NYSE$AAP

Advance Auto Parts Inc · Q3 2025 earnings

Q3 2025 earnings · · Before market open · Investor relations

Briefing

Advance Auto Parts reported a net loss and lower revenue in Q3 2025 but achieved significant adjusted earnings improvements.

Advance Auto Parts delivered its strongest adjusted operating performance in over two years, driven by improvements in both Pro and DIY channels, despite reporting a net loss on a GAAP basis.

  • Adjusted EPS reached $0.92, compared to $(0.05) in the prior year.
  • Comparable store sales grew 3.0% in the quarter.
  • Adjusted operating income margin expanded to 4.4%.
  • Free cash flow was an outflow of $277 million, impacted by restructuring costs.

Headline financials

Total Revenue

$2.04B

Previous: $2.15B-5.2%
EPS (adj)

$0.92

Previous: -$0.10+1020.0%
Adjusted Gross Margin

44.8%

Previous: 42.3%+5.9%
SG&A Margin

42.2%

Previous: 42.3%-0.2%
Operating Income Margin

1.1%

Previous: 0.0%
Comparable Store Sales

3.0%

No prior period
Gross Profit Margin

43.3%

Previous: 42.3%+2.4%
Adjusted Operating Income Margin

4.4%

Previous: 0.7%+528.6%
Adjusted SG&A Margin

40.4%

Previous: 41.5%-2.7%
Capital Expenditures

-$159M

Previous: -$130M-22.6%
Net Income

-$1M

Previous: -$6.01M+83.4%
Operating Income

$22M

Previous: $403K+5359.1%
Gross Profit

$881M

Previous: $908M-3.0%

Revenue & EPS history

Advance Auto Parts · Revenue · Quarterly

$2.04B

Q3 2025-5.2%vs Q3 2024
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Forward guidance

Advance Auto Parts reaffirmed its full-year guidance midpoint and expects margin improvements to continue, while navigating cost pressures and restructuring impacts.

Tailwinds

  • Full-year comparable store sales guidance reaffirmed between 0.7% and 1.3%.
  • Adjusted operating income margin expected between 2.4% and 2.6%.
  • Adjusted EPS guidance raised to $1.75–$1.85.
  • Company expects approximately 30 new store openings and 14 new market hubs.
  • Strategic sourcing and footprint optimization are expected to support margin expansion.

Headwinds

  • Free cash flow guidance remains negative, between ($90M) and ($80M).
  • Ongoing restructuring costs are expected to continue impacting cash flows.
  • Restructuring and transformation expenses projected to remain elevated.
  • No improvement in revenue from prior year Q3 ($2.15B vs. $2.04B).
  • Net cash used in operating activities year-to-date stands at $118M.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 19 quarterly earnings reports · overlaid with Q3 2025

Historical avgQ3 2025

-0.4%

Avg return

Earnings day

-2.1%

Avg return

5 days after

-1.4%

Avg return

30 days after

45%

29 / 65 earnings

Positive

+57.0%

Q1 2025

Best reaction

-39.4%

Q1 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2027+18.9%
Q4 2025+1.1%-3.9%-11.1%
Q3 2025-8.4%-12.8%-5.9%
Q2 2025-7.5%-8.9%-1.2%
Q1 2025+57.0%+58.4%+57.8%
Q4 2024-17.8%-22.8%-15.1%
Q3 2024-7.9%-6.0%+7.1%
Q2 2024-20.6%-22.7%-33.8%
Q1 2024-4.6%-3.9%-9.8%
Q4 2023+4.3%+7.6%+31.4%
Q3 2023-8.5%-9.2%+7.4%
Q2 2023+0.8%-2.5%-14.5%
Q1 2023-39.4%-41.5%-37.3%
Q4 2022-1.3%-1.5%-15.7%
Q3 2022-15.0%-19.7%-22.1%
Q2 2022-9.4%-12.5%-17.3%
Q1 2022-0.9%+6.1%-4.0%
Q4 2021-0.2%-1.9%-6.9%
Q3 2021-1.4%-3.8%+0.0%
Q2 2021+2.2%-1.9%+3.0%
Q1 2021-1.8%-0.8%+8.4%
Q4 2020+5.9%+8.6%+20.2%
Q3 2020-0.1%-1.7%+1.0%
Q2 2020-0.1%-3.0%-3.9%
Q1 2020+3.5%+1.8%+12.7%
Q4 2019+4.9%+5.3%-35.6%
Q3 2019-6.1%-3.6%-7.5%
Q2 2019-4.0%-3.9%+9.2%
Q1 2019-0.9%-2.0%-5.0%
Q4 2018-2.3%-5.0%-0.5%
Q3 2018+6.4%+7.3%-0.5%
Q2 2018+9.1%+10.3%+15.1%
Q1 2018+3.4%+4.8%+17.1%
Q4 2017+4.9%+9.0%+5.2%
Q3 2017+11.3%+8.5%+21.8%
Q2 2017-16.3%-14.7%-8.5%
Q1 2017-6.2%-4.6%-14.9%
Q4 2016-1.2%-2.6%-6.7%
Q3 2016+13.3%+12.1%+18.3%
Q2 2016-5.8%-5.8%-11.2%
Q1 2016+1.8%
Q4 2015+1.6%
Q3 2015-17.0%
Q2 2015+8.7%
Q1 2015+6.9%
Q4 2014-7.5%
Q3 2014-5.0%
Q2 2014+6.9%
Q1 2014-1.2%
Q4 2013+12.9%
Q3 2013-0.1%
Q2 2013+1.1%
Q1 2013-2.8%
Q4 2012+8.2%
Q3 2012-1.7%
Q2 2012-2.8%
Q1 2012+1.3%
Q4 2009+1.4%
Q3 2011-1.3%
Q2 2011-0.6%
Q1 2011-1.0%
Q3 2010+0.3%
Q2 2010+0.8%
Q1 2010+2.2%
Q4 2010+2.2%

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