Genuine Parts pany(US:GPC) ZACKSยท2025-07-22 15:15Core Insights - Genuine Parts Company (GPC) reported second-quarter 2025 adjusted earnings of $2.10 per share, exceeding the Zacks Consensus Estimate of $2.08, but down from $2.44 per share in the same quarter last year [1][9] - The company achieved net sales of $6.16 billion, surpassing the Zacks Consensus Estimate of $6.11 billion, reflecting a year-over-year growth of 3.4% driven by acquisitions, favorable currency exchange, and a slight rise in comparable sales [1][9] Segmental Performance - The Automotive segment's net sales reached $3.9 billion, a 5% increase year over year, benefiting from acquisitions and exceeding the estimate of $3.84 billion; however, EBITDA decreased by 6.9% to $338 million, with an EBITDA margin of 8.6%, down 110 basis points from the previous year [3] - The Industrial Parts segment's net sales grew by 0.7% year over year to $2.3 billion, also aided by acquisitions, and surpassed the estimate of $2.26 billion; EBITDA increased by 1.1% to $288 million, with a margin of 12.8%, up 10 basis points year over year [4] Financial Performance - As of June 30, 2025, the company had cash and cash equivalents of $458 million, down from $480 million at the end of 2024; long-term debt slightly increased to $3,744 million from $3,742 million [5] - GPC exited the second quarter with total liquidity of $1.5 billion [5] 2025 Guidance Revision - For 2025, GPC revised its overall sales growth expectation to 1-3%, down from the previous range of 2-4%; automotive sales are now anticipated to grow by 1.5-3.5%, and industrial sales growth expectations were trimmed to 1-3% from 2-4% [6] - The company now projects adjusted earnings per share between $7.50 and $8, down from the prior range of $7.75-$8.25; operating cash flow is expected to be between $1.1 billion and $1.3 billion, and free cash flow is narrowed to $700-$900 million from the previous forecast of $800 million-$1 billion [7]