O Reilly Automotive (ORLY) risk factors, FY2024 10-K

O Reilly Automotive's FY2024 10-K, filed Feb 28, 2025, lists 17 risk factors in 5 groups. There is no earlier 10-K to compare against, so the most company-specific risks are listed below.

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Risk factors listed
175 groups
Section length
5k wordsItem 1A

O Reilly Automotive's biggest risks in the FY2024 10-K

  • O'Reilly's risk profile is dominated by intense automotive aftermarket competition, supply chain dependencies, and regional weather impacts on store traffic.

The risks most specific to O Reilly Automotive

  • Deteriorating economic conditions may adversely impact demand for our products, reduce access to credit, and cause our customers and others, with which we do business, to suffer financial hardship, all of which could adversely impact our business, results of operations, financial condition, and cash flows

    Economic downturns can reduce customer access to credit and discretionary spending, though many of our automotive products are purchased out of necessity.

  • The automotive aftermarket business is highly competitive, and we may have to risk our capital to remain competitive, all of which could adversely impact our business, results of operations, financial condition, and cash flows

    The automotive aftermarket is highly competitive across both DIY and professional service provider segments, requiring continuous capital risk to maintain our market position.

  • We are sensitive to regional economic and weather conditions that could impact our costs and sales

    Unusually inclement weather and natural disasters historically discourage DIY customer store visits and reduce sales.

  • A change in the relationship with any of our key suppliers, the limited supply or unavailability of key products, supply chain disruptions, or changes in trade policies could affect our financial health

    Supplier relationship changes, limited product availability, supply chain disruptions, or trade policy shifts could harm our financial health.

  • Business interruptions in our distribution centers or other facilities may affect our store hours, stability of systems we rely on, and/or availability and distribution of merchandise, which may affect our business

    Business interruptions at our distribution centers could disrupt nightly inventory delivery and store operations.

  • RISKS RELATED TO OUR INDEBTEDNESS AND FINANCING

    Our debt levels could adversely affect our cash flow and prevent us from fulfilling our obligations

    Our unsecured revolving credit facility, commercial paper program, and senior notes create debt levels that could negatively affect our cash flow.

  • RISKS RELATED TO INFORMATION TECHNOLOGY AND DATA PRIVACY

    Damage, failure, or interruptions of information technology systems could adversely affect our business operations and results

    Damage or interruptions to our information technology systems, including those managed by third parties, could adversely affect business operations.

  • RISKS RELATED TO INFORMATION TECHNOLOGY AND DATA PRIVACY

    A breach of customer, supplier, Team Member, or Company information could damage our reputation or result in substantial additional costs or litigation

    Security breaches involving personally identifiable or confidential information of customers, suppliers, or team members could damage our reputation and cause litigation.

  • GENERAL RISKS

    We cannot assure future growth will be achieved

    Future growth depends on our ability to open profitable new stores, which is subject to zoning, weather, and site development challenges.

  • GENERAL RISKS

    Litigation, governmental proceedings, environmental, employment, and tax legislation and regulations may affect our business, financial condition, results of operations, and cash flows

    Litigation involving motor vehicle accidents from operating our large vehicle fleet and other regulatory proceedings could impact our financial condition.

All 17 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01RISKS SPECIFIC TO OUR BUSINESS AND INDUSTRY
  2. 02Deteriorating economic conditions may adversely impact demand for our products, reduce access to credit, and cause our customers and others, with which we do business, to suffer financial hardship, all of which could adversely impact our business, results of operations, financial condition, and cash flows
  3. 03The automotive aftermarket business is highly competitive, and we may have to risk our capital to remain competitive, all of which could adversely impact our business, results of operations, financial condition, and cash flows
  4. 04We are sensitive to regional economic and weather conditions that could impact our costs and sales
  5. 05A change in the relationship with any of our key suppliers, the limited supply or unavailability of key products, supply chain disruptions, or changes in trade policies could affect our financial health
  6. 06Business interruptions in our distribution centers or other facilities may affect our store hours, stability of systems we rely on, and/or availability and distribution of merchandise, which may affect our business
  7. 07Failure to protect our brand and reputation could have a material adverse effect on our brand name, business, results of operations, financial condition, and cash flows
  8. 08Risks associated with international operations could result in additional costs and inefficiencies

Risks related to us and unanticipated fluctuations in our quarterly operating results could affect our stock price

  1. 09The market price of our common stock may be volatile and could expose us to securities class action litigation

RISKS RELATED TO OUR INDEBTEDNESS AND FINANCING

  1. 10Our debt levels could adversely affect our cash flow and prevent us from fulfilling our obligations
  2. 11A downgrade in our credit rating would impact our cost of capital and could impact the market value of our unsecured senior notes, as well as limit our access to attractive supplier financing programs

RISKS RELATED TO INFORMATION TECHNOLOGY AND DATA PRIVACY

  1. 12Damage, failure, or interruptions of information technology systems could adversely affect our business operations and results
  2. 13A breach of customer, supplier, Team Member, or Company information could damage our reputation or result in substantial additional costs or litigation

GENERAL RISKS

  1. 14We cannot assure future growth will be achieved
  2. 15In order to be successful, we will need to attract, retain, and motivate qualified employees
  3. 16Risks associated with future acquisitions may not lead to expected growth and could result in increased costs and inefficiencies
  4. 17Litigation, governmental proceedings, environmental, employment, and tax legislation and regulations may affect our business, financial condition, results of operations, and cash flows

Other O Reilly Automotive 10-Ks

  • FY2025 10-K risk factors
    19 risks2 new3 reworded

    The company added specific IT risks regarding artificial intelligence investments and third-party system dependencies.

    Filed Feb 27, 2026

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.