Genuine Parts Company Announces Plan to Separate Automotive and Industrial Businesses Into Two Industry-Leading Public Companies

Rhea-AI Summary

Genuine Parts Company (NYSE: GPC) will separate into two public companies—Global Automotive and Global Industrial—targeting a tax-free separation in Q1 2027. Global Automotive reported >$15 billion sales and $1.2 billion EBITDA in 2025; Global Industrial reported ~$9 billion sales and >$1.1 billion EBITDA in 2025. The company will host investor days in H2 2026 and held a conference call today at 8:30 a.m. ET to discuss results and the transaction. Boards, executive teams and detailed capital plans will be announced later; separation is subject to customary conditions, including a Form 10 filing.

Positive

• Tax-free separation targeted for Q1 2027
• Global Automotive: $15B+ sales and $1.2B EBITDA in 2025
• Global Industrial: $9B sales and $1.1B+ EBITDA in 2025
• Scale: Global Automotive >10,000 locations; >20,000 NAPA Auto Care repair centers
• Material market exposure: $200B automotive and $150B industrial addressable markets
• Commitment to investment-grade credit metrics for both companies

Negative

• Separation is subject to customary conditions, including Form 10 effectiveness, creating timing and execution risk
• Names of new company boards and leadership teams are not yet announced, leaving near-term governance uncertainty

News Market Reaction – GPC

-14.56% 2.9x vol

54 alerts

-14.56% News Effect

-8.2% Trough in 27 hr

-$3.49B Valuation Impact

$20.47B Market Cap

2.9x Rel. Volume

On the day this news was published, GPC declined 14.56%, reflecting a significant negative market reaction. Argus tracked a trough of -8.2% from its starting point during tracking. Our momentum scanner triggered 54 alerts that day, indicating high trading interest and price volatility. This price movement removed approximately $3.49B from the company's valuation, bringing the market cap to $20.47B at that time. Trading volume was elevated at 2.9x the daily average, suggesting increased selling activity.

Data tracked by StockTitan Argus on the day of publication.

Key Figures

Global Automotive 2025 sales: more than $15 billion Global Automotive 2025 EBITDA: $1.2 billion Global Industrial 2025 sales: approximately $9 billion +5 more

8 metrics

Global Automotive 2025 sales more than $15 billion Global Automotive segment 2025 performance

Global Automotive 2025 EBITDA $1.2 billion Global Automotive segment 2025 EBITDA

Global Industrial 2025 sales approximately $9 billion Global Industrial (Motion) 2025 performance

Global Industrial 2025 EBITDA more than $1.1 billion Global Industrial (Motion) 2025 EBITDA

Global Automotive locations more than 10,000 locations Global Automotive network size

NAPA Auto Care centers over 20,000 centers NAPA Auto Care network in North America

Automotive addressable market $200 billion Fragmented automotive aftermarket addressable market

Industrial addressable market $150 billion Fragmented global industrial market opportunity

Market Reality Check

Price: $118.06 Vol: Volume 1,203,443 is at 1....

normal vol

$118.06 Last Close

Volume Volume 1,203,443 is at 1.04x the 20-day average, indicating only mildly elevated trading ahead of the separation news. normal

Technical Price at $147.16 is trading above the 200-day MA of $130.73, and sits 2.9% below the 52-week high of $151.57.

Peers on Argus

GPC was down 0.3% while key auto-related peers were mixed: APTV +2.49%, MGA +8.7...

GPC was down 0.3% while key auto-related peers were mixed: APTV +2.49%, MGA +8.77%, AZO +1.2%, ORLY +1.23%, and MBLY -2.65%. The divergence from mostly positive peers points to a stock-specific reaction to the separation plan.

Historical Context

5 past events · Latest: Jan 27 (Neutral)

Pattern 5 events

Date	Event	Sentiment	Move	Catalyst
Jan 27	Earnings date notice	Neutral	+0.1%	Announced date and call details for Q4 and full-year 2025 results.
Jan 15	Leadership change	Neutral	+1.8%	Board leadership transition with CEO Will Stengel named Chair-elect.
Nov 17	Dividend declaration	Positive	-0.3%	Declared regular quarterly cash dividend of <b>$1.03 per share</b>.
Oct 21	Earnings and guidance	Positive	+2.0%	Reported Q3 2025 results, raised sales growth outlook, narrowed EPS guidance.
Oct 14	Conference appearance	Neutral	+1.5%	Announced presentation at Gabelli automotive symposium with webcast access.

Pattern Detected

Recent corporate updates (earnings, guidance, leadership, conferences) have generally seen modestly positive or neutral next-day moves, with one dividend announcement coinciding with a small decline, suggesting mixed but mostly aligned reactions.

Recent Company History

Over the past several months, GPC has focused on steady capital returns and operational updates. A regular dividend of $1.03 per share and third‑quarter 2025 results with $6.3 billion in sales and adjusted EPS of $1.98 supported modestly positive share reactions. An October 2025 earnings report included updated 2025 guidance and a projected $650–$750 million pension settlement charge. Board leadership changes and conference appearances also saw small gains. Today’s planned separation of automotive and industrial businesses builds on this pattern of strategic repositioning.

Market Pulse Summary

The stock dropped -14.6% in the session following this news. A negative reaction despite a clearly a...

Analysis

The stock dropped -14.6% in the session following this news. A negative reaction despite a clearly articulated separation strategy could fit a pattern where investors focus on execution risk and restructuring complexity. The plan involves creating two companies around businesses that generated more than $24 billion in combined 2025 sales across $350 billion in addressable markets. Concerns could center on the long runway to a first‑quarter 2027 close, potential dis-synergies, and uncertainty around future capital allocation at each entity.

Key Terms

ebitda, investment-grade credit metrics, capital structure, free cash flow, +4 more

8 terms

ebitda financial

"Global Automotive generated more than $15 billion in sales, and $1.2 billion of EBITDA in 2025."

EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It measures a company's profitability by focusing on the money it makes from its core operations, ignoring expenses like taxes and accounting adjustments. Investors use EBITDA to compare how well different companies are performing financially, as it provides a clearer picture of operational success without the influence of financial structure or accounting choices.

investment-grade credit metrics financial

"while targeting investment-grade credit metrics at each company;"

Quantitative measures that show how safely an organization can borrow and repay money, similar to a household’s credit score and debt-to-income ratio combined. Investors use these metrics—covering cash available to pay bills, size of debt, and consistency of earnings—to gauge default risk, likely borrowing costs, and how a company’s securities might be rated; they help decide whether an investment is relatively safe or risky.

capital structure financial

"Allowing each business to design capital structures and capital allocation strategies"

Capital structure is the way a company finances its operations and growth by using different sources of money, such as borrowed funds (loans or bonds) and owner’s equity (investments from owners or shareholders). It’s like a recipe for baking a cake, where the balance of ingredients affects the final product's strength and taste; similarly, the mix of debt and equity influences a company's stability and risk. For investors, understanding a company's capital structure helps gauge how risky it might be to invest or lend money.

free cash flow financial

"with profitable sales growth, strong operating leverage translating into double-digit EBITDA margins, free cash flow generation"

Free cash flow is the amount of money a company has left over after paying all its expenses and investing in its business, like buying equipment or updating facilities. It shows how much cash is available to reward shareholders, pay down debt, or save for future growth. This helps investors understand if a company is financially healthy and able to grow.

omni-channel technical

"Motion's scale, omni-channel go-to-market strategy and strategic supplier relationships"

Omni-channel is a business approach that connects all ways a customer can interact or buy—such as websites, mobile apps, physical stores, social media and call centers—so the experience feels seamless no matter which path they choose. For investors, omni-channel matters because it can increase sales, customer loyalty and operational efficiency by making it easier to buy and by collecting better data on behavior; think of it as a coordinated orchestra where every instrument helps sell more smoothly and predictably.

form 10 registration statement regulatory

"including final approval from the GPC Board and filing and effectiveness of a Form 10 registration statement"

A Form 10 registration statement is a legal document companies file with the government to register their stock for trading by the public. It provides important information about the company's business, finances, and risks, helping investors make informed decisions about buying or selling its shares. Think of it as a detailed report card that reveals the company's health and prospects before it goes on the stock market.

u.s. securities and exchange commission regulatory

"with the U.S. Securities and Exchange Commission. The separation does not require"

The U.S. Securities and Exchange Commission is a government agency responsible for overseeing the stock market and protecting investors. It sets rules to ensure that companies share truthful information and that trading is fair, helping to maintain trust in the financial system. This oversight is important because it helps prevent fraud and ensures that investors can make informed decisions.

tax-free transaction regulatory

"expected to qualify as a tax-free transaction for U.S. federal tax purposes"

A tax-free transaction is a corporate deal arranged so shareholders or companies do not have to pay immediate income tax on any gains because the law treats the transfer as an exchange rather than a taxable sale. Like swapping one set of assets for another without a tax bill at the moment, it preserves value and shifts when and how taxes will be paid, so investors need to watch deal terms and future tax basis that can affect cash flow and returns.

AI-generated analysis. Not financial advice.

Separation to Unlock Significant Shareholder Value and Enhance Strategic Clarity, Operational Focus and Financial Performance for Both Companies

Tax-Free Separation Expected to be Completed in the First Quarter of 2027

Company to Announce Further Details Regarding Ongoing Operational and Strategic Initiatives at Investor Days for Global Automotive and Global Industrial in the Second Half of 2026

Company to Host Conference Call Today at 8:30 a.m. ET to Discuss Fourth Quarter and Full-Year 2025 Earnings Results and the Separation Announcement

ATLANTA, Feb. 17, 2026 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC), a leading global service provider of automotive and industrial replacement parts and value-added solutions, announced today its intention to separate the company into two independent, publicly traded companies, one comprising its Automotive Parts Group ("Global Automotive") and the other comprising its Industrial Parts Group ("Global Industrial"). The transaction, which is targeted for completion in the first quarter of 2027, is expected to qualify as a tax-free transaction for U.S. federal tax purposes to Genuine Parts Company shareholders.

"Genuine Parts Company has a proud history of evolving with our markets for nearly a century," said Will Stengel, Chair-Elect and Chief Executive Officer. "Over the past decade, we established leading global footprints in attractive geographies, simplified our business mix and accelerated strategic investments to advance and differentiate our business. Creating two focused, independent companies sharpens customer and market alignment, increases clarity and speed, simplifies operations and enables disciplined, business-specific investments to unlock long-term value."

Creating Two Industry-Leading Companies
The business separation is the result of a comprehensive strategic and operational review of market opportunities, in-flight initiatives and business structure considerations across Global Automotive and Global Industrial.

Pursuing the separation is expected to create two, scaled market leaders, better able to execute their respective strategies by:

• Creating dedicated platforms that improve operating clarity and execution speed at each company to deliver greater customer value and long-term shareholder returns;
• Establishing separate management teams with tailored expertise, strategies and decision-making authority to better address customer needs;
• Providing enhanced financial flexibility to enable strategic investments that accelerate profitable growth, improve productivity and extend market leadership positions;
• Allowing each business to design capital structures and capital allocation strategies aligned with specific business objectives, while targeting investment-grade credit metrics at each company; and
• Enabling each business to attract a long-term investor base through a clear, compelling and differentiated investment profile.

Global Automotive: The Largest Global Automotive Aftermarket Solutions Provider
Global Automotive is the largest global network of automotive parts and auto care repair centers, operating in North America, Europe, U.K. and Australasia. Going to market under the globally recognized NAPA brand, amongst others, Global Automotive will be a more focused automotive aftermarket platform able to more effectively capitalize on local customer needs and market trends, including significant growth and market share opportunities with the commercial 'do-it-for-me' customer. Through its 100-year legacy, NAPA has earned its leadership position with unmatched customer loyalty built on trusted product quality, deep relationships and a differentiated culture grounded in expertise, service, performance and innovation. Global Automotive's international businesses in Europe and Australasia hold leading market positions and leverage our iconic brands, NAPA and Repco, to expand share in their respective geographies.

Global Automotive generated more than $15 billion in sales, and $1.2 billion of EBITDA in 2025. Global Automotive has a network of more than 10,000 global locations with a significant opportunity in a fragmented $200 billion addressable market driven by non-discretionary demand. The business will continue to benefit from its unique global footprint, including independent owner coverage, dedicated network of over 20,000 NAPA Auto Care repair centers in North America, resilient and growing commercial 'do-it-for-me' end markets and diversified customer segments.

Global Automotive has been executing significant technology and supply chain transformation programs, which are expected to deliver accelerating growth and margin expansion, further optimize working capital and increase return on invested capital. Global Automotive is targeting to maintain investment-grade credit metrics, with a tailored capital structure designed to support future capital investment priorities. Global Automotive will prioritize high-return organic investments across sales and stores, technology, supply chain and accretive bolt-on acquisitions. Global Automotive expects to complement its strategic investments with a balanced capital return program.

Global Industrial: A Diversified, Best-in-Class Industrial Solutions Provider
Global Industrial, operating under the Motion brand, is a market leading diversified industrial distributor and value-added solutions provider with operations in North America and Australasia. The business generated approximately $9 billion in sales, and more than $1.1 billion of EBITDA in 2025. Motion is the market leading provider of 'mission critical' industrial maintenance and repair and value-added solutions including fluid power, automation, conveyance and repair services. Motion maintains deeply embedded customer relationships in over 14 diversified end markets across critical manufacturing sectors. Motion's scale, omni-channel go-to-market strategy and strategic supplier relationships enable its differentiated product offering, including over 10 million SKUs to support its over 180,000 global customers.

Motion is well-positioned to extend its industry leadership position in a fragmented $150 billion global market through its differentiated customer value proposition driven by solution-based selling, technical and product expertise, product breadth, delivery coverage and service excellence. Motion will continue to benefit from long-term secular tailwinds including re-shoring and near-shoring opportunities, automation and robotics, artificial intelligence infrastructure build out and the increasing scarcity of manufacturing technical expertise.

Motion expects to build on its track record of delivering best-in-class financial performance with profitable sales growth, strong operating leverage translating into double-digit EBITDA margins, free cash flow generation and attractive returns on invested capital. Motion is targeting to maintain investment-grade credit metrics, with capital allocation priorities focused on investments that enhance the customer experience across commercial excellence, technology and supply chain. Motion will continue to pursue strategic acquisitions and a balanced capital return program.

Transaction Details
There are no changes to the GPC executive team. The company names, executive teams and Boards of Directors for Global Automotive and Global Industrial will be announced at a later date.

The transaction is expected to be completed in the first quarter of 2027, subject to satisfaction of customary conditions, including final approval from the GPC Board and filing and effectiveness of a Form 10 registration statement with the U.S. Securities and Exchange Commission. The separation does not require shareholder approval.

Upcoming Investor Days
The company plans to host investor days in the second half of 2026 to discuss operational initiatives to accelerate growth and margin expansion at Global Automotive and to provide strategic goals for each business.

Advisors
J.P. Morgan and Guggenheim Securities are serving as financial advisors to GPC, King & Spalding LLP is serving as legal counsel and Collected Strategies is serving as strategic communications advisor.

Fourth Quarter and Full-Year 2025 Financial Results
In a separate press release issued today, GPC announced its financial results for the fourth quarter and full year 2025.

Conference Call
GPC will hold a conference call today at 8:30 a.m. Eastern Time to discuss its fourth quarter and full-year 2025 financial results and the separation announcement. Supplemental investor materials will also be available for reference. Interested parties may listen to the call on the company's investor relations website.

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.

Forward-Looking Statements
Certain statements in this press release that are not historical facts constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such forward-looking statements generally can be identified by the use of forward-looking terminology, such as "intended," "targeted," "expected," "planned," "positioned," "will," and similar terminology. While the company believes expectations for the future are reasonable in view of currently available information, these forward-looking statements involve risks and uncertainties that could cause actual results or events to differ materially from those contained in the forward-looking statements. These risks and uncertainties include factors such as (a) uncertainties as to the timing of the separation and whether it will be completed; (b) the possibility that various closing conditions for the separation may not be satisfied; (c) failure of the separation to qualify for the expected tax treatment; (d) the risk that Global Automotive and Global Industrial will not be separated successfully or such separation may be more difficult, time-consuming and/or costly than expected; (e) the possibility that the strategic, operational and financial opportunities from the separation may not be achieved; and (f) the other risks, uncertainties and other factors discussed under "Risk Factors" discussed in the company's Annual Report on Form 10-K for the year ended December 31, 2024, Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and from time to time in the company's subsequent filings with the Securities and Exchange Commission. Statements in this press release that are "forward-looking" include, without limitation, statements regarding the planned separation of Global Automotive and Global Industrial, the timing of any such separation, the expected benefits of the separation, and the future performance of Global Automotive and Global Industrial if the separation is completed. You are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this press release. 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 on related subjects in the company's subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the Securities and Exchange Commission.

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SOURCE Genuine Parts Company

FAQ

What is Genuine Parts Company (GPC) separating into and why?

GPC is splitting into two public companies: Global Automotive and Global Industrial to sharpen focus and unlock shareholder value. According to the company, the split aims to improve operating clarity, tailor capital allocation and accelerate business-specific investments to drive long-term performance.

When will the GPC separation be completed and is it taxable for shareholders?

The separation is targeted for completion in Q1 2027 and is expected to be tax-free for U.S. federal purposes. According to the company, the transaction is expected to qualify as a tax-free distribution to Genuine Parts Company shareholders.

What were Global Automotive's 2025 financials under GPC (NYSE: GPC)?

Global Automotive generated over $15 billion in sales and $1.2 billion of EBITDA in 2025. According to the company, the unit operates >10,000 locations and >20,000 NAPA Auto Care repair centers across a fragmented $200 billion addressable market.

What were Global Industrial's 2025 financials under GPC (NYSE: GPC)?

Global Industrial (Motion) produced approximately $9 billion in sales and more than $1.1 billion of EBITDA in 2025. According to the company, Motion serves over 180,000 customers with ~10 million SKUs across a $150 billion global market.

Will GPC shareholders need to vote on the separation of Global Automotive and Global Industrial?

No shareholder vote is required for the separation, the company said. According to the company, completion remains subject to customary conditions, including board approval and filing and effectiveness of a Form 10 registration statement.

When will investors get more details about strategic plans for the two new companies?

GPC plans to host investor days in the second half of 2026 for Global Automotive and Global Industrial. According to the company, those events will provide further operational details, capital allocation priorities and growth and margin plans for each business.