and professional automotive parts channels. Gross profit grew even faster at 7.2% to $9.17B, reflecting improved merchandising efficiency.
While O'Reilly's negative stockholders' equity of -$763M and current ratio of 0.77 may appear concerning, they are largely the result of a deliberate, debt-funded share repurchase strategy rather than operational distress. The company generates $2.76B in annual operating cash flow, maintains a 14.3% net margin, and has a 15.35% ROA, all of which reflect a fundamentally profitable and cash-generative business.