[Q1 2025 Financial and Operational Highlights](index=1&type=section&id=Genuine%20Parts%20Company%20Reports%20First%20Quarter%202025%20Results%20and%20Reaffirms%20Full-Year%20Outlook) [Overall Performance Summary](index=1&type=section&id=First%20Quarter%202025%20Results) Genuine Parts Company reported Q1 2025 sales of **$5.9 billion**, a **1.4%** increase, with net and adjusted net income declining Q1 2025 Financial Summary | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Sales** | $5.9 billion | $5.8 billion | | **Net Income** | $194 million | $249 million | | **Diluted EPS** | $1.40 | $1.78 | | **Adjusted Net Income** | $243 million | $311 million | | **Adjusted Diluted EPS** | $1.75 | $2.22 | - Sales grew by **1.4%**, primarily due to a **3.0%** benefit from acquisitions, partially offset by a **0.8%** decrease in comparable sales and **0.8%** unfavorable foreign currency impact[4](index=4&type=chunk) - One less selling day in the U.S. negatively impacted overall and comparable sales growth by approximately **1.1%**[4](index=4&type=chunk) [Segment Performance](index=2&type=section&id=First%20Quarter%202025%20Segment%20Highlights) [Automotive Parts Group](index=2&type=section&id=Automotive%20Parts%20Group) Global Automotive sales increased by **2.5%** to **$3.7 billion** driven by acquisitions, despite comparable sales decline, while EBITDA and margin decreased Automotive Parts Group Performance | Metric | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | | **Sales** | $3.7 billion | +2.5% | | **Comparable Sales** | | -0.8% | | **Acquisition Benefit** | | +4.1% | | **Segment EBITDA** | $286 million | -10.7% | | **Segment EBITDA Margin** | 7.8% | -110 bps | [Industrial Parts Group](index=2&type=section&id=Industrial%20Parts%20Group) Industrial segment sales decreased by **0.4%** to **$2.2 billion**, offset by acquisitions, while EBITDA remained stable and margin improved Industrial Parts Group Performance | Metric | Q1 2025 | Change (YoY) | | :--- | :--- | :--- | | **Sales** | $2.2 billion | -0.4% | | **Comparable Sales** | | -0.7% | | **Acquisition Benefit** | | +1.3% | | **Segment EBITDA** | $279 million | In-line with prior year | | **Segment EBITDA Margin** | 12.7% | +10 bps | [Financial Condition and Cash Flow](index=2&type=section&id=Balance%20Sheet%2C%20Cash%20Flow%20and%20Capital%20Allocation) [Balance Sheet and Cash Flow Analysis](index=2&type=section&id=Balance%20Sheet%2C%20Cash%20Flow%20and%20Capital%20Allocation) Operating cash flow decreased by **$41 million**, leading to a **$161 million** decline in free cash flow, while liquidity remained strong with **$420 million** cash and **$2 billion** undrawn credit - Operating cash flow decreased by **$41 million** in the first three months of 2025[11](index=11&type=chunk) - Free cash flow for the first three months of 2025 was negative, decreasing by **$161 million** year-over-year[11](index=11&type=chunk) - As of March 31, 2025, the company held **$420 million** in cash and **$2 billion** in undrawn revolving credit capacity[12](index=12&type=chunk) [Full-Year 2025 Outlook](index=2&type=section&id=2025%20Outlook) [Reaffirmed Full-Year Guidance](index=2&type=section&id=2025%20Outlook) The company reaffirmed its full-year 2025 guidance, projecting **2% to 4%** sales growth and adjusted diluted EPS of **$7.75 to $8.25**, excluding tariff and pension termination impacts 2025 Full-Year Outlook | Metric | 2025 Full-Year Outlook | | :--- | :--- | | **Total Sales Growth** | 2% to 4% | | **Automotive Sales Growth** | 2% to 4% | | **Industrial Sales Growth** | 2% to 4% | | **Diluted EPS** | $6.95 to $7.45 | | **Adjusted Diluted EPS** | $7.75 to $8.25 | | **Operating Cash Flow** | $1.2 billion to $1.4 billion | | **Free Cash Flow** | $800 million to $1.0 billion | - Guidance excludes impacts from new U.S. tariffs announced in Q1 and potential reciprocal tariffs[14](index=14&type=chunk) - Outlook excludes a one-time, non-cash charge of approximately **$735 million** (**$540 million** net of tax) for a U.S. pension plan termination[14](index=14&type=chunk)[16](index=16&type=chunk) [Consolidated Financial Statements (Unaudited)](index=6&type=section&id=GENUINE%20PARTS%20COMPANY%20AND%20SUBSIDIARIES%20CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME%20%28UNAUDITED%29) [Condensed Consolidated Statements of Income](index=6&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20INCOME) Q1 2025 net sales increased to **$5.87 billion**, but higher operating expenses and interest led to a decline in net income to **$194.4 million** and diluted EPS to **$1.40** Condensed Consolidated Statements of Income ($ in thousands) | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net sales** | $5,866,069 | $5,783,631 | | **Gross profit** | $2,173,684 | $2,074,655 | | **Income before income taxes** | $251,637 | $325,181 | | **Net income** | $194,392 | $248,894 | | **Diluted earnings per share** | $1.40 | $1.78 | [Condensed Consolidated Balance Sheets](index=8&type=section&id=CONDENSED%20CONSOLIDATED%20BALANCE%20SHEETS) As of March 31, 2025, total assets increased to **$19.82 billion** and total liabilities to **$15.35 billion**, with total equity rising to **$4.46 billion** Condensed Consolidated Balance Sheets ($ in thousands) | (in thousands) | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total current assets** | $10,214,388 | $9,852,584 | | **Total assets** | $19,817,205 | $19,282,705 | | **Total current liabilities** | $8,885,200 | $8,525,380 | | **Total liabilities** | $15,352,642 | $14,930,854 | | **Total equity** | $4,464,563 | $4,351,851 | [Condensed Consolidated Statements of Cash Flows](index=9&type=section&id=CONDENSED%20CONSOLIDATED%20STATEMENTS%20OF%20CASH%20FLOWS) Q1 2025 saw a net cash outflow from operations of **$40.8 million**, with investing activities using **$154.8 million**, resulting in a **$59.5 million** net cash decrease Condensed Consolidated Statements of Cash Flows ($ in thousands) | (in thousands) | Three Months Ended March 31, 2025 | Three Months Ended March 31, 2024 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(40,827) | $318,306 | | **Net cash used in investing activities** | $(154,818) | $(178,444) | | **Net cash provided by (used in) financing activities** | $128,742 | $(175,223) | | **Net decrease in cash and cash equivalents** | $(59,544) | $(52,419) | [Reconciliation of Non-GAAP Financial Measures](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%20%28UNAUDITED%29) [Reconciliation of Net Income and EPS](index=10&type=section&id=Reconciliation%20of%20GAAP%20Net%20Income%20to%20Adjusted%20Net%20Income) Q1 2025 GAAP Net Income of **$194.4 million** was adjusted to **$243.1 million** for non-recurring costs, resulting in an Adjusted Diluted EPS of **$1.75** Reconciliation of GAAP Net Income to Adjusted Net Income and EPS ($ in thousands, except per share data) | (in thousands, except per share data) | Q1 2025 | | :--- | :--- | | **GAAP net income** | $194,392 | | Restructuring and other costs | $54,770 | | Acquisition and integration related costs | $14,035 | | Tax impact of adjustments | $(20,124) | | **Adjusted net income** | **$243,073** | | **GAAP diluted EPS** | **$1.40** | | **Adjusted diluted EPS** | **$1.75** | [Reconciliation of Free Cash Flow](index=11&type=section&id=RECONCILIATION%20OF%20GAAP%20NET%20CASH%20PROVIDED%20BY%20OPERATING%20ACTIVITIES%20TO%20FREE%20CASH%20FLOW%20%28UNAUDITED%29) Q1 2025 operating cash outflow of **$40.8 million** and capital expenditures led to a negative Free Cash Flow of **$160.7 million** Reconciliation of Free Cash Flow ($ in thousands) | (in thousands) | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | **Net cash (used in) provided by operating activities** | $(40,827) | $318,306 | | **Purchases of property, plant and equipment** | $(119,840) | $(115,690) | | **Free Cash Flow** | **$(160,667)** | **$202,616** |

Core Viewpoint - Genuine Parts Company reported a solid start to 2025, with a focus on customer service and strategic initiatives despite challenges from tariffs and trade dynamics [2] Financial Performance - Sales for Q1 2025 were $5.9 billion, a 1.4% increase from $5.8 billion in Q1 2024, driven by a 3.0% benefit from acquisitions, offset by a 0.8% decrease in comparable sales and a 0.8% unfavorable impact from foreign currency [2] - Net income was $194 million, or $1.40 per diluted share, compared to $249 million, or $1.78 per diluted share in the prior year [3] - Adjusted net income was $243 million, or $1.75 per diluted share, down from $311 million, or $2.22 per diluted share in the prior year [4] Segment Highlights - **Automotive Parts Group**: Global automotive sales reached $3.7 billion, up 2.5% from the previous year, with a segment EBITDA of $286 million, a decrease of 10.7% [5] - **Industrial Parts Group**: Industrial sales were $2.2 billion, down 0.4% from the previous year, with segment EBITDA remaining stable at $279 million [6] Cash Flow and Capital Allocation - Cash flow from operations decreased by $41 million in Q1 2025, primarily due to lower net income and working capital changes [7] - Net cash used in investing activities was $155 million, including $120 million for capital expenditures and $74 million for acquisitions [7] - Free cash flow decreased by $161 million for the first three months of 2025 [7] Balance Sheet - As of March 31, 2025, the company had $420 million in cash and cash equivalents and $2 billion in undrawn capacity on its Revolving Credit Agreement [8] 2025 Outlook - The company reaffirmed its full-year 2025 guidance, expecting total sales growth of 2% to 4% and adjusted diluted EPS of $7.75 to $8.25 [11][12]

Group 1 - Genuine Parts Company (NYSE: GPC) has experienced a significant decline, with its stock down double-digits over the past year [1]

Group 1: Market Overview - The stock market has recently experienced a significant decline due to concerns regarding the impact of tariffs on the economy [1] - Falling stock prices have led to increased dividend yields, allowing investors to secure higher returns on quality dividend stocks [1] Group 2: VICI Properties - VICI Properties' stock has decreased over 10% from its recent peak, resulting in a dividend yield of 5.7%, significantly higher than the S&P 500's yield of 1.5% [3][4] - The REIT benefits from stable cash flow generated from high-quality experiential real estate, such as casinos and entertainment complexes [3] - VICI Properties has a strong financial profile, having raised its dividend for seven consecutive years at a 7% compound annual rate, outperforming its peers [5] Group 3: Verizon - Verizon's shares have fallen more than 7%, increasing its dividend yield to 6.3% [6] - The company generated $36.9 billion in cash flow from operations and $19.8 billion in free cash flow last year, comfortably covering its $11.2 billion dividend payout [7] - Verizon is acquiring Frontier Communications for $20 billion to enhance its broadband network, positioning itself for future revenue and cash flow growth [8] Group 4: Genuine Parts Company - Genuine Parts Company has seen its stock drop over 30%, raising its dividend yield to 3.7% [9] - Despite potential tariff impacts on the automotive sector, the company has a history of resilience, having increased its dividend for 69 consecutive years [10] - The company produced $1.3 billion in cash flow from operations and $684 million in free cash flow last year, exceeding its $555 million dividend payments [11]

Company Overview - Genuine Parts Company is a leading global service provider of automotive and industrial replacement parts and value-added solutions, established in 1928 [2] - The company operates its Automotive Parts Group across multiple countries including the U.S., Canada, Mexico, and several European nations, while its Industrial Parts Group serves customers primarily in North America and Australasia [2] - Genuine Parts Company has a vast network of over 10,700 locations in 17 countries, supported by more than 63,000 employees [2] Upcoming Financial Results - The company plans to release its first quarter financial results on April 22, 2025 [1] - Following the release, management will host a conference call at 8:30 a.m. ET, which will be accessible via webcast and by phone [1] - A replay of the conference call will be available on the company's website two hours after the call's completion [1]

My top financial goal is to eventually generate enough passive income to cover my basic living expenses. I march toward that objective each month by investing more money into income-generating investments, like dividend-paying stocks. I focus on buying stocks that pay high-yielding dividends that steadily increase. Vici Properties (VICI 0.34%), PepsiCo (PEP -0.26%), and Genuine Parts (GPC -1.72%) all fit those criteria. That's why I can't wait to buy more shares of each one this April to boost my passive in ...

Company Overview - Genuine Parts (GPC) shares have increased by approximately 2.1% over the past month, outperforming the S&P 500 index [1] - The most recent earnings report indicates a need to analyze the catalysts affecting the stock's performance [1] Earnings Estimates - Fresh estimates for Genuine Parts have trended downward, with the consensus estimate decreasing by 14.93% [2] - The stock currently holds a Zacks Rank of 4 (Sell), indicating expectations for below-average returns in the coming months [4] VGM Scores - Genuine Parts has a subpar Growth Score of D and a Momentum Score of F, while it received a B grade for value, placing it in the second quintile for this investment strategy [3] - The aggregate VGM Score for the stock is D, which is significant for investors not focused on a single strategy [3] Industry Performance - Genuine Parts is part of the Zacks Automotive - Retail and Wholesale - Parts industry, where O'Reilly Automotive (ORLY) has seen a 3.4% increase in stock price over the past month [5] - O'Reilly Automotive reported revenues of $4.1 billion for the last quarter, reflecting a year-over-year growth of 6.9% [5] - The expected earnings per share for O'Reilly Automotive for the current quarter is $9.84, representing a year-over-year increase of 7% [6]

Core Insights - Genuine Parts Company (GPC) is a leading global service provider in the automotive and industrial replacement parts sector, offering value-added solutions [3]. Group 1: Company Overview - Genuine Parts Company was established in 1928 and operates a vast network of over 10,700 locations across 17 countries [3]. - The company employs more than 63,000 teammates, supporting its operations in various regions including the U.S., Canada, Mexico, and several European countries [3]. Group 2: Upcoming Events - Will Stengel, President & CEO, and Bert Nappier, EVP & CFO, will present at the 14th Annual UBS Global Consumer and Retail Conference on March 12, 2025, at 9:00 a.m. ET [1]. - The presentation will be available via a live webcast on the company's investor relations website, with a replay accessible after the event [2].

Core Insights - The international operations of Genuine Parts Company (GPC) are crucial for assessing its financial resilience and growth prospects, especially in the context of its expansive global footprint [1][2] Revenue Performance - GPC's total revenue for the quarter ended December 2024 was $5.77 billion, reflecting a 3.3% increase from the same quarter last year [4] - International revenue trends reveal that Europe contributed $940.47 million (16.30%) to total revenue, surpassing analyst expectations of $937.31 million, and showing a slight decrease from $960.03 million (16.08%) in the previous quarter [5] - Australasia accounted for $589.3 million (10.21%) of total revenue, exceeding expectations of $565.77 million, and showing growth from $532.13 million (9.53%) in the same quarter last year [6] Future Projections - Analysts forecast GPC's total revenue for the current fiscal quarter to be $5.83 billion, indicating a 0.9% increase year-over-year, with expected contributions from Europe and Australasia at $973.22 million (16.7%) and $533.49 million (9.1%) respectively [7] - For the full year, GPC is projected to achieve total revenue of $24.1 billion, a 2.6% increase from the previous year, with Europe expected to contribute $3.93 billion (16.3%) and Australasia $2.3 billion (9.6%) [8] Strategic Considerations - The reliance on international markets presents both opportunities and challenges for GPC, making the analysis of international revenue trends essential for forecasting the company's future outlook [9][10]

Core Viewpoint - Genuine Parts Company (GPC) is positioned as a strong long-term investment opportunity due to its current stock price being at long-term lows, a solid dividend yield, and ongoing growth initiatives aimed at enhancing business performance in 2025 [3][4]. Financial Performance - GPC reported net revenue of $5.8 billion for the fiscal fourth quarter, reflecting a 3.3% increase year-over-year, driven by acquisitions and a favorable foreign exchange impact [4]. - The company experienced a slight decline in comparable sales of 0.5%, primarily due to weakness in the Industrial segment, while the Automotive segment showed growth [4]. - Adjusted earnings were reported at $1.61, with positive free cash flow and guidance indicating improvement for 2025 [5][6]. Dividend Information - GPC offers a dividend yield of 3.39%, with an annual dividend of $4.12 and a strong track record of 70 years of dividend increases [5]. - The annualized three-year dividend growth rate stands at 7.06%, with a payout ratio of 63.68% [5]. Growth Strategy - The company is focusing on technology, expanding into new categories, and enhancing customer accessibility and satisfaction as part of its repositioning efforts [4]. - Guidance for 2025 includes expectations for organic growth in both segments, aligning with a consensus estimate of a 3% revenue increase, although earnings targets are forecasted to be below consensus [6][7]. Cash Flow and Balance Sheet - GPC's cash flow and balance sheet reflect the impact of acquisitions and repositioning, with increased assets and steady equity, allowing for debt repayment and capital returns to shareholders [8]. - Free cash flow is expected to grow by a double-digit percentage, enhancing the company's financial flexibility [7]. Market Activity - Institutional buying of GPC stock has increased significantly in Q1 2025, reaching a multiyear high, which is seen as a bullish indicator for the stock [9]. - Analysts currently rate GPC as a "Hold," but sentiment suggests a potential upside of 15% based on consensus estimates [9][10].