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Genuine Parts Company Reports Second Quarter 2025 Results and Revises Full-Year Outlook
Prnewswireยท 2025-07-22 10:55
Core Insights - Genuine Parts Company reported second quarter 2025 results that met expectations, reflecting strategic initiatives and cost restructuring amid challenging market conditions [2][3] - The company generated sales of $6.2 billion, a 3.4% increase from $6.0 billion in the same period last year, driven by acquisitions and favorable foreign currency impacts [3][4] - Net income for the quarter was $255 million, or $1.83 per diluted share, down from $296 million, or $2.11 per diluted share, in the prior year [3][4] Financial Performance - Adjusted net income for the second quarter was $292 million, or $2.10 per diluted share, compared to $342 million, or $2.44 per diluted share, in the prior year [4] - For the first half of 2025, sales totaled $12.0 billion, up 2.4% from $11.7 billion in the same period of 2024, with net income of $449 million, or $3.23 per diluted share, down from $544 million, or $3.89 per diluted share, in the prior year [7] - The company generated cash flow from operations of $169 million for the first six months of 2025, a decrease attributed to lower net income and changes in working capital [8][9] Segment Performance - The Automotive Parts Group reported global sales of $3.9 billion, a 5.0% increase from the same period in 2024, with a segment EBITDA of $338 million, down 6.9% [5] - The Industrial Parts Group saw sales of $2.3 billion, a 0.7% increase from the same period in 2024, with segment EBITDA of $288 million, up 1.1% [6] Outlook - The company revised its full-year 2025 guidance, now expecting total sales growth of 1% to 3%, down from the previous 2% to 4% [11][13] - Adjusted diluted earnings per share guidance was revised to a range of $7.50 to $8.00, down from $7.75 to $8.25 [8][13] - The updated outlook considers the impact of U.S. tariffs and current market conditions, indicating a more moderated improvement than previously projected [12][13]