Financial Data and Key Metrics Changes - Total GPC sales for Q3 2025 were $6.3 billion, reflecting a 5% increase year-over-year, with adjusted EBITDA up 10% and adjusted diluted earnings per share at $1.98, a 5% increase from the previous year [4][5][22] - Gross margin expanded by 60 basis points to 37.4%, driven by strategic pricing and sourcing initiatives [4][24] - SG&A as a percentage of sales remained flat at 28.8%, with absolute dollar growth of $88 million year-over-year [25][26] Business Line Data and Key Metrics Changes - Global industrial sales reached $2.3 billion, up 5% year-over-year, with comparable sales growth of approximately 4% [7][10] - The automotive segment saw a 5% increase in sales, with comparable sales growth of about 2% [10][11] - Core MRO and maintenance business, accounting for 80% of Motion sales, grew mid-single digits, while capital-intensive projects saw slight growth [9][10] Market Data and Key Metrics Changes - Growth was observed in seven out of fourteen end markets, with notable strength in iron and steel, food products, and fabricated metals [8] - European market conditions remained soft, with total sales flat in local currency and comparable sales down approximately 2% [16] - The Asia-Pacific region experienced double-digit growth, with total sales up approximately 10% and comparable sales growth of about 5% [17] Company Strategy and Development Direction - The company is focused on operational and strategic reviews to enhance differentiation in a changing landscape, with updates expected in 2026 [18][19] - Strategic acquisitions, such as the planned acquisition of Benson Auto Parts in Canada, are aimed at expanding market presence and product offerings [15][16] - The company is adapting to inflationary pressures and tariff challenges while maintaining a disciplined approach to cost management [6][22] Management's Comments on Operating Environment and Future Outlook - Management noted that end markets remain muted, particularly in Europe, with challenges including tariffs, trade uncertainties, and cautious consumer behavior [6][22] - The company is optimistic about the potential for growth in industrial opportunities, particularly with onshoring trends [8] - Guidance for 2025 was updated to reflect total GPC sales growth expectations of 3%-4%, with adjusted diluted EPS projected between $7.50 and $7.75 [29][30] Other Important Information - The company experienced a low single-digit benefit from tariffs in Q3, with a slight net benefit expected in Q4 [23][45] - Cash generated from operations for the first nine months of 2025 was approximately $510 million, with free cash flow of $160 million [26][28] - The company plans to incur restructuring expenses between $180 million and $210 million, with expected benefits of $110 million to $135 million [32][33] Q&A Session Summary Question: What accounts for the expected moderation in gross margins for Q4? - Management indicated that the moderation is primarily due to the lapping of acquisition benefits and ongoing cost pressures from tariffs [36] Question: What are the benefits of having the businesses together? - Management highlighted that the integration has led to enhanced sales effectiveness, technology investments, and supply chain efficiencies [37][38] Question: What is the same SKU inflation in U.S. NAPA? - Management noted that the inflation impact is around 2.5% for U.S. automotive and slightly stronger for Motion, with expectations for continued stability [44][45] Question: Are independent owners losing market share? - Management stated that independent owners are managing inventory levels effectively and are not losing market share, with strong partnerships in place [67][72] Question: How should the fourth quarter outlook inform expectations for 2026? - Management refrained from providing specific guidance for 2026 but indicated that improvements in SG&A and gross margins are expected to continue [90]

Financial Data and Key Metrics Changes - Total GPC sales for Q3 2025 were $6.3 billion, reflecting a 5% increase year-over-year, with adjusted EBITDA up 10% [4][5] - Adjusted diluted earnings per share were $1.98, a 5% increase from the same period last year [5][22] - Gross margin expanded by 60 basis points to 37.4% compared to the previous year [4][24] Business Segment Performance - Global industrial sales reached $2.3 billion, up approximately 5% year-over-year, with comparable sales growth of about 4% [7][10] - The automotive segment saw sales increase by approximately 5%, with comparable sales growth of about 2% [10][11] - Motion's core MRO and maintenance business, accounting for 80% of Motion sales, was up mid-single digits during the quarter [9] Market Performance - Growth was observed in seven out of fourteen end markets, with notable strength in iron and steel, food products, and fabricated metals [8] - European market conditions remained soft, with total sales flat in local currency and comparable sales down approximately 2% [16] - The Asia-Pacific region experienced double-digit growth in local currency, driven by both organic initiatives and acquisitions [17] Company Strategy and Industry Competition - The company is focused on strategic pricing, sourcing initiatives, and acquisitions to enhance gross margins [4][24] - An operational and strategic review is ongoing, with updates expected in 2026, aimed at differentiating in an evolving landscape [18][19] - The company is actively managing the tariff environment and leveraging supplier partnerships to mitigate cost impacts [6][23] Management's Comments on Operating Environment and Future Outlook - Management noted that end markets remain muted, particularly in Europe, with challenges including tariffs, trade uncertainties, and elevated interest rates [6][22] - The company is narrowing its guidance for 2025, expecting diluted earnings per share in the range of $6.55 - $6.80, and adjusted diluted EPS of $7.50 - $7.75 [29][30] - Management expressed confidence in the fundamentals of the business and the potential for growth despite current market conditions [20][34] Other Important Information - The company has invested approximately $350 million in CapEx for supply chain modernization and IT improvements [28] - A definitive agreement has been signed to acquire Benson Auto Parts, enhancing the company's footprint in Canada [15][16] - The company expects to generate cash from operations in the range of $1.1 billion - $1.3 billion and free cash flow of $700 million - $900 million [33] Q&A Session Summary Question: What accounts for the expected moderation in gross margins for Q4? - Management indicated that the moderation is primarily due to the lapping of acquisition benefits and ongoing cost pressures from tariffs [36] Question: What are the benefits of having the businesses together? - Management highlighted meaningful benefits from operating as one entity, including improved sales effectiveness and technology investments [37][38] Question: What is the same SKU inflation in U.S. NAPA? - Management noted that the benefit to U.S. automotive is around 2.5%, with expectations for slight net benefits in Q4 [44] Question: Are independent owners losing market share? - Management stated that independent owners are managing inventory levels effectively and are not losing market share [67] Question: How should the fourth quarter outlook inform expectations for 2026? - Management refrained from providing specific guidance for 2026 but indicated that improvements in SG&A and gross margins are expected to continue [90]

Financial Data and Key Metrics Changes - Total sales for Genuine Parts Company (GPC) in Q3 2025 were $6.3 billion, reflecting a 5% increase year-over-year, with adjusted EBITDA up 10% [5][6][21] - Adjusted diluted earnings per share (EPS) reached $1.98, a 5% increase from the same period last year [6][21] - Gross margin expanded by 60 basis points to 37.4%, driven by strategic pricing and sourcing initiatives [5][24] Business Segment Data and Key Metrics Changes - Global industrial sales were $2.3 billion, up approximately 5% year-over-year, with comparable sales growth of about 4% [7][11] - The automotive segment saw sales increase by approximately 5%, with comparable sales growth of about 2% [11][12] - Motion's core MRO and maintenance business, accounting for 80% of Motion sales, was up mid-single digits during the quarter [10] Market Data and Key Metrics Changes - Growth was observed in seven out of fourteen end markets, up from five in the previous quarter, with notable strength in iron and steel, food products, and fabricated metals [9] - European market conditions remained soft, with total sales flat in local currency and comparable sales down approximately 2% [16] - The Asia-Pacific region experienced double-digit growth in local currency, with total sales increasing approximately 10% [17] Company Strategy and Development Direction - The company is focused on operational and strategic reviews to enhance differentiation in a changing landscape, with updates expected in 2026 [18][19] - GPC is actively managing the business to offset inflationary pressures and is committed to strategic acquisitions, such as the planned acquisition of Benson Auto Parts in Canada [15][27] - The company aims to leverage its size and scale to enhance procurement and operational efficiencies [48] Management's Comments on Operating Environment and Future Outlook - Management noted that end markets remain muted, particularly in Europe, but expressed confidence in the company's resilience and adaptability [6][19] - The outlook for 2025 was updated, expecting diluted EPS in the range of $6.55 to $6.80, with adjusted diluted EPS between $7.50 and $7.75 [28][30] - The company anticipates continued earnings growth in Q4, despite a more cautious market environment [34] Other Important Information - The company generated approximately $510 million in cash from operations and $160 million of free cash flow in the first nine months of 2025 [26] - GPC has returned $421 million to shareholders through dividends year-to-date [28] - The company expects to incur restructuring expenses in the range of $180 million to $210 million for 2025 [32] Q&A Session Summary Question: What accounts for the expected moderation in gross margins for Q4? - Management indicated that the moderation is primarily due to the lapping of acquisition benefits and ongoing cost pressures [36][37] Question: What are the benefits of having the businesses together? - Management highlighted meaningful benefits from integration, including improved sales effectiveness and technology investments [38][39] Question: What was the same SKU inflation in U.S. NAPA? - Management noted that the inflation impact is around 2.5% for U.S. automotive and slightly higher for Motion, with expectations for continued low single-digit benefits [43][44] Question: How is the company managing inventory levels with independent owners? - Management emphasized ongoing support for independent owners to optimize inventory and cash flow management [57][68] Question: What is the outlook for inflation and its impact on pricing? - Management expects inflation to remain in the 2% to 3% range, with a balanced approach to passing along price increases [72][75] Question: How should the fourth quarter outlook inform expectations for 2026? - Management refrained from providing specific guidance for 2026 but indicated that strong momentum and cost management efforts would continue to support growth [85][86]

Financial Data and Key Metrics Changes - Total GPC sales for Q3 2025 were $6.3 billion, an increase of approximately 5% compared to the same period last year, with adjusted diluted earnings per share of $1.98, up 5% year over year [5][28][34] - Adjusted EBITDA increased by 10% year over year, with EBITDA margins improving in both Automotive and Industrial segments [5][31] - Gross margin was 37.4%, reflecting a 60 basis point increase from the previous year, driven by strategic pricing and sourcing initiatives [29][34] Business Line Data and Key Metrics Changes - Global Industrial sales were $2.3 billion, up approximately 5% year over year, with comparable sales growth of about 4% [9][12] - The Automotive segment saw sales increase by approximately 5%, with comparable sales growth of about 2% [12][34] - Motion's core MRO and maintenance business, accounting for 80% of Motion sales, was up mid-single digits during the quarter [11] Market Data and Key Metrics Changes - In the U.S., total automotive sales increased approximately 4%, with comparable sales up about 2% [13][18] - Canadian automotive sales rose approximately 3% in local currency, with comparable sales increasing by about 2% [18] - European sales were flat in local currency, with comparable sales down approximately 2% [20] Company Strategy and Development Direction - The company is focused on operational discipline and strategic investments to enhance customer service and manage inflationary pressures [24][33] - There is an ongoing operational and strategic review to assess business structure and differentiate in an evolving landscape, with updates expected in 2026 [23][34] - The company is optimistic about the long-term fundamentals of its markets and is positioned to build on its momentum [25][39] Management's Comments on Operating Environment and Future Outlook - Management noted that end markets remain muted, particularly in Europe, but they are adapting to dynamic environments and remain resilient [6][24] - The company expects diluted earnings per share for 2025 to be in the range of $6.55 to $6.80, with total sales growth projected at 3% to 4% [34][36] - Management highlighted the importance of monitoring the fluid tariff environment and customer sentiment as they navigate market conditions [39] Other Important Information - The company has signed a definitive agreement to acquire Benson Auto Parts in Canada, which is expected to close in Q4 2025 [19] - The company has returned $421 million to shareholders through dividends in the first nine months of 2025 [33] Q&A Session Summary Question: What accounts for gross margins being up less in the fourth quarter? - Management indicated that the moderation in gross margin expansion is primarily due to the lapping of acquisition benefits and ongoing sourcing and pricing efforts [43][44] Question: What are the benefits of having the businesses together? - Management emphasized the meaningful benefits of operating as one team, including improved sales effectiveness and technology investments [45][46] Question: What is the same SKU inflation in US NAPA? - Management noted that the full run rate of inflation is expected to stabilize, with a low single-digit benefit to sales growth from tariffs [53][54] Question: Have independents been losing market share? - Management stated that independent owners are managing inventory levels effectively and are not losing market share [78][80] Question: How should the fourth quarter outlook inform 2026 expectations? - Management suggested that while they expect solid performance in Q4, they are cautious about market conditions and will continue to monitor the environment closely [99][104]

Core Insights - Genuine Parts Company (GPC) reported quarterly earnings of $1.98 per share, missing the Zacks Consensus Estimate of $2.02 per share, but showing an increase from $1.88 per share a year ago, resulting in an earnings surprise of -1.98% [1] - The company achieved revenues of $6.26 billion for the quarter ended September 2025, exceeding the Zacks Consensus Estimate by 2.03% and up from $5.97 billion year-over-year [2] - Genuine Parts has surpassed consensus EPS estimates three times over the last four quarters and has topped consensus revenue estimates four times in the same period [2] Earnings Outlook - The future performance of Genuine Parts' stock will largely depend on management's commentary during the earnings call and the sustainability of the stock's immediate price movement based on the recently released numbers [3][4] - The current consensus EPS estimate for the upcoming quarter is $1.79 on revenues of $5.91 billion, while for the current fiscal year, the estimate is $7.65 on revenues of $24.08 billion [7] Industry Context - The Automotive - Retail and Wholesale - Parts industry, to which Genuine Parts belongs, is currently ranked in the bottom 25% of over 250 Zacks industries, indicating potential challenges for stock performance [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors or through tools like the Zacks Rank [5][6]

Financial Performance - Global sales increased by 4.9% to $6.3 billion[11] - Adjusted diluted EPS increased by 5.3% to $1.98[11] - Adjusted EBITDA increased by 10.4% to $526 million[11] - Gross margin improved by 60 bps to 37.4%[11] Segment Performance - Industrial global sales increased by 4.6% to $2.3 billion, with comparable sales up 3.7%[13] - Automotive global sales increased by 5.0% to $4.0 billion, with global comparable sales up 1.6%[17] - North America industrial sales increased by 5.2%[13] - Australasia automotive sales increased by 10.4%[18] Capital Allocation and Outlook - Year-to-date capital deployment includes 37% in strategic investments, 19% in M&A, 44% in share repurchases and dividends totaling $953 million[27] - The company anticipates $400 million to $450 million in capital expenditures for FY2025[32] - The company anticipates $300 million to $350 million in M&A capital outlay for FY2025[32] - Updated 2025 outlook projects total sales growth of 3% to 4% and adjusted diluted EPS of $7.50 to $7.75[34]

[Genuine Parts Company Q3 2025 Earnings Report Overview](index=1&type=section&id=Genuine%20Parts%20Company%20Q3%202025%20Earnings%20Report%20Overview) [Third Quarter 2025 Results](index=1&type=section&id=Third%20Quarter%202025%20Results) Genuine Parts Company reported Q3 2025 sales of **$6.3 billion**, a **4.9% increase**, with adjusted diluted EPS rising **5.3%** to **$1.98** Q3 2025 Key Financial Highlights | Metric | Q3 2025 | Q3 2024 | Change (%) | | :----- | :------ | :------ | :--------- | | Sales (in billions) | $6.3 | $6.0 | 4.9% | | Net Income (in millions) | $226 | $227 | -0.4% | | Diluted EPS ($) | $1.62 | $1.62 | 0.0% | | Adjusted Net Income (in millions) | $276 | $263 | 5.0% | | Adjusted Diluted EPS ($) | $1.98 | $1.88 | 5.3% | - Sales improvement was attributed to a **2.3% increase in comparable sales**, **1.8% from acquisitions**, and **0.8% from favorable foreign currency** and other factors[4](index=4&type=chunk) - Adjusted net income excludes a net expense of **$49 million** after tax adjustments, or **$0.36 per diluted share**, in costs associated with the company's global restructuring initiative[6](index=6&type=chunk) [Third Quarter 2025 Segment Highlights](index=2&type=section&id=Third%20Quarter%202025%20Segment%20Highlights) Automotive and Industrial segments both achieved sales growth and improved EBITDA margins in Q3 2025 Q3 2025 Segment Performance | Segment | Sales (Q3 2025, in billions) | Sales Growth (YoY, %) | EBITDA (Q3 2025, in millions) | EBITDA Growth (YoY, %) | EBITDA Margin (Q3 2025, %) | Margin Change (bps) | | :------ | :--------------------------- | :-------------------- | :---------------------------- | :--------------------- | :------------------------- | :------------------ | | Automotive | $4.0 | 5.0% | $335 | 5.9% | 8.4% | +10 | | Industrial | $2.3 | 4.6% | $285 | 6.6% | 12.6% | +30 | - Automotive sales growth was driven by a **2.3% benefit from acquisitions**, a **1.6% increase in comparable sales**, and a **1.1% favorable impact of foreign currency** and other[8](index=8&type=chunk) - Industrial sales growth was primarily attributable to a **3.7% increase in comparable sales** and a **1.1% benefit from acquisitions**, partially offset by a **0.2% unfavorable impact of foreign currency**[9](index=9&type=chunk) [Nine Months 2025 Results](index=2&type=section&id=Nine%20Months%202025%20Results) Sales for the first nine months of 2025 grew by **3.2%** to **$18.3 billion**, despite a decrease in both GAAP and adjusted net income and diluted EPS Nine Months 2025 Key Financials | Metric | 9M 2025 | 9M 2024 | Change (%) | | :----- | :------ | :------ | :--------- | | Sales (in billions) | $18.3 | $17.7 | 3.2% | | Net Income (in millions) | $675 | $771 | -12.4% | | Diluted EPS ($) | $4.85 | $5.51 | -12.0% | | Adjusted Net Income (in millions) | $810 | $915 | -11.5% | | Adjusted Diluted EPS ($) | $5.82 | $6.55 | -11.2% | [Balance Sheet, Cash Flow and Capital Allocation](index=2&type=section&id=Balance%20Sheet%2C%20Cash%20Flow%20and%20Capital%20Allocation) Operating cash flow for 9M 2025 was **$511 million**, with free cash flow at **$160 million**, while maintaining **$431 million** in cash and **$1.1 billion** in undrawn credit 9M 2025 Cash Flow Summary | Metric | 9M 2025 (Millions) | | :-------------------------- | :----------------- | | Cash flow from operations | $511 | | Net cash used in investing activities | $488 | | Capital expenditures | $350 | | Acquisitions | $182 | | Net cash used in financing activities | $94 | | Dividends paid | $421 | | Free cash flow | $160 | - As of September 30, 2025, the company had **$431 million in cash and cash equivalents** and **$1.1 billion in undrawn capacity** on its Revolving Credit Agreement[12](index=12&type=chunk) [2025 Outlook](index=2&type=section&id=2025%20Outlook) The company updated its full-year 2025 guidance, raising total sales growth to **3% to 4%** and narrowing adjusted diluted EPS to **$7.50 to $7.75** Updated 2025 Full-Year Guidance | Metric | Previous Outlook | Current Outlook | | :-------------------------- | :--------------- | :-------------- | | Total sales growth (%) | 1% to 3% | 3% to 4% | | Automotive sales growth (%) | 1.5% to 3.5% | 4% to 5% | | Industrial sales growth (%) | 1% to 3% | 2% to 3% | | Diluted EPS (GAAP, $) | $6.55 to $7.05 | $6.55 to $6.80 | | Adjusted Diluted EPS ($) | $7.50 to $8.00 | $7.50 to $7.75 | | Effective tax rate (%) | Approx. 24% | Approx. 24% | | Net cash from operating activities (in billions) | $1.1 to $1.3 | $1.1 to $1.3 | | Free cash flow (in millions) | $700 to $900 | $700 to $900 | - The updated outlook reflects year-to-date results and expectations that current market conditions will remain consistent with Q3[14](index=14&type=chunk) - The outlook excludes a potential one-time, non-cash charge of **$650 million to $750 million** related to the U.S. pension plan termination, expected by late 2025, which will impact GAAP diluted EPS but not adjusted diluted EPS[14](index=14&type=chunk)[15](index=15&type=chunk) [Non-GAAP Information](index=3&type=section&id=Non-GAAP%20Information) Non-GAAP measures are used to provide transparency into core operations by excluding non-recurring items like restructuring and acquisition costs - Non-GAAP measures (adjusted net income, adjusted diluted EPS, free cash flow) are used to provide transparency into ongoing operating performance by excluding items not representative of continuing operations[16](index=16&type=chunk) - Excluded items include costs from global restructuring initiatives and integration of acquired independent automotive stores, which are one-time events that do not recur in the ordinary course of business[17](index=17&type=chunk) [Comparable Sales Definition](index=4&type=section&id=Comparable%20Sales) Comparable sales is a key metric measuring period-over-period sales performance, excluding acquisitions, foreign currency, and other factors - Comparable sales is a key metric that refers to period-over-period comparisons of sales excluding the impact of acquisitions, foreign currency, and other factors[18](index=18&type=chunk) - The calculation of comparable sales is computed using total business days for the period and is inclusive of both company-owned stores and sales to independent owners' stores[18](index=18&type=chunk) [Conference Call Information](index=4&type=section&id=Conference%20Call) A conference call was held on October 21, 2025, to discuss Q3 results, with a replay and supplemental earnings deck available - A conference call was held on October 21, 2025, at 8:30 a.m. ET to discuss the results of the quarter, with a supplemental earnings deck available on the company's investor relations website[19](index=19&type=chunk) - A replay of the call is available on the company's website or via a toll-free number[19](index=19&type=chunk) [About Genuine Parts Company](index=4&type=section&id=About%20Genuine%20Parts%20Company) Established in 1928, Genuine Parts Company is a global provider of automotive and industrial parts, operating over **10,700 locations** in **17 countries** - Genuine Parts Company, established in 1928, is a leading global service provider of automotive and industrial replacement parts and value-added solutions[20](index=20&type=chunk) - The company operates over **10,700 locations** spanning **17 countries**, supported by more than **63,000 teammates**[20](index=20&type=chunk) [Investor and Media Contacts](index=4&type=section&id=Contacts) Contact information for investor relations and global strategic communications is provided - Investor Contact: Timothy Walsh, Vice President - Investor Relations, (678) 934-5349[21](index=21&type=chunk) - Media Contact: Heather Ross, Vice President - Global Strategic Communications, (678) 934-5220[21](index=21&type=chunk) [Forward-Looking Statements](index=5&type=section&id=Forward-Looking%20Statements) This section highlights forward-looking statements, subject to risks and uncertainties, and lists factors that could cause actual results to differ materially - The release contains forward-looking statements, identified by words such as 'expect,' 'outlook,' 'will,' and 'anticipate,' which are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995[22](index=22&type=chunk) - Actual results or events may differ materially due to various important factors, including changes in general economic conditions, inflation, geopolitical conflicts, volatility in oil prices, significant cost increases, public health emergencies, and changes in national and international legislation or government regulations[23](index=23&type=chunk) - 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[24](index=24&type=chunk) [Financial Statements and Reconciliations](index=6&type=section&id=Financial%20Statements%20and%20Reconciliations) [Condensed Consolidated Statements of Income](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Unaudited condensed consolidated statements of income for Q3 and 9M 2025 and 2024, detailing key revenue and expense metrics Condensed Consolidated Statements of Income (Selected Data, in thousands) | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | 9M 2025 (in thousands) | 9M 2024 (in thousands) | | :-------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Net sales | $6,260,232 | $5,970,198 | $18,290,726 | $17,716,396 | | Gross profit | $2,341,402 | $2,198,441 | $6,839,474 | $6,453,399 | | Total operating expenses | $2,007,109 | $1,876,578 | $5,840,398 | $5,413,464 | | Income before income taxes | $291,693 | $297,593 | $881,887 | $1,008,975 | | Net income | $226,171 | $226,582 | $675,443 | $771,020 | | Diluted earnings per share ($) | $1.62 | $1.62 | $4.85 | $5.51 | [Segment Information](index=7&type=section&id=SEGMENT%20INFORMATION) This section reconciles EBITDA to net income, detailing net sales and EBITDA for Automotive and Industrial segments, plus unallocated costs Segment Net Sales and EBITDA (Selected Data, in thousands) | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | 9M 2025 (in thousands) | 9M 2024 (in thousands) | | :-------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Automotive Net Sales | $3,989,788 | $3,799,789 | $11,566,957 | $11,100,800 | | Industrial Net Sales | $2,270,444 | $2,170,409 | $6,723,769 | $6,615,596 | | Automotive Segment EBITDA | $334,704 | $316,142 | $958,203 | $998,687 | | Industrial Segment EBITDA | $285,015 | $267,287 | $851,864 | $831,234 | | Corporate EBITDA | $(93,374) | $(106,686) | $(263,131) | $(267,306) | [Other Unallocated Costs](index=7&type=section&id=Other%20unallocated%20costs) This sub-section details components of other unallocated costs, including restructuring and acquisition-related expenses Summary of Other Unallocated Costs (in thousands) | Cost Type | Q3 2025 (in thousands) | Q3 2024 (in thousands) | 9M 2025 (in thousands) | 9M 2024 (in thousands) | | :---------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Restructuring and other costs | $(66,835) | $(41,023) | $(167,317) | $(161,312) | | Acquisition and integration related costs and other | — | $(4,273) | $(14,035) | $(29,051) | | Total other unallocated costs | $(66,835) | $(45,296) | $(181,352) | $(190,363) | - Restructuring and other costs reflect expenses related to the global restructuring initiative, including a voluntary retirement offer in the U.S. in 2024 and rationalization of certain distribution centers, stores, and other facilities[30](index=30&type=chunk) - Acquisition and integration related costs primarily reflect lease and other exit costs related to the integration of acquired independent automotive stores[31](index=31&type=chunk) [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) Unaudited condensed consolidated balance sheets as of September 30, 2025, and December 31, 2024, detailing assets, liabilities, and equity Condensed Consolidated Balance Sheets (Selected Data, in thousands) | Metric | Sep 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | | :------------------------------------ | :-------------------------- | :-------------------------- | | Total current assets | $10,666,957 | $9,852,584 | | Total assets | $20,694,868 | $19,282,705 | | Total current liabilities | $9,383,101 | $8,525,380 | | Total liabilities and equity | $20,694,868 | $19,282,705 | | Cash and cash equivalents | $431,359 | $479,991 | | Merchandise inventories, net | $5,873,796 | $5,514,427 | | Short-term borrowings | $910,752 | $41,705 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Unaudited condensed consolidated statements of cash flows for 9M 2025 and 2024, detailing operating, investing, and financing activities Condensed Consolidated Statements of Cash Flows (Selected Data, in thousands) | Metric | 9M 2025 (in thousands) | 9M 2024 (in thousands) | | :------------------------------------ | :--------------------- | :--------------------- | | Net cash provided by operating activities | $510,689 | $1,096,225 | | Net cash used in investing activities | $(487,951) | $(1,245,192) | | Net cash provided by (used in) financing activities | $(93,717) | $124,828 | | Net decrease in cash and cash equivalents | $(48,632) | $(23,889) | | Cash and cash equivalents at end of period | $431,359 | $1,078,118 | - The reduction in operating cash flows year-over-year is driven by lower net income, accelerated tax payments versus 2024, and changes in working capital[11](index=11&type=chunk) [Reconciliation of GAAP to Adjusted Net Income and EPS](index=10&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20INCOME%20TO%20ADJUSTED%20NET%20INCOME%20AND%20GAAP%20DILUTED%20NET%20INCOME%20PER%20COMMON%20SHARE%20TO%20ADJUSTED%20DILUTED%20NET%20INCOME%20PER%20COMMON%20SHARE) Reconciliation of GAAP to adjusted net income and diluted EPS, detailing adjustments for restructuring and acquisition costs and their tax impacts Reconciliation of GAAP to Adjusted Net Income (in thousands) | Metric | Q3 2025 (in thousands) | Q3 2024 (in thousands) | 9M 2025 (in thousands) | 9M 2024 (in thousands) | | :-------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | GAAP net income | $226,171 | $226,582 | $675,443 | $771,020 | | Total adjustments | $66,835 | $45,296 | $181,352 | $190,363 | | Tax impact of adjustments | $(17,411) | $(8,865) | $(46,340) | $(45,911) | | Adjusted net income | $275,595 | $263,013 | $810,455 | $915,472 | Reconciliation of GAAP to Adjusted Diluted EPS | Metric | Q3 2025 ($) | Q3 2024 ($) | 9M 2025 ($) | 9M 2024 ($) | | :-------------------- | :---------- | :---------- | :---------- | :---------- | | GAAP diluted EPS | $1.62 | $1.62 | $4.85 | $5.51 | | Total adjustments (per share) | $0.48 | $0.32 | $1.30 | $1.37 | | Tax impact of adjustments (per share) | $(0.12) | $(0.06) | $(0.33) | $(0.33) | | Adjusted diluted EPS | $1.98 | $1.88 | $5.82 | $6.55 | [Income Statement Adjustments Breakdown](index=11&type=section&id=Income%20Statement%20Adjustments%20Breakdown) This sub-section details non-GAAP adjustments within the Condensed Consolidated Statements of Income, allocated across various expense categories Income Statement Line Item Adjustments (in thousands) | Line item | Q3 2025 (in thousands) | Q3 2024 (in thousands) | 9M 2025 (in thousands) | 9M 2024 (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :--------------------- | :--------------------- | | Cost of goods sold | $— | $— | $— | $7,487 | | Selling, administrative and other expenses | $— | $4,273 | $14,035 | $29,051 | | Restructuring and other costs | $66,835 | $41,023 | $167,317 | $153,825 | | Total adjustments | $66,835 | $45,296 | $181,352 | $190,363 | [Change in Net Sales Summary](index=11&type=section&id=CHANGE%20IN%20NET%20SALES%20SUMMARY) Detailed breakdown of net sales changes for Q3 and 9M 2025, attributing growth to comparable sales, acquisitions, and foreign currency impacts Q3 2025 Net Sales Change Breakdown | Segment | Comparable Sales (%) | Acquisitions (%) | Foreign Currency (%) | Other (%) | GAAP Total Net Sales (%) | | :-------- | :------------------- | :--------------- | :------------------- | :-------- | :----------------------- | | Automotive | 1.6 % | 2.3 % | 1.0 % | 0.1 % | 5.0 % | | Industrial | 3.7 % | 1.1 % | (0.2)% | — % | 4.6 % | | Total Net Sales | 2.3 % | 1.8 % | 0.7 % | 0.1 % | 4.9 % | 9M 2025 Net Sales Change Breakdown | Segment | Comparable Sales (%) | Acquisitions (%) | Foreign Currency (%) | Other (%) | GAAP Total Net Sales (%) | | :-------- | :------------------- | :--------------- | :------------------- | :-------- | :----------------------- | | Automotive | 0.4 % | 3.2 % | 0.1 % | 0.5 % | 4.2 % | | Industrial | 0.9 % | 1.2 % | (0.5)% | — % | 1.6 % | | Total Net Sales | 0.6 % | 2.5 % | (0.1)% | 0.2 % | 3.2 % | [Reconciliation of GAAP Operating Cash Flow to Free Cash Flow](index=11&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20CASH%20PROVIDED%20BY%20OPERATING%20ACTIVITIES%20TO%20FREE%20CASH%20FLOW) Reconciliation of GAAP operating cash flow to free cash flow for 9M 2025 and 2024, including the full-year 2025 outlook 9M 2025 Free Cash Flow Reconciliation (in thousands) | Metric | 9M 2025 (in thousands) | 9M 2024 (in thousands) | | :------------------------------------ | :--------------------- | :--------------------- | | Net cash provided by operating activities | $510,689 | $1,096,225 | | Purchases of property, plant and equipment | $(350,443) | $(385,590) | | Free Cash Flow | $160,246 | $710,635 | 2025 Full-Year Free Cash Flow Outlook | Metric | For the Year Ending December 31, 2025 | | :------------------------------------ | :------------------------------------ | | Net cash provided by operating activities (in billions) | $1.1 to $1.3 | | Purchases of property, plant and equipment (in millions) | $400 to $450 | | Free Cash Flow (in millions) | $700 to $900 |

Core Insights - Genuine Parts Company reported third-quarter results that met expectations, highlighting effective cost management in an inflationary environment and commitment to customer service [2][11] - The company achieved sales of $6.3 billion, a 4.9% increase from $6.0 billion in the same period last year, driven by comparable sales growth, acquisitions, and favorable foreign currency impacts [2][3][4] Financial Performance - Net income for the third quarter was $226 million, slightly down from $227 million in the prior year, with diluted earnings per share remaining stable at $1.62 [3][4] - Adjusted net income was $276 million, reflecting a 5.3% increase in adjusted diluted earnings per share to $1.98 compared to $1.88 in the same period last year [4][13] - For the nine months ended September 30, 2025, total sales reached $18.3 billion, up 3.2% from the previous year, while net income decreased to $675 million from $771 million [7][8] Segment Performance - The Automotive Parts Group reported global sales of $4.0 billion, a 5.0% increase, with segment EBITDA rising 5.9% to $335 million and an EBITDA margin of 8.4% [5] - The Industrial Parts Group saw sales of $2.3 billion, up 4.6%, with segment EBITDA increasing 6.6% to $285 million and an EBITDA margin of 12.6% [6] Cash Flow and Capital Allocation - The company generated $511 million in cash flow from operations for the first nine months of 2025, with a free cash flow of $160 million [8][27] - Net cash used in investing activities totaled $488 million, including $350 million for capital expenditures and $182 million for acquisitions [8] Balance Sheet - As of September 30, 2025, the company had $431 million in cash and cash equivalents, along with $1.1 billion in undrawn capacity on its Revolving Credit Agreement [9] 2025 Outlook - The company updated its full-year 2025 guidance, projecting total sales growth of 3% to 4%, up from the previous estimate of 1% to 3%, and adjusted diluted earnings per share of $7.50 to $7.75 [10][12][13]

Core Viewpoint - UBS has raised its price target for Genuine Parts Company (GPC) from $135 to $140 while maintaining a Neutral rating, indicating a positive outlook on the company's strategic initiatives aimed at enhancing shareholder value [1] Company Performance and Expectations - Investors are expected to look for signs of market share stabilization in key categories during the upcoming Q3 earnings report on October 21, with core business trends anticipated to remain steady [2] - Genuine Parts Company has a strong dividend history, rewarding shareholders with increasing dividends for 69 consecutive years, currently offering a quarterly dividend of $1.03 per share, resulting in a dividend yield of 3.08% as of October 16 [3] Business Operations - Genuine Parts Company operates the largest automotive parts network globally, with over 10,800 locations, and has expanded its market presence through acquisitions of smaller businesses both domestically and internationally [4]

Genuine Parts Company (NYSE:GPC) is included among the Top 15 Growth Stocks for Long-Term Investors. Genuine Parts’ (GPC) Strong Market Position Fuels its Long-Term Dividend Growth Image by Steve Buissinne from Pixabay Genuine Parts Company (NYSE:GPC) operates the largest gl‍obal net​work for​ automotive parts, with over 1⁠0,800 locations worldwide. A‌s a leading distributor of au‍t​omotive and ind‌ustrial components, the com‍pany has a long history of ac⁠qui‌ri​ng‌ smaller businesses both in th⁠e US a‌ ...