O REILLY AUTOMOTIVE INC (ORLY)

O'Reilly Automotive, Inc. is one of the largest specialty retailers of automotive aftermarket parts, tools, supplies, equipment and accessories in North America. It was founded in 1957 by Charles F. O'Reilly and his son, Charles H. "Chub" O'Reilly, Sr., and started as a single store in Springfield, Missouri. Its common stock has traded on the Nasdaq Global Select Market under the symbol "ORLY" since April 1993. In June 2025 the company completed a 15-for-1 forward stock split. Its stated mission is to be the dominant auto parts provider in every market it serves, through higher customer service levels and better value than its competitors.

The stores carry new and remanufactured automotive hard parts and maintenance items. These include alternators, batteries, brake system components, belts, chassis and driveline parts, engine parts, fuel pumps, starters, water pumps, filters, fluids, oil, lighting and wiper blades. They also sell accessories such as floor mats, seat covers and truck accessories. Enhanced services include battery diagnostic testing, battery, wiper and bulb replacement, check engine light code extraction with VeriScan technology, referrals to local repair shops, custom hydraulic hoses, drum and rotor resurfacing, electrical and module testing, a loaner tool program, paint mixing, and recycling of used oil, oil filters and batteries. Pricing follows a "good, better, best" product assortment.

O'Reilly follows a "dual market strategy" of selling to both do-it-yourself (DIY) customers and professional service providers. In 2025 each group accounted for about 50% of sales. About 825 full-time sales staff are dedicated to professional customers. Professional customers can order online through OReillyPro.com and the O'Reilly Pro mobile app, with local delivery. DIY customers can order through OReillyAuto.com, with in-store pick-up or home delivery. At December 31, 2025, the company operated 6,447 stores in 48 U.S. states and Puerto Rico, 112 stores in Mexico and 26 stores in Canada. Its growth strategy centers on opening new stores, with 207 net new stores in 2025 and 225 to 235 planned for 2026. It opens them by building or renovating sites, acquiring independent "jobber" stores, or purchasing multi-store chains. It also aims to grow comparable store sales.

Operations rely on a regional, tiered distribution network of 32 distribution centers and 399 Hub stores. The distribution centers typically give stores same-day or overnight access to more than 156,000 SKUs. Hub stores provide same-day access to an average of 63,000 SKUs, and up to about 115,000 in select markets. More than 95% of stores receive multiple same-day deliveries, including weekend deliveries. A point-of-sale system integrated with a proprietary electronic catalog supports sourcing, and the company reports no material backorders. Competition comes from other automotive aftermarket retailers, including national chains in densely populated markets. The company emphasizes technically trained "Professional Parts People" and a "promote from within" management approach.