Genuine Parts Q4 Earnings Miss Expectations, Dividend Raised

Core Insights - Genuine Parts Company (GPC) reported fourth-quarter 2025 adjusted earnings of $1.55 per share, missing the Zacks Consensus Estimate of $1.79, and down from $1.61 per share in the same quarter last year [1][10] - The company announced plans to split into two independent publicly traded companies, expected to close in the first quarter of 2027 [3][10] Financial Performance - Net sales for the fourth quarter reached $6.01 billion, slightly below the Zacks Consensus Estimate of $6.04 billion, but grew 4.2% year over year [2][10] - Cash and cash equivalents were $477 million as of December 31, 2025, down from $480 million a year earlier, with long-term debt at $3.5 billion [8] - The quarterly dividend was raised by 3.2% to $1.0625 per common share, marking the 70th consecutive year of dividend increases [8] Segmental Performance - North America Automotive segment net sales were $2.33 billion, up 2.4% year over year, but missed estimates of $2.44 billion; EBITDA fell 14% to $129 million [5] - International Automotive segment net sales totaled $1.49 billion, up 6.4% year over year, surpassing estimates of $1.42 billion; EBITDA decreased 4.3% to $129 million [6] - Industrial Parts segment net sales rose 4.6% year over year to $2.2 billion, beating estimates of $2.18 billion; EBITDA grew 8.7% to $295 million [7] Guidance - For 2026, the company expects overall sales growth of 3-5.5%, with North America Automotive sales anticipated in the range of 3-5% and International Automotive sales growth expected at 3-6% [9][11] - Adjusted earnings per share for 2026 are projected to be between $7.50 and $8.00, with operating cash flow expected in the range of $1-$1.2 billion and free cash flow anticipated at $550-$700 million [11]