O’Reilly Automotive (ORLY) FY2025 10-K Annual Report
O’Reilly Automotive (ORLY) 10-K annual report for fiscal year 2025, filed with SEC EDGAR on Feb 27, 2026. This page provides AI-powered analysis including business overview, management discussion & analysis (MD&A), risk factors, and key financial data such as revenue, net income, gross margin, operating margin, and return on equity (ROE) extracted from XBRL.
O’Reilly Automotive FY2025 10-K Analysis
Business Overview
- • North America specialty auto parts retailer serving both DIY and professional service provider customers via dual market strategy; 50/50 revenue split between segments in 2025
- • 15-for-1 forward stock split completed June 10, 2025 — unusually large split ratio reflecting elevated per-share price
- • Aggressive international expansion: Mexico stores grew to 112 (up from ~89), representing 12.1% of 2025 net new store growth; Canada at 26 stores
- • Opened 207 net new stores in 2025; plans 225-235 in 2026; total network reached 6,585 stores across 48 U.S. states, Puerto Rico, Mexico, and Canada
- • Full-time workforce mix rose to 84% of total Team Members (vs 65% in 2020), reflecting deliberate shift toward technically proficient permanent staff; total headcount 92,923
Management Discussion & Analysis
- • Revenue $17.78B, up $1.07B (+6%) YoY; comparable store sales +4.7% vs +2.9% in 2024
- • Gross margin 51.6% vs 51.2%; operating margin flat at 19.5% vs 19.5%; net margin flat at 14.3% vs 14.3%
- • Operating cash flow $2.76B vs $3.05B; capex $1.17B vs $1.02B; free cash flow $1.56B vs $1.99B
- • 207 net new stores opened in 2025; guidance for 225–235 net new stores in 2026 at $3.2M–$3.5M avg cost per owned location
- • Key risks: rising self-insurance reserves (+$175M YoY), tariff-driven cost inflation, DIY transaction count pressure from weakening discretionary spend
Risk Factors
- • Tariffs and trade policy changes threatening supply chain costs, with manufacturing concentration in foreign countries and potential import limitations on sourced products
- • OEM restrictions on telematics, diagnostic tools, and repair information risk diverting customers to dealerships, reducing aftermarket demand
- • Unsecured debt structure (revolving credit, commercial paper, senior notes) with covenant restrictions and SOFR-linked interest rate exposure
- • Online competitors with lower cost structures creating pricing pressure against O'Reilly's high-cost in-store and distribution network model
- • Key-person dependency flagged explicitly — unexpected loss of senior executives cited as material risk to business operations and cash flows
O’Reilly Automotive FY2025 Key Financial MetricsXBRL
Revenue
$17.8B
▲ +6.4% YoY
Net Income
$2.5B
▲ +6.3% YoY
Gross Margin
51.6%
▲ +39bp YoY
Operating Margin
19.5%
▲ +0bp YoY
Net Margin
14.3%
▼ -1bp YoY
ROE
-332.5%
▼ -15842bp YoY
Total Assets
$16.5B
▲ +11.0% YoY
EPS (Diluted)
$2.97
▼ -92.7% YoY
Operating Cash Flow
$2.8B
▼ -9.4% YoY
Source: XBRL data from O’Reilly Automotive FY2025 10-K filing on SEC EDGAR. All figures in USD.
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