O'Reilly (ORLY) Q1 2026 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Thu, April 30, 2026 astatine 11:59 AM CDT 48 min read

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DATE

Thursday, April 30, 2026 astatine 11 a.m. ET

CALL PARTICIPANTS

• Chief Executive Officer — Brad Beckham

• President — Brent Kirby

• Chief Financial Officer — Jeremy Fletcher

• Executive Chairman — Greg Hensley

• Executive Vice Chairman — David O'Reilly

Full Conference Call Transcript

Brad Beckham: Thanks, Jeremy. Good morning, everyone, and invited to the O'Reilly Auto Parts archetypal 4th league call. Participating connected the telephone with maine this greeting are Brent Kirby, our President, and Jeremy Fletcher, our main fiscal officer. Greg Hensley, Executive Chairman, and David O'Reilly, our Executive Vice Chairman, are besides contiguous connected the call. I americium excited to statesman our telephone by thanking our implicit 93,000 squad members for the unthinkable results they were capable to present successful the archetypal quarter. Their hard enactment and implicit dedication to fantabulous lawsuit work produced a beardown commencement to 2026 for O'Reilly with an 8.1% summation successful comparable store sales.

This was supra our expectations for the 4th and, erstwhile combined with our caller store income and contributions from our planetary business, drove double-digit full income maturation of 10.2% successful 2026. Our squad successfully translated these robust income results into an awesome 14% summation successful operating nett done our absorption connected profitable maturation and disbursal control. We coupled this beardown operating show with the instrumentality of excess superior done our stock repurchase programme to present a 16% summation successful diluted net per stock successful the quarter. Thank you again, Team O'Reilly, for keeping our civilization beardown and providing the champion lawsuit work successful the business.

Now I would similar to instrumentality a fewer minutes to locomotion done the details of our archetypal 4th comparable store income performance. Our comp maturation of 8.1% solidly surpassed our expectations, and we were pleased to spot above-planned contributions from some sides of our concern successful the quarter. Our nonrecreational concern continues to beryllium the larger contributor to our full comp results, with our archetypal 4th results marking the 3rd consecutive 4th we person posted double-digit nonrecreational comps. We besides saw spot successful our DIY broadside of our business, which generated a mid-single-digit comp during the archetypal quarter.

While DIY was the smaller wide contributor to the full comparable store income maturation successful the archetypal quarter, it was an adjacent operator of the alpha we delivered versus our expectations coming into the quarter. This outperformance was driven by better-than-expected maturation successful summons counts connected some sides of the business. We judge determination were immoderate favorable manufacture tailwinds that aided our results successful the archetypal 4th that I volition sermon successful a moment. However, we are conscionable arsenic assured our income momentum besides reflects stock gains our squad is winning connected some sides of our business. Next, I privation to supply immoderate item connected the cadence of our income results arsenic we moved done the quarter.