Advance Auto Parts Inc. · NYSE:AAP
Advance Auto Parts — Q2 2026 Earnings Presentation
17 slides from Advance Auto Parts's earnings presentation, Aug 20, 2026
Slide 1: Q2 2026 Results
Q2 2026 RESULTS AUGUST 20 | 2026
Slide 2: Forward Looking Statements and Non-GAAP
Forward Looking Statements and Non -GAAP 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,”
Slide 3: Agenda
Business Update Shane O’Kelly President and Chief Executive Officer Financial Update AGENDA Ryan Grimsland Executive Vice President and Chief Financial Officer Q&A 3
Slide 4: Business Update
BUSINESS UPDATE Shane O’Kelly 4 4
Slide 5: Q2 2026 Summary
Q2 2026 SUMMARY Strategic Initiatives Support Maintaining Focus on Strong Q2 2026 Profitability Actions We Control 5
Slide 6: Key 2026 Priorities
KEY 2026 Merchandising Store PRIORITIES Excellence Operations ▪ Strategic sourcing ▪ Elevate team- and vendor Supply member experience partnerships Chain ▪ Improve DIY/ PRO ▪ New pricing service standards ▪ Completion of framework distribution center ▪ Strengthen in-store consolidation ▪ Assortment
Slide 7: Strategic Update Q2 2026
STRATEGIC UPDATE Q2 2026 ▪ Expanded assortment catalog by approx. 80K Merchandising SKUs YTD in addition to 100K in FY 2025 Excellence ▪ On track to fully rollout new price management framework by end of this year ▪ DC consolidation complete ▪ 25% of DC process improvements done. Full Supply impleme
Slide 8: Financial Update
FINANCIAL UPDATE Ryan Grimsland 8 8
Slide 9: Q2 2026 Results
Q2 2026 RESULTS Comparable Store Adjusted Diluted Net Net Sales Sales Growth Earnings Per Share (1) Leverage Ratio $2.0B (0.5%) YoY $1.03 2.1x (0.5%) YoY Adj. Net Debt/ TTM Adj. EBITDAR Adjusted Adjusted Adjusted Operating Gross Margin (1) SG&A Margin Income Margin (1) 46.2% 40.6% 5.6% 242 bps YoY (
Slide 10: FY 2026 Guidance Summary
FY 2026 GUIDANCE SUMMARY ($ in million, except margins and per share data) Current - As of August 20, 2026 Prior Guidance Net sales $8,485 - $8,575 $8,485 - $8,575 Comparable store sales growth 1.00% - 2.00% 1.00% - 2.00% Adjusted operating income margin 3.80% - 4.50% 3.80% - 4.50% Adjusted diluted
Slide 11: Q&A
Q&A 1111
Slide 12: Appendix
APPENDIX 1212
Slide 13: Strategic Pillars and Key Initiatives
STRATEGIC PILLARS AND KEY INITIATIVES Right Right Right Part. Place. Service. Merchandising Supply Store Excellence Chain Operations Distribution center Store Strategic sourcing productivity operating model Assortment Hub network Service-level management expansion improvements Promotions & margin Tr
Slide 14: Reconciliation of Non-GAAP Financial Measures
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 opera
Slide 15: Reconciliation of Q2 2026 GAAP Results to Non-GAAP Results
RECONCILIATION OF Q2 2026 GAAP RESULTS TO NON -GAAP RESULTS (1) These GAAP and Non-GAAP measures are calculated as a percentage of net sales. (2) Restructuring and other related expenses included expenses associated with location closures. (3) The Company recorded incremental accelerated depreciatio
Slide 16: Reconciliation of Q2 2025 GAAP Results to Non-GAAP Results
RECONCILIATION OF Q2 2025 GAAP RESULTS TO NON -GAAP RESULTS (1) These GAAP and Non-GAAP measures are calculated as a percentage of net sales. Details of Non-GAAP adjustment amounts included in the Non-GAAP reconciliation for the prior period are included in the press release for that period 16
Slide 17: Reconciliation of 2026 YTD Free Cash Flow
RECONCILIATION OF 2026 YTD FREE CASH FLOW (1) The twenty-eight weeks ended July 18, 2026 and July 12, 2025, included approximately $11 million and $110 million, respectively, of cash charges related to restructuring and other related expenses under our 2024 Restructuring Plan. (1) RECONCILIATION OF