US Market News
3 months ago
Genuine Parts Company Reports First Quarter 2026 Results and Reaffirms Full-Year OutlookApril 21, 2026 6:55 AM
PR Newswire (US)
ATLANTA, April 21, 2026 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC), a leading global service provider of automotive and industrial replacement parts and value-added solutions, announced today its results for the first quarter ended March 31, 2026.
"The GPC team delivered first quarter results ahead of expectations, driven by solid sales growth and operating discipline across our business segments," said Will Stengel, Chair-Elect and Chief Executive Officer. "Our performance reflects the strength and resilience of our businesses despite a dynamic global environment. We are simultaneously making strong progress on our announced separation which remains on track for completion in the first quarter of 2027."First Quarter 2026 ResultsSales were $6.3 billion, a 6.8% increase compared to $5.9 billion in the same period of the prior year. The improvement is attributable to a 2.4% increase in comparable sales, a 1.3% benefit from acquisitions and a net 3.1% favorable impact of foreign currency and other.Net income was $189 million, or $1.37 per diluted earnings per share. This compares to net income of $194 million, or $1.40 per diluted share in the prior year period.Adjusted net income was $245 million, or $1.77 per diluted earnings per share. Adjusted net income excludes a net expense of $56 million after tax adjustments, or $0.40 per diluted share, which relates to costs associated with the company's global restructuring initiative and the planned separation of the company's Global Automotive and Global Industrial businesses. This compares to adjusted net income of $243 million, or $1.75 per diluted share in the prior year period. Refer to the reconciliation of GAAP net income to adjusted net income and GAAP diluted net income per common share to adjusted diluted net income per common share for more information.First Quarter 2026 Segment HighlightsNorth America Automotive Parts Group ("North America Automotive")North America Automotive sales were $2.4 billion, up 4.3% from the same period in 2025. The improvement is attributable to a 2.2% increase in comparable sales, a 1.6% benefit from acquisitions and a net 0.5% favorable impact of foreign currency and other. Segment EBITDA of $156 million increased 6.3%, with segment EBITDA margin of 6.6%, up 10 basis points from the same period of the prior year.International Automotive Parts Group ("International Automotive")International Automotive sales were $1.6 billion, up 13.2% from the same period in 2025. The improvement is attributable to a 0.3% increase in comparable sales, a 2.3% benefit from acquisitions and a 10.6% favorable impact of foreign currency. Segment EBITDA of $145 million increased 4.6%, with segment EBITDA margin of 9.1%, down 80 basis points from the same period of the prior year.Industrial Parts Group ("Industrial")Industrial sales were $2.3 billion, up 5.2% from the same period in 2025. The improvement is attributable to a 3.9% increase in comparable sales, a 0.3% benefit from acquisitions and a 1.0% favorable impact of foreign currency. Segment EBITDA of $314 million increased 12.7%, with segment EBITDA margin of 13.6%, up 90 basis points from the same period of the prior year.Balance Sheet, Cash Flow and Capital AllocationThe company generated cash flow from operations of $64 million for the first three months of 2026. Net cash used in investing activities was $93 million, including $98 million for capital expenditures and $14 million for acquisitions. Net cash provided by financing activities was $57 million, including net proceeds of debt (including net commercial paper) of $218 million, partially offset by $142 million for quarterly dividends paid to shareholders. Free cash flow was a deficit of $34 million for the first three months of 2026 due to continued investments in the business outweighing cash from operations which is seasonally lower in the first quarter. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.As of March 31, 2026, total liquidity was $1.3 billion, consisting of $500 million in cash and $838 million of available capacity under the company's $2.0 billion Revolving Credit Agreement. This reflects $554 million drawn on the revolver and $607 million of outstanding commercial paper.2026 OutlookThe company is reaffirming full-year 2026 guidance previously provided in its earnings release on February 17, 2026. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results in updating its guidance, which is outlined in the table below.
For the Year Ending December 31, 2026Total sales growth
3% to 5.5%North America Automotive sales growth
3% to 5% International Automotive sales growth
3% to 6% Industrial sales growth
3% to 6% Diluted earnings per share
$6.10 to $6.60Adjusted diluted earnings per share
$7.50 to $8.00Effective tax rate
Approx. 24%Net cash provided by operating activities
$1.0 billion to $1.2 billionFree cash flow
$550 million to $700 million Non-GAAP InformationThis release contains certain financial information not derived in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"). These items include adjusted net income, adjusted diluted net income per common share, adjusted selling, administrative, and other expenses, and free cash flow. The company believes that the presentation of adjusted net income, adjusted diluted net income per common share, adjusted selling, administrative and other expenses and free cash flow, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to both management and investors that is indicative of the company's core operations. The company considers these metrics useful to investors because they provide greater transparency into management's view and assessment of the company's ongoing operating performance by removing items management believes are not representative of the company's continuing operations and may distort the company's longer-term operating trends. The company believes these measures are useful and enhance the comparability of the results from period to period and with the company's competitors, as well as show ongoing results from operations distinct from items that are infrequent or not associated with the company's core operations. The company does not, nor does it suggest investors should, consider such non-GAAP financial measures as superior to, in isolation from, or as a substitute for, GAAP financial information. The company has included a reconciliation of this additional information to the most comparable GAAP measure following the financial statements below. The company does not provide forward-looking guidance for certain financial measures on a GAAP basis because the company is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include acquisition-related costs, litigation charges or settlements, impairment charges, restructuring costs and certain other unusual adjustments.Comparable SalesComparable sales is a key metric that refers to period-over-period comparisons of the company's net sales excluding the impact of acquisitions, foreign currency and other. The company's calculation of comparable sales is computed using total business days for the period and is inclusive of sales from company-owned stores and sales into independent stores. The company considers this metric useful to investors because it provides greater transparency into management's view and assessment of the company's core ongoing operations. This is a metric that is widely used by analysts, investors and competitors, however the company's calculation of the metric may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate this metric in the same manner.Conference CallGenuine Parts Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss the results of the quarter. A supplemental earnings deck will also be available for reference. Interested parties may listen to the call and view the supplemental earnings deck on the company's investor relations website. The call is also available by dialing 800-836-8184. A replay of the call will be available on the company's website or toll-free at 888-660-6345, conference ID 82208#, two hours after the completion of the call.About Genuine Parts Company Established in 1928, Genuine Parts Company is a leading global service provider of automotive and industrial replacement parts and value-added solutions. Our Automotive Parts Group operates across North America, Europe and Australasia, while our Industrial Parts Group serves customers across North America and Australasia. We keep the world moving with a vast network of over 10,800 locations spanning 17 countries supported by more than 65,000 teammates. Learn more at genpt.com.Forward-Looking StatementsSome statements in this release, as well as in other materials the company files with the Securities and Exchange Commission ("SEC"), release to the public, or make available on the company's website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words such as "expect," "likely," "outlook," "forecast," "preliminary," "would," "could," "should," "position," "will," "project," "intend," "plan," "on track," "anticipate," "to come," "may," "possible," "assume," or similar expressions are intended to identify such forward-looking statements. These forward-looking statements include the company's view of business and economic trends for the coming year and the company's expectations regarding its ability to capitalize on these business and economic trends; the company's full-year 2026 outlook and the company's ability to successfully execute on its strategic priorities, including the company's anticipated separation of Global Automotive and Global Industrial into two independent, publicly traded companies. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking.The company cautions you that all forward-looking statements involve risks and uncertainties, and while the company believes its expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on the company's forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, changes in general economic conditions, including persistent inflation (including the direct and indirect impact of tariffs and retaliatory tariffs) or deflation, geopolitical uncertainty and unrest (including from the conflict in Iran) and declining consumer confidence; the company's ability to successfully implement the separation of Global Automotive and Global Industrial and achieve the anticipated benefits of such transaction; volatility in oil prices; significant costs, such as elevated fuel and freight expenses; the company's ability to maintain compliance with its debt covenants; its ability to successfully integrate acquired businesses into its operations and to realize the anticipated synergies and benefits; its ability to successfully implement its business initiatives in its three business segments; slowing demand for its products; the ability to maintain favorable supplier arrangements and relationships; changes in national and international legislation or government regulations or policies, including changes to global trade regulations, environmental and social policy, infrastructure programs and privacy legislation, and their impact to us, the company's suppliers and customers; changes in tax policies including those included in the One Big Beautiful Bill Act; volatile exchange rates; the company's ability to successfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; failure or weakness in its disclosure controls and procedures and internal controls over financial reporting; the uncertainties and costs of litigation; public health emergencies, including the effects on the financial health of the company's business partners and customers, on supply chains and its suppliers, on vehicle miles driven as well as other metrics that affect the company's business, and on access to capital and liquidity provided by the financial and capital markets; disruptions caused by a failure or breach of the company's information systems; the success of its global restructuring efforts and the annualized cost savings arising therefrom, as well as other risks and uncertainties discussed in the company's Annual Report on Form 10-K and from time to time in its subsequent filings with the SEC.Forward-looking statements speak only as of the date they are made, and the company undertakes no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures the company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC.GENUINE PARTS COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF INCOME(UNAUDITED)
Three Months Ended March 31,(in thousands, except per share data)
2026
2025Net sales
$ 6,264,940
$ 5,866,069Cost of goods sold
3,925,976
3,692,385Gross profit
2,338,964
2,173,684Operating expenses:
Selling, administrative and other expenses
1,856,830
1,709,679Depreciation and amortization
131,028
115,435Provision for doubtful accounts
7,103
5,855Restructuring and other costs
57,732
54,770Total operating expenses
2,052,693
1,885,739Non-operating expenses (income):
Interest expense, net
43,953
37,216Other
(3,075)
(908)Total non-operating expenses
40,878
36,308Income before income taxes
245,393
251,637Income taxes
56,858
57,245Net income
$ 188,535
$ 194,392Dividends declared per common share
$ 1.0625
$ 1.0300Basic earnings per share
$ 1.37
$ 1.40Diluted earnings per share
$ 1.37
$ 1.40
Weighted average common shares outstanding
137,622
138,783Dilutive effect of stock options and non-vested restricted stock awards
408
417Weighted average common shares outstanding – assuming dilution
138,030
139,200
GENUINE PARTS COMPANY AND SUBSIDIARIESSEGMENT INFORMATION(UNAUDITED)
The following table presents net sales by segment and a reconciliation from segment EBITDA to net income:
Three Months Ended March 31,(in thousands)
2026
2025Net sales:
North America Automotive
$ 2,363,032
$ 2,264,781International Automotive
1,585,516
1,400,107Industrial
2,316,392
2,201,181Segment EBITDA:
North America Automotive
156,205
146,995International Automotive
144,845
138,512Industrial
314,120
278,711Corporate EBITDA (1)
(119,525)
(91,125)Interest expense, net
(43,953)
(37,216)Depreciation and amortization
(131,028)
(115,435)Other unallocated costs
(75,271)
(68,805)Income before income taxes
245,393
251,637Income taxes
(56,858)
(57,245)Net income
$ 188,535
$ 194,392(1)Corporate EBITDA consists of costs related to the company's Corporate headquarters' broad support to the company's business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology, cybersecurity, legal, corporate finance, internal audit, and risk management, as well as product liability costs and A/R Sales Agreement fees.
The following table presents a summary of the other unallocated costs:
Three Months Ended March 31,(in thousands)
2026
2025Other unallocated costs:
Restructuring and other costs (2)
$ (57,732)
$ (54,770)Separation costs (3)
(17,539)
—Acquisition and integration related costs and other (4)
—
(14,035)Total other unallocated costs
$ (75,271)
$ (68,805)(2)Amount reflects costs related to our global restructuring initiative which includes employee severance and other termination benefits, and the rationalization and optimization of certain distribution centers, stores and other facilities.(3)Amount primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of the company's Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027.(4)Amount primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.
GENUINE PARTS COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED BALANCE SHEETS(UNAUDITED)
(in thousands, except share and per share data)
March 31, 2026
December 31, 2025Assets
Current assets:
Cash and cash equivalents
$ 500,023
$ 477,179Trade accounts receivable, net (2026 – $80,950; 2025 –
$85,537)
2,533,850
2,370,939Merchandise inventories, net
6,127,233
6,071,996Prepaid expenses and other current assets
1,723,404
1,644,620Total current assets
10,884,510
10,564,734Goodwill
3,181,594
3,188,815Other intangible assets, net
1,806,123
1,855,714Property, plant and equipment, net (2026 – $2,200,146;
2025 – $2,137,108)
2,142,689
2,172,140Operating lease assets
2,069,896
2,084,487Other assets
891,765
929,650Total assets
$ 20,976,577
$ 20,795,540
Liabilities and equity
Current liabilities:
Trade accounts payable
$ 6,177,867
$ 6,051,882Short-term borrowings
1,160,797
943,540Current portion of long-term debt
356,222
353,788Dividends payable
147,820
143,291Other current liabilities
2,113,831
2,295,204Total current liabilities
9,956,537
9,787,705Long-term debt
3,478,884
3,498,423Operating lease liabilities
1,717,913
1,739,478Pension and other post–retirement benefit liabilities
219,504
219,270Deferred tax liabilities
374,234
385,948Other long-term liabilities
737,288
724,353Equity:
Preferred stock, par value – $1 per share; authorized –
10,000,000 shares; none issued
—
—Common stock, par value – $1 per share; authorized –
450,000,000 shares; issued and outstanding – 2026 –
137,624,545 shares; 2025 – 137,617,832 shares
137,625
137,618Additional paid-in capital
240,228
228,370Accumulated other comprehensive loss
(513,465)
(511,766)Retained earnings
4,611,029
4,568,769Total parent equity
4,475,417
4,422,991Noncontrolling interests in subsidiaries
16,800
17,372Total equity
4,492,217
4,440,363Total liabilities and equity
$ 20,976,577
$ 20,795,540
GENUINE PARTS COMPANY AND SUBSIDIARIESCONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)
Three Months Ended March 31,(in thousands)
2026
2025Operating activities:
Net income
$ 188,535
$ 194,392Adjustments to reconcile net income to net cash provided by (used in)
operating activities:
Depreciation and amortization
131,028
115,435Share-based compensation
12,168
8,574Excess tax benefits from share-based compensation
(46)
(182)Other operating activities, including changes in operating assets and
liabilities
(267,769)
(359,046)Net cash provided by (used in) operating activities
63,916
(40,827)Investing activities:
Purchases of property, plant and equipment
(97,552)
(119,840)Proceeds from sale of property, plant and equipment
14,592
15,814Acquisitions of businesses
(13,797)
(74,127)Proceeds from divestitures of businesses
6,282
—Other investing activities
(2,435)
23,335Net cash used in investing activities
(92,910)
(154,818)Financing activities:
Proceeds from debt
254,755
20,011Payments on debt
(300,258)
(522,352)Net proceeds of commercial paper
263,541
772,108Shares issued from employee incentive plans
(304)
(502)Dividends paid
(141,746)
(134,355)Other financing activities
(19,275)
(6,168)Net cash provided by financing activities
56,713
128,742Effect of exchange rate changes on cash and cash equivalents
(4,875)
7,359Net increase (decrease) in cash and cash equivalents
22,844
(59,544)Cash and cash equivalents at beginning of period
477,179
479,991Cash and cash equivalents at end of period
$ 500,023
$ 420,447
GENUINE PARTS COMPANY AND SUBSIDIARIESRECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME AND GAAP
DILUTED NET INCOME PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME PER
COMMON SHARE(UNAUDITED)
The table below represents a reconciliation from GAAP net income to adjusted net income:
Three Months Ended March 31,(in thousands)
2026
2025GAAP net income
$ 188,535
$ 194,392
Adjustments:
Restructuring and other costs (1)
57,732
54,770Separation costs (2)
17,539
—Acquisition and integration related costs and other (3)
—
14,035Total adjustments
75,271
68,805Tax impact of adjustments (4)
(19,255)
(20,124)Adjusted net income
$ 244,551
$ 243,073
The table below represent amounts per common share assuming dilution:
Three Months Ended March 31,(in thousands, except per share data)
2026
2025GAAP diluted net income per common share
$ 1.37
$ 1.40
Adjustments:
Restructuring and other costs (1)
0.42
0.39Separation costs (2)
0.13
—Acquisition and integration related costs and other (3)
—
0.10Total adjustments
0.55
0.49Tax impact of adjustments (4)
(0.15)
(0.14)Adjusted diluted net income per common share
$ 1.77
$ 1.75Weighted average common shares outstanding – assuming dilution
138,030
139,200(1)Adjustment reflects costs related to our global restructuring initiative which includes employee severance and other termination benefits, and the rationalization and optimization of certain distribution centers, stores and other facilities.(2)Adjustment primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of the company's Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027.(3)Adjustment primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.(4)The company determines the tax effect of non-GAAP adjustments by considering the tax laws and statutory income tax rates applicable in the tax jurisdictions of the underlying non-GAAP adjustments, including any related valuation allowances. For the three months ended March 31, 2026, the company applied the statutory income tax rates to the taxable portion of all adjustments, which resulted in a tax impact of $19 million.
The table below clarifies where the items that have been adjusted above to improve comparability of the financial information from period to period are presented in the condensed consolidated statements of income.
Three Months Ended March 31,(in thousands)
2026
2025Line item:
Selling, administrative and other expenses
$ 17,539
$ 14,035Restructuring and other costs
57,732
54,770Total adjustments
$ 75,271
$ 68,805
GENUINE PARTS COMPANY AND SUBSIDIARIESRECONCILIATION OF GAAP SELLING, ADMINISTRATIVE AND OTHER EXPENSES TO
ADJUSTED SELLING, ADMINISTRATIVE AND OTHER EXPENSES(UNAUDITED)
The table below represents a reconciliation from GAAP selling, administrative and other expenses to adjusted selling, administrative and other expenses:
Three Months Ended March 31,(in thousands)
2026
2025GAAP selling, administrative and other expenses
$ 1,856,830
$ 1,709,679Adjustments:
Separation costs
(17,539)
—Acquisition and integration related costs and other
—
(14,035)Total adjustments (1)
(17,539)
(14,035)Adjusted selling, administrative and other expenses
$ 1,839,291
$ 1,695,644
Net sales
$ 6,264,940
$ 5,866,069GAAP SG&A expenses as a percentage of net sales
29.6 %
29.1 %Adjusted SG&A expenses as a percentage of net sales
29.4 %
28.9 %(1)Refer to the explanation of adjustments included within the reconciliation of GAAP net income to adjusted net income table for further information.
GENUINE PARTS COMPANY AND SUBSIDIARIESCHANGE IN NET SALES SUMMARY (UNAUDITED)
Three Months Ended March 31, 2026
Comparable
Sales
Acquisitions
Foreign
Currency
Other
GAAP Total
Net SalesNorth America Automotive
2.2 %
1.6 %
0.7 %
(0.2) %
4.3 %International Automotive
0.3 %
2.3 %
10.6 %
— %
13.2 %Industrial
3.9 %
0.3 %
1.0 %
— %
5.2 %Total Net Sales
2.4 %
1.3 %
3.2 %
(0.1) %
6.8 %
GENUINE PARTS COMPANY AND SUBSIDIARIESRECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE
CASH FLOW (UNAUDITED)
Three Months Ended March 31,(in thousands)
2026
2025Net cash provided by (used in) operating activities
$ 63,916
$ (40,827)Purchases of property, plant and equipment
(97,552)
(119,840)Free cash flow
$ (33,636)
$ (160,667)
For the Year Ending December 31, 2026Net cash provided by operating activities
$1.0 billion to $1.2 billionPurchases of property, plant and equipment
$450 million to $500 millionFree cash flow
$550 million to $700 million
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Original: Genuine Parts Company Reports First Quarter 2026 Results and Reaffirms Full-Year Outlook
US Market News
5 months ago
Genuine Parts Company Reports Fourth Quarter and Full-Year 2025 ResultsFebruary 17, 2026 6:55 AM
PR Newswire (US)
Declares Dividend Increase for 70th Consecutive YearProvides 2026 OutlookSeparately Announces Plan to Separate Automotive and Industrial Businesses Into Two Industry-Leading Public CompaniesATLANTA, Feb. 17, 2026 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC), a leading global service provider of automotive and industrial replacement parts and value-added solutions, announced today its results for the fourth quarter and twelve months ended December 31, 2025.
"We continued to advance our GPC strategies in 2025 while navigating a dynamic environment, thanks to the commitment of our teammates," said Will Stengel, Chair-Elect and Chief Executive Officer. "We stayed focused on what we can control, executing defined initiatives to deliver growth and improve productivity. As GPC has evolved with its markets for nearly a century, today's announcement to separate our automotive and industrial businesses is another exciting step forward in our history that is expected to unlock value for our stakeholders and better position our businesses for an even stronger future."Fourth Quarter 2025 ResultsSales were $6.0 billion, a 4.1% increase compared to $5.8 billion in the same period of the prior year. The improvement is attributable to a 1.7% increase in comparable sales, a 1.5% benefit from acquisitions and a net 0.9% favorable impact of foreign currency and other.Gross profit was $2.1 billion, or 35.0% of sales, an increase of 1.5% compared to gross profit of $2.1 billion, or 35.9% of sales, in the same period of the prior year. During the quarter, the company's gross profit was impacted by $160 million of certain non-recurring charges, primarily related to expected credit losses on volume purchase rebates and other amounts due from a vendor that filed petitions for Chapter 11 bankruptcy protection. In the same period of the prior year, the company incurred a charge of $62 million to write down certain existing inventory associated with a new global rebranding and relaunch of a key tool and equipment offering. Adjusting for these charges, adjusted gross profit as a percentage of sales was 37.6% in the fourth quarter of 2025, an increase of 70 basis points from the prior year period. Refer to the reconciliation of GAAP gross profit to adjusted gross profit and GAAP gross profit as a percentage of net sales to adjusted gross profit as a percentage of net sales for more information.During the quarter, the company had a net loss of $609 million, or $(4.39) per diluted earnings per share. This compares to net income of $133 million, or $0.96 per diluted share in the prior year period.Adjusted net income was $216 million, or $1.55 per diluted earnings per share. Adjusted net income excludes a net expense of $825 million after tax adjustments, or $5.94 per diluted share, which relates to certain non-recurring expenses outlined in the reconciliation of GAAP net income (loss) to adjusted net income. The majority of the $825 million net expense relates to the one-time, non-cash pension settlement charge incurred in connection with the termination of the company's U.S. qualified defined benefit plan. This compares to adjusted net income of $224 million, or $1.61 per diluted share in the prior year period. Refer to the reconciliation of GAAP net income (loss) to adjusted net income and GAAP diluted net income (loss) per common share to adjusted diluted net income per common share for more information.Fourth Quarter 2025 Segment HighlightsDuring the fourth quarter of 2025, the company realigned its Automotive Parts Group segment into two separate reportable segments: North America Automotive Parts Group ("North America Automotive"), which contains the company's automotive operations in the U.S. and Canada; and International Automotive Parts Group ("International Automotive"), which contains the company's automotive operations in Europe and Australasia. There were no changes to the company's Industrial Parts Group ("Industrial") segment. The company believes that this expanded segmentation will provide analysts, investors and other interested parties with additional information to better understand the company's performance.North America AutomotiveNorth America Automotive sales were $2.3 billion, up 2.4% from the same period in 2024. The improvement is attributable to a 1.7% increase in comparable sales and a 1.5% benefit from acquisitions, partially offset by a 0.8% unfavorable impact of other. Segment EBITDA of $129 million decreased 14.0%, with segment EBITDA margin of 5.5%, down 110 basis points from the same period of the prior year.International AutomotiveInternational Automotive sales were $1.5 billion, up 6.4% from the same period in 2024. The improvement is attributable to a 5.1% favorable impact of foreign currency and a 2.2% benefit from acquisitions, partially offset by a 0.9% decrease in comparable sales. Segment EBITDA of $129 million decreased 4.3%, with segment EBITDA margin of 8.7%, down 100 basis points from the same period of the prior year.IndustrialIndustrial sales were $2.2 billion, up 4.6% from the same period in 2024. The improvement is attributable to a 3.4% increase in comparable sales, a 1.0% benefit from acquisitions and a 0.2% favorable impact of foreign currency. Segment EBITDA of $295 million increased 8.7%, with segment EBITDA margin of 13.4%, up 50 basis points from the same period of the prior year.Full-Year 2025 ResultsSales for the twelve months ended December 31, 2025 were $24.3 billion, up 3.5% from 2024. Net income for the twelve months was $66 million, or $0.47 per diluted share. This compares to net income of $904 million, or $6.47 per diluted share in the prior year. Adjusted net income for 2025 was $1.0 billion, or $7.37 per diluted share. This compares to adjusted net income of $1.1 billion, or $8.16 per diluted share in 2024.Balance Sheet, Cash Flow and Capital AllocationThe company generated cash flow from operations of $891 million for the twelve months of 2025. Net cash used in investing activities was $712 million, including $470 million for capital expenditures and $318 million for acquisitions. Net cash used in financing activities was $209 million, including $564 million used for quarterly dividends paid to shareholders and net proceeds of debt (including net commercial paper) of $394 million. Free cash flow was $421 million for the twelve months ending December 31, 2025.The company ended the year with total liquidity of $1.5 billion, consisting of $477 million in cash and $1.1 billion of available capacity under the company's $2.0 billion Revolving Credit Agreement. This reflects $600 million drawn on the revolver and $343 million of outstanding commercial paper, which proceeds were partially offset by the repayment of the $500 million principal amount of the company's 1.75% Unsecured Senior Notes due February 1, 2025.Dividend DeclarationThe company's Board of Directors approved a 3.2% increase to its regular quarterly cash dividend for 2026. This increased the cash dividend payable to an annual rate of $4.25 per share from $4.12 per share in 2025. The quarterly cash dividend of $1.0625 per share is payable April 2, 2026 to shareholders of record March 6, 2026. The company has paid a cash dividend every year since going public in 1948, and 2026 marks the 70th consecutive year of increased dividends paid to shareholders.2026 OutlookIn consideration of several factors, the company is establishing full-year 2026 guidance. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results in establishing its guidance, which is outlined in the table below.
Year Ended 12/31/2026Total sales growth
3% to 5.5%North America Automotive sales growth
3% to 5%International Automotive sales growth
3% to 6%Industrial sales growth
3% to 6%Diluted earnings per share
$6.10 to $6.60Adjusted diluted earnings per share
$7.50 to $8.00Effective tax rate
Approx. 24%Net cash provided by operating activities
$1.0 billion to $1.2 billionFree cash flow
$550 million to $700 millionPlan to Separate Automotive and Industrial BusinessesIn a separate press release issued today, the company announced its intention to separate into two independent, publicly traded companies, one comprising its Automotive Parts Group ("Global Automotive") and the other comprising its Industrial Parts Group ("Global Industrial"). The separation is expected to create two, scaled market leaders, better able to execute their respective strategies. Please see the press release for additional details.Non-GAAP InformationThis release contains certain financial information not derived in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"). These items include adjusted net income, adjusted diluted net income per common share, adjusted gross profit and free cash flow. The company believes that the presentation of adjusted net income, adjusted diluted net income per common share, adjusted gross profit, adjusted selling, administrative and other expenses and free cash flow, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provide meaningful supplemental information to both management and investors that is indicative of the company's core operations. The company considers these metrics useful to investors because they provide greater transparency into management's view and assessment of the company's ongoing operating performance by removing items management believes are not representative of the company's continuing operations and may distort the company's longer-term operating trends. The company believes these measures are useful and enhance the comparability of the results from period to period and with the company's competitors, as well as show ongoing results from operations distinct from items that are infrequent or not associated with the company's core operations. The company does not, nor does it suggest investors should, consider such non-GAAP financial measures as superior to, in isolation from, or as a substitute for, GAAP financial information. The company has included a reconciliation of this additional information to the most comparable GAAP measure following the financial statements below. The company does not provide forward-looking guidance for certain financial measures on a GAAP basis because the company is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include acquisition-related costs, litigation charges or settlements, impairment charges, restructuring costs and certain other unusual adjustments.Comparable SalesComparable sales is a key metric that refers to period-over-period comparisons of the company's net sales excluding the impact of acquisitions, foreign currency and other. The company's calculation of comparable sales is computed using total business days for the period and is inclusive of sales from company-owned stores and sales into independent stores. The company considers this metric useful to investors because it provides greater transparency into management's view and assessment of the company's core ongoing operations. This is a metric that is widely used by analysts, investors and competitors, however the company's calculation of the metric may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate this metric in the same manner.Conference CallGenuine Parts Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss the results of the quarter. A supplemental earnings presentation is also available for reference. Interested parties may listen to the call and view the supplemental earnings presentation on the company's investor relations website. The call is also available by dialing 800-836-8184. A replay of the call will be available on the company's website or toll-free at 888-660-6345 conference ID 67947#, two hours after completion of the call.About Genuine Parts Company Established in 1928, Genuine Parts Company is a leading global service provider of automotive and industrial replacement parts and value-added solutions. Our Automotive Parts Group operates across North America, Europe and Australasia, while our Industrial Parts Group serves customers across North America and Australasia. We keep the world moving with a vast network of over 10,800 locations spanning 17 countries supported by more than 65,000 teammates. Learn more at genpt.com.Forward Looking StatementsSome statements in this release, as well as in other materials the company files with the Securities and Exchange Commission (SEC), release to the public, or make available on the company's website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words such as "expect," "likely," "outlook," "forecast," "preliminary," "would," "could," "should," "position," "will," "project," "intend," "plan," "on track," "anticipate," "to come," "may," "possible," "assume," or similar expressions are intended to identify such forward-looking statements. These forward-looking statements include the company's view of business and economic trends for the coming year and the company's expectations regarding its ability to capitalize on these business and economic trends; the company's full-year 2026 outlook and the company's ability to successfully execute on its strategic priorities, including the company's anticipated separation of Global Automotive and Global Industrial into two independent, publicly traded companies. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking.The company cautions you that all forward-looking statements involve risks and uncertainties, and while the company believes its expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on the company's forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, changes in general economic conditions, including persistent inflation (including the direct and indirect impact of tariffs and retaliatory tariffs) or deflation, geopolitical uncertainty and unrest and declining consumer confidence; the company's ability to successfully implement the separation of Global Automotive and Global Industrial and achieve the anticipated benefits of such transaction; volatility in oil prices; significant costs, such as elevated fuel and freight expenses; the company's ability to maintain compliance with its debt covenants; its ability to successfully integrate acquired businesses into its operations and to realize the anticipated synergies and benefits; its ability to successfully implement its business initiatives in its three business segments; slowing demand for its products; the ability to maintain favorable supplier arrangements and relationships; changes in national and international legislation or government regulations or policies, including changes to global trade regulations, environmental and social policy, infrastructure programs and privacy legislation, and their impact to us, the company's suppliers and customers; changes in tax policies including those included in the One Big Beautiful Bill Act; volatile exchange rates; the company's ability to successfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; failure or weakness in its disclosure controls and procedures and internal controls over financial reporting, including as a result of the work from home environment; the uncertainties and costs of litigation; public health emergencies, including the effects on the financial health of the company's business partners and customers, on supply chains and its suppliers, on vehicle miles driven as well as other metrics that affect the company's business, and on access to capital and liquidity provided by the financial and capital markets; disruptions caused by a failure or breach of the company's information systems; the success of its global restructuring efforts and the annualized cost savings arising therefrom, as well as other risks and uncertainties discussed in the company's Annual Report on Form 10-K and from time to time in its subsequent filings with the SEC.Forward-looking statements speak only as of the date they are made, and the company undertakes no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures the company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC. GENUINE PARTS COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF INCOME(UNAUDITED)
Three Months Ended December 31,
Twelve Months Ended December 31,(in thousands, except per share data)
2025
2024
2025
2024Net sales
$ 6,009,415
$ 5,770,173
$ 24,300,141
$ 23,486,569Cost of goods sold
3,908,191
3,699,957
15,359,443
14,962,954Gross profit
2,101,224
2,070,216
8,940,698
8,523,615Operating expenses:
Selling, administrative and other expenses
1,864,241
1,698,117
7,151,043
6,642,900Depreciation and amortization
172,095
112,130
538,023
407,978Provision for doubtful accounts
16,669
10,993
37,020
30,001Restructuring and other costs
86,644
59,695
253,961
213,520Total operating expenses
2,139,649
1,880,935
7,980,047
7,294,399Non-operating expenses (income):
Interest expense, net
45,737
29,398
163,506
96,827Pension settlement charge
741,967
—
741,967
—Other
3,590
(7,110)
3,010
(43,579)Total non-operating expenses
791,294
22,288
908,483
53,248Income (loss) before income taxes
(829,719)
166,993
52,168
1,175,968Income tax expense (benefit)
(220,221)
33,937
(13,777)
271,892Net income (loss)
$ (609,498)
$ 133,056
$ 65,945
$ 904,076Dividends declared per common share
$ 1.03
$ 1.00
$ 4.12
$ 4.00Basic earnings (loss) per share
$ (4.39)
$ 0.96
$ 0.47
$ 6.49Diluted earnings (loss) per share
$ (4.39)
$ 0.96
$ 0.47
$ 6.47
Weighted average common shares outstanding
138,903
138,858
138,945
139,208Dilutive effect of stock options and non-vested restricted stock awards
—
414
305
462Weighted average common shares outstanding — assuming dilution
138,903
139,272
139,250
139,670 GENUINE PARTS COMPANY AND SUBSIDIARIESSEGMENT INFORMATION(UNAUDITED)
The following table presents a reconciliation from EBITDA to net income (loss):
Three Months Ended December 31,
Twelve Months Ended December 31,(in thousands)
2025
2024
2025
2024Net sales:
North America Automotive
$ 2,326,293
$ 2,272,631
$ 9,520,042
$ 9,212,238International Automotive
1,485,358
1,395,702
5,858,566
5,556,895Industrial
2,197,764
2,101,840
8,921,533
8,717,436Segment EBITDA:
North America Automotive
129,061
149,999
672,182
715,530International Automotive
129,091
134,845
544,173
568,001Industrial
294,558
270,954
1,146,422
1,102,188Corporate EBITDA (1)
(94,044)
(121,911)
(357,175)
(389,217)Interest expense, net
(45,737)
(29,398)
(163,506)
(96,827)Depreciation and amortization
(172,095)
(112,130)
(538,023)
(407,978)Other unallocated costs
(1,070,553)
(125,366)
(1,251,905)
(315,729)Income (loss) before income taxes
(829,719)
166,993
52,168
1,175,968Income tax benefit (expense)
220,221
(33,937)
13,777
(271,892)Net income (loss)
$ (609,498)
$ 133,056
$ 65,945
$ 904,076
(1) Corporate EBITDA consists of costs related to the company's Corporate headquarters' broad support to the company's business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology, cybersecurity, legal, corporate finance, internal audit, and risk management, as well as product liability costs and A/R Sales Agreement fees. The following table presents a summary of the other unallocated costs:
Three Months Ended December 31,
Twelve Months Ended December 31,(in thousands)
2025
2024
2025
2024Other unallocated costs:
Restructuring and other costs (2)
$ (86,644)
$ (59,695)
$ (253,961)
$ (221,007)Acquisition and integration related costs and other (3)
—
(4,075)
(14,035)
(33,126)Inventory rebranding strategic initiative (4)
—
(61,596)
—
(61,596)Asbestos-related product liability (5)
(103,352)
—
(103,352)
—Pension settlement (6)
(741,967)
—
(741,967)
—First Brands credit loss allowance (7)
(150,500)
—
(150,500)
—Retirement obligation and other (8)
11,910
—
11,910
—Total other unallocated costs
$ (1,070,553)
$ (125,366)
$ (1,251,905)
$ (315,729)
(2) Amount reflects costs related to the company's global restructuring initiative which includes a voluntary retirement offer in the U.S. in 2024, and rationalization and optimization of certain distribution centers, stores and other facilities.(3) Amount primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.(4) Amount reflects a charge to write down certain existing inventory associated with a new global rebranding and relaunch of a key tool and equipment offering. The existing inventory that will be liquidated is comprised of otherwise saleable inventory, and the liquidation does not arise from the company's normal, recurring operational activities.(5) Amount reflects a remeasurement of the company's asbestos-related product liability for a revised estimate of the number of claims to be incurred in future periods based on adverse current year changes in the claims environment, among other assumptions.(6) Amount reflects a pension charge related to the settlement of the company's U.S. qualified defined benefit plan (U.S. pension plan).(7) Amount reflects a charge for expected credit losses on volume purchase rebates and other amounts due from First Brands, a key automotive supplier who filed for Chapter 11 bankruptcy.(8) Amount reflects certain nonroutine charges recorded during the quarter ended December 31, 2025, including a charge related to certain asset retirement obligations. GENUINE PARTS COMPANY AND SUBSIDIARIESCONSOLIDATED BALANCE SHEETS(UNAUDITED)
As of December 31,(in thousands, except share and per share data)
2025
2024Assets
Current assets:
Cash and cash equivalents
$ 477,179
$ 479,991Trade accounts receivable, net
2,370,939
2,182,856Merchandise inventories, net
6,071,996
5,514,427Prepaid expenses and other current assets
1,644,620
1,675,310Total current assets
10,564,734
9,852,584Goodwill
3,188,815
2,897,270Other intangible assets, net
1,855,714
1,799,031Property, plant and equipment, net
2,172,140
1,950,760Operating lease assets
2,084,487
1,769,720Other assets
929,650
1,013,340Total assets
$ 20,795,540
$ 19,282,705
Liabilities and equity
Current liabilities:
Trade accounts payable
$ 6,051,882
$ 5,923,684Short-term borrowings
943,540
41,705Current portion of debt
353,788
500,000Other current liabilities
2,295,204
1,925,636Dividends payable
143,291
134,355Total current liabilities
9,787,705
8,525,380Long-term debt
3,498,423
3,742,640Operating lease liabilities
1,739,478
1,458,391Pension and other post-retirement benefit liabilities
219,270
218,629Deferred tax liabilities
385,948
441,705Other long-term liabilities
724,353
544,109Equity:
Preferred stock, par value $1 per share — authorized 10,000,000 shares; none issued
—
—Common stock, par value $1 per share — authorized 450,000,000 shares; issued and outstanding — 2025 — 137,617,832 shares and 2024 — 138,779,664 shares
137,618
138,780Additional paid-in capital
228,370
196,532Accumulated other comprehensive loss
(511,766)
(1,261,743)Retained earnings
4,568,769
5,263,838Total parent equity
4,422,991
4,337,407Noncontrolling interests in subsidiaries
17,372
14,444Total equity
4,440,363
4,351,851Total liabilities and equity
$ 20,795,540
$ 19,282,705 GENUINE PARTS COMPANY AND SUBSIDIARIESCONSOLIDATED STATEMENTS OF CASH FLOWS(UNAUDITED)
Year Ended December 31,(in thousands)
2025
2024Operating activities:
Net income
$ 65,945
$ 904,076Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization
538,023
407,978Pension settlement
741,967
—First Brands credit loss allowance
150,500
—Deferred income taxes
(256,951)
(18,598)Share-based compensation
48,847
40,693Gains on sales of real estate
(28,317)
(43,049)Other operating activities
11,097
47,473Changes in operating assets and liabilities:
Trade accounts receivable, net
(77,397)
(50,939)Merchandise inventories, net
(208,190)
(440,549)Trade accounts payable
(132,712)
512,347Operating lease right-of-use asset
378,332
634,448Other current and noncurrent assets
(279,079)
(122,864)Operating lease current and noncurrent liabilities
(380,815)
(662,641)Other current and noncurrent liabilities
319,512
42,876Net cash provided by operating activities
890,762
1,251,251Investing activities:
Purchases of property, plant and equipment
(469,838)
(567,339)Proceeds from sale of property, plant and equipment
52,293
122,432Acquisitions of businesses
(318,291)
(1,080,238)Proceeds from divestitures of businesses
914
1,631Proceeds from settlement of net investment hedge
—
15,990Other investing activities
23,335
—Net cash used in investing activities
(711,587)
(1,507,524)Financing activities:
Proceeds from debt
1,053,448
895,299Payments on debt
(1,002,015)
(496,156)Net proceeds of commercial paper
342,791
—Shares issued from employee incentive plans
(16,671)
(16,888)Dividends paid
(563,842)
(554,931)Purchase of stock
—
(149,999)Other financing activities
(22,965)
(11,261)Net cash used in financing activities
(209,254)
(333,936)Effect of exchange rate changes on cash and cash equivalents
27,267
(31,807)Net decrease in cash and cash equivalents
(2,812)
(622,016)Cash and cash equivalents at beginning of year
479,991
1,102,007Cash and cash equivalents at end of year
$ 477,179
$ 479,991
Supplemental disclosures of cash flow information
Cash paid during the year for:
Income taxes
$ 211,215
$ 264,625Interest
$ 191,334
$ 124,977 GENUINE PARTS COMPANY AND SUBSIDIARIESRECONCILIATION OF GAAP NET INCOME (LOSS) TO ADJUSTED NET INCOME AND GAAP DILUTED NET INCOME (LOSS) PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME PER COMMON SHARE(UNAUDITED)
The table below represents a reconciliation from GAAP net income (loss) to adjusted net income:
Three Months Ended December 31,
Twelve Months Ended December 31,(in thousands)
2025
2024
2025
2024GAAP net income (loss)
$ (609,498)
$ 133,056
$ 65,945
$ 904,076
Adjustments:
Restructuring and other costs (1)
86,644
59,695
253,961
221,007Acquisition and integration related costs and other (2)
—
4,075
14,035
33,126Inventory rebranding strategic initiative (3)
—
61,596
—
61,596Asbestos-related product liability (4)
103,352
—
103,352
—Pension settlement (5)
741,967
—
741,967
—First Brands credit loss allowance (6)
150,500
—
150,500
—Retirement obligation and other (7)
30,111
—
30,111
—Total adjustments
1,112,574
125,366
1,293,926
315,729Tax impact of adjustments (8)
(287,110)
(34,053)
(333,450)
(79,964)Adjusted net income
$ 215,966
$ 224,369
$ 1,026,421
$ 1,139,841 The table below represents amounts per common share assuming dilution:
Three Months Ended December 31,
Twelve Months Ended December 31,(in thousands, except per share data)
2025
2024
2025
2024GAAP diluted net income (loss) per common share
$ (4.39)
$ 0.96
$ 0.47
$ 6.47
Adjustments:
Restructuring and other costs (1)
0.62
0.43
1.82
1.58Acquisition and integration related costs and other (2)
—
0.03
0.10
0.24Inventory rebranding strategic initiative (3)
—
0.44
—
0.44Asbestos-related product liability (4)
0.74
—
0.74
—Pension settlement (5)
5.34
—
5.33
—First Brands credit loss allowance (6)
1.08
—
1.08
—Retirement obligation and other (7)
0.22
—
0.22
—Total adjustments
8.00
0.90
9.29
2.26Tax impact of adjustments (8)
(2.06)
(0.25)
(2.39)
(0.57)Adjusted diluted net income per common share
$ 1.55
$ 1.61
$ 7.37
$ 8.16Weighted average common shares outstanding - assuming dilution
138,903
139,272
139,250
139,670
(1) Adjustment reflects costs related to the company's global restructuring initiative which includes a voluntary retirement offer in the U.S. in 2024, and rationalization and optimization of certain distribution centers, stores and other facilities.(2) Adjustment primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.(3) Adjustment reflects a charge to write down certain existing inventory associated with a new global rebranding and relaunch of a key tool and equipment offering. The existing inventory that will be liquidated is comprised of otherwise saleable inventory, and the liquidation does not arise from the company's normal, recurring operational activities. (4) Adjustment reflects a remeasurement of the company's asbestos-related product liability for a revised estimate of the number of claims to be incurred in future periods based on adverse current year changes in the claims environment, among other assumptions.(5) Adjustment reflects a pension charge related to the settlement of the company's U.S. qualified defined benefit plan (U.S. pension plan).(6) Adjustment reflects a charge for expected credit losses on volume purchase rebates and other amounts due from First Brands, a key automotive parts supplier who filed for Chapter 11 bankruptcy.(7) Adjustment reflects a nonroutine charge recorded during the quarter ended December 31, 2025 related to certain asset retirement obligations.(8) We determine the tax effect of non-GAAP adjustments by considering the tax laws and statutory income tax rates applicable in the tax jurisdictions of the underlying non-GAAP adjustments, including any related valuation allowances. For the three months and year ended December 31, 2025, we applied the statutory income tax rates to the taxable portion of all of the company's adjustments, which resulted in a tax impact of $287 million and $333 million, respectively. A portion of the company's transaction costs included in its non-GAAP adjustments for the three months and year ended December 31, 2025 were not deductible for income tax purposes; therefore, no statutory income tax rate was applied to such costs. The table below clarifies where the items that have been adjusted above to improve comparability of the financial information from period to period are presented in the consolidated statements of income:
Three Months Ended December 31,
Twelve Months Ended December 31,(in thousands)
2025
2024
2025
2024Line item:
Cost of goods sold
$ 160,200
$ 61,596
$ 160,200
$ 69,083Selling, administrative and other expenses
81,742
4,075
95,777
33,126Depreciation expense
42,021
—
42,021
—Restructuring and other costs
86,644
59,695
253,961
213,520Pension settlement charge
741,967
—
741,967
—Total adjustments
$ 1,112,574
$ 125,366
$ 1,293,926
$ 315,729 GENUINE PARTS COMPANY AND SUBSIDIARIESRECONCILIATION OF GAAP GROSS PROFIT TO ADJUSTED GROSS PROFIT AND GAAP SELLING,ADMINISTRATIVE AND OTHER EXPENSES TO ADJUSTED SELLING, ADMINISTRATIVE AND OTHER EXPENSES(UNAUDITED)
The table below represents a reconciliation from GAAP gross profit to adjusted gross profit:
Three Months Ended December 31,
Twelve Months Ended December 31,(in thousands)
2025
2024
2025
2024GAAP gross profit
$ 2,101,224
$ 2,070,216
$ 8,940,698
$ 8,523,615Adjustments:
Restructuring and other costs
—
—
—
7,487Inventory rebranding strategic initiative
—
61,596
—
61,596First Brands credit loss allowance
150,500
—
150,500
—Retirement obligation and other
9,700
—
9,700
—Total adjustments (1)
160,200
61,596
160,200
69,083Adjusted gross profit
$ 2,261,424
$ 2,131,812
$ 9,100,898
$ 8,592,698
Net sales
$ 6,009,415
$ 5,770,173
$ 24,300,141
$ 23,486,569GAAP gross profit as a percentage of net sales
35.0 %
35.9 %
36.8 %
36.3 %Adjusted gross profit as a percentage of net sales
37.6 %
36.9 %
37.5 %
36.6 % The table below represents a reconciliation from GAAP selling, administrative and other expenses to adjusted selling, administrative andother expenses:
Three Months Ended December 31,
Twelve Months Ended December 31,(in thousands)
2025
2024
2025
2024GAAP selling, administrative and other expenses
$ 1,864,241
$ 1,698,117
$ 7,151,043
$ 6,642,900Adjustments:
Acquisition and integration related costs and other
—
(4,075)
(14,035)
(33,126)Asbestos-related product liability
(103,352)
—
(103,352)
—Retirement obligation and other
21,610
—
21,610
—Total adjustments (1)
(81,742)
(4,075)
(95,777)
(33,126)Adjusted selling, administrative and other expenses
$ 1,782,499
$ 1,694,042
$ 7,055,266
$ 6,609,774
Net sales
$ 6,009,415
$ 5,770,173
$ 24,300,141
$ 23,486,569GAAP SG&A expenses as a percentage of net sales
31.0 %
29.4 %
29.4 %
28.3 %Adjusted SG&A expenses as a percentage of net sales
29.7 %
29.4 %
29.0 %
28.1 %
(1) Refer to the explanation of adjustments included within the reconciliation of GAAP net income (loss) to adjusted net income table for further information. GENUINE PARTS COMPANY AND SUBSIDIARIESCHANGE IN NET SALES SUMMARY(UNAUDITED)
Three Months Ended December 31, 2025
Comparable Sales
Acquisitions
Foreign Currency
Other
GAAP Total Net SalesNorth America Automotive
1.7 %
1.5 %
— %
(0.8) %
2.4 %International Automotive
(0.9) %
2.2 %
5.1 %
— %
6.4 %Industrial
3.4 %
1.0 %
0.2 %
— %
4.6 %Total net sales
1.7 %
1.5 %
1.3 %
(0.4) %
4.1 %
Twelve Months Ended December 31, 2025
Comparable Sales
Acquisitions
Foreign Currency
Other
GAAP Total Net SalesNorth America Automotive
0.6 %
2.6 %
(0.3) %
0.4 %
3.3 %International Automotive
0.2 %
3.3 %
1.9 %
— %
5.4 %Industrial
1.5 %
1.2 %
(0.4) %
— %
2.3 %Total net sales
0.9 %
2.2 %
0.3 %
0.1 %
3.5 % GENUINE PARTS COMPANY AND SUBSIDIARIESRECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW(UNAUDITED)
Twelve Months Ended December 31,(in thousands)
2025
2024Net cash provided by operating activities
$ 890,762
$ 1,251,251Purchases of property, plant and equipment
(469,838)
(567,339)Free cash flow
$ 420,924
$ 683,912
View original content to download multimedia:https://www.prnewswire.com/news-releases/genuine-parts-company-reports-fourth-quarter-and-full-year-2025-results-302689135.htmlSOURCE Genuine Parts Company
Original: Genuine Parts Company Reports Fourth Quarter and Full-Year 2025 Results
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