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Q4 & FY 2025 RESULTS FEBRUARY 13 | 2026
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Forward Looking Statements and Non-GAAP 2 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, including with respect to the Company's reorganized 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, 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, 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, implementation and operation of information and technology systems, 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. Non-GAAP Financial Measures. The Company's financial results include certain financial measures not derived in accordance with accounting principles generally accepted in the United States of America (“GAAP”). Non-GAAP financial measures, including Adjusted Net (loss) Income, Adjusted Diluted (loss) Earnings Per Share, Adjusted Gross Profit, Adjusted Gross Profit Margin, Adjusted Selling, General and Administrative (“SG&A”) Expense, Adjusted SG&A Margin, Adjusted Operating (loss) Income, Adjusted Operating (loss) Income Margin, Free Cash Flow and Adjusted Net Debt to Adjusted EBITDAR (“Net Leverage Ratio”) should not be used as a substitute for GAAP financial measures, or considered in isolation, for the purpose of analyzing our operating performance, financial position or cash flows. For additional information about these measures and a reconciliation to their most comparable GAAP measures, please refer to the Appendix in these materials.
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3 AGENDA Financial Update Ryan Grimsland Executive Vice President and Chief Financial Officer Q&A Business Update Shane O’Kelly President and Chief Executive Officer
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BUSINESS UPDATE Shane O’Kelly 4 4
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SUMMARY 5 Entered New Phase of Strategic Execution FY 2026 “Our Journey Advances” FY25 Results In Line with Expectations
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ONE YEAR INTO OUR JOURNEY Changes Since Announcing Strategic Plan Progress Achieved Primary Focus Areas Tariffs Consumer spending environment Debt re-financing Leadership transitions Rationalized asset footprint Sourcing, inventory management Customer service improvements Distribution center consolidation Market hubs, new stores and asset upgrades Transaction and sales growth Store productivity Distribution center productivity 6
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STRATEGIC PLAN IS DELIVERING ADJUSTED OPERATING MARGIN EXPANSION 7 -2.5% 0.4% 2.5% 2H FY23 FY24 FY25 FY26E Guidance Medium-term Target 3.8% - 4.5% Approx. 7%Approx. 500-basis points of margin expansion since new leadership joined Advance // Stabilize Operations Review Asset Productivity Build Strategic Plan Execute Strategic Plan Drive Operational Excellence Improve Profitability and Free Cash Flow The Company is not able to provide a reconciliation of these forward-looking non-GAAP measures presented herein 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.
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Merchandising Excellence Assortment management Strategic sourcing Promotions & margin management Store Operations Store operating model New store growth Service-level improvements Supply Chain Hub network expansion Distribution center productivity Transportation optimization Right Part. Right Place. Right Service. STRATEGIC PILLARS AND KEY INITIATIVES 8
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Store Operations Merchandising Excellence Supply Chain KEY 2026 PRIORITIES Strategic sourcing and vendor partnerships New pricing framework Assortment breadth and depth Advance Rewards loyalty program Completion of distribution center consolidation Test and launch distribution center productivity tools Grow market hub locations 9 Elevate team- member experience Improve DIY/ PRO service standards Strengthen in-store execution to drive transactions Accelerate new store openings
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FINANCIAL UPDATE Ryan Grimsland 10 UPDATE IMAGE 10
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Adjusted Gross Margin 44.2% (+527 bps YoY) 11 Advance Auto Parts Continuing Operations Q4 2025 RESULTS Comparable Store Sales Growth 1.1% YoY Net Sales $2.0B (-1.2% YoY) Adjusted SG&A Margin 40.5% (-339 bps YoY) Adjusted Diluted Earnings Per Share $0.86 Adjusted Operating Income Margin 3.7% (+866 bps YoY) Net Leverage Ratio 2.4x TTM Adj. Net Debt/ Adj. EBITDAR Further discussion regarding our use of Non-GAAP financial measures and reconciliations between GAAP and non-GAAP results, including YoY changes, are included in this presentation.
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Adjusted Gross Margin 43.9% (+164 bps YoY) 12Further discussion regarding our use of Non-GAAP financial measures and reconciliations between GAAP and non-GAAP results, including YoY changes, are included in this presentation. Comparable Store Sales Growth 0.8% YoY Net Sales $8.6B (-5.4% YoY) Adjusted SG&A Margin 41.4% (-49 bps YoY) Adjusted Diluted Earnings Per Share $2.26 Adjusted Operating Income Margin 2.5% (+213 bps YoY) Net Leverage Ratio 2.4x TTM Adj. Net Debt/ Adj. EBITDAR Advance Auto Parts Continuing Operations FY 2025 RESULTS 12
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FY 2026 NET SALES GUIDANCE 13 $8,601 ($51) ($132) $8,418 FY25 Less: Q1 FY25 Liquidation sales Less: Q4 FY25 Extra week sales FY25 Normalized Sales Base Add: FY26E Comparable sales growth Less: FY26E Other FY26E Guidance (1.3%) - (0.3%) YoY 1.0% - 2.0% $8,485 - $8,575 (0.2%) – (0.1%) 13The Company is not able to provide a reconciliation of these forward-looking non-GAAP measures presented herein 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.
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FY 2026 ADJ. OPERATING MARGIN GUIDANCE 14 (1) FY25 Non-recurring Items include impact of Q1 FY25 store closing sales and FY25 extra week sales. The Company is not able to provide a reconciliation of these forward-looking non-GAAP measures presented herein 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. 2.5% 0.2% 0.2% FY25 FY25 Non-recurring Gross Margin Items FY26E Gross Margin Drivers FY25 Non-recurring SG&A Margin Items FY26E SG&A Drivers FY26E Guidance 0.9% - 1.3% Gross Margin – Tailwinds – Product costs. Pricing & promotions. – Headwinds – Supply chain investments and labor inflation. SG&A – Lower expenses YoY. Includes $90M of non-recurring FY25 expenses – Tailwinds –Store tasks management and resource allocation. Indirect spend savings. – Headwinds – Inflation in wages, utilities and insurance. Store and market hub openings. Key Drivers 3.8% - 4.5%0.0% – 0.3% 1.1% - 1.5% FY26E Gross Margin Expansion 0.2% - 0.5% FY26E SG&A Margin Leverage (1) (1) 14
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FY 2026 GUIDANCE SUMMARY 15 (1) Includes pre-tax interest expense of approximately $210 million and pre-tax interest income of approximately $80 million. The Company is not able to provide a reconciliation of these forward-looking non-GAAP measures presented herein because it is unable to predict with reasonable accuracy the value of certain adjustments and as a result, the comparable GAAP measures are unavailable without unreasonable efforts. ($ in million, except margins and per share data) Current - As of February 13, 2026 Net sales $8,485 - $8,575 Comparable store sales growth 1.0% - 2.0% Adjusted operating income margin 3.8% - 4.5% Adjusted diluted EPS (1) $2.40 - $3.10 Capital expenditures Approx. $300 Free cash flow Approx. $100 Store growth Store openings 40 - 45 Market Hub openings 10 - 15
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Q&A 16
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17 APPENDIX – Q4 & FY 2025 RECONCILIATION OF NON-GAAP FINANCIAL MEASURES
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RECONCILIATION OF NON-GAAP FINANCIAL MEASURES The Company uses certain non-GAAP financial measures described below to supplement the Company's unaudited condensed consolidate d 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 ("Net Leverage Ratio"), 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 plans, inclusive of the Worldpac divestiture (2) other significant expenses and (3) nonrecurring tax expense 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 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. 18
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RECONCILIATION OF NON-GAAP FINANCIAL 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. • Inventory write-down: Expenses relating to the incremental write-down of inventory to net realizable value due to liquidation sales and streamlining inventory assortment due to store and distribution center closures associated with the 2024 Restructuring Plan. • Impairment and write-down of long-lived assets: Expenses relating to the impairment of operating lease right-of-use ("ROU") assets and property and equipment, incremental depreciation as a result of accelerating long-lived assets over a shorter useful life, 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: Includes a non-cash charge related to expected future credit losses on vendor receivables due from a vendor that filed voluntary petitions for Chapter 11 bankruptcy protection. • 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. 19
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RECONCILIATION OF DILUTED EARNINGS (LOSS) PER SHARE (GAAP) AND ADJUSTED DILUTED EARNINGS (LOSS) PER SHARE (NON-GAAP) (1) Reflects a charge for expected future credit losses related to vendor receivables due from a vendor that filed petitions for Chapter 11 bankruptcy protection on September 28, 2025. (2) Restructuring and other related expenses for the thirteen weeks ended January 3, 2026 includes $1 million of nonrecurring services rendered by third party vendors assisting with the 2024 Restructuring Plan, $2 million of severance and other related costs and $7 million of other-related expenses associated with location closures, including the transfer of assets. Restructuring and other related expenses for the fifty-three weeks ended January 3, 2026 includes $38 million of nonrecurring services rendered by third party vendors assisting with the 2024 Restructuring Plan, $18 million of severance and other related costs, $7 million for reserves on independent loans and $25 million of other related expenses associated with location closures, including the transfer of assets. Restructuring and other related expenses for the fifty-two weeks ended December 28, 2024 includes $25 million of incremental receivable reserves resulting from contract terminations with certain independents as part of the 2024 Restructuring Plan, $15 million of severance and other labor related costs as part of the 2024 Restructuring Plan, and $21 million of nonrecurring services rendered by third party vendors assisting with the 2024 Restructuring Plan. (3) The Company recorded incremental accelerated depreciation and amortization for property and equipment and ROU assets of $4 million and impairment charges for ROU assets and property and equipment of $2 million, net of gains on sale, for the thirteen weeks ended January 3, 2026. The Company recorded incremental accelerated depreciation and amortization for property and equipment and ROU assets of $60 million and impairment charges for ROU assets and property and equipment of $23 million, net of gains on sale, for the fifty-three weeks ended January 3, 2026. The Company recorded incremental accelerated depreciation and amortization for property and equipment and ROU assets of $171 million and impairment charges for ROU assets and property and equipment of $33 million, net of gains on sale, for the fifty-two weeks ended December 28, 2024 (4) The income tax impact of Non-GAAP adjustments is calculated using the estimated tax rate in effect for the respective Non-GAAP adjustments. (5) 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. (6) Other professional service fees in fiscal 2024 were classified as restructuring and related expenses based on the underlying activity to which they are related. 20
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RECONCILIATION OF ADJUSTED GROSS PROFIT RECONCILIATION OF ADJUSTED SELLING, GENERAL AND ADMINISTRATIVE EXPENSES 21
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RECONCILIATION OF ADJUSTED OPERATING INCOME RECONCILIATION OF FREE CASH FLOW 22 (1) These GAAP and Non-GAAP measures are calculated as a percentage of Net sales.
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RECONCILIATION OF ADJUSTED NET DEBT TO ADJUSTED EBITDAR (1) Management believes its Adjusted Net Debt to Adjusted EBITDAR ratio (“net 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 re-establish 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 net 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, transformational and other non-cash charges, 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 net 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 January 3, 2026 include expenses associated with our transformation and restructuring and related activities, in addition to other items, including a charge for expected future credit losses related to vendor receivables due from a vendor that filed petitions for Chapter 11 bankruptcy protection on September 28, 2025, the Company's material weakness remediation efforts, professional fees and executive turnover. 23