Advance Auto Parts reports $15 million net income for Q3 2026

Item 6.

Exhibits

27

SIGNATURE

28

Table of Contents

FORWARD-LOOKI NG 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, future business and financial performance, revenue, earnings, cash flow, liquidity, restructuring and asset optimization plans, financial objectives, debt capital structure, operational plans and objectives, capital expenditures, organizational changes, cost reductions, expectations for macroeconomic conditions, marketing strategies, inflation, impairments, consumer behavior and preferences, labor costs and availability, supply chain and merchandising strategies and effects, technology investments, effective tax rates, regulatory changes and impacts, anticipated impacts of tariffs and other trade barriers, tariff refunds, compliance with debt covenants, statements about the status of, and capacity and utilization under, the Company's supply chain financing arrangements and statements about the Company's future credit ratings and outlook 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, the Company's ability to complete store openings, deterioration of general macroeconomic conditions, geopolitical factors, including tariffs, petroleum supply and prices, 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, implementation and operation of information and technology systems and innovative technologies, 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.

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PART I. FINA NCIAL INFORMATION

ITEM 1. CONDENSED CONSOL IDATED FINANCIAL STATEMENTS

Advance Auto Parts, Inc. and Subsidiaries

Condensed Conso lidated Balance Sheets (in millions, except par value amounts) (Unaudited)

Assets

Current assets:

Cash and cash equivalents

$

3,085

$

3,123

Receivables, net

404

380

Inventories, net

3,789

3,646

Other current assets

128

141

Total current assets

7,406

7,290

Property and equipment, net

1,285

1,269

Operating lease right-of-use assets

2,100

2,157

Goodwill

599

600

Other intangible assets, net

398

400

Other assets

133

110

Total assets

$

11,921

$

11,826

Liabilities and Stockholders' Equity:

Current liabilities:

Accounts payable

$

3,065

$

2,977

Accrued expenses

714

756

Current portion of long-term debt

349

—

Other current liabilities

416

443

Total current liabilities

4,544

4,176

Long-term debt

3,039

3,412

Operating lease liabilities

1,795

1,812

Deferred income taxes

179

142

Other long-term liabilities

104

86

Total liabilities

9,661

9,628

Commitments and contingencies (Note 9)

Stockholders' equity:

Preferred stock, nonvoting, $ 0.0001 par value, 10 million shares authorized; no shares issued or outstanding

—

—

1,064

1,033

Treasury stock, at cost

( 2,954

)

( 2,944

)

Accumulated other comprehensive loss

( 44

)

( 37

)

Retained earnings

4,194

4,146

Total stockholders' equity

2,260

2,198

Total liabilities and stockholders' equity

$

11,921

$

11,826

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.¹

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Table of Contents

Advance Auto Parts, Inc. and Subsidiaries

Condensed Consolida ted Statements of Operations (in millions, except per share data) (Unaudited)

Twelve Weeks Ended

Forty Weeks Ended

Net sales

$

2,012

$

2,036

$

6,626

$

6,628

Cost of sales

1,115

1,155

3,625

3,764

Gross profit

897

881

3,001

2,864

Selling, general and administrative expenses, exclusive of restructuring expenses

808

826

2,699

2,771

Restructuring and related expenses

42

33

84

180

Selling, general and administrative expenses

850

859

2,783

2,951

Operating income (loss)

47

22

218

( 87

)

Other, net:

Interest expense

( 46

)

( 40

)

( 160

)

( 86

)

Other income, net

23

16

76

61

Total other, net

( 23

)

( 24

)

( 84

)

( 25

)

Income (loss) before income tax expense

24

( 2

)

134

( 112

)

Income tax expense (benefit)

9

( 1

)

40

( 150

)

Net income (loss)²

$²

15²

$

( 1

)

$

94

$

38

Basic earnings (loss) per common share

$

0.25

$

( 0.02

)

$

1.56

$

0.63

Basic weighted-average common shares outstanding

60.4

60.0

60.3

59.9

Diluted earnings (loss) per common share

$

0.25

$

( 0.02

)

$

1.54

$

0.63

Diluted weighted-average common shares outstanding

60.9

60.0

60.9

60.5

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

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Advance Auto Parts, Inc. and Subsidiaries

Condensed Consolidated Statements of Comprehensive Income (in millions) (Unaudited)

Twelve Weeks Ended

Forty Weeks Ended

Net income (loss)

$

15

$

( 1

)

$

94

$

38

Other comprehensive (loss) income:

Currency translation adjustments

( 4

)

( 1

)

( 7

)

5

Total other comprehensive (loss) income

( 4

)

( 1

)

( 7

)

5

Comprehensive income (loss)

$

11

$

( 2

)

$

87

$

43

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

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Advance Auto Parts, Inc. and Subsidiaries

Condensed Consolidated Stat ements of Changes in Stockholders' Equity (in millions, except per share data) (Unaudited)

Twelve Weeks Ended October 10, 2026

Common Stock and Treasury

Accumulated

Other

Total

Additional Paid-in Capital

Stock, at Comprehensive

Retained

Stockholders'

Shares

Amount cost

Loss

Earnings

Equity

Balance at July 18, 2026

60

$

1,055

$

( 2,953

)

$

( 40

)

$

4,195

$

2,257

Net income

—

—

—

—

15

15

Total other comprehensive loss

—

—

—

( 4

)

—

( 4

)

Share-based compensation

—

8

—

—

—

8

Common stock issued under employee benefit plans

—

1

—

—

—

1

Repurchase of common stock

—

—

( 1

)

—

—

( 1

)

Dividends declared ($ 0.25 per common share)

—

—

—

—

( 16

)

( 16

)

Balance at October 10, 2026

60

$

1,064

$

( 2,954

)

$

( 44

)

$

4,194

$

2,260

Twelve Weeks Ended October 4, 2025

Common Stock and Treasury

Accumulated

Other

Total

Additional Paid-in Capital

Stock, at Comprehensive

Retained

Stockholders'

Shares

Amount cost

Loss

Earnings

Equity

Balance at July 12, 2025

60

$

1,016

$

( 2,943

)

$

( 41

)

$

4,171

$

2,203

Net loss

—

—

—

—

( 1

)

( 1

)

Total other comprehensive loss

—

—

—

( 1

)

—

( 1

)

Share-based compensation

—

9

—

—

—

9

Common stock issued under employee benefit plans

—

1

—

—

—

1

Repurchase of common stock

—

—

( 1

)

—

—

( 1

)

Dividends declared ($ 0.25 per common share)

—

—

—

—

( 15

)

( 15

)

Balance at October 4, 2025

60

$

1,026

$

( 2,944

)

$

( 42

)

$

4,155

$

2,195

The accompanying notes to the condensed consolidated financial statements are an integral part of these statements.

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Table of Contents

Advance Auto Parts, Inc. and Subsidiaries

Condensed Consolidated Statements of Changes in Stockholders' Equity (in millions, except per share data) (Unaudited)

Forty Weeks Ended October 10, 2026

Common Stock and Treasury

Accumulated

Other

Total

Additional Paid-in Capital

Stock, at Comprehensive

Retained

Stockholders'

Shares

Amount cost

Loss

Earnings

Equity

Balance at January 3, 2026

60

$

1,033

$

( 2,944

)

$

( 37

)

$

4,146

$

2,198

Net income

—

—

—

—

94

94

Total other comprehensive loss

—

—

—

( 7

)

—

( 7

)

Share-based compensation

—

29

—

—

—

29

Common stock issued under employee benefit plans

—

2

—

—

—

2

Repurchase of common stock

—

—

( 10

)

—

—

( 10

)

Dividends declared ($ 0.75 per common share)

—

—

—

—

( 46

)

( 4