Current HELOC & Home Equity Loan Rates: August 11, 2025
Home equity loans and home equity lines of credit (HELOCs) allow homeowners to tap into the value of their homes.
A home equity loan is a fixed-rate, lump-sum loan that allows homeowners to borrow up to 85% of their home's value and pay that amount back in monthly installments. A home equity line of credit is a variable-rate second mortgage that draws on your home's value as a revolving line of credit.
Both options use your property as collateral for your payments, which means your lender can seize your property if you can't repay what you borrow.
Ideal for Medium-Sized Projects
A $100K HELOC is suitable for more extensive renovation projects or other significant financial needs. Compare the rates and terms to find the best fit for your situation.
Access More Funds for Major Investments
For larger projects or investments, a $250K HELOC provides the necessary funds with various LTV options. Explore these rates to determine the right balance between borrowing capacity and risk.
Maximize Your Borrowing Power
If you have substantial equity in your home and need significant financing, a $500K HELOC offers a great deal of borrowing power. Evaluate these options to find the optimal rate and term for your goals.
A 5-year term offers a shorter repayment period with typically higher monthly payments. These products are suitable for borrowers looking for a quicker payoff.
With a 10-year term, borrowers can enjoy a balanced monthly payment while still building equity quickly. 10-year home equity loans are ideal for medium-sized projects or financial needs.
A 15-year term provides lower monthly payments compared to shorter terms, offering more affordability while still progressing toward your financial goals.
Offering longer repayment and lower monthly payments, 20-year home equity loans are suitable for larger investments and long-term financial planning.
The 30-year term maximizes affordability with the lowest monthly payments. These options are best for substantial borrowing needs and long-term investments.
Home equity represents how much you own of your home compared to what the bank or mortgage lender owns. If you've paid off your home in full, you have 100% equity.
You can utilize your home's equity without paying off your home in full, whether through a home equity loan or a home equity line of credit (HELOC). You can use your home's equity for home improvements, repairs, debt consolidation and educational costs, among other things.
Home equity lines of credit, or HELOCs, are loans that allow you to borrow against your home's equity - the current market value of your home minus your remaining mortgage balance. When you get a HELOC, you can take the money available in installments as you need it, and pay interest only on what you use.
A home equity loan is a lump-sum loan that allows you to borrow money by leveraging your home's equity.
The maximum amount you're allowed to borrow is based on how much equity you have in your home, up to the amount offered by that lender. These types of loans tend to have competitive interest rates since they're secured loans. Your home is used as collateral to secure the loan, meaning if you miss or fall behind on payments, you could face foreclosure.
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Yahoo
19 minutes ago
- Yahoo
Advance Auto Parts Reports Second Quarter 2025 Results and Reaffirms Full Year Sales, Operating Margin and Free Cash Flow Guidance
Returned to Profitability in Second Quarter 2025 Completed Offering of $1.95 Billion of Senior Notes Entered new $1.0 Billion Asset-Backed Revolving Credit Facility to Replace Prior Facility RALEIGH, N.C., August 14, 2025--(BUSINESS WIRE)--Advance Auto Parts, Inc. (NYSE: AAP), a leading automotive aftermarket parts provider in North America that serves both professional installer and do-it-yourself customers, announced its financial results for the second quarter ended July 12, 2025. "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," said Shane O'Kelly, president and chief executive officer. "Our comparable sales performance was fueled by growth in the Pro business, and we are encouraged by the early signs of stabilization in our DIY business. Our strategic plan is designed to establish a strong foundation for consistently delivering exceptional customer service, and I am pleased with the progress being made by the team. Q2 also marked an important milestone with Advance returning to profitability. Over the past year, we have taken decisive actions aimed at creating long-term value for our shareholders, and we remain focused on positioning the Company for sustained, profitable growth." Second Quarter 2025 Results (1,2) Second quarter 2025 net sales totaled $2.0 billion, compared with $2.2 billion in the second quarter of the prior year. Comparable store sales for the second quarter 2025 increased 0.1%. The Company's second quarter 2025 gross profit was $0.9 billion, or 43.5% of net sales compared with $1.0 billion, or 43.6% in the second quarter of the prior year. Adjusted gross profit was $0.9 billion, or 43.8% of net sales compared with $1.0 billion, or 43.6% in the second quarter of the prior year. The margin expansion was driven by savings associated with the footprint optimization activity completed in March. These savings were partially offset by the reversal of previously capitalized inventory costs. The Company's second quarter 2025 selling, general and administrative (SG&A) expenses were $0.9 billion, or 42.4% of net sales compared with $0.9 billion, or 41.1% in the second quarter of the prior year. Adjusted SG&A expenses were $0.8 billion, or 40.7% of net sales in the second quarter of 2025 compared with $0.9 billion, or 40.8% in the second quarter of 2024. The reduction in SG&A expenses was primarily related to operation of fewer stores compared to last year. The Company's second quarter 2025 operating income was $22 million, or 1.1% of net sales, compared with operating income of $54 million, or 2.5% in the second quarter of the prior year. Adjusted operating income was $61 million, or 3.0% of net sales, compared with adjusted operating income of $62 million, or 2.8% in the second quarter of 2024. The Company's second quarter 2025 effective tax rate was 28.6%, compared with an effective tax rate of 29.5% in the second quarter of 2024. The Company's diluted earnings per share for the quarter was $0.25, compared with $0.51 in the second quarter of 2024. The Company's adjusted diluted earnings per share was $0.69 compared with adjusted diluted earnings per share of $0.62 in the second quarter of 2024. Net cash used in operating activities was $106 million through the second quarter of 2025 versus $39 million of cash provided by operating activities in the same period of the prior year. Free cash flow through the second quarter of 2025 was an outflow of $201 million compared with an outflow of $48 million in the same period of the prior year. ____________________ (1) All comparisons are based on continuing operations for the same time period in the prior year. The Company calculates comparable store sales based on the change in store sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. The Company includes sales from relocated stores in comparable store sales from the original date of opening. Comparable store sales is intended only as supplemental information and is not a substitute for Net sales presented in accordance with accounting principles generally accepted in the United States of America ("GAAP"). (2) Comparative financial information related to results from continuing operations has been recast to reflect the presentation of our former Worldpac, Inc. business ("Worldpac") as discontinued operations. Refer to the Company's Annual Report on Form 10-K for 2024, filed with the Securities and Exchange Commission ("SEC") on February 26, 2025. Capital Allocation On August 5, 2025, the Company declared a regular cash dividend of $0.25 per share to be paid on October 24, 2025, to all common stockholders of record as of October 10, 2025. Full Year 2025 Guidance (53 weeks) The Company has revised adjusted diluted EPS guidance to account for higher net interest expense related to its recent senior notes offering. Other guidance items remain unchanged, as shown in the table below. Full year 2025 guidance assumes current tariffs remain in place for the remainder of 2025. As of August 14, 2025 ($ in millions, except per share data) Low High Net sales from continuing operations (1) $8,400 $8,600 Comparable store sales (52 weeks) (2) 0.5% 1.5% Adjusted operating income margin from continuing operations (4) 2.00% 3.00% Adjusted diluted EPS from continuing operations (3,4) $1.20 $2.20 Capital expenditures Approx. $300 Free cash flow (4) $(85) $(25) New store growth Store openings 30 new stores Market hub openings 10 new market hubs (1) Includes approximately $100 to $120 million of net sales in the 53rd week. (2) The Company calculates comparable store sales based on the change in store sales starting once a location has been open for approximately one year and by including e-commerce sales and excluding sales fulfilled by distribution centers to independently owned Carquest locations. The Company includes sales from relocated stores in comparable store sales from the original date of opening. (3) Reduction in guidance driven by approximately $0.30 of incremental net interest expense related to the recent debt offering. (4) Adjusted operating income margin from continuing operations, Adjusted diluted EPS from continuing operations and Free cash flow are non-GAAP measures. For a better understanding of the Company's non-GAAP adjustments, refer to the reconciliation of non-GAAP financial measures in the accompanying financial tables. The Company is not able to provide a reconciliation of these forward-looking non-GAAP measures because it is unable to predict with reasonable accuracy the value of certain adjustments and as a result, the comparable GAAP measures are unavailable without unreasonable efforts. Investor Conference Call The Company will detail its results for the second quarter ended July 12, 2025, via a webcast scheduled to begin at 8 a.m. Eastern Time on Thursday, August 14, 2025. The webcast will be accessible via the Investor Relations page of the Company's website ( To join by phone, please pre-register online for dial-in and passcode information. Upon registering, participants will receive a confirmation with call details and a registrant ID. While registration is open through the live call, the Company suggests registering a day in advance or at minimum 10 minutes before the start of the call. A replay of the conference call will be available on the Company's Investor Relations website for one year. About Advance Auto Parts Advance Auto Parts, Inc. is a leading automotive aftermarket parts provider that serves both professional installers and do-it-yourself customers. As of July 12, 2025, Advance operated 4,292 stores primarily within the United States, with additional locations in Canada, Puerto Rico and the U.S. Virgin Islands. The Company also served 842 independently owned Carquest branded stores across these locations in addition to Mexico and various Caribbean islands. Additional information about Advance, including employment opportunities, customer services and online shopping for parts, accessories and other offerings can be found at Forward-Looking Statements Certain statements herein are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are usually identifiable by words such as "anticipate," "believe," "could," "estimate," "expect," "forecast, "guidance," "intend," "likely," "may," "plan," "position," "possible," "potential," "probable," "project," "should," "strategy," "target," "will," or similar language. All statements other than statements of historical fact are forward-looking statements, including, but not limited to, statements about the Company's strategic initiatives, restructuring and asset optimization plans, financial objectives, including with respect to the Company's reorganized debt capital structure, operational plans and objectives, statements about the benefits of the Company's Worldpac sale and use of proceeds therefrom, statements regarding expectations for economic conditions, future business and financial performance, including with respect to tariffs, as well as statements regarding underlying assumptions related thereto. Forward-looking statements reflect the Company's views based on historical results, current information and assumptions related to future developments. Except as may be required by law, the Company undertakes no obligation to update any forward-looking statements made herein. Forward-looking statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. They include, among others, the Company's ability to hire, train and retain qualified employees, the timing and implementation of strategic initiatives, risks associated with the Company's restructuring and asset optimization plans, risks relating to incurrence of indebtedness and increased leverage, risks relating to the Company's credit ratings or perceived creditworthiness, deterioration of general macroeconomic conditions, geopolitical factors including increased tariffs and trade restrictions, the highly competitive nature of the industry, demand for the Company's products and services, risks relating to the impairment of assets, including intangible assets such as goodwill, access to financing on favorable terms, complexities in the Company's inventory and supply chain and challenges with transforming and growing its business. Please refer to "Item 1A. Risk Factors" of the Company's most recent Annual Report on Form 10-K filed with the Securities and Exchange Commission ("SEC"), as updated by the Company's subsequent filings with the SEC, for a description of these and other risks and uncertainties that could cause actual results to differ materially from those projected or implied by the forward-looking statements. Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Balance Sheets (In millions) (unaudited) Assets July 12, 2025(1) December 28, 2024(1) Current assets: Cash and cash equivalents $ 1,657 $ 1,869 Receivables, net 492 544 Inventories, net 3,692 3,612 Other current assets 172 118 Total current assets 6,013 6,143 Property and equipment, net 1,263 1,334 Operating lease right-of-use assets 2,173 2,243 Goodwill 600 598 Other intangible assets, net 404 406 Other assets 86 74 Total assets $ 10,539 $ 10,798 Liabilities and Stockholders' Equity Current liabilities: Accounts payable 3,322 3,408 Accrued expenses 703 784 Current portion of long-term debt 300 — Other current liabilities 406 473 Total current liabilities 4,731 4,665 Long-term debt 1,492 1,789 Operating lease liabilities 1,854 1,897 Deferred income taxes 172 193 Other long-term liabilities 87 84 Total liabilities 8,336 8,628 Total stockholders' equity 2,203 2,170 Total liabilities and stockholders' equity $ 10,539 $ 10,798 (1) This condensed consolidated balance sheet has been prepared on a basis consistent with the Company's previously prepared balance sheets filed with the Securities and Exchange Commission ("SEC"), but does not include the footnotes required by accounting principles generally accepted in the United States of America ("GAAP"). Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Operations (In millions, except per share data) (unaudited) Twelve Weeks Ended Twenty-Eight Weeks Ended July 12, 2025(1) July 13, 2024(1) July 12, 2025(1) July 13, 2024(1) Net sales $ 2,010 $ 2,178 $ 4,593 $ 4,950 Cost of sales 1,136 1,228 2,609 2,797 Gross profit 874 950 1,984 2,153 Selling, general and administrative expenses, exclusive of restructuring and related expenses 823 889 1,945 2,039 Restructuring and related expenses $ 29 7 $ 148 8 Selling, general and administrative expenses 852 896 2,093 2,047 Operating (loss) income 22 54 (109 ) 106 Other, net: Interest expense (19 ) (19 ) (46 ) (43 ) Other income, net 18 9 45 10 Total other, net (1 ) (10 ) (1 ) (33 ) (Loss) income before income taxes 21 44 (110 ) 73 Income tax (benefit) expense 6 13 (149 ) 25 Net income from continuing operations 15 31 39 48 Net income from discontinued operations — 14 — 37 Net income $ 15 $ 45 $ 39 $ 85 Basic earnings per common share from continuing operations $ 0.25 $ 0.51 $ 0.65 $ 0.81 Basic earnings per common share from discontinued operations — 0.24 — 0.62 Basic earnings per common share $ 0.25 $ 0.75 $ 0.65 $ 1.43 Basic weighted-average common shares outstanding 59.9 59.6 59.9 59.6 Diluted earnings per common share from continuing operations $ 0.25 $ 0.51 $ 0.65 $ 0.80 Diluted earnings per common share from discontinued operations — 0.24 — 0.62 Diluted earnings per common share $ 0.25 $ 0.75 $ 0.65 $ 1.42 Diluted weighted-average common shares outstanding 60.5 59.9 60.3 59.9 (1) These preliminary condensed consolidated statements of operations have been prepared on a basis consistent with the Company's previously prepared statements of operations filed with the SEC, but do not include the footnotes required by GAAP. Advance Auto Parts, Inc. and Subsidiaries Condensed Consolidated Statements of Cash Flows (In millions) (unaudited) Twenty-Eight Weeks Ended July 12, 2025(1) July 13, 2024(1) Cash flows from operating activities: Net income $ 39 $ 85 Net income from discontinued operations — 37 Net income from continuing operations 39 48 Adjustments to reconcile net income to net cash used in operating activities: Depreciation and amortization 146 151 Share-based compensation 20 25 Loss (gain) on sale and impairment of long-lived assets, net 11 (16 ) Provision for deferred income taxes (21 ) 14 Other, net 3 2 Net change in: Receivables, net 54 (41 ) Inventories, net (73 ) (56 ) Operating lease right of use assets 62 (9 ) Other assets (65 ) (16 ) Accounts payable (90 ) (117 ) Accrued expenses (83 ) 36 Operating lease liabilities (109 ) 26 Other liabilities — (8 ) Net cash (used in) provided by operating activities of continuing operations (106 ) 39 Net cash provided by operating activities of discontinued operations — 49 Net cash (used in) provided by operating activities (106 ) 88 Cash flows from investing activities: Purchases of property and equipment (95 ) (87 ) Proceeds from sales of property and equipment 20 12 Net cash used in investing activities of continuing operations (75 ) (75 ) Net cash used in investing activities of discontinued operations — (5 ) Net cash used in investing activities (75 ) (80 ) Cash flows from financing activities: Dividends paid (30 ) (30 ) Purchase of noncontrolling interest — (9 ) Proceeds from the issuance of common stock 2 2 Repurchases of common stock (3 ) (5 ) Other, net (1 ) (1 ) Net cash used in financing activities (32 ) (43 ) Twenty-Eight Weeks Ended July 12, 2025(1) July 13, 2024(1) Effect of exchange rate changes on cash 1 11 Net decrease in cash and cash equivalents (212 ) (24 ) Cash and cash equivalents, beginning of period 1,869 503 Cash and cash equivalents, end of period $ 1,657 $ 479 Non-cash transactions of continuing operations: Accrued purchases of property and equipment $ 15 $ 5 Summary of cash and cash equivalents: Cash and cash equivalents of continuing operations, end of period $ 1,657 $ 419 Cash and cash equivalents of discontinued operations, end of period — 60 Cash and cash equivalents, end of period $ 1,657 $ 479 (1) This condensed consolidated statement of cash flows has been prepared on a basis consistent with the Company's previously prepared statements of operations filed with the SEC, but does not include the footnotes required by GAAP. Reconciliation of Non-GAAP Financial Measures The Company uses certain non-GAAP financial measures described below to supplement the Company's unaudited condensed consolidated financial statements prepared and presented in accordance with GAAP and to understand and evaluate the Company's core operating performance. These non-GAAP financial measures, which may be different than similarly titled measures used by other companies, are presented as the Company believes that such non-GAAP financial measures provide useful information about our financial performance, enhance the overall understanding of our past performance and future prospects, and allow for greater transparency with respect to important metrics used by management for financial and operational decision-making. The Company is presenting these non-GAAP metrics to provide investors insight to the information used by our management to evaluate our business and financial performance. The Company believes that these measures provide investors increased comparability of our core financial performance over multiple periods with other companies in our industry. The Company's Non-GAAP financial measures reflect results from continuing operations, including Adjusted Net (loss) Income, Adjusted Diluted (loss) Earnings Per Share ("Adjusted Diluted EPS"), Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Selling, General and Administrative expense ("Adjusted SG&A"), Adjusted SG&A Margin, Adjusted Operating (loss) Income, Adjusted Operating (loss) Income Margin, Free Cash Flow and Adjusted Net Debt to Adjusted EBITDAR and should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purpose of analyzing operating performance, financial position or cash flows. The Company has presented these non-GAAP financial measures as the Company believes that the presentation of the financial results that exclude (1) transformation expenses under the Company's turnaround plan, inclusive of the Worldpac divestiture and (2) other significant expenses, are useful and indicative of the Company's base operations because the expenses vary from period to period in terms of size, nature and significance. The income tax impact of these non-GAAP adjustments is also adjusted for using the estimated tax rate in effect for the respective non-GAAP adjustments. These measures assist in comparing the Company's current operating results with past periods and with the operational performance of other companies in the industry. The disclosure of these measures allows investors to evaluate the Company's performance using the same measures management uses in developing internal budgets and forecasts and in evaluating management's compensation. Included below is a description of the expenses the Company has determined are not normal, recurring cash operating expenses necessary to operate the Company's business and the rationale for why providing these measures is useful to investors as a supplement to the GAAP measures. Transformation Expenses Expenses incurred in connection with the Company's turnaround plan and specific transformative activities related to asset optimization that the Company does not view to be normal cash operating expenses. These expenses primarily include: Restructuring and other related expenses: Expenses relating to strategic initiatives, including severance expense, retention bonuses offered to store-level employees to help facilitate the closing of stores, incremental reserves related to the collectibility of receivables resulting from contract terminations with certain independents associated with the 2024 Restructuring Plan and third-party professionals assisting in the development and execution of the strategic initiatives. Impairment and write-down of long-lived assets: Expenses relating to the impairment of operating lease ROU assets and property and equipment, incremental depreciation as a result of accelerating long-lived assets over a shorter useful life, depreciation of long-lived assets and ROU asset amortization after store closure, and incremental lease abandonment expenses as a result of accelerating ROU asset amortization for leases the Company expects to exit before the end of the contractual term, net of gains on lease terminations, in connection with the 2024 Restructuring Plan and Other Restructuring Plan. Distribution network optimization: Expenses primarily relating to the conversion of the stores and distribution centers to market hubs, including, realized losses on liquidated inventory, temporary labor, nonrecurring professional service fees and team member severance. Other Expenses Expenses incurred by the Company that are not viewed as normal cash operating expenses and vary from period to period in terms of size, nature, and significance. These expenses primarily include: Other professional service fees: Expenses relating to nonrecurring services rendered by third-party vendors engaged to perform a strategic business review, including the Company's transformation initiatives. Worldpac post transaction-related expenses: Expenses primarily relating to non-recurring separation activities provided by third-party professionals subsequent to the sale of Worldpac. Executive turnover: Expenses associated with executive level reorganization, including expenses for executive severance, the hiring search for leadership positions and certain compensation benefits. Material weakness remediation: Incremental expenses associated with the remediation of the Company's previously disclosed material weaknesses in internal control over financial reporting. Cybersecurity incident: Expenses related to the response and remediation of a cybersecurity incident. Other tax adjustments: Certain tax items that are unrelated to the fiscal year in which they are recorded are excluded in order to provide a clearer understanding of the Company's ongoing Non-GAAP tax rate and after-tax earnings. Reconciliation of Diluted Earnings Per Share (GAAP) and Adjusted Diluted (Loss) Earnings Per Share (Non-GAAP) Twelve Weeks Ended Twenty-Eight Weeks Ended (in millions, except per share data) Classification July 12, 2025 July 13, 2024 July 12, 2025 July 13, 2024 Net income from continuing operations (GAAP) $ 15 $ 31 $ 39 $ 48 Cost of sales adjustments: Transformation expenses: Distribution network optimization Restructuring 6 — 6 — Selling, general and administrative adjustments: Transformation expenses: Restructuring and other related expenses (1) Restructuring 7 2 71 2 Impairment and write-down of long-lived assets (2) Restructuring 13 — 58 — Distribution network optimization Restructuring 6 5 9 5 Other expenses: Other professional service fees Non-restructuring (5) 4 — 8 — Worldpac post transaction-related expenses Restructuring 3 — 6 — Executive turnover Restructuring — — 4 1 Material weakness remediation Non-restructuring — — 1 2 Cybersecurity incident Non-restructuring — 1 — 1 Other income adjustments: TSA services (3 ) — (7 ) — Provision for income taxes on adjustments (3) (9 ) (2 ) (39 ) (2 ) Other tax (benefit) expense adjustments (4) — — (126 ) — Adjusted net income (Non-GAAP) $ 42 $ 37 $ 30 $ 57 Diluted earnings per share from continuing operations (GAAP) $ 0.25 $ 0.51 $ 0.65 $ 0.80 Adjustments, net of tax 0.44 0.11 (0.15 ) 0.15 Adjusted diluted earnings per share (Non-GAAP) $ 0.69 $ 0.62 $ 0.50 $ 0.95 (1) Restructuring and other related expenses for the twelve weeks ended July 12, 2025 includes $5 million of nonrecurring services rendered by third-party vendors assisting with the 2024 Restructuring Plan and $2 million of other related expenses associated with location closures, including the transfer of assets. Restructuring and other related expenses for the twenty-eight weeks ended5 July 12, 2025 includes $35 million of nonrecurring services rendered by third-party vendors assisting with the 2024 Restructuring Plan, $15 million of severance and other labor related costs, $7 million for reserves on independent loans and $14 million of other related expenses associated with location closures, including the transfer of assets. (2) The Company recorded incremental accelerated depreciation and amortization for property and equipment and ROU assets of $13 million for the twelve weeks ended July 12, 2025. The Company recorded incremental accelerated depreciation and amortization for property and equipment and ROU assets of $49 million and impairment charges for ROU assets and property and equipment of $9 million, net of gains on sale, for the twenty-eight weeks ended July 12, 2025. (3) The income tax impact of non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective non-GAAP adjustments. (4) Income tax (benefit) expenses included a discrete non-recurring tax benefit associated with capital loss deductions effectuated in the first quarter of fiscal 2025. The benefit has been excluded from Non-GAAP results in order to provide a clearer understanding of ongoing Non-GAAP tax rate and after-tax earnings. (5) Other professional service fees in fiscal 2024 were classified as restructuring and related expenses based on the underlying activity to which they related. Reconciliation of Adjusted Gross Profit Twelve Weeks Ended Twenty-Eight Weeks Ended (in millions) July 12, 2025 July 13, 2024 July 12, 2025 July 13, 2024 Gross Profit (GAAP) $ 874 $ 950 $ 1,984 $ 2,153 Gross Profit adjustments 6 — 6 — Adjusted Gross Profit (Non-GAAP) $ 880 $ 950 $ 1,990 $ 2,153 Gross Profit Margin (GAAP) (1) 43.5 % 43.6 % 43.2 % 43.5 % Adjusted Gross Profit Margin (Non-GAAP) (1) 43.8 % 43.6 % 43.3 % 43.5 % (1) These GAAP and Non-GAAP measures are calculated as a percentage of Net sales. Reconciliation of Adjusted Selling, General and Administrative Expenses Twelve Weeks Ended Twenty-Eight Weeks Ended (in millions) July 12, 2025 July 13, 2024 July 12, 2025 July 13, 2024 Selling, general and administrative ("SG&A") expenses (GAAP) $ 852 $ 896 $ 2,093 $ 2,047 SG&A adjustments (33 ) (8 ) (157 ) (11 ) Adjusted SG&A (Non-GAAP) $ 819 $ 888 $ 1,936 $ 2,036 SG&A Margin (GAAP) (1) 42.4 % 41.1 % 45.6 % 41.4 % Adjusted SG&A Margin (Non-GAAP) (1) 40.7 % 40.8 % 42.2 % 41.1 % (1) These GAAP and Non-GAAP measures are calculated as a percentage of Net sales. Reconciliation of Adjusted Operating Income Twelve Weeks Ended Twenty-Eight Weeks Ended (in millions) July 12, 2025 July 13, 2024 July 12, 2025 July 13, 2024 Operating (Loss) Income (GAAP) $ 22 $ 54 $ (109 ) $ 106 Gross Profit adjustments 6 — 6 — SG&A adjustments 33 8 157 11 Adjusted Operating Income (Non-GAAP) $ 61 $ 62 $ 54 $ 117 Operating (Loss) Income Margin (GAAP) (1) 1.1 % 2.5 % (2.4 )% 2.1 % Adjusted Operating Income Margin (Non-GAAP) (1) 3.0 % 2.8 % 1.2 % 2.4 % (1) These GAAP and Non-GAAP measures are calculated as a percentage of Net sales. Reconciliation of Free Cash Flow Twenty-Eight Weeks Ended (in millions) July 12, 2025 July 13, 2024 Cash flows (used in) provided by operating activities of continuing operations $ (106 ) $ 39 Purchases of property and equipment (95 ) (87 ) Free cash flow $ (201 ) $ (48 ) Reconciliation of Adjusted Net Debt to Adjusted EBITDAR(1) Four Quarters Ended (In millions, except adjusted debt to adjusted EBITDAR ratio) July 12, 2025 Total Debt (GAAP) $ 1,792 Add: Operating lease liabilities 2,252 Less: Cash & cash equivalents (1,657 ) Adjusted Net Debt (Non-GAAP) $ 2,387 Net loss from continuing operations (GAAP) $ (596 ) Depreciation and amortization 288 Interest expense 85 Other income, net (61 ) Income tax benefit (355 ) Rent expense 607 Share-based compensation 35 Other charges (2) 25 Transformation related charges 846 Adjusted EBITDAR (Non-GAAP) $ 874 Debt to Net Loss from continuing operations (GAAP) (3.0 ) Adjusted Net Debt to Adjusted EBITDAR (Non-GAAP) 2.7 (1) Management believes its Adjusted Net Debt to Adjusted EBITDAR ratio ("leverage ratio") is a key financial metric for debt securities, as reviewed by rating agencies, and believes its debt levels are best analyzed using this measure. The Company's goal is to maintain an investment grade rating. The Company's credit rating could impact the Company's ability to obtain additional funding. A negative change in the Company's investment rating, could negatively impact future performance and limit growth opportunities. The leverage ratio calculated by the Company is a Non-GAAP measure and should not be considered a substitute for debt to net income, as determined in accordance with GAAP. The Company adjusts the calculation to remove rent expense, deduct available cash & cash equivalents and to add back the Company's existing operating lease liabilities related to their right-of-use assets to provide a more meaningful comparison with the Company's peers and to account for differences in debt structures and leasing arrangements. The Company's calculation of its leverage ratio may not be calculated in the same manner as other companies, and thus may not be comparable to similarly titled measures used by other companies. (2) The adjustments to the four quarters ended July 12, 2025, include expenses associated with the Company's material weakness remediation efforts and executive turnover. Store Information During the twenty-eight weeks ended July 12, 2025, 18 stores were opened and 514 were closed, resulting in a total of 4,292 stores as of July 12, 2025, compared with a total of 4,788 stores as of December 28, 2024. The below table summarizes the changes in the number of company-operated stores during the twelve and twenty-eight weeks ended July 12, 2025: Twelve Weeks Ended AAP CARQUEST Total April 19, 2025 4,051 234 4,285 New 5 3 8 Closed (1 ) — (1 ) Relocated — — — July 12, 2025 4,055 237 4,292 Twenty-Eight Weeks Ended AAP CARQUEST Total December 28, 2024 4,507 281 4,788 New 14 4 18 Closed (467 ) (47 ) (514 ) Relocated 1 (1 ) — July 12, 2025 4,055 237 4,292 View source version on Contacts Investor Relations Contact: Lavesh HemnaniT: (919) 227-5466E: invrelations@ Media Contact: Nicole DucouerT: (984) 389-7207E: AAPcommunications@ Sign in to access your portfolio
Yahoo
19 minutes ago
- Yahoo
Applied Industrial Technologies Reports Fiscal 2025 Fourth Quarter and Full-Year Results; Issues Guidance for Fiscal 2026
Fourth Quarter Net Sales of $1.2 Billion Up 5.5% YoY; Up 0.2% on an Organic Daily Basis Fourth Quarter Net Income of $107.8 Million, or $2.80 Per Share Up 5.9% YoY Fourth Quarter EBITDA of $153.0 Million Down 0.3% YoY Full-Year Net Sales of $4.6 Billion Up 1.9% YoY; Down 2.3% on an Organic Daily Basis Full-Year Net Income of $393.0 Million, or $10.12 Per Share Up 3.8% vs. Prior-Year Adjusted EPS Full-Year EBITDA of $562.1 Million Up 1.6% YoY Establishes Fiscal 2026 Guidance Including Total Sales +4% to +7% and EPS of $10.00 to $10.75 CLEVELAND, August 14, 2025--(BUSINESS WIRE)--Applied Industrial Technologies (NYSE: AIT), a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies, today reported results for its fiscal 2025 fourth quarter and full year ended June 30, 2025. Net sales for the quarter of $1.2 billion increased 5.5% over the prior year. The change includes a 6.5% increase from acquisitions, partially offset by a negative 0.8% selling day impact and a negative 0.4% impact from foreign currency translation. Excluding these factors, sales increased 0.2% on an organic daily basis reflecting a 1.8% increase in the Engineered Solutions segment, partially offset by a 0.4% decrease in the Service Center segment. The Company reported net income of $107.8 million, or $2.80 per share, and EBITDA of $153.0 million. On a pre-tax basis, results include $2.9 million ($0.06 after tax per share) of LIFO expense compared to $0.3 million ($0.01 after tax per share) of LIFO expense in the prior-year period. For the twelve months ended June 30, 2025, sales of $4.6 billion increased 1.9% compared with the prior year. On an organic daily basis, sales declined 2.3%. Net income was $393.0 million, or $10.12 per share, and EBITDA was $562.1 million. On a pre-tax basis, full-year results include $7.7 million ($0.16 after tax per share) of LIFO expense compared to $13.0 million ($0.25 after tax per share) of LIFO expense in the prior-year period. Neil A. Schrimsher, Applied's President & Chief Executive Officer, commented, "We ended fiscal 2025 on an encouraging note with fourth quarter sales and EPS exceeding our expectations. Sales returned to positive organic growth with underlying trends improving as the quarter progressed. This was driven by stronger than expected Engineered Solutions segment sales where our teams executed exceptionally well, including capitalizing on recent order strength and firming demand across several verticals. Service Center segment sales held steady against the muted end-market backdrop with sequential trends seasonally strong. M&A contribution was also encouraging with solid progress continuing to develop at Hydradyne. Lastly, we delivered another solid quarter of cash generation, culminating in record free cash flow in fiscal 2025 that enabled meaningful capital deployment throughout the year. Overall, I am extremely proud of what we accomplished within a challenging demand landscape. Our consistent outperformance reflects our commitment to excellence and ability to create value for all stakeholders in any environment." Mr. Schrimsher added, "Moving into fiscal 2026, we are highly focused on accelerating growth and making further progress on our long-term strategic objectives. Positive momentum has sustained into the first quarter with organic sales up year over year by an estimated 4% to date. Combined with greater contribution from company-specific growth initiatives, structural mix tailwinds, and easier comparisons, we are constructive on our set-up moving forward. That said, ongoing trade and interest rate uncertainty continue to impact broader demand visibility and customer capex decisions. We are mindful these dynamics could continue to restrain growth near term yet potentially create a strong demand environment once additional clarity emerges as U.S. industrial MRO and investment activity catches up to the favorable secular backdrop." Fiscal 2026 Guidance and OutlookToday the Company is introducing fiscal 2026 EPS guidance in the range of $10.00 to $10.75 based on assumptions for total sales of up 4% to 7% including up 1% to 4% on an organic basis, as well as EBITDA margins of 12.2% to 12.5%. Guidance assumes ongoing economic, interest rate, and tariff related uncertainty continues to impact broader end-market demand through the first half of the year. Guidance also assumes incremental sales contribution from pricing compared to fiscal 2025, as well as ongoing inflationary headwinds and growth investments. Guidance does not assume contribution from future acquisitions or share buybacks. Mr. Schrimsher concluded, "While we are encouraged by recent sales momentum heading into fiscal 2026, we are taking a prudent approach to our initial outlook pending greater clarity on trade policy, interest rates, and broader macro conditions. That said, as our recent results show, we are in a strong position to manage through various macro and trade scenarios as they develop. In addition, we expect another meaningful year of cash generation supporting ongoing M&A, share buybacks, and dividend growth. Lastly, our technical industry position, manufacturing domain expertise, and aligned strategy provide a compelling long-term growth and margin expansion opportunity as various secular and structural tailwinds continue to develop across the U.S. industrial economy. Our track record over the past five years provides strong evidence of our ability to deliver top-tier earnings growth and margin expansion. This includes compounded annual growth for EBITDA and EPS of 14% and 22%, respectively, as well as gross margins and EBITDA margins expanding 130 and 330 basis points, respectively. We look forward to building on this track record in fiscal 2026 and beyond as our performance and evolution continues to unfold." Conference Call InformationThe Company will host a conference call at 10 a.m. ET today to discuss the quarter's results and outlook. A live audio webcast and supplemental presentation can be accessed on our Investor Relations site at To join by telephone, dial 800-715-9871 (toll free) or 646-307-1963 using conference ID 7270709. About Applied®Applied Industrial Technologies is a leading value-added distributor and technical solutions provider of industrial motion, fluid power, flow control, automation technologies, and related maintenance supplies. Our leading brands, specialized services, and comprehensive knowledge serve MRO (maintenance, repair, and operations) and OEM (original equipment manufacturing), and new system install applications in virtually all industrial markets through our multi-channel capabilities that provide choice, convenience, and expertise. For more information, visit This press release contains statements that are forward-looking, as that term is defined by the Securities and Exchange Commission in its rules, regulations and releases. Applied intends that such forward-looking statements be subject to the safe harbors created thereby. Forward-looking statements are often identified by qualifiers such as "expect," "will," "guidance," "assume," "outlook," "expect," and derivative or similar expressions. All forward-looking statements are based on current expectations regarding important risk factors including trends and events in the industrial sector of the economy (such as the inflationary environment and supply chain strains), results of operations, and financial condition, and other risk factors identified in Applied's most recent periodic report and other filings made with the Securities and Exchange Commission. Accordingly, actual results may differ materially from those expressed in the forward-looking statements, and the making of such statements should not be regarded as a representation by Applied or any other person that the results expressed therein will be achieved. Applied assumes no obligation to update publicly or revise any forward-looking statements, whether due to new information, or events, or otherwise. APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED STATEMENTS OF CONSOLIDATED INCOME (Unaudited) (In thousands, except per share data) Three Months EndedJune 30, Year EndedJune 30, 2025 2024 2025 2024 Net Sales $ 1,224,730 $ 1,160,675 $ 4,563,424 $ 4,479,406 Cost of sales 849,993 804,440 3,180,265 3,142,753 Gross Profit 374,737 356,235 1,383,159 1,336,653 Selling, distribution and administrative expense, including depreciation 239,652 216,892 884,630 840,830 Operating Income 135,085 139,343 498,529 495,823 Interest expense (income), net 1,322 (671 ) 612 2,831 Other income, net (1,281 ) (921 ) (3,050 ) (5,138 ) Income Before Income Taxes 135,044 140,935 500,967 498,130 Income tax expense 27,208 37,444 107,979 112,368 Net Income $ 107,836 $ 103,491 $ 392,988 $ 385,762 Net Income Per Share - Basic $ 2.84 $ 2.68 $ 10.26 $ 9.98 Net Income Per Share - Diluted $ 2.80 $ 2.64 $ 10.12 $ 9.83 Average Shares Outstanding - Basic 38,008 38,568 38,289 38,672 Average Shares Outstanding - Diluted 38,511 39,153 38,816 39,257 NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS 1) Applied uses the last-in, first-out (LIFO) method of valuing U.S. inventory. An actual valuation of inventory under the LIFO method can only be made at the end of each year based on the inventory levels and costs at that time. Accordingly, interim LIFO calculations are based on management's estimates of expected year-end inventory levels and costs and are subject to the final year-end LIFO inventory determination. APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited) (In thousands) June 30, 2025 June 30, 2024 Assets Cash and cash equivalents $ 388,417 $ 460,617 Accounts receivable, net 769,699 724,878 Inventories 505,337 488,258 Other current assets 84,020 96,148 Total current assets 1,747,473 1,769,901 Property, net 128,154 118,527 Operating lease assets, net 188,654 133,289 Intangibles, net 348,600 245,870 Goodwill 699,374 619,395 Other assets 63,289 64,928 Total Assets $ 3,175,544 $ 2,951,910 Liabilities Accounts payable $ 280,124 $ 266,949 Current portion of long-term debt - 25,055 Other accrued liabilities 246,027 209,096 Total current liabilities 526,151 501,100 Long-term debt 572,300 572,279 Other liabilities 232,573 189,750 Total Liabilities 1,331,024 1,263,129 Shareholders' Equity 1,844,520 1,688,781 Total Liabilities and Shareholders' Equity $ 3,175,544 $ 2,951,910 APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES CONDENSED STATEMENTS OF CONSOLIDATED CASH FLOWS (Unaudited) (In thousands) Year Ended June 30, 2025 2024 Cash Flows from Operating Activities Net income $ 392,988 $ 385,762 Adjustments to reconcile net income to net cash provided by operating activities: Depreciation and amortization of property 24,899 23,431 Amortization of intangibles 35,581 28,923 Provision for (recoveries of) losses on accounts receivable 5,978 (205 ) Amortization of stock appreciation rights 4,713 3,448 Other share-based compensation expense 7,289 9,496 Changes in assets and liabilities, net of acquisitions 26,926 (77,079 ) Other, net (5,989 ) (2,383 ) Net Cash provided by Operating Activities 492,385 371,393 Cash Flows from Investing Activities Acquisition of businesses, net of cash acquired (293,406 ) (72,090 ) Capital expenditures (27,187 ) (24,864 ) Proceeds from property sales 1,841 576 Life insurance proceeds - 971 Net Cash used in Investing Activities (318,752 ) (95,407 ) Cash Flows from Financing Activities Borrowings under revolving credit facility - 408 Long-term debt repayments (25,106 ) (25,251 ) Interest rate swap settlement receipts 12,095 14,470 Purchases of treasury shares (152,837 ) (73,388 ) Dividends paid (63,702 ) (55,879 ) Acquisition holdback payments (1,210 ) (681 ) Taxes paid for shares withheld for equity awards (14,847 ) (16,274 ) Exercise of stock appreciation rights and options - 127 Net Cash used in Financing Activities (245,607 ) (156,468 ) Effect of Exchange Rate Changes on Cash (226 ) (2,937 ) (Decrease) Increase in cash and cash equivalents (72,200 ) 116,581 Cash and Cash Equivalents at Beginning of Period 460,617 344,036 Cash and Cash Equivalents at End of Period $ 388,417 $ 460,617 APPLIED INDUSTRIAL TECHNOLOGIES, INC. AND SUBSIDIARIES SUPPLEMENTAL INFORMATIONRECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES (Unaudited) (In thousands) The Company supplemented the reporting of financial information determined under U.S. generally accepted accounting principles (GAAP) with reporting of non-GAAP financial measures. The Company believes that these non-GAAP measures provide meaningful information to assist shareholders in understanding financial results, assessing prospects for future performance, and provide a better baseline for analyzing trends in our underlying businesses. Because non-GAAP financial measures are not standardized, it may not be possible to compare these financial measures with other companies' non-GAAP financial measures having the same or similar names. These non-GAAP financial measures should not be considered in isolation or as a substitute for reported results. These non-GAAP financial measures reflect an additional way of viewing aspects of operations that, when viewed with GAAP results, provide a more complete understanding of the business. The Company strongly encourages investors and shareholders to review company financial statements and publicly filed reports in their entirety and not to rely on any single financial measure. Reconciliation of Net income and Net income per share, GAAP financial measures, with Adjusted Net income and Adjusted Net income per share, non-GAAP financial measures: Year Ended June 30, 2024 Pre-tax Tax Effect Net of Tax Per ShareDiluted Impact Tax Rate Net income and net income per share $ 498,130 $ 112,368 $ 385,762 $ 9.83 22.6 % Tax valuation allowance adjustment - 3,046 (3,046 ) (0.08 ) 0.6 % Adjusted net income and net income per share $ 498,130 $ 115,414 $ 382,716 $ 9.75 23.2 % Reconciliation of Net Income, a GAAP financial measure, to EBITDA, a non-GAAP financial measure: Three Months EndedJune 30, Year EndedJune 30, 2025 2024 2025 2024 Net Income $ 107,836 $ 103,491 $ 392,988 $ 385,762 Interest expense (income), net 1,322 (671 ) 612 2,831 Income tax expense 27,208 37,444 107,979 112,368 Depreciation and amortization of property 6,466 5,864 24,899 23,431 Amortization of intangibles 10,196 7,322 35,581 28,923 EBITDA $ 153,028 $ 153,450 $ 562,059 $ 553,315 The Company defines EBITDA as Earnings from operations before Interest, Taxes, Depreciation, and Amortization, a non-GAAP financial measure. EBITDA excludes items that may not be indicative of core operating results, a non-GAAP financial measure. Reconciliation of Net Cash provided by Operating activities, a GAAP financial measure, to Free Cash Flow, a non-GAAP financial measure: Three Months EndedJune 30, Year EndedJune 30, 2025 2024 2025 2024 Net Cash provided by Operating Activities $ 147,048 $ 119,234 $ 492,385 $ 371,393 Capital expenditures (8,892 ) (7,510 ) (27,187 ) (24,864 ) Free Cash Flow $ 138,156 $ 111,724 $ 465,198 $ 346,529 Free cash flow is defined as net cash provided by operating activities less capital expenditures, a non-GAAP financial measure. View source version on Contacts Ryan D. CieslakDirector – Investor Relations & Treasury216-426-4887 / rcieslak@ Error while retrieving data Sign in to access your portfolio Error while retrieving data Error while retrieving data Error while retrieving data Error while retrieving data
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Castellum, Inc. Announces Aggregate Warrant Exercises Raising Additional Proceeds of Approximately $4.5 Million
Castellum, Inc. Announces Aggregate Warrant Exercises Raising Additional Proceeds of Approximately $4.5 Million VIENNA, Va., Aug. 14, 2025 (GLOBE NEWSWIRE) -- Castellum, Inc. (NYSE-American: CTM) ('Castellum' or 'CTM'), a cybersecurity, electronic warfare, and software engineering services company focused on the federal government, announced today that following CTM's June 12, 2025 public offering of 4,166,667 units (each unit consisting of one share of common stock and one warrant with an exercise price of $1.22 that would expire on August 12, 2025), investors have exercised an aggregate of 3,673,666 warrants for total gross proceeds of $4,481,873. 'This impressive expression of investor confidence in Castellum and our business plan will, with our continued focus and resolve, allow us to continue to invest in more growth initiatives,' said David Bell, Chief Financial Officer of Castellum. 'We are pleased to have raised another $4.5 million at $1.22 per share,' said Glen Ives, President and CEO of Castellum. 'This new capital further strengthens our already solid balance sheet and positions us to finish 2025 with powerful momentum going into 2026.' About Castellum, Inc. (NYSE-American: CTM): Castellum, Inc. (NYSE-American: CTM) is a cybersecurity, electronic warfare, and software engineering services company focused on the federal government - Cautionary Statement Concerning Forward-Looking Statements: This release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements represent the Company's expectations or beliefs concerning future events and can generally be identified by the use of statements that include words such as 'estimate,' 'project,' 'believe,' 'anticipate,' 'shooting to,' 'intend,' 'plan,' 'foresee,' 'likely,' 'will,' 'would,' 'appears,' 'goal,' 'target' or similar words or phrases. Forward-looking statements include, but are not limited to, statements regarding the Company's expectations for revenue growth and new customer opportunities, improvements to cost structure, and profitability. Forward-looking statements include, but are not limited to, statements regarding the Company's expectations for revenue growth and new customer opportunities, including opportunities arising from its contracts, improvements to cost structure, and profitability. These forward-looking statements are subject to risks, uncertainties, and other factors, many of which are outside of the Company's control, that could cause actual results to differ materially from the results expressed or implied in the forward-looking statements, including, among others: the Company's ability to compete against new and existing competitors; its ability to effectively integrate and grow its acquired companies; its ability to identify additional acquisition targets and close additional acquisitions; the impact on the Company's revenue due to a delay in the U.S. Congress approving a federal budget, operating under a prolonged continuing resolution, government shutdown, or breach of the debt ceiling, as well as the imposition by the U.S. government of sequestration in the absence of an approved budget; the ability of the U.S. federal government to unilaterally cancel a contract with or without cause, and more specifically, the potential impact of the U.S. DOGE Service Temporary Organization on government spending and terminating contracts for convenience. For a more detailed description of these and other risk factors, please refer to the Company's Annual Report on Form 10-K and its Quarterly Reports on Form 10-Q and other filings with the Securities and Exchange Commission ('SEC') which can be viewed at All forward-looking statements are inherently uncertain, based on current expectations and assumptions concerning future events or future performance of the Company. Readers are cautioned not to place undue reliance on these forward-looking statements, which are only predictions and speak only as of the date hereof. The Company expressly disclaims any intent or obligation to update any of the forward-looking statements made in this release or in any of its SEC filings except as may be otherwise stated by the Company. Contact: Glen Ives President and Chief Executive Officer Phone: (703) 752-6157 info@ A photo accompanying this announcement is available at in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
