How Does O’Reilly Automotive Make its Money?
O’Reilly Automotive is one of the largest auto parts retailers in the United States, operating over 6,200 stores across 48 states and Mexico. The company serves both do-it-yourself (DIY) customers and professional service providers (DIFM — do-it-for-me) who install parts in repair shops. O’Reilly’s dual-market strategy, extensive distribution network, and industry-leading parts availability have made it a consistent market share gainer. The auto parts business benefits from a secular tailwind: as the average age of US vehicles increases (now over 12 years), demand for replacement parts grows.
O’Reilly Automotive (ORLY) Business Model
O’Reilly Automotive operates in the retail sector. Below is a summary of O’Reilly Automotive’s revenue streams, how the company generates income, and the key financial metrics from its most recent annual report. This breakdown uses data from O’Reilly Automotive’s 2024 fiscal year filings with the SEC.
O’Reilly Automotive Competitors
O’Reilly Automotive’s key competitors and comparable public companies in the retail sector include Costco, Home Depot, Lowes, and Walmart. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how O’Reilly Automotive stacks up by comparing their revenue breakdown, margins, and growth metrics.
O’Reilly Automotive Competitors
O’Reilly Automotive’s key competitors and comparable public companies in the retail sector include Costco, Home Depot, Lowes, and Walmart. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how O’Reilly Automotive stacks up by comparing their revenue breakdown, margins, and growth metrics.
O’Reilly Automotive Competitors
O’Reilly Automotive’s key competitors and comparable public companies in the retail sector include Costco, Home Depot, Lowes, and Walmart. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how O’Reilly Automotive stacks up by comparing their revenue breakdown, margins, and growth metrics.
O’Reilly Automotive Competitors
O’Reilly Automotive’s key competitors and comparable public companies in the retail sector include Costco, Home Depot, Lowes, and Walmart. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how O’Reilly Automotive stacks up by comparing their revenue breakdown, margins, and growth metrics.
O’Reilly Automotive Competitors
O’Reilly Automotive’s key competitors and comparable public companies in the retail sector include Costco, Home Depot, Lowes, and Walmart. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how O’Reilly Automotive stacks up by comparing their revenue breakdown, margins, and growth metrics.
O’Reilly Automotive Competitors
O’Reilly Automotive’s key competitors and comparable public companies in the retail sector include Costco, Home Depot, Lowes, and Walmart. Each of these companies competes for market share, investor attention, and revenue in overlapping segments. See how O’Reilly Automotive stacks up by comparing their revenue breakdown, margins, and growth metrics.
Revenue Breakdown
| Segment | 2024 | 2023 | YoY Growth |
|---|---|---|---|
| Auto Parts & Accessories (DIY) | $9,300 | $8,800 | +5.7% |
| Professional (DIFM) Sales | $6,900 | $6,100 | +13.1% |
| Total Revenue | $16,500 | $16,100 | +2.5% |
Auto Parts & Accessories (DIY) — 56% of Revenue
Professional (DIFM) Sales — 42% of Revenue
Income Statement Overview
| Metric | 2024 | 2023 |
|---|---|---|
| Total Revenue | $16,500 | $16,100 |
| Cost of Revenue | $7,600 | $7,400 |
| Gross Profit | $8,900 | $8,700 |
| Operating Expenses | $5,800 | $5,600 |
| Operating Income | $3,100 | $3,100 |
| Net Income | $2,300 | $2,300 |
All values in millions USD unless otherwise stated.
Key Financial Metrics
- Gross Margin: 53.9%
- Operating Margin: 18.8%
- Revenue Growth: 2.5%
Is O’Reilly Automotive Profitable?
Yes, O’Reilly Automotive is profitable. The company reported net income of $2,300 on total revenue of $16,500. With an operating margin of 18.8%, O’Reilly Automotive demonstrates solid profitability for the retail sector. The gross margin of 53.9% reflects O’Reilly Automotive’s pricing power and cost structure.
What to Watch
- Comparable store sales growth and new store opening cadence
- Professional (DIFM) segment growth as a percentage of total revenue
- Impact of aging vehicle fleet on replacement parts demand
- Long-term EV adoption impact on traditional auto parts demand
O’Reilly Automotive (ORLY) Financial Summary
O’Reilly Automotive (ORLY) is a retail company that generated $16,500 in total revenue in fiscal year 2024. Revenue grew 2.5% year-over-year. The company earned $2,300 in net income, making it profitable. For a deeper look at O’Reilly Automotive’s revenue breakdown, business segments, and financial performance, review the detailed analysis above.