EX-99.12orly-20250205xex99d1.htmEX-99.1
Exhibit 99.1
FOR IMMEDIATE RELEASE
O’REILLY AUTOMOTIVE, INC. REPORTS FOURTH QUARTER AND FULL-YEAR 2024 RESULTS
●
Fourth quarter comparable store sales growth of 4.4%, full-year increase of 2.9%
●
$3.0 billion net cash provided by operating activities in 2024
Springfield, MO, February 5, 2025 – O’Reilly Automotive, Inc. (the “Company” or “O’Reilly”) (Nasdaq: ORLY), a leading retailer in the automotive aftermarket industry, today announced record revenue for its fourth quarter and full-year ended December 31, 2024. The results represent 32 consecutive years of comparable store sales growth and record revenue and operating income for O’Reilly since becoming a public company in April of 1993.
4th Quarter Financial Results
Brad Beckham, O’Reilly’s CEO, commented, “We are pleased to report a strong finish to 2024 in the fourth quarter, highlighted by 4.4% growth in comparable store sales, driven by solid growth in both professional and DIY. Our Team is relentlessly focused on executing our industry-leading model at a high level, which we believe continues to generate market share gains on both sides of our business. I would like to take this opportunity to commend Team O’Reilly on their performance in the fourth quarter and thank each of you for your hard work and continued commitment to providing excellent customer service.”
Sales for the fourth quarter ended December 31, 2024, increased $264 million, or 7%, to $4.10 billion from $3.83 billion for the same period one year ago. Gross profit for the fourth quarter increased 7% to $2.10 billion (or 51.3% of sales) from $1.97 billion (or 51.3% of sales) for the same period one year ago. Selling, general and administrative expenses (“SG&A”) for the fourth quarter increased 9% to $1.36 billion (or 33.3% of sales) from $1.25 billion (or 32.6% of sales) for the same period one year ago. Operating income for the fourth quarter increased 3% to $739 million (or 18.0% of sales) from $719 million (or 18.8% of sales) for the same period one year ago.
SG&A expenses for the fourth quarter included a charge of $35 million to adjust reserves relating to our self-insurance liabilities for historic auto liability claims. The adjustment relates to claims that occurred prior to 2024 and reflects adverse claim development experience and revised assumptions used to estimate future liabilities for these claim years.
Net income for the fourth quarter ended December 31, 2024, decreased $1 million to $551 million (or 13.5% of sales) from $553 million (or 14.4% of sales) for the same period one year ago. Diluted earnings per common share for the fourth quarter increased 3% to $9.50 on 58 million shares versus $9.26 on 60 million shares for the same period one year ago. The self-insurance reserve adjustment, net of tax, impacted fourth quarter net income and diluted earnings per share by $27 million and $0.46, respectively.
Full-Year Financial Results
Mr. Beckham continued, “Our strong performance in the fourth quarter lifted our full-year comparable store sales growth to 2.9%, at the high end of our revised guidance range of 2% to 3%. While our 2024 results were below our expectations entering the year, we are pleased with our Team’s ability to deliver solid comparable store sales growth despite tough market conditions. 2024 represents our 32nd consecutive year of annual comparable store sales growth and record earnings, and I
want to congratulate Team O’Reilly on their consistent performance and unwavering commitment to our customers. Our Team also delivered a strong finish to our expansion efforts in 2024, meeting our new store opening target with the successful opening of 198 net, new stores and completing our planned distribution expansion with the relocation of our Atlanta, Georgia distribution center to a larger, modern facility in the fourth quarter.”
Sales for the year ended December 31, 2024, increased $896 million, or 6%, to $16.71 billion from $15.81 billion for the same period one year ago. Gross profit for the year ended December 31, 2024, increased 6% to $8.55 billion (or 51.2% of sales) from $8.10 billion (or 51.3% of sales) for the same period one year ago. SG&A for the year ended December 31, 2024, increased 8% to $5.30 billion (or 31.7% of sales) from $4.92 billion (or 31.1% of sales) for the same period one year ago. Operating income for the year ended December 31, 2024, increased 2% to $3.25 billion (or 19.5% of sales) from $3.19 billion (or 20.2% of sales) for the same period one year ago.
Net income for the year ended December 31, 2024, increased $40 million, or 2%, to $2.39 billion (or 14.3% of sales) from $2.35 billion (or 14.8% of sales) for the same period one year ago. Diluted earnings per common share for the year ended December 31, 2024, increased 6% to $40.66 on 59 million shares versus $38.47 on 61 million shares for the same period one year ago.
4th Quarter and Full-Year Comparable Store Sales Results
Comparable store sales are calculated based on the change in sales for U.S. stores open at least one year and exclude sales of specialty machinery, sales to independent parts stores, and sales to Team Members, as well as sales from Leap Day for the year ended December 31, 2024. Online sales for ship-to-home orders and pick-up-in-store orders for U.S. stores open at least one year are included in the comparable store sales calculation. Comparable store sales increased 4.4% for the fourth quarter ended December 31, 2024, on top of 3.4% for the same period one year ago. Comparable store sales increased 2.9% for the year ended December 31, 2024, on top of 7.9% for the same period one year ago.
Share Repurchase Program
During the fourth quarter ended December 31, 2024, the Company repurchased 0.4 million shares of its common stock, at an average price per share of $1,207.43, for a total investment of $472 million. During the year ended December 31, 2024, the Company repurchased 1.9 million shares of its common stock, at an average price per share of $1,072.47, for a total investment of $2.08 billion. Excise tax on shares repurchased, assessed at one percent of the fair market value of shares repurchased, was $20.8 million for the year ended December 31, 2024. Subsequent to the end of the fourth quarter and through the date of this release, the Company repurchased an additional 0.1 million shares of its common stock, at an average price per share of $1,232.37, for a total investment of $181 million.
The Company has repurchased a total of 96.2 million shares of its common stock under its share repurchase program since the inception of the program in January of 2011 and through the date of this release, at an average price of $264.49, for a total aggregate investment of $25.44 billion. As of the date of this release, the Company had approximately $2.31 billion remaining under its current share repurchase authorizations.
Full-Year 2025 Guidance
The table below outlines the Company’s guidance for selected full-year 2025 financial data:
For the Year Ending
December 31, 2025
G1Net, new store openings
200 to 210
G2Comparable store sales
2.0% to 4.0%
G3Total revenue
$17.4 billion to $17.7 billion
G4Gross profit as a percentage of sales
51.2% to 51.7%
G5Operating income as a percentage of sales
19.2% to 19.7%
G6Effective income tax rate
22.6%
G7Diluted earnings per share (1)
$42.60 to $43.10
G8Net cash provided by operating activities
$2.8 billion to $3.2 billion
G9Capital expenditures
$1.2 billion to $1.3 billion
G10Free cash flow (2)
$1.6 billion to $1.9 billion
(1)
Weighted-average shares outstanding, assuming dilution, used in the denominator of this calculation, includes share repurchases made by the Company through the date of this release.
(2)
Free cash flow is a non-GAAP financial measure. The table below reconciles Free cash flow guidance to Net cash provided by operating activities guidance, the most directly comparable GAAP financial measure:
For the Year Ending
(in millions)
December 31, 2025
Net cash provided by operating activities
$
2,810
to
$
3,220
Less:
Capital expenditures
1,200
to
1,300
Excess tax benefit from share-based compensation payments
10
to
20
Free cash flow
$
1,600
to
$
1,900
Non-GAAP Information
This release contains certain financial information not derived in accordance with United States generally accepted accounting principles (“GAAP”). These items include adjusted debt to earnings before interest, taxes, depreciation, amortization, share-based compensation, and rent (“EBITDAR”) and free cash flow. The Company does not, nor does it suggest investors should, consider such non-GAAP financial measures in isolation from, or as a substitute for, GAAP financial information. The Company believes that the presentation of adjusted debt to EBITDAR and free cash flow provide meaningful supplemental information to both management and investors that is indicative of the Company’s core operations. The Company has included a reconciliation of this additional information to the most comparable GAAP measure in the table above and the selected financial information below.
Earnings Conference Call Information
The Company will host a conference call on Thursday, February 06, 2025, at 10:00 a.m. Central Time to discuss its results as well as future expectations. Investors may listen to the conference call live on the Company’s website at www.OReillyAuto.com by clicking on “Investor Relations” and then “News Room.” Interested analysts are invited to join the call. The dial-in number for the call is (888) 506-0062 and the conference call identification number is 186296. A replay of the conference call will be available on the Company’s website through Thursday, February 05, 2026.
About O’Reilly Automotive, Inc.
O’Reilly Automotive, Inc. was founded in 1957 by the O’Reilly family and is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment, and accessories in the United States, serving both the do-it-yourself and professional service provider markets. Visit the Company’s website at www.OReillyAuto.com for additional information about O’Reilly, including access to online shopping and current promotions, store locations, hours and services, employment opportunities, and other programs. As of December 31, 2024, the Company operated 6,378 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada.
Forward-Looking Statements
The Company claims the protection of the safe-harbor for forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. You can identify these statements by forward-looking words such as “estimate,” “may,” “could,” “will,” “believe,” “expect,” “would,” “consider,” “should,” “anticipate,” “project,” “plan,” “intend,”
“guidance,” “target,” or similar words. In addition, statements contained within this press release that are not historical facts are forward-looking statements, such as statements discussing, among other things, expected growth, store development, integration and expansion strategy, business strategies, future revenues, and future performance. These forward-looking statements are based on estimates, projections, beliefs, and assumptions and are not guarantees of future events and results. Such statements are subject to risks, uncertainties, and assumptions, including, but not limited to, the economy in general; inflation; consumer debt levels; product demand; a public health crisis; the market for auto parts; competition; weather; tariffs; availability of key products and supply chain disruptions; business interruptions, including terrorist activities, war and the threat of war; failure to protect our brand and reputation; challenges in international markets; volatility of the market price of our common stock; our increased debt levels; credit ratings on public debt; damage, failure, or interruption of information technology systems, including information security and cyber-attacks; historical growth rate sustainability; our ability to hire and retain qualified employees; risks associated with the performance of acquired businesses; and governmental regulations.
Actual results may materially differ from anticipated results described or implied in these forward-looking statements. Please refer to the “Risk Factors” section of the annual report on Form 10-K for the year ended December 31, 2023, and subsequent Securities and Exchange Commission filings, for additional factors that could materially affect the Company’s financial performance. Forward-looking statements speak only as of the date they were made, and the Company undertakes no obligation to publicly update any forward-looking statements, whether as a result of new information, future events, or otherwise, except as required by applicable law.
For further information contact:
Investor Relations Contacts
Leslie Skorick (417) 874-7142
Eric Bird (417) 868-4259
Media Contact
Sonya Cox (417) 829-5709
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(In thousands, except share data)
December 31, 2024
December 31, 2023
(Unaudited)
(Note)
Assets
Current assets:
Cash and cash equivalents
$
130,245
$
279,132
Accounts receivable, net
356,839
375,049
Amounts receivable from suppliers
139,091
140,443
Inventory
5,095,804
4,658,367
Other current assets
117,916
105,311
Total current assets
5,839,895
5,558,302
Property and equipment, at cost
9,192,254
8,312,367
Less: accumulated depreciation and amortization
3,587,098
3,275,387
Net property and equipment
5,605,156
5,036,980
Operating lease, right-of-use assets
2,324,638
2,200,554
Goodwill
930,161
897,696
Other assets, net
193,891
179,463
Total assets
$
14,893,741
$
13,872,995
Liabilities and shareholders’ deficit
Current liabilities:
Accounts payable
$
6,524,811
$
6,091,700
Self-insurance reserves
149,387
128,548
Accrued payroll
107,495
138,122
Accrued benefits and withholdings
199,593
174,650
Income taxes payable
6,274
7,860
Current portion of operating lease liabilities
419,213
389,536
Other current liabilities
876,732
730,937
Total current liabilities
8,283,505
7,661,353
Long-term debt
5,520,932
5,570,125
Operating lease liabilities, less current portion
1,980,705
1,881,344
Deferred income taxes
247,599
295,471
Other liabilities
231,961
203,980
Shareholders’ equity (deficit):
Common stock, $0.01 par value:
Authorized shares – 245,000,000
Issued and outstanding shares –
57,482,184 as of December 31, 2024, and
59,072,792 as of December 31, 2023
575
591
Additional paid-in capital
1,462,565
1,352,275
Retained deficit
(2,791,288)
(3,131,532)
Accumulated other comprehensive (loss) income
(42,813)
39,388
Total shareholders’ deficit
(1,370,961)
(1,739,278)
Total liabilities and shareholders’ deficit
$
14,893,741
$
13,872,995
Note: The balance sheet at December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share data)
For the Three Months Ended
For the Year Ended
December 31,
December 31,
2024
2023
2024
2023
(Unaudited)
(Unaudited)
(Unaudited)
(Note)
Sales
$
4,095,601
$
3,832,015
$
16,708,479
$
15,812,250
Cost of goods sold, including warehouse and distribution expenses
1,994,569
1,864,586
8,153,990
7,707,447
Gross profit
2,101,032
1,967,429
8,554,489
8,104,803
Selling, general and administrative expenses
1,362,382
1,248,693
5,303,332
4,918,427
Operating income
738,650
718,736
3,251,157
3,186,376
Other income (expense):
Interest expense
(55,403)
(56,148)
(222,548)
(201,668)
Interest income
2,056
1,980
7,295
4,900
Other, net
(106)
6,963
9,160
15,142
Total other expense
(53,453)
(47,205)
(206,093)
(181,626)
Income before income taxes
685,197
671,531
3,045,064
3,004,750
Provision for income taxes
134,067
119,027
658,384
658,169
Net income
$
551,130
$
552,504
$
2,386,680
$
2,346,581
Earnings per share-basic:
Earnings per share
$
9.56
$
9.33
$
40.91
$
38.80
Weighted-average common shares outstanding – basic
57,673
59,200
58,339
60,475
Earnings per share-assuming dilution:
Earnings per share
$
9.50
$
9.26
$
40.66
$
38.47
Weighted-average common shares outstanding – assuming dilution
57,997
59,673
58,705
60,998
Note: The income statement for the year ended December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(In thousands)
For the Year Ended
December 31,
2024
2023
(Unaudited)
(Note)
Operating activities:
Net income
$
2,386,680
$
2,346,581
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization of property, equipment and intangibles
461,892
409,061
Amortization of debt discount and issuance costs
6,613
4,954
Deferred income taxes
(50,238)
48,232
Share-based compensation programs
28,931
27,511
Other
6,360
2,116
Changes in operating assets and liabilities:
Accounts receivable
30,495
(35,539)
Inventory
(403,886)
(288,323)
Accounts payable
421,364
207,061
Income taxes payable
(8,690)
33,889
Other
170,055
278,541
Net cash provided by operating activities
3,049,576
3,034,084
Investing activities:
Purchases of property and equipment
(1,023,387)
(1,006,264)
Proceeds from sale of property and equipment
16,350
17,689
Return of (investment in) tax credit equity investments
1,490
(4,150)
Other, including acquisitions, net of cash acquired
(161,258)
(3,211)
Net cash used in investing activities
(1,166,805)
(995,936)
Financing activities:
Proceeds from borrowings on revolving credit facility
30,000
3,227,000
Payments on revolving credit facility
(30,000)
(3,227,000)
Net (payments) proceeds of commercial paper
(547,604)
746,789
Proceeds from the issuance of long-term debt
498,910
749,655
Principal payments on long-term debt
—
(300,000)
Payment of debt issuance costs
(4,076)
(4,989)
Payment of excise tax on share repurchases
(28,830)
—
Repurchases of common stock
(2,076,529)
(3,151,155)
Net proceeds from issuance of common stock
128,981
91,316
Other
(569)
(354)
Net cash used in financing activities
(2,029,717)
(1,868,738)
Effect of exchange rate changes on cash
(1,941)
1,139
Net (decrease) increase in cash and cash equivalents
(148,887)
170,549
Cash and cash equivalents at beginning of the period
279,132
108,583
Cash and cash equivalents at end of the period
$
130,245
$
279,132
Supplemental disclosures of cash flow information:
Income taxes paid
$
640,426
$
315,060
Interest paid, net of capitalized interest
209,094
189,611
Note: The cash flow statement for the year ended December 31, 2023, has been derived from the audited consolidated financial statements at that date but does not include all of the information and footnotes required by United States generally accepted accounting principles for complete financial statements.
O’REILLY AUTOMOTIVE, INC. AND SUBSIDIARIES
SELECTED FINANCIAL INFORMATION
(Unaudited)
For the Year Ended
December 31,
Adjusted Debt to EBITDAR:
2024
2023
(In thousands, except adjusted debt to EBITDAR ratio)
GAAP debt
$
5,520,932
$
5,570,125
Add:
Letters of credit
127,310
112,163
Unamortized discount and debt issuance costs
29,068
30,775
Six-times rent expense
2,715,174
2,548,890
Adjusted debt
$
8,392,484
$
8,261,953
GAAP net income
$
2,386,680
$
2,346,581
Add:
Interest expense
222,548
201,668
Provision for income taxes
658,384
658,169
Depreciation and amortization
461,892
409,061
Share-based compensation expense
28,931
27,511
Rent expense (i)
452,529
424,815
EBITDAR
$
4,210,964
$
4,067,805
Adjusted debt to EBITDAR
1.99
2.03
(i)
The table below outlines the calculation of Rent expense and reconciles Rent expense to Total lease cost, per ASC 842, the most directly comparable GAAP financial measure, for the year ended December 31, 2024 and 2023 (in thousands):
For the Year Ended
December 31,
2024
2023
Total lease cost, per ASC 842
$
543,495
$
503,151
Less:
Variable non-contract operating lease components, related to property taxes and insurance
90,966
78,336
Rent expense
$
452,529
$
424,815
December 31,
2024
2023
Selected Balance Sheet Ratios:
Inventory turnover (1)
1.7
1.7
Average inventory per store (in thousands) (2)
$
799
$
757
Accounts payable to inventory (3)
128.0
%
130.8
%
For the Three Months Ended
For the Year Ended
December 31,
December 31,
2024
2023
2024
2023
Reconciliation of Free Cash Flow (in thousands):
Net cash provided by operating activities
$
624,487
$
516,429
$
3,049,576
$
3,034,084
Less:
Capital expenditures
290,471
252,306
1,023,387
1,006,264
Excess tax benefit from share-based compensation payments
4,827
8,098
39,871
35,950
(Return of) investment in tax credit equity investments
(1,490)
—
(1,490)
4,150
Free cash flow
$
330,679
$
256,025
$
1,987,808
$
1,987,720
For the Three Months Ended
For the Year Ended
December 31,
December 31,
2024
2023
2024
2023
Revenue Disaggregation (in thousands):
Sales to do-it-yourself customers
$
2,092,414
$
1,993,233
$
8,459,084
$
8,248,213
Sales to professional service provider customers
1,894,666
1,765,535
7,796,486
7,245,747
Other sales, sales adjustments, and sales from the acquired Vast Auto stores
108,521
73,247
452,909
318,290
Total sales
$
4,095,601
$
3,832,015
$
16,708,479
$
15,812,250
For the Three Months Ended
For the Year Ended
December 31,
December 31,
2024
2023
2024
2023
Store Count:
Beginning domestic store count
6,187
6,063
6,095
5,929
New stores opened
78
33
170
169
Stores closed
—
(1)
—
(3)
Ending domestic store count
6,265
6,095
6,265
6,095
Beginning Mexico store count
78
48
62
42
New stores opened
9
14
25
20
Ending Mexico store count
87
62
87
62
Beginning Canada store count
26
—
—
—
Stores acquired
—
—
23
—
New stores opened
—
—
3
—
Ending Canada store count
26
—
26
—
Total ending store count
6,378
6,157
6,378
6,157
For the Three Months Ended
For the Year Ended
December 31,
December 31,
2024
2023
2024
2023
Store and Team Member Information:
Total employment
93,176
90,189
Square footage (in thousands) (4)
48,809
46,681
Sales per weighted-average square foot (4)(5)
$
82.70
$
81.06
$
342.32
$
340.23
Sales per weighted-average store (in thousands) (4)(6)
$
642
$
619
$
2,642
$
2,578
(1)
Calculated as cost of goods sold for the last 12 months divided by average inventory. Average inventory is calculated as the average of inventory for the trailing four quarters used in determining the denominator.
(2)
Calculated as inventory divided by store count at the end of the reported period.
(3)
Calculated as accounts payable divided by inventory.
(4)
Represents O’Reilly’s U.S. and Puerto Rico operations only.
(5)
Calculated as sales less jobber sales, divided by weighted-average square footage. Weighted-average square footage is determined by weighting store square footage based on the approximate dates of store openings, acquisitions, expansions, or closures.
(6)
Calculated as sales less jobber sales, divided by weighted-average stores. Weighted-average stores is determined by weighting stores based on their approximate dates of openings, acquisitions, or closures.
Mentions · how they’re counted
| Category | Underlined | Word counter | Model’s count |
|---|---|---|---|
| AI AI, artificial intelligence, generative AI, machine learning, large language model, LLM | 0 | — | — |
| Layoffs layoffs, RIF, headcount reduction, workforce optimization, restructuring | 0 | — | — |
| Recession recession, downturn, contraction, slowdown | 0 | — | — |
| Tariffs tariff, trade war, trade barriers, trade restrictions, trade policy | 1 | — | — |
| Buybacks share repurchase, buyback program | 5 | — | — |
Underlines use the same word lists the scores use. AI, recession and tariffs follow Palanor’s word counter, so those counts match it exactly on the same text. Layoffs and buybacks use the terms the model was given. The model’s count is an estimate by meaning, not by string, so it can differ from the underlines.
Source: SEC EDGAR · public domain · Highlights by Palanor