Auto Parts Retailer Q4 Summary: O'Reilly (NASDAQ:ORLY)

Q4 Review: Auto Parts Retailers' Standout Performances

With the fourth quarter earnings season wrapping up, it's an ideal moment to evaluate which auto parts retailers excelled and which lagged behind, including O'Reilly (NASDAQ:ORLY) and its industry counterparts.

Automobiles require ongoing care and occasional repairs, and auto parts retailers serve both professional mechanics and DIY enthusiasts. These stores supply everything needed for vehicle upkeep, from fluids and replacement parts to accessories. Although online competition poses a challenge, brick-and-mortar retailers maintain an advantage through their extensive product selection and knowledgeable staff. The rise of electric vehicles is also expected to influence the industry’s future landscape.

Industry Overview

Among the five leading auto parts retailers we monitor, fourth quarter results were mixed. Collectively, their revenues matched Wall Street expectations.

Despite some companies performing better than others, the sector as a whole has seen share prices fall by an average of 3.2% since the latest earnings releases.

O'Reilly Automotive (NASDAQ:ORLY)

O’Reilly Automotive caters to both do-it-yourselfers and professional mechanics, offering a wide range of products from fuel pumps and mufflers to air fresheners.

For the quarter, O'Reilly posted $4.41 billion in revenue, representing a 7.8% increase year-over-year and aligning with analyst forecasts. However, the company’s full-year earnings per share and revenue guidance fell short of expectations, signaling a slower period overall.

CEO Brad Beckham shared: “I want to recognize our 93,000+ team members for their dedication and hard work, which helped us finish 2025 on a strong note. Our team continues to capture market share in both our professional and DIY segments through outstanding customer service and industry-leading parts availability, resulting in 5.6% comparable store sales growth for the fourth quarter. Strong sales and gross margins led to a 12% increase in operating profit and a 13% rise in diluted EPS for the quarter. While we’re proud of our team’s ability to leverage our investments and manage costs, SG&A expenses exceeded our expectations due to higher inflation in healthcare and casualty claims. We remain focused on controlling expenses and addressing these pressures, but our priority remains delivering top-tier service and parts availability to drive results and win market share.”

O'Reilly's Guidance and Stock Performance

O'Reilly issued the most cautious full-year outlook among its peers. Since the earnings report, its shares have declined 2.2%, currently trading at $94.58.

Top Q4 Performer: Advance Auto Parts (NYSE:AAP)

Founded in Virginia in 1932, Advance Auto Parts offers a broad selection of automotive parts and accessories, from carburetors and motor oil to floor mats.

Advance Auto Parts reported $1.97 billion in revenue, a 1.2% year-over-year decrease, but still surpassed analyst estimates by 1%. The company delivered a strong quarter, beating both EPS and full-year EPS guidance expectations.

Advance Auto Parts achieved the largest beat on analyst estimates and raised its full-year guidance more than any competitor. Despite these positives, the market reacted negatively, with the stock down 6.9% since the report, now trading at $54.20.

Weakest Q4: AutoZone (NYSE:AZO)

AutoZone aims to be the go-to destination for DIY car owners, offering everything from batteries and brake pads to windshield wiper fluid.

The company reported $4.63 billion in revenue, up 8.2% from the previous year and in line with expectations. However, AutoZone missed both EBITDA and EPS estimates, making for a softer quarter.

Following the results, the stock price remained unchanged and is currently at $3,792.

Monro (NASDAQ:MNRO)

Monro began as a single shop in Rochester, New York, and now provides essential auto services such as brake work, tire changes, and oil services.

Monro’s revenue came in at $293.4 million, a 4% year-over-year decline, missing analyst expectations by 0.6%. Nevertheless, the company exceeded EPS and EBITDA forecasts for the quarter.

Monro experienced the slowest revenue growth among its peers, but its stock has climbed 11.1% since the earnings release, now trading at $22.25.

Genuine Parts Company (NYSE:GPC)

Genuine Parts primarily serves professional customers, supplying both automotive and industrial components such as batteries, belts, bearings, and machine fluids.

The company reported $6.01 billion in revenue, a 4.1% increase year-over-year, but fell short of analyst expectations by 0.8%. The quarter was challenging, with full-year EPS and EBITDA guidance both missing estimates by a wide margin.

Genuine Parts had the weakest performance relative to analyst expectations in the group. Its stock has dropped 18.6% since the earnings announcement and is currently priced at $119.78.

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