Advance Auto Parts earnings climb to $101 million
- Advance Auto Parts (NYSE:AAP) reported Q2 2026 net sales of $2 billion, with operating income increasing to $101 million.
- Adjusted operating income margin improved to 5.6% from 3% a year earlier.
- The company reaffirmed its 2026 sales, adjusted operating income margin and free cash flow guidance.
Advance Auto Parts (NYSE:AAP) reported second quarter 2026 net sales of $2 billion, while operating income increased to $101 million from $22 million a year earlier as margins improved.
The results compared with the prior-year period as comparable store sales declined 0.5%, with stronger professional customer trends offset by weaker do-it-yourself demand.
Advance Auto Parts reported gross profit of $0.9 billion, representing 46.2% of net sales compared with 43.5% in Q2 2025, while adjusted operating income increased to $112 million and adjusted diluted earnings per share rose to $1.03.
The company said adjusted gross profit included $26 million in refunds related to tariffs previously paid under the International Emergency Economic Powers Act, while selling, general and administrative expenses declined to 41.1% of sales from 42.4%.
Advance Auto Parts also reaffirmed its full-year 2026 guidance and reported lower net leverage of 2.1x in Q2 2026 compared with 2.4x in the first quarter, while returning to positive year-to-date free cash flow after two years of outflows.
