Advance Auto Parts Q2 Earnings: Revenue Down 7.7%, Adjusted EPS Beats Estimates

Advance Auto Parts reported Q2 CY2025 results with revenue of $2.01 billion, a 7.7% year-over-year decline, and a non-GAAP profit of $0.69 per share, beating estimates. The company reconfirmed its revenue guidance for the full year of $8.5 billion but lowered its full-year Adjusted EPS guidance to $1.70. Management attributed the performance to margin pressures, ongoing operational challenges, and a challenging operating environment.

Advance Auto Parts (NYSE:AAP) reported its Q2 CY2025 results, revealing a 7.7% year-over-year decline in revenue to $2.01 billion, but still managed to beat analysts’ estimates by 1%. The company’s non-GAAP profit of $0.69 per share was 18.3% above consensus estimates. However, the stock remained flat at $61.30 immediately following the results.

Key highlights from the quarter include:
- Revenue: $2.01 billion vs. analyst estimates of $1.99 billion (7.7% year-on-year decline, 1% beat)
- Adjusted EPS: $0.69 vs. analyst estimates of $0.58 (18.3% beat)
- Adjusted EBITDA: $68 million vs. analyst estimates of $132.3 million (3.4% margin, 48.6% miss)

Management reconfirmed its revenue guidance for the full year of $8.5 billion at the midpoint, but lowered its full-year Adjusted EPS guidance to $1.70 at the midpoint, a 15% decrease. Operating margin was 1.1%, down from 2.4% in the same quarter last year. Free cash flow was -$3 million, down from $44.37 million in the same quarter last year.

Shane O'Kelly, president and chief executive officer, commented, "The Advance team delivered solid second-quarter results, with both sales and operating margin at the upper end of our expectations. I want to thank the team for their dedication and hard work throughout the quarter."

Store Performance and Same-Store Sales
Advance Auto Parts listed 4,292 locations in the latest quarter and has generally closed its stores over the last two years, averaging 4% annual declines. Same-store sales were flat year on year, in line with the same quarter last year.

Key Takeaways
While the company beat analysts’ EPS expectations this quarter, its full-year EPS guidance missed and its EBITDA fell short of Wall Street’s estimates. Overall, this was a softer quarter. The stock remained flat at $61.30 immediately following the results.

References
[1] https://finance.yahoo.com/news/advance-auto-parts-nyse-aap-104620892.html
[2] https://news.alphastreet.com/advance-auto-parts-aap-q2-2025-earnings-decline-on-lower-sales/
[3] https://www.nasdaq.com/articles/advance-auto-parts-q2-profit-decreases-beats-estimates
[4] https://www.nasdaq.com/articles/advance-auto-parts-returns-profit-q2