Financial Performance - First Quarter 2025 sales were $5.9 billion, a 1.4% increase from $5.8 billion in the same period last year[4] - Net income for the first quarter was $194 million, or $1.40 per diluted share, compared to $249 million, or $1.78 per diluted share in the prior year[5] - 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[6] - Net sales for Q1 2025 increased to $5,866,069 thousand, up 1.4% from $5,783,631 thousand in Q1 2024[27] - Gross profit rose to $2,173,684 thousand, compared to $2,074,655 thousand in the previous year, reflecting a gross margin improvement[27] - Net income decreased to $194,392 thousand, down 22% from $248,894 thousand in Q1 2024[27] - Basic and diluted earnings per share were both $1.40, down from $1.79 and $1.78 respectively in Q1 2024[27] - Adjusted net income for Q1 2025 was $243,073 thousand, compared to $310,898 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 $2.2 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 $279 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 $1,885,739 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 $41 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 $318,306 thousand in Q1 2024[41] - Free Cash Flow for Q1 2025 was $(160,667) thousand, compared to $202,616 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] - For the year ending December 31, 2025, the company expects net cash provided by operating activities to be between $1.2 billion and $1.4 billion[41] - The company anticipates purchases of property, plant, and equipment to range from $400 million to $450 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 $1.0 billion[41] Dividends and Assets - The company declared dividends of $1.03 per common share, up from $1.00 in the previous year[27] - Cash and cash equivalents at the end of Q1 2025 were $420,447 thousand, down from $479,991 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]
Genuine Parts pany(GPC) - 2025 Q1 - Quarterly Results