Genuine Parts Company (NYSE:GPC) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Company ParticipantsBert Nappier - EVP and CFOTim Walsh - VP of Investor RelationsWill Stengel - President and CEOConference Call ParticipantsBret Jordan - Managing Director and Senior Equity Research AnalystChris Dankert - Senior Equity AnalystChris Horvers - Managing Director and Senior Equity Research AnalystGreg Melich - Equity Research AnalystKate McShane - Managing Director and Senior Equity AnalystMichael Lasser - Ma ...

Genuine Parts Company (NYSE:GPC) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Speaker7At this time, I would like to turn the conference over to Tim Walsh, Vice President of Investor Relations. Please go ahead, sir.Speaker9Thank you, and good morning, everyone. Welcome to Genuine Parts Company's fourth quarter 2025 earnings call. Joining us on the call today are Will Stengel, Chair-elect and Chief Executive Officer, and Bert Nappier, Executive Vice President and Chief Financial Officer. In addition to ...

MSC Industrial Direct Co., Inc. (NYSE:MSM) is one of the 12 Dividend Stocks With High Insider Buying. JP Morgan Downgrades MSC Industrial Direct (MSM), Cuts Price Target On February 6, 2026, JP Morgan downgraded MSC Industrial Direct Co., Inc. (NYSE:MSM) from Overweight to Neutral, while also lowering the price target from $96 to $95. According to JP Morgan, the stock’s price target and trading volumes are uninspiring, and the firm expressed concern, citing that the company’s self-help initiatives have n ...

Core Viewpoint - Genuine Parts Company plans to separate its Automotive Parts Group and Industrial Parts Group into two independent, publicly traded companies to enhance shareholder value and operational focus, with the separation expected to be completed in Q1 2027 [1][2]. Group 1: Separation Details - The separation is anticipated to qualify as a tax-free transaction for U.S. federal tax purposes for shareholders [1]. - The decision follows a comprehensive strategic and operational review aimed at capitalizing on market opportunities and improving business structures [1][2]. - Each new entity will have tailored management teams and capital structures aligned with their specific business objectives [1][2]. Group 2: Global Automotive Overview - Global Automotive is the largest global network of automotive parts and repair centers, generating over $15 billion in sales and $1.2 billion in EBITDA in 2025 [1][2]. - The business operates under the NAPA brand and has over 10,000 locations, targeting a fragmented $200 billion market driven by non-discretionary demand [1][2]. - Global Automotive is focused on technology and supply chain transformations to enhance growth and margin expansion [1][2]. Group 3: Global Industrial Overview - Global Industrial, operating under the Motion brand, generated approximately $9 billion in sales and over $1.1 billion in EBITDA in 2025 [2]. - The business serves over 180,000 global customers and is positioned to capitalize on a $150 billion market through a differentiated value proposition [2]. - Motion aims to maintain strong financial performance with double-digit EBITDA margins and attractive returns on invested capital [2]. Group 4: Transaction and Future Plans - The transaction is expected to be completed in Q1 2027, pending customary conditions and does not require shareholder approval [2]. - Upcoming investor days are planned for the second half of 2026 to discuss operational initiatives and strategic goals for both businesses [2].

Company Overview - DXP Enterprises is a leading North American distributor of industrial MRO products and services, focusing on technical expertise and integrated solutions across critical sectors [6] - The company operates a multi-segment business model that includes product distribution, integrated supply chain services, and custom-engineered pump packages, serving diverse industries such as energy, oil and gas, food and beverage, and more [9] Financial Performance - As of February 12, 2026, DXP Enterprises' stock price was $142.41, reflecting a 40% increase over the past year, outperforming the S&P 500 by 27 percentage points [8] - The company reported $513.7 million in third-quarter sales, an 8.6% year-over-year increase, with diluted EPS of $1.31 and adjusted EBITDA of $56.5 million, representing an 11.0% margin [10] - Free cash flow increased by 15.4% to $28.1 million, with cash reserves at $123.8 million and total debt of $644.0 million, resulting in a net leverage ratio of 2.31 to 1 [10] Recent Developments - On February 13, 2026, ACK Asset Management LLC disclosed a new position in DXP Enterprises, acquiring 240,000 shares valued at $26.35 million, which represents 3.31% of the fund's 13F reportable assets [2][8] - This acquisition positions DXP Enterprises favorably among other top holdings in infrastructure and industrial sectors, indicating investor confidence in the company's growth potential [11]

Genuine Parts Company (NYSE:GPC) is included among the 13 Cheapest Dividend Aristocrats to Invest in. Truist and Evercore Lift Targets on Genuine Parts (GPC) as Momentum Builds On February 12, Truist raised its price recommendation on Genuine Parts Company (NYSE:GPC) to $162 from $146 and kept a Buy rating in place. The firm sees a supportive setup heading into Q4. In its view, the automotive segment should get a lift from same-SKU inflation, while the industrial business appears to be gaining traction a ...

Market Overview - The U.S. stock market experienced volatility, with the S&P 500 finishing just one-third of a point lower, while the Dow and Nasdaq saw slightly larger declines of -0.13% and -0.16% respectively. The Russell 2000 was the worst performer, declining by -0.38% due to concerns about potential rate cuts being delayed by a strong job market [2]. Company-Specific Updates - Ernst & Young flagged a $27 billion data-center project by Meta as a "critical audit matter," which was not included on the company's balance sheet. This project, named the Hyperion Data Center, is a joint venture with Blue Owl Capital and was announced in late October [3]. - The precarious nature of large off-balance sheet deals has drawn comparisons to the Dot-com Bubble, where such practices were linked to questionable business behavior [4]. Stock Performance Winners - Diodes, Inc. (Ticker: DIOD) saw a significant increase of 29.60%, closing at $79.96 with a market cap of $3.71 billion [6]. - Teradata Corp (Ticker: TDC) rose by 24.89%, closing at $36.51 with a market cap of $3.40 billion [6]. - BorgWarner Inc. (Ticker: BWA) increased by 22.33%, closing at $66.03 with a market cap of $14.13 billion [6]. - Vertiv Holdings Co. (Ticker: VRT) gained 19.22%, closing at $237.98 with a market cap of approximately $90.998 million [6]. - Generac Holdings Inc. (Ticker: GNRC) rose by 17.22%, closing at $213.70 with a market cap of $12.54 billion [6]. Losers - The midday market showed that nearly two-thirds of U.S. issues were declining, with the Russell 2000 down by 1.12% [5].

Bain Capital and Goldman Sachs Lead Financing for Truelink Capital's Acquisition of SouthernCarlson from Kyocera CorporationFeb 10, 2026 10:57 AM Eastern Standard Time# Bain Capital and Goldman Sachs Lead Financing for Truelink Capital's Acquisition of SouthernCarlson from Kyocera CorporationShare---BOSTON-- ([BUSINESS WIRE])--Bain Capital today announced that its Private Credit Group, alongside Private Credit at Goldman Sachs Alternatives, acted as co-Administrative Agents and Joint Lead Arrangers on a sen ...

Financial Data and Key Metrics Changes - Third quarter net sales were $461 million, a 17% increase year-over-year [4] - Consolidated gross margin for the quarter was 44.3%, with an adjusted gross margin of 45.1% [4][13] - Adjusted diluted EPS was $3.04, representing a 30% improvement from $2.34 a year ago [4] - EBITDA increased to $149.6 million, up 22% from $122.6 million last year [4][16] - Free cash flow for the period was $99.1 million, with a conversion rate of 147% [16] Business Line Data and Key Metrics Changes - Aerospace & Defense (A&D) sales increased by 41.5% year-over-year, with commercial aerospace expanding by 21.5% and defense by 86.2% [5][13] - Industrial business grew by 3.1%, with industrial distribution up 1.5% and OEM sector up 7% [10][11] - A&D gross margins were 40.1%, or 42.2% on an adjusted basis, while industrial margins were 47.5% [14] Market Data and Key Metrics Changes - 56% of revenues were from industrial sectors, while 44% came from A&D [5] - The company has exceeded a $2 billion backlog, indicating strong demand across A&D sectors [5] - The semiconductor industry showed significant demand growth, contributing positively to order trends [11] Company Strategy and Development Direction - The company is focused on expanding its A&D revenues by adding machinery and staff to support growth [10] - A five-year plan is in place to enhance production capabilities across existing sites [10] - The company aims to maintain a capital allocation strategy focused on deleveraging and paying off debt [16] Management's Comments on Operating Environment and Future Outlook - Management described the A&D sector's outlook as extremely robust, driven by national defense priorities and commercial aircraft build rates [6][10] - The company expects continued margin improvement in A&D due to increased efficiencies and better pricing on contracts [14] - For the fourth quarter, revenue guidance is set at $495 million to $505 million, representing year-over-year growth of 13.1% to 15.4% [17] Other Important Information - The company paid down an additional $81 million of debt during the third quarter [5][16] - Interest expense decreased by 8.5% year-over-year, reflecting improved leverage and lower interest rates [15] Q&A Session Summary Question: Can you provide details on the industrial business outlook for Q4 and 2027 growth? - Management expects Q4 growth to be similar to Q3, with positive PMI trends indicating a bullish sign for the business [20] Question: What is the composition of the backlog and its relationship with revenue? - Over 90% of the backlog is from the A&D market, with some contracts extending beyond 12-24 months [28] Question: How do you view the growth potential for the missile business relative to commercial aerospace? - Management indicated that while missile business growth is significant, it is not expected to surpass the commercial aircraft business [48] Question: Can you clarify the production rates for Boeing and Airbus programs? - Boeing is increasing production rates, with the 737 aiming for 60 units per month in the near future [57] Question: What is the expected capital expenditure for the upcoming periods? - Capital expenditures are expected to remain around 3.5% of revenue, with modest investments to meet demand [75]

Core Insights - Grainger reported a diluted EPS of $9.44 for Q4 2025, a decrease of 2.8% year-over-year, and a full-year diluted EPS of $35.40, down 8.6% on a reported basis [1][2][3] - The company achieved sales of $4.4 billion in Q4 2025, reflecting a 4.5% increase, and full-year sales of $17.9 billion, also up 4.5% [1][2][3] - Grainger's operating margin for Q4 2025 was 14.3%, down 70 basis points, while the full-year operating margin was 13.9%, down 150 basis points [1][2][3] Financial Performance - Q4 2025 net sales were $4,425 million, a 4.5% increase compared to Q4 2024, with gross profit of $1,746 million, up 4.2% [2][4] - For FY 2025, net sales reached $17,942 million, also a 4.5% increase, with gross profit of $7,009 million, up 3.7% [2][4] - Operating earnings for Q4 2025 were $634 million, a slight increase of 0.2%, while FY 2025 operating earnings were $2,495 million, down 5.4% [2][4] Segment Performance - In the High-Touch Solutions - N.A. segment, Q4 2025 sales increased by 2.2%, while the Endless Assortment segment saw a significant growth of 14.3% [2][3] - For FY 2025, the High-Touch Solutions - N.A. segment grew by 2.0%, and the Endless Assortment segment grew by 15.7% [2][3] Cash Flow and Shareholder Returns - Grainger generated $395 million in cash flow from operating activities in Q4 2025, with free cash flow of $269 million [3][5] - For the full year, the company generated $2.0 billion in operating cash flow and returned $1.5 billion to shareholders through dividends and share repurchases [1][3] 2026 Guidance - Grainger provided a 2026 outlook with expected net sales between $18.7 billion and $19.1 billion, representing a sales growth of 4.2% to 6.7% [3][5] - The company anticipates diluted EPS in the range of $42.25 to $44.75 and an operating margin of 15.4% to 15.9% [3][5]