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Oct 04, 2025
Advance Auto Parts Q3 2025 Earnings Report
Advance Auto Parts reported a net loss and lower revenue in Q3 2025 but achieved significant adjusted earnings improvements.
Key Takeaways
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.
Forward Guidance
Advance Auto Parts reaffirmed its full-year guidance midpoint and expects margin improvements to continue, while navigating cost pressures and restructuring impacts.
Positive Outlook
- 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.
Challenges Ahead
- 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).
Historical Earnings Impact
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Avg. Return Before/After Earnings
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