O'Reilly Q3 Earnings Beat Expectations, 2025 FCF Guidance Trimmed

O’Reilly Automotive, Inc. ORLY reported third-quarter 2025 adjusted earnings per share (EPS) of 85 cents, which beat the Zacks Consensus Estimate of 83 cents. The bottom line also increased from 76 cents in the prior-year quarter.

The automotive parts retailer registered quarterly revenues of $4.71 billion, surpassing the Zacks Consensus Estimate of $4.70 billion. The top line increased 7.8% year over year.

During the quarter, comparable store sales grew 5.6% and the company opened 55 stores in the United States and Mexico. The total store count was 6,538 as of Sept. 30, 2025.

O'Reilly Automotive, Inc. Price, Consensus and EPS Surprise

O'Reilly Automotive, Inc. price-consensus-eps-surprise-chart | O'Reilly Automotive, Inc. Quote

ORLY’s Q3 Financials, Share Repurchase & Costs

In the reported quarter, selling, general and administrative expenses rose 8% year over year to $1.46 billion. Operating income increased 9% year over year to $976 million. Net income was $726 million, up from $655 million in the year-ago quarter.

During the reported quarter, O’Reilly repurchased 4.3 million shares for $420 million at an average price of $98.08 per share. From the end of the third quarter until Oct. 22, 2025, the company repurchased an additional 0.8 million shares of common stock for a total investment of $79 million at an average price of $102.96 per share. As of Oct. 22, ORLY had nearly $820 million remaining under the current share repurchase authorization.

As of Sept. 30, 2025, it had cash and cash equivalents of $204.5 million, up from $130.2 million recorded as of Dec. 31, 2024. Its long-term debt was $5,915 million, up from $5,520 million as of Dec. 31, 2024.

During the reported quarter, O’Reilly generated $616.5 million in cash from operating activities compared with the year-ago period’s $772 million. Capital expenditures totaled $312.1 million compared with $258.3 million in the year-ago period. Free cash flow (FCF) was $297 million, down 40.6% year over year.

ORLY’s 2025 Outlook Updated

For 2025, O’Reilly estimates total revenues in the range of $17.6-$17.8 billion compared with the previous estimate of $17.5-$17.8 billion. It expects EPS in the band of $2.90-$3 compared with the prior estimate of $2.85-$2.95. Comparable store sales are estimated to grow 4-5% compared with the previous estimate of 3-4.5%. The FCF is now anticipated to be between $1.5 billion and $1.8 billion compared to the previous estimate of $1.6 billion to $1.9 billion. Capital expenditure is expected to be between $1.1 billion and $1.2 billion compared with the previous estimated range of $1.2-$1.3 billion. The company intends to open 200-210 stores this year.

ORLY’s Zacks Rank & Key Picks

ORLY carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Cooper-Standard Holdings Inc. CPS, OPENLANE, Inc. KAR and Garrett Motion Inc. GTX, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CPS’ 2025 sales and earnings implies year-over-year growth of 2.5% and 137.8%, respectively. EPS estimates for 2025 and 2026 have improved 36 cents and 23 cents, respectively, in the past seven days.

The Zacks Consensus Estimate for KAR’s fiscal 2025 sales and earnings implies year-over-year growth of 5.6% and 37.7%, respectively. EPS estimates for fiscal 2025 have improved 13 cents in the past 90 days. EPS estimates for fiscal 2026 have improved 13 cents in the past 30 days.

The Zacks Consensus Estimate for GTX’s 2025 sales and earnings implies year-over-year growth of 1.8% and 10.3%, respectively. EPS estimates for 2025 and 2026 have improved 4 cents each in the past seven days. 

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This article originally published on Zacks Investment Research (zacks.com).

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