ADVANCE AUTO PARTS (AAP) Company Report

Advance Auto Parts reported stronger-than-expected Q3 results, with adjusted EPS of $0.92 and revenue of approximately $2.04 billion, surpassing consensus estimates.
Management raised full-year revenue guidance to $8.55–$8.60 billion and tightened adjusted EPS guidance to $1.75–$1.85.
The company achieved its strongest quarterly performance in over two years, marked by a roughly 3% rise in comparable-store sales and operational improvements, including a 1.1% operating margin.
Following the positive earnings and guidance update, shares of Advance Auto Parts jumped about 21% in premarket trading.

Oct 30, 2025, 4:53 PM

Morningstar

Advance Auto Parts Reports Strong Q3 2025 Results and Updates Full-Year Guidance

AAP

Earnings

Guidance Update

New Projects/Investments

Advance Auto Parts reported strong Q3 2025 results, with 3% comparable sales growth and an adjusted operating margin of 4.4%, representing a 370 basis point year-over-year expansion. Adjusted diluted EPS from continuing operations was $0.92.
The company updated its full-year 2025 guidance, projecting net sales between $8.55 billion and $8.6 billion, comparable sales growth of 0.7% to 1.3%, and adjusted EPS in the range of $1.75 to $1.85.
Strategic initiatives are advancing, including the consolidation of U.S. Distribution Centers to 16 by year-end and year-to-date investments of approximately $50 million in store upgrades.
The balance sheet was strengthened by raising nearly $2 billion in cash, providing over $3 billion in cash and access to a $1 billion revolving credit facility.
For the full year 2025, LIFO expenses are anticipated to be a 60-80 basis points headwind, with Q4 LIFO expense estimated at approximately $70 million.

Oct 30, 2025, 12:00 PM

Transcript

Advance Auto Parts Reports Strong Q3 2025 Results and Updates Full-Year Guidance

AAP

Earnings

Guidance Update

New Projects/Investments

Advance Auto Parts reported Q3 2025 comparable sales growth of 3% and an adjusted operating margin of 4.4%, which expanded by 370 basis points year over year, leading to adjusted diluted EPS of $0.92.
The company updated its full-year 2025 guidance, projecting net sales between $8.55 billion and $8.60 billion (comparable sales growth of 0.7% to 1.3%), an adjusted operating income margin of 2.4% to 2.6%, and adjusted EPS between $1.75 and $1.85.
Strategic initiatives include strengthening the balance sheet by raising nearly $2 billion in cash through debt restructuring, progressing on DC consolidation to 16 DCs by year-end, and expanding its market hub network, with 33 locations expected by year-end and a target of 60 by mid-2027.
A non-cash charge of $28 million was recorded in Q3 cost of sales due to a supplier bankruptcy, though this does not impact adjusted results or full-year guidance.

Oct 30, 2025, 12:00 PM

Transcript

AAP Reports Strong Q3 2025 Results and Updates Full-Year Guidance

AAP

Earnings

Guidance Update

New Projects/Investments

Advance Auto Parts reported strong Q3 2025 results, with 3% comparable sales growth and adjusted operating margin expanding by 370 basis points year over year to 4.4%, resulting in adjusted diluted EPS of $0.92.
The company updated its full-year guidance, projecting net sales of $8.55 billion to $8.6 billion, comparable sales growth between 0.7% and 1.3%, and adjusted operating income margin of 2.4% to 2.6%. Adjusted EPS guidance is set at $1.75 to $1.85, and free cash flow is revised to negative $90 million to $80 million.
Strategic initiatives are advancing, including the successful rollout of a new assortment framework across its top 50 DMAs (covering 70% of sales), the consolidation of U.S. distribution centers to 16 by year-end, and the planned opening of 14 market hubs in 2025 to reach 33 locations.
The balance sheet was strengthened by reorganizing debt capital structure, raising nearly $2 billion in cash, and the company confirmed its commitment to achieving a 7% operating margin by 2027.

Oct 30, 2025, 12:00 PM

Transcript

Advance Auto Parts Reports Strong Q3 2025 Results and Updates Full-Year Guidance

AAP

Earnings

Guidance Update

New Projects/Investments

Advance Auto Parts reported strong Q3 2025 results, with 3% comparable sales growth and an adjusted operating margin of 4.4%, representing a 370 basis point expansion year-over-year, leading to adjusted diluted earnings per share of $0.92.
The company reaffirmed the midpoint of its full-year comparable sales growth and adjusted operating margin guidance, implying approximately 200 basis points of margin expansion for the year, and strengthened its balance sheet by raising nearly $2 billion in cash.
Strategic progress includes the successful rollout of a new assortment framework across top markets, U.S. distribution center consolidation targeting 16 DCs by year-end, and the opening of 28 market hubs by Q3 2025, with a goal of 33 by year-end.
Capital expenditures for the year were revised to approximately $250 million, and free cash flow expectations were updated to a range of negative $90 million to $80 million for the year. The company maintains its goal of achieving a 7% operating margin by 2027, acknowledging a non-linear path.

Oct 30, 2025, 12:00 PM

Transcript

Advance Auto Parts Announces Q3 2025 Results and Updates FY 2025 Guidance

AAP

Earnings

Guidance Update

New Projects/Investments

Advance Auto Parts reported Q3 2025 net sales of $2.0 billion, a 5.2% year-over-year decrease, alongside +3.0% comparable store sales growth and adjusted diluted EPS of $0.92.
The company updated its FY 2025 guidance, projecting net sales between $8,550 million and $8,600 million and adjusted diluted EPS of $1.75 to $1.85. The adjusted operating income margin guidance was raised to 2.40% to 2.60%.
Operational metrics showed improvement, with store availability reaching 96% to 97% in Q3 2025 and DC labor productivity seeing mid-single-digit percentage improvement year-to-date Q3 2025 compared to FY 2024.
Strategic initiatives include consolidating US Distribution Centers to 16 by end-2025 from 38 at end-2023, expanding the market hub network to 33 by end-2025, and planning to open at least 100 new stores over the next two years.

Oct 30, 2025, 12:00 PM

Presentation

Advance Auto Parts Reports Strong Q3 2025 Results and Reaffirms Full Year Guidance

AAP

Earnings

Guidance Update

Dividends

Advance Auto Parts reported its strongest quarterly performance in over two years for the third quarter ended October 4, 2025, achieving 3.0% comparable store sales growth and a 4.4% adjusted operating income margin.
For the third quarter of 2025, the company's adjusted diluted earnings per share was $0.92.
The company reaffirmed the midpoint of its full year comparable sales growth and adjusted operating margin guidance, with updated full year 2025 guidance for net sales between $8,550 million and $8,600 million, comparable store sales growth between 0.7% and 1.3%, and adjusted diluted EPS between $1.75 and $1.85.
Advance Auto Parts ended the quarter with over $3 billion of cash on its balance sheet.
A regular cash dividend of $0.25 per share was declared on October 27, 2025, payable on January 23, 2026.

Oct 30, 2025, 10:31 AM

8-K

Advance Auto Parts Reports Third Quarter 2025 Results

AAP

Earnings

Guidance Update

Revenue Acceleration/Inflection

Advance Auto Parts reported net sales of $2.0 billion and comparable store sales growth of 3.0% for the third quarter ended October 4, 2025.
The company achieved an adjusted operating income margin of 4.4% and adjusted diluted earnings per share of $0.92 for the third quarter of 2025.
Advance Auto Parts ended the quarter with a strong liquidity position, holding over $3 billion in cash on its balance sheet as of October 4, 2025.
The company reaffirmed the midpoint of its full-year comparable sales growth and adjusted operating margin guidance and is on track to deliver approximately 200-basis points of annual margin expansion in the first year of its turnaround.

Oct 30, 2025, 10:30 AM

Press Release

Advance Auto Parts Reports Q2 2025 Results and Updates Guidance

AAP

Earnings

Guidance Update

Debt Issuance

Advance Auto Parts reported Q2 2025 adjusted earnings of 69 cents per share on $2.01 billion in sales, surpassing Wall Street estimates despite a nearly 8% decline in revenue and a significant drop in net income to $15 million.
For the full year 2025, the company lowered its adjusted earnings per share guidance to a range of $1.20 to $2.20 but reaffirmed its net sales forecast of $8.4 billion to $8.6 billion and comparable store sales growth of 0.5% to 1.5%.
The company strengthened its capital structure by completing a $1.95 billion senior notes offering and securing a new $1 billion asset-backed revolving credit facility.

Aug 14, 2025, 7:59 AM

Morningstar

Advance Auto Parts Prices Senior Notes Offering

AAP

Debt Issuance

Advance Auto Parts has priced an offering of $1.95 billion in aggregate senior notes, comprising $975 million due 2030 at 7.000% interest and $975 million due 2033 at 7.375% interest.
The sale of the notes is expected to close on or about August 4, 2025.
Proceeds from the notes will be used to redeem the outstanding 5.90% Senior Notes due March 9, 2026, for general corporate purposes, and to contribute cash to the initial borrowing base for a new asset-based loan (ABL) facility.
Substantially concurrently with the notes offering, the company expects to enter into a new ABL Facility of up to $1,000 million to replace its existing credit facility.

Jul 28, 2025, 8:24 PM

Press Release

Earnings Transcripts

Quarterly earnings call transcripts for ADVANCE AUTO PARTS.

Ask Fintool AI Agent

Get instant answers from SEC filings, earnings calls & more

What did Shane O'Kelly say about margins?What are ADVANCE AUTO PARTS's strategic priorities?How is ADVANCE AUTO PARTS positioned vs competitors?How did ADVANCE AUTO PARTS do last quarter?

Let Fintool AI Agent track ADVANCE AUTO PARTS's earnings for you

Get instant analysis when filings drop