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Jul 12, 2025
Advance Auto Parts Q2 2025 Earnings Report
Advance Auto Parts returned to profitability with improved adjusted EPS and reaffirmed its full-year guidance.
Key Takeaways
Advance Auto Parts delivered Q2 results in line with expectations, posting modest comparable sales growth and improved adjusted margins, while emphasizing progress in its strategic turnaround and returning to profitability.
Revenue for Q2 2025 was $2.01B, down from $2.18B a year earlier.
Net income was $15M, with adjusted EPS rising to $0.69.
Company returned to profitability, driven by savings from store footprint optimization.
Full-year guidance reaffirmed across sales, margin, and cash flow metrics.
Forward Guidance
Advance reaffirmed full-year guidance for net sales, operating margin, and free cash flow, while lowering EPS guidance due to higher interest costs.
Positive Outlook
- Full-year revenue guidance reaffirmed at $8.4B–$8.6B.
- Adjusted operating margin expected between 2.0%–3.0%.
- Free cash flow forecasted between -$85M to -$25M.
- Continued momentum in Pro business.
- Cost discipline reflected in adjusted margin expansion.
Challenges Ahead
- Adjusted EPS guidance lowered due to higher interest expense.
- SG&A margin still elevated vs. prior year.
- Store closures affecting top-line growth.
- Negative free cash flow in the first half of the year.
- Ongoing pressure in DIY segment performance.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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