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Genuine Parts pany(GPC) - 2025 Q1 - Quarterly Results
GPCGenuine Parts pany(GPC)2025-04-22 11:32

Financial Performance - First Quarter 2025 sales were 5.9billion,a1.45.9 billion, a 1.4% increase from 5.8 billion in the same period last year[4] - Net income for the first quarter was 194million,or194 million, or 1.40 per diluted share, compared to 249million,or249 million, or 1.78 per diluted share in the prior year[5] - Adjusted net income was 243million,or243 million, or 1.75 per diluted share, down from 311million,or311 million, or 2.22 per diluted share in the prior year[6] - Net sales for Q1 2025 increased to 5,866,069thousand,up1.45,866,069 thousand, up 1.4% from 5,783,631 thousand in Q1 2024[27] - Gross profit rose to 2,173,684thousand,comparedto2,173,684 thousand, compared to 2,074,655 thousand in the previous year, reflecting a gross margin improvement[27] - Net income decreased to 194,392thousand,down22194,392 thousand, down 22% from 248,894 thousand in Q1 2024[27] - Basic and diluted earnings per share were both 1.40,downfrom1.40, down from 1.79 and 1.78respectivelyinQ12024[27]−AdjustednetincomeforQ12025was1.78 respectively in Q1 2024[27] - Adjusted net income for Q1 2025 was 243,073 thousand, compared to 310,898thousandinQ12024,reflectingadecreaseinprofitability[35]SegmentPerformance−GlobalAutomotivesalesreached310,898 thousand in Q1 2024, reflecting a decrease in profitability[35] Segment Performance - Global Automotive sales reached 3.7 billion, a 2.5% increase, while Industrial sales were 2.2billion,down0.42.2 billion, down 0.4%[9][10] - Segment EBITDA for Automotive was 286 million, a decrease of 10.7%, with an EBITDA margin of 7.8%[9] - Industrial segment EBITDA was 279million,consistentwiththeprioryear,andtheEBITDAmarginimprovedto12.7279 million, consistent with the prior year, and the EBITDA margin improved to 12.7%[10] - Automotive segment net sales grew to 3,664,888 thousand, a 2.5% increase, while the Industrial segment saw a slight decline of 0.4%[29] Expenses and Cash Flow - Total operating expenses increased to 1,885,739thousand,upfrom1,885,739 thousand, up from 1,754,790 thousand in the prior year, driven by higher selling, administrative, and other expenses[27] - Cash flow from operations decreased by 41millioninthefirstquarter,primarilyduetolowernetincomeandworkingcapitalchanges[11]−ForQ12025,thecompanyreportedanetcashusedinoperatingactivitiesof41 million in the first quarter, primarily due to lower net income and working capital changes[11] - For Q1 2025, the company reported a net cash used in operating activities of (40,827) thousand, a significant decrease from 318,306thousandinQ12024[41]−FreeCashFlowforQ12025was318,306 thousand in Q1 2024[41] - Free Cash Flow for Q1 2025 was (160,667) thousand, compared to 202,616thousandinQ12024[41]OutlookandGuidance−Thecompanyreaffirmsits2025outlookwithtotalsalesgrowthprojectedat2202,616 thousand in Q1 2024[41] Outlook and Guidance - The company reaffirms its 2025 outlook with total sales growth projected at 2% to 4% and adjusted diluted EPS guidance of 7.75 to 8.25[7][16]−FortheyearendingDecember31,2025,thecompanyexpectsnetcashprovidedbyoperatingactivitiestobebetween8.25[7][16] - For the year ending December 31, 2025, the company expects net cash provided by operating activities to be between 1.2 billion and 1.4billion[41]−Thecompanyanticipatespurchasesofproperty,plant,andequipmenttorangefrom1.4 billion[41] - The company anticipates purchases of property, plant, and equipment to range from 400 million to 450millionfortheyearendingDecember31,2025[41]−FreeCashFlowfortheyearendingDecember31,2025,isprojectedtobebetween450 million for the year ending December 31, 2025[41] - Free Cash Flow for the year ending December 31, 2025, is projected to be between 800 million and 1.0billion[41]DividendsandAssets−Thecompanydeclareddividendsof1.0 billion[41] Dividends and Assets - The company declared dividends of 1.03 per common share, up from 1.00inthepreviousyear[27]−CashandcashequivalentsattheendofQ12025were1.00 in the previous year[27] - Cash and cash equivalents at the end of Q1 2025 were 420,447 thousand, down from 479,991thousandattheendofQ42024[34]−Totalassetsincreasedto479,991 thousand at the end of Q4 2024[34] - Total assets increased to 19,817,205 thousand, compared to $19,282,705 thousand at the end of the previous year[33] Challenges and Strategic Focus - The company is navigating challenges from tariffs and trade dynamics while focusing on customer service and strategic initiatives[4]