Genuine Parts Company Reports Third Quarter 2026 Results
Narrows 2026 Outlook for Adjusted EPS to $7.50 to $7.75 from $7.50 to $8.00 ATLANTA -- Genuine Parts Company (NYSE: GPC), a leading global service provider of automotive and industrial replacement parts and value-added solutions, announced today its results for the third quarter ended September 30, 2026.
“Our third quarter performance demonstrates the strength of our market leading businesses and our teams’ continued focus on serving customers and executing our strategic priorities,” said Will Stengel, Chairman and Chief Executive Officer. “We also achieved important milestones in our separation process and remain on track to launch GPC and Motion as two independent, leading companies in the first quarter of 2027.”
Sales were $6.5 billion, a 4.2% increase compared to $6.3 billion in the same period of the prior year. The improvement is attributable to a 2.9% increase in comparable sales, a 0.9% benefit from acquisitions and a net 0.4% favorable impact of foreign currency and other.
Net income was $224 million, or $1.62 per diluted earnings per share. This compares to net income of $226 million, or $1.62 per diluted share in the prior year period.
Adjusted net income was $286 million, or $2.07 per diluted earnings per share. Adjusted net income excludes $61 million of after-tax adjustments, or $0.45 per diluted share, which relates to costs associated with the company's global restructuring initiative and the planned separation of the company's Automotive and Industrial businesses. This compares to adjusted net income of $276 million, or $1.98 per diluted share in the prior year period. Refer to the reconciliation of GAAP net income to adjusted net income and GAAP diluted net income per common share to adjusted diluted net income per common share for more information.
North America Automotive sales were $2.5 billion, up 2.2% from the same period in 2025. The improvement is primarily attributable to a 1.7% increase in comparable sales and a 1.1% benefit from acquisitions. This was partially offset by a 0.6% unfavorable impact of foreign currency 1 and other. Segment EBITDA of $194 million decreased 2.9%, with segment EBITDA margin of 7.6%, down 40 basis points from the same period of the prior year.
International Automotive sales were $1.6 billion, up 4.5% from the same period in 2025. The improvement is primarily attributable to a 1.7% benefit from acquisitions, a 1.7% favorable impact of foreign currency and a 1.1% increase in comparable sales. Segment EBITDA of $141 million increased 4.7%, with segment EBITDA margin of 9.0%, flat versus the same period of the prior year.
Industrial sales were $2.4 billion, up 6.1% from the same period in 2025. The improvement is primarily attributable to a 5.5% increase in comparable sales, a 0.5% favorable impact of foreign currency and a 0.1% benefit from acquisitions. Segment EBITDA of $317 million increased 11.2%, with segment EBITDA margin of 13.2%, up 60 basis points from the same period of the prior year.
Sales for the nine months ended September 30, 2026 were $19.3 billion, up 5.6% from the same period in 2025. Net income for the nine months was $641 million, or $4.64 per diluted share. This compares to net income of $675 million, or $4.85 per diluted share in the prior year period. Adjusted net income was $827 million in the first nine months of 2026, compared to adjusted net income of $810 million in the prior year period. Adjusted diluted earnings per share were $5.99 compared to $5.82 in the prior year period.
The company generated cash flow from operations of $817 million for the first nine months of 2026. Net cash used in investing activities was $361 million, including $314 million for capital expenditures and $69 million for acquisitions. Net cash used in financing activities was $139 million, including net proceeds of debt (including net commercial paper) of $338 million, partially offset by $434 million for quarterly dividends paid to shareholders. Free cash flow was $502 million for the first nine months of 2026. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.
As of September 30, 2026, total liquidity was $2.4 billion, consisting of $763 million in cash, and $1.6 billion of available capacity under the company's $2.0 billion Revolving Credit Agreement. This reflects $389 million outstanding under our commercial paper program. 2
The company is narrowing the range for adjusted diluted earnings per share outlook from its previous full-year 2026 outlook provided in its earnings releases on February 17, 2026, April 21, 2026 and July 21, 2026. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results in updating its outlook, which is outlined in the table below. The updated GAAP earnings-per-share outlook includes expected costs associated with the company's restructuring initiatives, and includes costs related to the planned separation that have been incurred year- to-date.
For the Year Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── Previous Outlook Updated Outlook Total sales growth 3% to 5.5% 3% to 5.5% North America Automotive sales 2.5% to 4.5% 2.5% to 4.5% growth International Automotive sales 5% to 8% 5% to 8% growth Industrial sales 3% to 6% 3% to 6% growth Diluted earnings per $5.90 to $6.40 $5.60 to $5.85 share Adjusted diluted $7.50 to $8.00 $7.50 to $7.75 earnings per share Effective tax rate Approx. 24% Approx. 24% Net cash provided by $1.0 billion to $1.2 $1.0 billion to $1.2 operating billion billion activities Free cash flow $550 million to $700 $550 million to $700 million million
This release contains certain financial information not derived in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”). These items include adjusted net income, adjusted diluted net income per common share, adjusted selling, administrative, and other expenses, and free cash flow. The company believes that the presentation of adjusted net income, adjusted diluted net income per common share, adjusted selling, administrative and other expenses and free cash flow, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides meaningful supplemental information to both management and investors that is indicative of the company's core operations. The company considers these metrics useful to investors because they provide greater transparency into management’s view and assessment of the company’s ongoing operating performance by removing items management believes are not representative of the company's continuing operations and may distort the company's longer-term operating trends. The company believes these measures are useful and enhance the comparability of the results from period to period and with the company's competitors, as well as show ongoing results from operations distinct from items that are infrequent or not associated with the company’s core operations. The company does not, nor does it suggest investors should, consider such non-GAAP financial measures as superior to, in isolation from, or as a substitute for, GAAP financial information. The company has included a reconciliation of this additional information to the most comparable GAAP measure following the financial statements below. The company does not provide a forward-looking outlook for certain financial measures on a GAAP basis because the company is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include separation costs, acquisition-related costs, litigation charges or settlements, impairment charges, restructuring costs and certain other unusual adjustments. 3
Comparable sales is a key metric that refers to period-over-period comparisons of the company's net sales excluding the impact of acquisitions, foreign currency and other. The company's calculation of comparable sales is computed using total business days for the period and is inclusive of sales from company- owned stores and sales into independent stores. The company considers this metric useful to investors because it provides greater transparency into management’s view and assessment of the company’s core ongoing operations. This is a metric that is widely used by analysts, investors and competitors; however the company's calculation of the metric may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate this metric in the same manner.
Genuine Parts Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss the results of the quarter. A supplemental earnings deck will also be available for reference. Interested parties may listen to the call and view the supplemental earnings deck on the company's investor relations website. The call is also available by dialing 800-836-8184. A replay of the call will be available on the company's website or toll-free at 888-660-6345, conference ID 26206#, two hours after the completion of the call.
Established in 1928, Genuine Parts Company is a leading global service provider of automotive and industrial replacement parts and value-added solutions. Our Automotive Parts Group operates across North America, Europe and Australasia, while our Industrial Parts Group serves customers across North America and Australasia. We keep the world moving with a vast network of over 10,800 locations spanning 17 countries supported by more than 65,000 teammates. Learn more at genpt.com.
Investor Contact: Media Contact: Timothy Walsh - (678) 934-5349 Heather Ross - (678) 934-5220 Vice President - Investor Relations Vice President - Global Strategic Communications
Some statements in this release, as well as in other materials the company files with the Securities and Exchange Commission ("SEC"), release to the public, or make available on the company's website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words such as “expect,” “likely,” “outlook,” “forecast,” “preliminary,” “would,” “could,” “should,” “position,” “will,” “project,” “intend,” “plan,” “on track,” “anticipate,” “to come,” “may,” “possible,” “assume,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements include the company's view of business and economic trends for the remainder of the year and the company's expectations regarding its ability to capitalize on these business and economic trends; the company's full-year 2026 outlook and the company's ability to successfully execute on its strategic priorities, including the company’s anticipated separation of Global Automotive and Global Industrial into two independent, publicly traded companies. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward- looking.
The company cautions you that all forward-looking statements involve risks and uncertainties, and while the company believes its expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on the company's forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, changes in general economic conditions, including persistent inflation (including the direct and indirect impact of tariffs and retaliatory tariffs) or deflation, geopolitical uncertainty and unrest (including from the conflict involving the United States and Iran) and declining consumer confidence; the company’s ability to successfully implement the separation of Global Automotive and Global Industrial and achieve the anticipated benefits of such transaction; volatility in oil prices; significant costs, such as elevated fuel and freight expenses; the company's ability to maintain compliance with its debt covenants; its ability to successfully integrate acquired businesses into its operations and to realize the anticipated synergies and benefits; its ability to successfully implement its business initiatives in its three business segments; slowing demand for its products; the ability to maintain favorable supplier arrangements and relationships; changes in national and international legislation or government regulations or policies, including changes to global trade regulations, environmental and social policy, infrastructure programs and privacy legislation and related uncertainties, and their impact on the company, its suppliers and customers; changes in tax policies; volatile exchange rates; the company's ability to successfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; failure or weakness in the company's disclosure controls and procedures and internal controls over financial reporting; the uncertainties and costs of litigation; public health emergencies, including the effects on the financial health of the company's business partners and customers, on supply chains and its suppliers, on vehicle miles driven as well as other metrics that affect the company's business, and on access to capital and liquidity provided by the financial and capital markets; disruptions caused by a failure or breach of the company's information systems; the success of its global restructuring efforts and the annualized cost savings arising therefrom, as well as other risks and uncertainties discussed in the company's Annual Report on Form 10-K and from time to time in its subsequent filings with the SEC.
Forward-looking statements speak only as of the date they are made, and the company undertakes no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures the company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC. 5
(UNAUDITED) The following table presents net sales by segment and a reconciliation from segment EBITDA to net income:
(1) Corporate EBITDA consists of costs related to the company's Corporate headquarters' broad support to the company's business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology, cybersecurity, legal, corporate finance, internal audit, and risk management, as well as product liability costs and A/R Sales Agreement fees. The following table presents a summary of the other unallocated costs:
(2) Amount reflects costs related to our global restructuring initiative which includes employee severance and other termination benefits, and the rationalization and optimization of certain distribution centers, stores and other facilities.
(3) Amount primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of the company's Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027.
(4) Amount primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores. 7
Nine Months Ended (in thousands) September 30, Operating activities: 2026 2025 ────────────────────────────────────────────────────────────────────────────── Net income $ 640,540 $ 675,443 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Depreciation and 403,234 365,928 amortization Share-based 45,095 37,183 compensation Other operating activities, including changes in operating -272,222 -567,865 assets and liabilities Net cash provided by operating 816,647 510,689 activities Investing activities: Purchases of property, plant and -314,476 -350,443 equipment Proceeds from sale of property, plant 28,070 21,085 and equipment Acquisitions of -69,450 -181,987 businesses Proceeds from divestitures of 6,885 59 businesses Other investing -12,105 23,335 activities Net cash used in -361,076 -487,951 investing activities Financing activities: Proceeds from debt 1,291,217 44,600 Payments on debt -997,776 -567,368 Net proceeds of 44,968 886,175 commercial paper Shares issued from employee incentive -13,713 -16,316 plans Dividends paid -434,446 -420,571 Other financing -29,283 -20,237 activities Net cash used in -139,033 -93,717 financing activities Effect of exchange rate changes on cash -30,566 22,347 and cash equivalents Net increase (decrease) in cash 285,972 -48,632 and cash equivalents Cash and cash equivalents at 477,179 479,991 beginning of period Cash and cash equivalents at end of $ 763,151 $ 431,359 period
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME AND GAAP DILUTED NET INCOME PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME PER COMMON SHARE
(UNAUDITED) The table below represents a reconciliation from GAAP net income to adjusted net income:
10 (1) Amount reflects costs related to our global restructuring initiative which includes employee severance and other termination benefits, and the rationalization and optimization of certain distribution centers, stores and other facilities.
(2) Amount primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of our Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027.
(3) Amount primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.
(4) We determine the tax effect of non-GAAP adjustments by considering the tax laws and statutory income tax rates applicable in the tax jurisdictions of the underlying non-GAAP adjustments, including any related valuation allowances. For the three and nine months ended September 30, 2026, we applied the statutory income tax rates to the taxable portion of all of our adjustments, which resulted in a tax impact of $25 million and $68 million, respectively.
The table below clarifies where the items that have been adjusted above to improve comparability of the financial information from period to period are presented in the condensed consolidated statements of income.
RECONCILIATION OF GAAP SELLING, ADMINISTRATIVE AND OTHER EXPENSES TO ADJUSTED SELLING, ADMINISTRATIVE AND OTHER EXPENSES
(UNAUDITED) The table below represents a reconciliation from GAAP selling, administrative and other expenses to adjusted selling, administrative and other expenses:
(1) Refer to the explanation of adjustments included within the reconciliation of GAAP net income to adjusted net income table for further information. GENUINE PARTS COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
For the Year Ending December 31, 2026 ────────────────────────────────────────────────────────────────────────────── Net cash provided by operating $1.0 billion to $1.2 billion activities Purchases of property, plant and $450 million to $500 million equipment Free cash flow $550 million to $700 million
Full text with the tables
www.genpt.com
News Release
October 20, 2026
FOR IMMEDIATE RELEASE
Genuine Parts Company Reports Third Quarter 2026 Results
Narrows 2026 Outlook for Adjusted EPS to $7.50 to $7.75 from $7.50 to $8.00
ATLANTA -- Genuine Parts Company (NYSE: GPC), a leading global service provider
of automotive and industrial replacement parts and value-added solutions,
announced today its results for the third quarter ended September 30, 2026.
“Our third quarter performance demonstrates the strength of our market leading
businesses and our teams’ continued focus on serving customers and executing our
strategic priorities,” said Will Stengel, Chairman and Chief Executive Officer.
“We also achieved important milestones in our separation process and remain on
track to launch GPC and Motion as two independent, leading companies in the
first quarter of 2027.”
Third Quarter 2026 Results
Sales were $6.5 billion, a 4.2% increase compared to $6.3 billion in the same
period of the prior year. The improvement is attributable to a 2.9% increase in
comparable sales, a 0.9% benefit from acquisitions and a net 0.4% favorable
impact of foreign currency and other.
Net income was $224 million, or $1.62 per diluted earnings per share. This
compares to net income of $226 million, or $1.62 per diluted share in the prior
year period.
Adjusted net income was $286 million, or $2.07 per diluted earnings per share.
Adjusted net income excludes $61 million of after-tax adjustments, or $0.45 per
diluted share, which relates to costs associated with the company's global
restructuring initiative and the planned separation of the company's Automotive
and Industrial businesses. This compares to adjusted net income of $276 million,
or $1.98 per diluted share in the prior year period. Refer to the reconciliation
of GAAP net income to adjusted net income and GAAP diluted net income per common
share to adjusted diluted net income per common share for more information.
Third Quarter 2026 Segment Highlights
North America Automotive Parts Group ("North America Automotive")
North America Automotive sales were $2.5 billion, up 2.2% from the same period
in 2025. The improvement is primarily attributable to a 1.7% increase in
comparable sales and a 1.1% benefit from acquisitions. This was partially offset
by a 0.6% unfavorable impact of foreign currency
1
and other. Segment EBITDA of $194 million decreased 2.9%, with segment EBITDA
margin of 7.6%, down 40 basis points from the same period of the prior year.
International Automotive Parts Group ("International Automotive")
International Automotive sales were $1.6 billion, up 4.5% from the same period
in 2025. The improvement is primarily attributable to a 1.7% benefit from
acquisitions, a 1.7% favorable impact of foreign currency and a 1.1% increase in
comparable sales. Segment EBITDA of $141 million increased 4.7%, with segment
EBITDA margin of 9.0%, flat versus the same period of the prior year.
Industrial Parts Group ("Industrial")
Industrial sales were $2.4 billion, up 6.1% from the same period in 2025. The
improvement is primarily attributable to a 5.5% increase in comparable sales, a
0.5% favorable impact of foreign currency and a 0.1% benefit from acquisitions.
Segment EBITDA of $317 million increased 11.2%, with segment EBITDA margin of
13.2%, up 60 basis points from the same period of the prior year.
Year to Date 2026 Results
Sales for the nine months ended September 30, 2026 were $19.3 billion, up 5.6%
from the same period in 2025. Net income for the nine months was $641 million,
or $4.64 per diluted share. This compares to net income of $675 million, or
$4.85 per diluted share in the prior year period. Adjusted net income was $827
million in the first nine months of 2026, compared to adjusted net income of
$810 million in the prior year period. Adjusted diluted earnings per share were
$5.99 compared to $5.82 in the prior year period.
Balance Sheet, Cash Flow and Capital Allocation
The company generated cash flow from operations of $817 million for the first
nine months of 2026. Net cash used in investing activities was $361 million,
including $314 million for capital expenditures and $69 million for
acquisitions. Net cash used in financing activities was $139 million, including
net proceeds of debt (including net commercial paper) of $338 million, partially
offset by $434 million for quarterly dividends paid to shareholders. Free cash
flow was $502 million for the first nine months of 2026. Refer to the
reconciliation of GAAP net cash provided by operating activities to free cash
flow for more information.
As of September 30, 2026, total liquidity was $2.4 billion, consisting of $763
million in cash, and $1.6 billion of available capacity under the company's $2.0
billion Revolving Credit Agreement. This reflects $389 million outstanding under
our commercial paper program.
2
2026 Outlook
The company is narrowing the range for adjusted diluted earnings per share
outlook from its previous full-year 2026 outlook provided in its earnings
releases on February 17, 2026, April 21, 2026 and July 21, 2026. The company
considered its recent business trends and financial results, current growth
plans, strategic initiatives, global economic outlook, geopolitical conflicts
and the potential impact on results in updating its outlook, which is outlined
in the table below. The updated GAAP earnings-per-share outlook includes
expected costs associated with the company's restructuring initiatives, and
includes costs related to the planned separation that have been incurred year-
to-date.
For the Year Ending
December
31, 2026
──────────────────────────────────────────────────────────────────────────────
Previous Outlook Updated Outlook
Total sales growth 3% to 5.5% 3% to 5.5%
North America
Automotive sales 2.5% to 4.5% 2.5% to 4.5%
growth
International
Automotive sales 5% to 8% 5% to 8%
growth
Industrial sales 3% to 6% 3% to 6%
growth
Diluted earnings per $5.90 to $6.40 $5.60 to $5.85
share
Adjusted diluted $7.50 to $8.00 $7.50 to $7.75
earnings per share
Effective tax rate Approx. 24% Approx. 24%
Net cash provided by $1.0 billion to $1.2 $1.0 billion to $1.2
operating billion billion
activities
Free cash flow $550 million to $700 $550 million to $700
million million
Non-GAAP Information
This release contains certain financial information not derived in accordance
with United States (“U.S.”) generally accepted accounting principles (“GAAP”).
These items include adjusted net income, adjusted diluted net income per common
share, adjusted selling, administrative, and other expenses, and free cash flow.
The company believes that the presentation of adjusted net income, adjusted
diluted net income per common share, adjusted selling, administrative and other
expenses and free cash flow, when considered together with the corresponding
GAAP financial measures and the reconciliations to those measures, provides
meaningful supplemental information to both management and investors that is
indicative of the company's core operations. The company considers these metrics
useful to investors because they provide greater transparency into management’s
view and assessment of the company’s ongoing operating performance by removing
items management believes are not representative of the company's continuing
operations and may distort the company's longer-term operating trends. The
company believes these measures are useful and enhance the comparability of the
results from period to period and with the company's competitors, as well as
show ongoing results from operations distinct from items that are infrequent or
not associated with the company’s core operations. The company does not, nor
does it suggest investors should, consider such non-GAAP financial measures as
superior to, in isolation from, or as a substitute for, GAAP financial
information. The company has included a reconciliation of this additional
information to the most comparable GAAP measure following the financial
statements below. The company does not provide a forward-looking outlook for
certain financial measures on a GAAP basis because the company is unable to
predict certain items contained in the GAAP measures without unreasonable
efforts. These items may include separation costs, acquisition-related costs,
litigation charges or settlements, impairment charges, restructuring costs and
certain other unusual adjustments.
3
Comparable Sales
Comparable sales is a key metric that refers to period-over-period comparisons
of the company's net sales excluding the impact of acquisitions, foreign
currency and other. The company's calculation of comparable sales is computed
using total business days for the period and is inclusive of sales from company-
owned stores and sales into independent stores. The company considers this
metric useful to investors because it provides greater transparency into
management’s view and assessment of the company’s core ongoing operations. This
is a metric that is widely used by analysts, investors and competitors; however
the company's calculation of the metric may not be comparable to similar
measures disclosed by other companies, because not all companies and analysts
calculate this metric in the same manner.
Conference Call
Genuine Parts Company will hold a conference call today at 8:30 a.m. Eastern
Time to discuss the results of the quarter. A supplemental earnings deck will
also be available for reference. Interested parties may listen to the call and
view the supplemental earnings deck on the company's investor relations website.
The call is also available by dialing 800-836-8184. A replay of the call will be
available on the company's website or toll-free at 888-660-6345, conference ID
26206#, two hours after the completion of the call.
About Genuine Parts Company
Established in 1928, Genuine Parts Company is a leading global service provider
of automotive and industrial replacement parts and value-added solutions. Our
Automotive Parts Group operates across North America, Europe and Australasia,
while our Industrial Parts Group serves customers across North America and
Australasia. We keep the world moving with a vast network of over 10,800
locations spanning 17 countries supported by more than 65,000 teammates. Learn
more at genpt.com.
Contacts
Investor Contact: Media Contact:
Timothy Walsh - (678) 934-5349 Heather Ross - (678) 934-5220
Vice President - Investor Relations Vice President - Global Strategic
Communications
4
Forward-Looking Statements
Some statements in this release, as well as in other materials the company files
with the Securities and Exchange Commission ("SEC"), release to the public, or
make available on the company's website, constitute forward-looking statements
that are subject to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements in the future tense and all
statements accompanied by words such as “expect,” “likely,” “outlook,”
“forecast,” “preliminary,” “would,” “could,” “should,” “position,” “will,”
“project,” “intend,” “plan,” “on track,” “anticipate,” “to come,” “may,”
“possible,” “assume,” or similar expressions are intended to identify such
forward-looking statements. These forward-looking statements include the
company's view of business and economic trends for the remainder of the year and
the company's expectations regarding its ability to capitalize on these business
and economic trends; the company's full-year 2026 outlook and the company's
ability to successfully execute on its strategic priorities, including the
company’s anticipated separation of Global Automotive and Global Industrial into
two independent, publicly traded companies. Senior officers may also make verbal
statements to analysts, investors, the media and others that are forward-
looking.
The company cautions you that all forward-looking statements involve risks and
uncertainties, and while the company believes its expectations for the future
are reasonable in view of currently available information, you are cautioned not
to place undue reliance on the company's forward-looking statements. Actual
results or events may differ materially from those indicated as a result of
various important factors. Such factors may include, among other things, changes
in general economic conditions, including persistent inflation (including the
direct and indirect impact of tariffs and retaliatory tariffs) or deflation,
geopolitical uncertainty and unrest (including from the conflict involving the
United States and Iran) and declining consumer confidence; the company’s ability
to successfully implement the separation of Global Automotive and Global
Industrial and achieve the anticipated benefits of such transaction; volatility
in oil prices; significant costs, such as elevated fuel and freight expenses;
the company's ability to maintain compliance with its debt covenants; its
ability to successfully integrate acquired businesses into its operations and to
realize the anticipated synergies and benefits; its ability to successfully
implement its business initiatives in its three business segments; slowing
demand for its products; the ability to maintain favorable supplier arrangements
and relationships; changes in national and international legislation or
government regulations or policies, including changes to global trade
regulations, environmental and social policy, infrastructure programs and
privacy legislation and related uncertainties, and their impact on the company,
its suppliers and customers; changes in tax policies; volatile exchange rates;
the company's ability to successfully attract and retain employees in the
current labor market; uncertain credit markets and other macroeconomic
conditions; competitive product, service and pricing pressures; failure or
weakness in the company's disclosure controls and procedures and internal
controls over financial reporting; the uncertainties and costs of litigation;
public health emergencies, including the effects on the financial health of the
company's business partners and customers, on supply chains and its suppliers,
on vehicle miles driven as well as other metrics that affect the company's
business, and on access to capital and liquidity provided by the financial and
capital markets; disruptions caused by a failure or breach of the company's
information systems; the success of its global restructuring efforts and the
annualized cost savings arising therefrom, as well as other risks and
uncertainties discussed in the company's Annual Report on Form 10-K and from
time to time in its subsequent filings with the SEC.
Forward-looking statements speak only as of the date they are made, and the
company undertakes no duty to update any forward-looking statements except as
required by law. You are advised, however, to review any further disclosures the
company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other
reports filed with the SEC.
5
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
(UNAUDITED)
(…
t… Th… Ni…
e… Mo… Mo…
p… En… En…
s… Se… Se…
d… 2026 30, 20… 2026 30, 20…
──────────────────────────────────────────────────────────────────────────────
N… $ 6,… $ 6,2… $ 19… $ 18,…
s…
C…
of 4,… 3,9… 12… 11,…
g…
s…
G… 2,… 2,3… 7,… 6,8…
p…
O…
e…
S…
a…
a… 1,… 1,8… 5,… 5,2…
o…
e…
D…
a… 13… 127… 40… 365…
a…
P…
f… 9,… 6,8… 27… 20,…
d…
a…
R…
a… 64… 66,… 19… 167…
o…
c…
T…
o… 2,… 2,0… 6,… 5,8…
e…
N…
e…
(…
I…
e… 45… 40,… 13… 117…
n…
O… 3,… 2,2… -2… -580
T…
n… 49… 42,… 13… 117…
e…
I…
b… 27… 291… 81… 881…
i…
t…
I… 54… 65,… 17… 206…
t…
N… $ 22… $ 226… $ 64… $ 675…
i…
D…
d…
p… $ 1.… $ 1.03 $ 3.… $ 3.09
c…
s…
B…
e… $ 1.… $ 1.63 $ 4.… $ 4.86
p…
s…
D…
e… $ 1.… $ 1.62 $ 4.… $ 4.85
p…
s…
W…
a…
c… 137… 13… 137… 13…
s…
o…
D…
e…
of
s…
o… 469 307 351 298
a…
n…
r…
s…
a…
W…
a…
c…
s… 138… 13… 138… 13…
o…
–
a…
d…
6
GENUINE PARTS COMPANY AND SUBSIDIARIES
SEGMENT INFORMATION
(UNAUDITED)
The following table presents net sales by segment and a reconciliation from
segment EBITDA to net income:
Thr… Nine
Mon… Mon…
(… End… End…
t… Sep… Sep…
N… 30, 30,
s… 2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
N…
A… $ 2,… $ 2,4… $ 7,… $ 7,1…
A…
I… 1,… 1,5… 4,… 4,3…
A…
I… 2,… 2,2… 7,… 6,7…
S…
E…
N…
A… 19… 199… 55… 543…
A…
I… 14… 135… 43… 415…
A…
I… 31… 285… 94… 851…
C…
E… -1… -93… -3… -26…
(…
I…
e… -4… -40… -1… -11…
n…
D…
a… -1… -12… -4… -36…
a…
O…
u… -8… -66… -2… -18…
c…
I…
b… 278… 29… 817… 88…
i…
t…
I… -5… -65… -1… -20…
t…
N… $ 22… $ 226… $ 64… $ 675…
i…
(1) Corporate EBITDA consists of costs related to the company's Corporate
headquarters' broad support to the company's business units and other costs that
are managed centrally and not allocated to business segments. These include
personnel and other costs for company-wide functions such as executive
leadership, human resources, technology, cybersecurity, legal, corporate
finance, internal audit, and risk management, as well as product liability costs
and A/R Sales Agreement fees.
The following table presents a summary of the other unallocated costs:
Three Nine
(in Months Months
thou… Ended Ended
Other Septem… Septe…
unal… 30, 30,
cost… 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Rest…
and
other $ -64,5… $ -66,835 $ -193,4… $ -167,…
costs
(2)
Sepa…
costs -21,2… — -54,912 —
(3)
Acqu…
and
inte…
rela… -803 — -6,092 -14,0…
costs
and
other
(4)
Total
other $ -86,5… $ -66,835 $ -254,4… $ -181,…
unal…
costs
(2) Amount reflects costs related to our global restructuring initiative which
includes employee severance and other termination benefits, and the
rationalization and optimization of certain distribution centers, stores and
other facilities.
(3) Amount primarily reflects legal and professional services and executive
incentive plan costs related to the planned separation of the company's Global
Automotive and Global Industrial businesses that was announced on February 17,
2026 and is targeted for completion in the first quarter of 2027.
(4) Amount primarily reflects lease and other exit costs related to the
integration of acquired independent automotive stores.
7
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED BALANCE SHEETS
(UNAUDITED)
(in thousands,
except share and
per September 30, December 31,
share data) 2026 2025
──────────────────────────────────────────────────────────────────────────────
Assets
Current assets:
Cash and cash $ 763,151 $ 477,179
equivalents
Trade accounts 2,619,491 2,370,939
receivable, net
Merchandise
inventories, 6,435,802 6,071,996
net
Prepaid
expenses and 1,632,361 1,644,620
other current
assets
Total current 11,450,805 10,564,734
assets
Goodwill 3,206,231 3,188,815
Other
intangible 1,743,938 1,855,714
assets, net
Property, plant
and equipment, 2,161,387 2,172,140
net
Operating lease 2,062,454 2,084,487
assets
Other assets 872,340 929,650
Total assets $ 21,497,155 $ 20,795,540
Liabilities and
equity
Current
liabilities:
Trade accounts $ 6,394,876 $ 6,051,882
payable
Short-term 388,088 943,540
borrowings
Current portion
of long-term 250,000 353,788
debt
Dividends 148,074 143,291
payable
Other current 2,180,515 2,295,204
liabilities
Total current 9,361,553 9,787,705
liabilities
Long-term debt 4,472,149 3,498,423
Operating lease 1,713,902 1,739,478
liabilities
Pension and
other
post–retirement 218,787 219,270
benefit
liabilities
Deferred tax 368,353 385,948
liabilities
Other long-term 703,492 724,353
liabilities
Equity:
Preferred
stock, par
value – $1 per
share; — —
authorized –
10,000,000
shares;
none issued
Common stock,
par value – $1
per share;
authorized –
450,000,000
shares; issued 137,865 137,618
and outstanding
– 2026 –
137,864,682
shares; 2025 –
137,617,832
shares
Additional 259,505 228,370
paid-in capital
Accumulated
other -518,474 -511,766
comprehensive
loss
Retained 4,770,080 4,568,769
earnings
Total parent 4,648,976 4,422,991
equity
Noncontrolling
interests in 9,943 17,372
subsidiaries
Total equity 4,658,919 4,440,363
Total
liabilities and $ 21,497,155 $ 20,795,540
equity
8
GENUINE PARTS COMPANY AND SUBSIDIARIES
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
(UNAUDITED)
Nine Months Ended
(in thousands) September 30,
Operating activities: 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net income $ 640,540 $ 675,443
Adjustments to
reconcile net income
to
net cash provided by
(used in) operating
activities:
Depreciation and 403,234 365,928
amortization
Share-based 45,095 37,183
compensation
Other operating
activities, including
changes in operating -272,222 -567,865
assets and
liabilities
Net cash provided by
operating 816,647 510,689
activities
Investing activities:
Purchases of
property, plant and -314,476 -350,443
equipment
Proceeds from sale of
property, plant 28,070 21,085
and equipment
Acquisitions of -69,450 -181,987
businesses
Proceeds from
divestitures of 6,885 59
businesses
Other investing -12,105 23,335
activities
Net cash used in -361,076 -487,951
investing activities
Financing activities:
Proceeds from debt 1,291,217 44,600
Payments on debt -997,776 -567,368
Net proceeds of 44,968 886,175
commercial paper
Shares issued from
employee incentive -13,713 -16,316
plans
Dividends paid -434,446 -420,571
Other financing -29,283 -20,237
activities
Net cash used in -139,033 -93,717
financing activities
Effect of exchange
rate changes on cash -30,566 22,347
and cash equivalents
Net increase
(decrease) in cash 285,972 -48,632
and cash
equivalents
Cash and cash
equivalents at 477,179 479,991
beginning
of period
Cash and cash
equivalents at end of $ 763,151 $ 431,359
period
9
GENUINE PARTS COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME AND GAAP DILUTED NET
INCOME PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME PER COMMON SHARE
(UNAUDITED)
The table below represents a reconciliation from GAAP net income to adjusted net
income:
Three Nine
Months Months
Ended Ended
(in Septem… Septemb…
thousa… 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
net $ 224,447 $ 226,171 $ 640,540 $ 675,443
income
Adjust…
Restru…
and
other 64,545 66,835 193,426 167,317
costs
(1)
Separa…
costs 21,204 — 54,912 —
(2)
Acquis…
and
integr…
related 803 — 6,092 14,035
costs
and
other
(3)
Total 86,552 66,835 254,430 181,352
adjust…
Tax
impact
of -25,053 -17,411 -68,239 -46,340
adjust…
(4)
Adjust…
net $ 285,946 $ 275,595 $ 826,731 $ 810,455
income
The table below represents amounts per common share assuming dilution:
(in
thousa… Three Nine
except Months Months
per Ended Ended
share Septem… Septemb…
data) 2026 30, 2025 2026 30, 2025
──────────────────────────────────────────────────────────────────────────────
GAAP
diluted
net
income $ 1.62 $ 1.62 $ 4.64 $ 4.85
per
common
share
Adjust…
Restru…
and
other 0.47 0.48 1.40 1.20
costs
(1)
Separa…
costs 0.15 — 0.40 —
(2)
Acquis…
and
integr…
related 0.01 — 0.04 0.10
costs
and
other
(3)
Total 0.63 0.48 1.84 1.30
adjust…
Tax
impact
of -0.18 -0.12 -0.49 -0.33
adjust…
(4)
Adjust…
diluted
net
income $ 2.07 $ 1.98 $ 5.99 $ 5.82
per
common
share
Weight…
average
common
shares 138,331 139,406 138,104 139,257
outsta…
–
assumi…
diluti…
10
(1) Amount reflects costs related to our global restructuring initiative which
includes employee severance and other termination benefits, and the
rationalization and optimization of certain distribution centers, stores and
other facilities.
(2) Amount primarily reflects legal and professional services and executive
incentive plan costs related to the planned separation of our Global Automotive
and Global Industrial businesses that was announced on February 17, 2026 and is
targeted for completion in the first quarter of 2027.
(3) Amount primarily reflects lease and other exit costs related to the
integration of acquired independent automotive stores.
(4) We determine the tax effect of non-GAAP adjustments by considering the tax
laws and statutory income tax rates applicable in the tax jurisdictions of the
underlying non-GAAP adjustments, including any related valuation allowances. For
the three and nine months ended September 30, 2026, we applied the statutory
income tax rates to the taxable portion of all of our adjustments, which
resulted in a tax impact of $25 million and $68 million, respectively.
The table below clarifies where the items that have been adjusted above to
improve comparability of the financial information from period to period are
presented in the condensed consolidated statements of income.
Three Nine
Months Months
(in Ended Ended
thous… Septem… Septe…
Line 30, 30,
item: 2026 2025 2026 2025
──────────────────────────────────────────────────────────────────────────────
Cost
of $ 803 $ — $ 6,092 $ —
goods
sold
Selli…
admin…
and 21,204 — 54,912 14,035
other
expen…
Restr…
and 64,545 66,835 193,426 167,3…
other
costs
Total $ 86,552 $ 66,835 $ 254,430 $ 181,3…
adjus…
11
GENUINE PARTS COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP SELLING, ADMINISTRATIVE AND OTHER EXPENSES TO ADJUSTED
SELLING, ADMINISTRATIVE AND OTHER EXPENSES
(UNAUDITED)
The table below represents a reconciliation from GAAP selling, administrative
and other expenses to adjusted selling, administrative and other expenses:
Thr… Nine
Mon… Mon…
End… End…
Sep… Sep…
(… 30, 30,
t… 2026 20… 2026 20…
──────────────────────────────────────────────────────────────────────────────
G…
s…
a… $ 1,9… $ 1,… $ 5,7… $ 5,…
a…
o…
e…
A…
S… -21… — -54… —
c…
A…
a…
i…
r… — — — -1…
c…
a…
o…
T…
a… -21… — -54… -1…
(…
A…
s…
a… $ 1,9… $ 1,… $ 5,6… $ 5,…
a…
o…
e…
N… $ 6,5… $ 6,… $ 19,… $ 18…
s…
G…
S…
e…
as
a 29… % 28.8 % 29… % 28.9 %
p…
of
n…
s…
A…
S…
e…
as
a 29… % 28.8 % 29… % 28.8 %
p…
of
n…
s…
(1) Refer to the explanation of adjustments included within the reconciliation
of GAAP net income to adjusted net income table for further information.
GENUINE PARTS COMPANY AND SUBSIDIARIES
CHANGE IN NET SALES SUMMARY
(UNAUDITED)
Th…
Mo…
En…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
GA…
Co… Ac… Fo… Ot… To…
Sa… Cu… Net
Sa…
N…
A… 1.7 % 1.1 % -0… % -0… % 2… %
A…
I… 1.1 % 1.7 % 1.7 % — % 4… %
A…
I… 5.5 % 0.1 % 0.5 % — % 6… %
T…
N… 2.9 % 0.9 % 0.5 % -0… % 4… %
S…
Ni…
Mo…
En…
Se…
30,
20…
──────────────────────────────────────────────────────────────────────────────
GA…
Co… Ac… Fo… Ot… To…
Sa… Cu… Net
Sa…
N…
A… 2.2 % 1.3 % 0.1 % -0… % 3… %
A…
I… 0.9 % 2.1 % 5.5 % — % 8… %
A…
I… 5.1 % 0.2 % 0.8 % — % 6… %
T…
N… 2.9 % 1.1 % 1.7 % -0… % 5… %
S…
12
GENUINE PARTS COMPANY AND SUBSIDIARIES
RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH
FLOW
(UNAUDITED)
Nine Months Ended
(in thousands) September 30, 2026 2025
──────────────────────────────────────────────────────────────────────────────
Net cash
provided by $ 816,647 $ 510,689
operating
activities
Purchases of
property, plant -314,476 -350,443
and
equipment
Free cash flow $ 502,171 $ 160,246
For the Year Ending December 31,
2026
──────────────────────────────────────────────────────────────────────────────
Net cash provided by operating $1.0 billion to $1.2 billion
activities
Purchases of property, plant and $450 million to $500 million
equipment
Free cash flow $550 million to $700 million
13