O’Reilly Automotive Inc (ORLY) Stock Research Report

Where the Spare Parts Come From

Sooner or later, every car needs something: a battery that gives up on a cold morning, brake pads worn thin, wiper blades that smear more than they clear. Some owners fix these things themselves on a Saturday; many more hand the keys to a garage.

Either way, the part has to come from somewhere. In the United States, it very often comes from an O'Reilly store, which sells both to the owner with a toolbox and to the mechanic who needs the part before lunch.

O'Reilly's profit per share has grown faster than its sales. The company buys back its own shares, so each year its profit is divided among fewer owners. Lately, it seems to have borrowed more money to do so. The method has worked so far. Can the stores keep earning enough to pay for it?

What the Company Does

What O'Reilly sells are the parts that keep a car running long after it has left the showroom. Most of them sit under the hood: alternators, which recharge the battery while the engine turns; starters; water pumps; filters; motor oil. Around them come smaller purchases, such as floor mats, seat covers and accessories for pickup trucks.

On each shelf, national names such as Bosch stand beside the store's own labels, among them Super-Start. These house labels come at good, better and best levels of quality. O'Reilly has no other business: all of its revenue comes from parts and accessories for cars.

Picture a driver whose check-engine light has come on. At the counter, an employee reads the fault code stored in the car's computer, and the driver learns which part has failed. The driver buys it, borrows the tool needed to fit it, and does the job at home.

Repair shops are served differently. About 825 salespeople work only with them. The shops also order through a website and a mobile app made for them.

At the end of 2025, O'Reilly ran 6,585 stores, almost all in the United States. Behind them stand 32 distribution centers, along with larger branches that act as local hubs. Together, they let a store obtain a very wide range of parts the same day or overnight.

O'Reilly calls this its dual market strategy, and it means serving both groups from the same stores. In 2025 each group brought in half of sales. A year earlier, do-it-yourself owners had brought in 52%.

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Producer and publisher: Francesco Monterosso · ReasyPort
Financial information reference: 2026-03-31
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O’Reilly Automotive Inc (ORLY) - Stock report