OReilly Automotive Inc. posted a solid QQ3 2025 with USD 4.706 billion in revenue, up 7.8% year over year and 4.0% sequentially. Gross profit rose to USD 2.440 billion, delivering a gross margin of 51.85%, while EBITDA reached USD 1.112 billion and operating income USD 976.1 million, yielding an operating margin of 20.74%. Net income was USD 725.9 million and earnings per share (EPS) stood at USD 0.86 (diluted USD 0.85). These metrics reflect resilient demand for automotive aftermarket parts and effective cost discipline, supporting earnings growth above revenue expansion.
On the cash and balance sheet front, operating cash flow per share was USD 0.727 and free cash flow per share USD 0.359, signaling robust cash generation. However, liquidity metrics indicate near-term working capital pressure: current ratio 0.757, quick ratio 0.113, and cash ratio 0.0235. Days of inventory outstanding and inventory intensity remained high at ~223 days, contributing to a negative cash conversion cycle of around -49.5 days (driven by payables timing of ~280 days). These dynamics suggest aggressive inventory management and supplier terms are playing a meaningful role in funding operations, but also point to potential liquidity risk if operating conditions deteriorate.
Compared with selected peers and industry benchmarks, the company exhibits solid profitability with a gross margin around 51.9% and an EBIT/EBITDA framework consistent with a mature specialty retailer. Valuation metrics implied by the available peer data show elevated price-to-sales and price-to-earnings levels, underscoring a premium placed on stable cash-flow generation and market leadership in the auto parts space. Investors should monitor store-level mix, pricing discipline, and balance sheet liquidity as key drivers of sustained upside.