ORLY · 10-Q · 2026Q2 · Full report

Outstanding Indebtedness

O REILLY AUTOMOTIVE INC · 2026-08-07 · Importance 79 · Surprise 66 · Contradicted

GAAP debt increased to $7.01 billion as of June 30, 2026, from $5.82 billion a year earlier. The company redeemed $500 million of senior notes and issued $850 million of senior notes during the first half of 2026, while also using net commercial-paper borrowings. Adjusted debt, including letters of credit and five-times rent expense, increased to $9.77 billion from $8.37 billion. O’Reilly remained compliant with its debt covenants, with a 6.11 times fixed-charge coverage ratio and a 2.07 times leverage ratio versus required thresholds of 2.50 times and 3.50 times.

Key facts

• Net cash used in financing activities for the six months ended June 30, 2026 was $(1,421,650) (in thousands). source
• GAAP debt as of June 30, 2026 was $7,014,543 (in thousands). source
• Five-times rent expense used in adjusted debt calculation for the twelve months ended June 30, 2026 was $2,525,625 (in thousands). source
• Non-GAAP adjusted debt for the twelve months ended June 30, 2026 was $9,768,434 (in thousands). source
• Stand-by letters of credit added to GAAP debt for the twelve months ended June 30, 2026 were $197,809 (in thousands). source
• We had a consolidated fixed charge coverage ratio of 6.11 times and 6.02 times as of June 30, 2026 and 2025, respectively. source
• We had a consolidated leverage ratio of 2.07 times and 1.95 times as of June 30, 2026 and 2025, respectively. source
• Unamortized discount and debt issuance costs added to GAAP debt for the twelve months ended June 30, 2026 were $30,457 (in thousands). source

Impact estimates