Core Insights - Genuine Parts Company (GPC) plans to separate into two independent companies, NAPA automotive and Motion industrial, by Q1 2027, which is seen as a significant strategic shift [1] - The company reported a Q4 2025 revenue of $6.01 billion, a 4.1% increase from $5.77 billion in the previous year, but faced a GAAP net loss of $609 million, or $(4.39) per share, compared to a net income of $133 million in Q4 2024 [1] - Despite the earnings miss, GPC raised its quarterly dividend by 3.2% to $1.0625 per share, marking its 70th consecutive annual increase [1] Financial Performance - GPC's Q4 2025 revenue was $6.01 billion, up 4.1% from $5.77 billion in Q4 2024 [1] - The company reported a net loss of $609 million in Q4 2025, compared to a net income of $133 million in the same quarter of the previous year [1] - Adjusted EPS for Q4 2025 was $1.55, falling short of the $1.836 consensus estimate and down from $1.61 in the prior-year period [1] Strategic Developments - The planned separation into two companies aims to enhance customer and market alignment, simplify operations, and enable focused investments [1] - GPC operates in 17 countries with over 10,800 locations, addressing a combined $350 billion addressable market [1] - The separation is framed as a natural evolution to unlock long-term value for both businesses [1] One-Time Charges - The quarterly loss was influenced by $825 million in after-tax non-recurring charges, including a $742 million pension settlement charge and $160 million in credit losses from a vendor's bankruptcy [1] - For the full year 2025, GPC's sales reached $24.3 billion, up 3.5%, while adjusted EPS declined from $8.16 in 2024 to $7.37 [1] - Free cash flow for the year totaled $421 million [1] Future Outlook - GPC projects total sales growth of 3% to 5.5% for 2026, with adjusted EPS expected to be between $7.50 and $8.00 [1]

Exclusive: Genuine Parts is planning to separate its auto-parts business from its industrial-parts unit to create two separate public companies, according to people familiar with the matter https://t.co/RcsSGq2R0b ...

The company is preparing to separate its auto- parts and industrial-parts businesses. ...

Core Insights - Genuine Parts Company reported third-quarter results that met expectations, highlighting effective cost management in an inflationary environment and commitment to customer service [2][11] - The company achieved sales of $6.3 billion, a 4.9% increase from $6.0 billion in the same period last year, driven by comparable sales growth, acquisitions, and favorable foreign currency impacts [2][3][4] Financial Performance - Net income for the third quarter was $226 million, slightly down from $227 million in the prior year, with diluted earnings per share remaining stable at $1.62 [3][4] - Adjusted net income was $276 million, reflecting a 5.3% increase in adjusted diluted earnings per share to $1.98 compared to $1.88 in the same period last year [4][13] - For the nine months ended September 30, 2025, total sales reached $18.3 billion, up 3.2% from the previous year, while net income decreased to $675 million from $771 million [7][8] Segment Performance - The Automotive Parts Group reported global sales of $4.0 billion, a 5.0% increase, with segment EBITDA rising 5.9% to $335 million and an EBITDA margin of 8.4% [5] - The Industrial Parts Group saw sales of $2.3 billion, up 4.6%, with segment EBITDA increasing 6.6% to $285 million and an EBITDA margin of 12.6% [6] Cash Flow and Capital Allocation - The company generated $511 million in cash flow from operations for the first nine months of 2025, with a free cash flow of $160 million [8][27] - Net cash used in investing activities totaled $488 million, including $350 million for capital expenditures and $182 million for acquisitions [8] Balance Sheet - As of September 30, 2025, the company had $431 million in cash and cash equivalents, along with $1.1 billion in undrawn capacity on its Revolving Credit Agreement [9] 2025 Outlook - The company updated its full-year 2025 guidance, projecting total sales growth of 3% to 4%, up from the previous estimate of 1% to 3%, and adjusted diluted earnings per share of $7.50 to $7.75 [10][12][13]

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]