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AAP

Advance Auto Parts, Inc.

AAP

Advance Auto Parts, Inc. • NYSE
$51.88 ▲ 0.76% (+0.39)
Market Cap $3.11 B
52w High $70.00
52w Low $28.89
Dividend Yield 1.00%
P/E -5.08
Volume 2.20M
Outstanding Shares 60.02M

Income Statement

Period Revenue Operating Expense Net Income Net Profit Margin Earnings Per Share EBITDA
Q3-2025 $2.003B ▼ $826M ▼ $-1M ▼ -0.05% ▼ $-0.017 ▼ $252M ▲
Q2-2025 $2.01B ▼ $852M ▼ $15M ▼ 0.746% ▼ $0.25 ▼ $97M ▲
Q1-2025 $2.583B ▲ $1.24B ▲ $24M ▲ 0.929% ▲ $0.4 ▲ $-15M ▲
Q4-2024 $1.996B ▼ $1.167B ▲ $-414.777M ▼ -20.78% ▼ $-6.94 ▼ $-731.748M ▼
Q3-2024 $2.148B $907.495M $-6.014M -0.28% $-0.1 $68.993M

Balance Statement

Period Cash & Short-term Total Assets Total Liabilities Total Equity
Q3-2025 $3.174B ▲ $12.059B ▲ $9.864B ▲ $2.195B ▼
Q2-2025 $1.657B ▼ $10.539B ▼ $8.336B ▼ $2.203B ▲
Q1-2025 $1.672B ▼ $10.617B ▼ $8.42B ▼ $2.197B ▲
Q4-2024 $1.869B ▲ $10.798B ▼ $8.628B ▼ $2.17B ▼
Q3-2024 $464.492M $12.468B $9.871B $2.598B

Cash Flow Statement

Period Net Income Cash From Operations Cash From Investing Cash From Financing Net Change Free Cash Flow
Q3-2025 $-1M ▼ $-12M ▼ $-62M ▼ $1.591B ▲ $1.517B ▲ $-76M ▼
Q2-2025 $15M ▼ $50M ▲ $-48M ▼ $-15M ▲ $-15M ▲ $-3M ▲
Q1-2025 $24M ▲ $-156M ▼ $-27M ▼ $-17M ▲ $-197M ▼ $-198M ▼
Q4-2024 $-609.531M ▼ $-73.303M ▼ $1.479B ▲ $-17.278M ▼ $1.378B ▲ $-124.389M ▼
Q3-2024 $-25.424M $70.122M $-44.845M $-14.739M $-14.926M $27.222M

Revenue by Products

Product Q2-2013Q3-2013Q4-2013Q2-2025
Reportable Segment
Reportable Segment
 $0 ▲$0 ▲$0 ▲$2.01Bn ▲
AAP
AAP
 $1.47Bn ▲$1.44Bn ▼$1.34Bn ▼$0 ▼
AI
AI
 $80.00M ▲$80.00M ▲$70.00M ▼$0 ▼
Intersegment Elimination
Intersegment Elimination
 $0 ▲$0 ▲$0 ▲$0 ▲

Five-Year Company Overview

Income Statement

Income Statement Advance Auto Parts’ sales have been fairly flat over the last few years, but profitability has deteriorated sharply. After several years of solid profits, margins have steadily compressed and the most recent year slipped into an operating loss and a net loss. This points to rising costs, pricing pressure, or execution issues outweighing steady demand. Earnings per share mirrored this pattern: strong earlier in the period, then weakening and finally turning clearly negative. The story here is a business that still sells a lot, but is currently struggling to turn those sales into profit.

Balance Sheet

Balance Sheet The balance sheet shows a mixed picture. Total assets have been relatively stable, but equity has shrunk over time, reflecting accumulated pressure on the business and value erosion. Debt has crept up compared with earlier years, meaning the company is now more leveraged than before. On the positive side, cash on hand has grown meaningfully in the latest year, giving the company more financial flexibility in the short term. Overall, the balance sheet is not distressed, but it is clearly weaker than it was a few years ago and leaves less room for prolonged missteps.

Cash Flow

Cash Flow Historically, the company generated healthy cash from its operations, easily funding store investments and still leaving money left over. More recently, that cash engine has cooled. Operating cash flow dropped sharply, and free cash flow slipped slightly into negative territory in the latest year. The company is still investing in its network and systems, so cash is being used to support the turnaround. The combination of thinner cash generation and ongoing investment heightens the importance of successful execution over the next few years.

Competitive Edge

Competitive Edge Advance Auto Parts operates in a crowded market with very capable rivals like AutoZone and O’Reilly. Its strengths include a well-known brand, a large store base, and strong positions in many of its local markets. The company has intentionally closed weaker stores and is reshaping its footprint around locations where it can be one of the top players. A key strategic focus is the professional repair shop customer, where fast, reliable parts delivery and technical support can create sticky relationships. However, given its weaker recent profitability versus peers, Advance is currently more of a turnaround story than a clear market leader, and it must prove that its new model can restore margins without losing share.

Innovation and R&D

Innovation and R&D For a retailer, Advance is leaning heavily into operational and technology “R&D.” It is overhauling its supply chain, shrinking the number of distribution centers while creating larger “market hub” stores with much deeper inventory and faster delivery for nearby locations and professional customers. The company is investing in unified warehouse systems, AI-driven process improvements, and stronger e-commerce tools. It also differentiates itself through technician training, repair information platforms, and professional shop programs, and is starting to build capabilities for electric and hybrid vehicle parts and training. All of this could meaningfully improve efficiency and loyalty, but these are multi-year projects with significant execution risk before the full benefits show up in financial results.

Summary

Advance Auto Parts is in the middle of a difficult but potentially transformational reset. The top line has held up reasonably well, but profits and cash generation have weakened significantly, culminating in a recent loss and a thinner financial cushion than in prior years. Management’s response is a broad operational turnaround: closing weaker stores, redesigning the distribution network, emphasizing professional customers, and investing in technology and training. If executed well, these moves could restore margins and strengthen its competitive position, especially with repair shops and in emerging areas like electric vehicles. Until then, the company remains exposed to competitive pressure, higher leverage, and the risk that its multi-year improvement plan takes longer, or costs more, than anticipated.

NEWS

November 3, 2025 · 8:00 AM UTC

Advance Auto Parts to Present at the Gabelli Funds 49th Annual Automotive Symposium

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October 30, 2025 · 6:30 AM UTC

Advance Auto Parts Reports Third Quarter 2025 Results

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October 9, 2025 · 8:00 AM UTC

Advance Auto Parts Announces Date for Third Quarter 2025 Earnings Release and Conference Call

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