Genuine Parts Company Reports First Quarter 2026 Results and Reaffirms Full-Year Outlook

Rhea-AI Summary

Genuine Parts Company (NYSE: GPC) reported Q1 2026 sales of $6.3 billion, up 6.8% year-over-year, driven by comparable sales, acquisitions and favorable currency. Net income was $189 million ($1.37 diluted); adjusted net income was $245 million ($1.77 adjusted diluted EPS).

The company generated cash from operations of $64 million, free cash flow deficit of $34 million, total liquidity of $1.3 billion, and reaffirmed full-year 2026 guidance including adjusted diluted EPS $7.50–$8.00 and sales growth 3%–5.5%.

Positive

• Sales +6.8% to $6.3 billion
• Industrial EBITDA +12.7% with margin +90 bps
• Reaffirmed full-year adjusted EPS guidance $7.50–$8.00
• Total liquidity of $1.3 billion as of March 31, 2026

Negative

• Net income down to $189 million from $194 million
• Free cash flow deficit of $34 million in Q1 2026
• International Automotive margin down 80 bps year-over-year

News Market Reaction – GPC

+2.14%

+2.14% Session close to close

In the Apr 21 session, GPC gained 2.14%, reflecting a moderate positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Market Context

This announcement delivered Q1 2026 sales growth to $6.3 billion, stronger Industrial margins, and a...

Analysis

This announcement delivered Q1 2026 sales growth to $6.3 billion, stronger Industrial margins, and adjusted EPS of $1.77, while absorbing restructuring and separation costs within GAAP results. The company reaffirmed its 2026 outlook, including adjusted EPS of $7.50–$8.00 and free cash flow of $550–$700 million. Investors may watch how free cash flow improves from the early‑year - $34 million level, the pace of restructuring savings, and milestones toward separating the Global Automotive and Global Industrial businesses by Q1 2027.

Key Figures

Q1 2026 Sales: $6.3 billion Q1 2026 Net Income: $189 million ($1.37 diluted EPS) Q1 2026 Adjusted Net Income: $245 million ($1.77 diluted EPS) +5 more

8 metrics

Q1 2026 Sales $6.3 billion Quarter ended March 31, 2026; up 6.8% from $5.9 billion in 2025

Q1 2026 Net Income $189 million ($1.37 diluted EPS) Quarter ended March 31, 2026; vs. $194 million ($1.40) prior year

Q1 2026 Adjusted Net Income $245 million ($1.77 diluted EPS) Excludes $56 million after-tax restructuring and separation costs

Industrial Segment EBITDA $314 million Q1 2026; up 12.7% with 13.6% EBITDA margin

Cash from Operations $64 million First three months of 2026 operating cash flow

Free Cash Flow -$34 million First three months of 2026; deficit due to higher investment

Total Liquidity $1.3 billion As of March 31, 2026; includes $500 million cash and revolver capacity

2026 Adjusted EPS Guidance $7.50 to $8.00 Reaffirmed full-year 2026 adjusted diluted earnings per share outlook

Previous Earnings Reports

5 past events · Latest: Oct 21 (Positive)

Same Type Pattern 5 events

Date	Event	Sentiment	24h Move	Catalyst
Oct 21	Q3 2025 earnings	Positive	+2.0%	Q3 2025 beat with higher sales and guidance raised for the full year.
Jul 22	Q2 2025 earnings	Negative	+7.6%	Q2 2025 results and a downward revision to full-year 2025 outlook.
Apr 22	Q1 2025 earnings	Neutral	+2.8%	Q1 2025 modest sales growth with lower EPS but reaffirmed 2025 outlook.
Feb 18	FY 2024 earnings	Negative	-2.6%	Q4 and FY 2024 results with reduced 2025 outlook versus prior expectations.
Oct 22	Q3 2024 earnings	Negative	-21.0%	Q3 2024 results accompanied by a lowered 2024 revenue and EPS outlook.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Pattern Detected

Recent earnings releases have produced mixed reactions, with an average move of -2.22%. Positive or reaffirmed outlooks sometimes see gains, but outlook cuts or weaker trends have triggered sharp selloffs, indicating sensitivity to guidance quality.

Recent Company History

Over the past several earnings cycles, GPC has reported steady quarterly sales in the $5.8–$6.3 billion range, but sentiment has swung with guidance changes. Events in 2024–2025 included outlook revisions, a major pension charge, and updated targets, leading to both rallies and steep declines. Against that backdrop, the latest Q1 2026 results showing higher sales, solid segment EBITDA and reaffirmed 2026 guidance fit a pattern of using early-year quarters to validate full‑year outlooks while managing restructuring and separation-related costs.

Key Terms

free cash flow, adjusted net income, diluted earnings per share, segment EBITDA, +4 more

8 terms

free cash flow financial

"Free cash flow was a deficit of $34 million for the first three months of 2026"

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.

View in glossary

adjusted net income financial

"Adjusted net income was $245 million, or $1.77 per diluted earnings per share"

Adjusted net income is a company's reported profit after removing unusual, one-time, or non-operational items so the number reflects the business’s regular earning power. Investors use it like a cleaned-up scorecard — similar to judging a player’s season performance without a few fluke games — to compare companies or assess trends without being misled by rare gains or losses that won’t affect future cash flow.

diluted earnings per share financial

"Net income was $189 million, or $1.37 per diluted earnings per share"

Diluted earnings per share is a measure of a company's profit allocated to each share of stock, taking into account all possible shares that could be created through stock options, convertible bonds, or other securities. It shows the lowest possible earnings per share if all these potential shares were issued, helping investors understand the worst-case scenario for their ownership. This figure matters because it provides a more conservative view of a company's profitability per share.

segment EBITDA financial

"Segment EBITDA of $314 million increased 12.7%, with segment EBITDA margin of 13.6%"

Segment EBITDA measures how much profit a specific part of a company generates from its core operations, before accounting for interest, taxes and long-term accounting items like depreciation and amortization. Investors use it like inspecting a single slice of a pie to compare which business units are most profitable, track performance trends, and decide where to allocate capital because it highlights underlying operating results without financing or accounting differences.

non-GAAP financial

"This release contains certain financial information not derived in accordance with U.S. GAAP. These items include adjusted net income..."

Non-GAAP refers to financial measures that companies use to show their earnings or performance without including certain expenses or income that are often added back to give a different picture. It matters because it can make a company's results look better or more favorable, but it may also hide important costs, so investors need to look at both GAAP (official rules) and non-GAAP numbers to get a full understanding.

View in glossary

gaap financial

"not derived in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP")"

GAAP, or Generally Accepted Accounting Principles, are a set of standardized rules and guidelines that companies follow when preparing their financial statements. They ensure consistency, transparency, and comparability across different companies, making it easier for investors to understand and compare financial information accurately. This helps investors make informed decisions based on trustworthy and uniform financial reports.

View in glossary

comparable sales financial

"The improvement is attributable to a 2.4% increase in comparable sales"

"Comparable sales" are the total sales from stores or products that have been open for a certain period, usually the same time last year or last quarter. They help show whether a business is growing by comparing similar locations or products over time, much like checking if your favorite store's sales are going up compared to previous years.

effective tax rate financial

"Effective tax rate | | Approx. 24%"

The effective tax rate is the percentage of a company's profits that it pays in taxes. It shows how much of its earnings go to taxes after all deductions and credits are considered. For investors, it indicates how much of the company's income is taken by taxes, impacting overall profitability and financial health.

AI-generated analysis. How Rhea-AI works. Not financial advice.

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ATLANTA, April 21, 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 results for the first quarter ended March 31, 2026.

"The GPC team delivered first quarter results ahead of expectations, driven by solid sales growth and operating discipline across our business segments," said Will Stengel, Chair-Elect and Chief Executive Officer. "Our performance reflects the strength and resilience of our businesses despite a dynamic global environment. We are simultaneously making strong progress on our announced separation which remains on track for completion in the first quarter of 2027."

First Quarter 2026 Results

Sales were $6.3 billion, a 6.8% increase compared to $5.9 billion in the same period of the prior year. The improvement is attributable to a 2.4% increase in comparable sales, a 1.3% benefit from acquisitions and a net 3.1% favorable impact of foreign currency and other.

Net income was $189 million, or $1.37 per diluted earnings per share. This compares to net income of $194 million, or $1.40 per diluted share in the prior year period.

Adjusted net income was $245 million, or $1.77 per diluted earnings per share. Adjusted net income excludes a net expense of $56 million after tax adjustments, or $0.40 per diluted share, which relates to costs associated with the company's global restructuring initiative and the planned separation of the company's Global Automotive and Global Industrial businesses. This compares to adjusted net income of $243 million, or $1.75 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.

First Quarter 2026 Segment Highlights

North America Automotive Parts Group ("North America Automotive")

North America Automotive sales were $2.4 billion, up 4.3% from the same period in 2025. The improvement is attributable to a 2.2% increase in comparable sales, a 1.6% benefit from acquisitions and a net 0.5% favorable impact of foreign currency and other. Segment EBITDA of $156 million increased 6.3%, with segment EBITDA margin of 6.6%, up 10 basis points from the same period of the prior year.

International Automotive Parts Group ("International Automotive")

International Automotive sales were $1.6 billion, up 13.2% from the same period in 2025. The improvement is attributable to a 0.3% increase in comparable sales, a 2.3% benefit from acquisitions and a 10.6% favorable impact of foreign currency. Segment EBITDA of $145 million increased 4.6%, with segment EBITDA margin of 9.1%, down 80 basis points from the same period of the prior year.

Industrial Parts Group ("Industrial")

Industrial sales were $2.3 billion, up 5.2% from the same period in 2025. The improvement is attributable to a 3.9% increase in comparable sales, a 0.3% benefit from acquisitions and a 1.0% favorable impact of foreign currency. Segment EBITDA of $314 million increased 12.7%, with segment EBITDA margin of 13.6%, up 90 basis points from the same period of the prior year.

Balance Sheet, Cash Flow and Capital Allocation

The company generated cash flow from operations of $64 million for the first three months of 2026. Net cash used in investing activities was $93 million, including $98 million for capital expenditures and $14 million for acquisitions. Net cash provided by financing activities was $57 million, including net proceeds of debt (including net commercial paper) of $218 million, partially offset by $142 million for quarterly dividends paid to shareholders. Free cash flow was a deficit of $34 million for the first three months of 2026 due to continued investments in the business outweighing cash from operations which is seasonally lower in the first quarter. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.

As of March 31, 2026, total liquidity was $1.3 billion, consisting of $500 million in cash and $838 million of available capacity under the company's $2.0 billion Revolving Credit Agreement. This reflects $554 million drawn on the revolver and $607 million of outstanding commercial paper.

2026 Outlook

The company is reaffirming full-year 2026 guidance previously provided in its earnings release on February 17, 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 guidance, which is outlined in the table below.

		For the Year Ending December 31, 2026
Total sales growth		3% to 5.5%
North America Automotive sales growth		3% to 5%
International Automotive sales growth		3% to 6%
Industrial sales growth		3% to 6%
Diluted earnings per share		$6.10 to $6.60
Adjusted diluted earnings per share		$7.50 to $8.00
Effective tax rate		Approx. 24%
Net cash provided by operating activities		$1.0 billion to $1.2 billion
Free cash flow		$550 million to $700 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, provide 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 forward-looking guidance 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 acquisition-related costs, litigation charges or settlements, impairment charges, restructuring costs and certain other unusual adjustments.

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 82208#, 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.

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 coming 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 in 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 their impact to us, the company's suppliers and customers; changes in tax policies including those included in the One Big Beautiful Bill Act; 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 its 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.

GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
		Three Months Ended March 31,
(in thousands, except per share data)		2026		2025
Net sales		$    6,264,940		$    5,866,069
Cost of goods sold		3,925,976		3,692,385
Gross profit		2,338,964		2,173,684
Operating expenses:
Selling, administrative and other expenses		1,856,830		1,709,679
Depreciation and amortization		131,028		115,435
Provision for doubtful accounts		7,103		5,855
Restructuring and other costs		57,732		54,770
Total operating expenses		2,052,693		1,885,739
Non-operating expenses (income):
Interest expense, net		43,953		37,216
Other		(3,075)		(908)
Total non-operating expenses		40,878		36,308
Income before income taxes		245,393		251,637
Income taxes		56,858		57,245
Net income		$       188,535		$       194,392
Dividends declared per common share		$        1.0625		$        1.0300
Basic earnings per share		$            1.37		$            1.40
Diluted earnings per share		$            1.37		$            1.40
Weighted average common shares outstanding		137,622		138,783
Dilutive effect of stock options and non-vested restricted stock awards		408		417
Weighted average common shares outstanding – assuming dilution		138,030		139,200

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:
		Three Months Ended March 31,
(in thousands)		2026		2025
Net sales:
North America Automotive		$  2,363,032		$      2,264,781
International Automotive		1,585,516		1,400,107
Industrial		2,316,392		2,201,181
Segment EBITDA:
North America Automotive		156,205		146,995
International Automotive		144,845		138,512
Industrial		314,120		278,711
Corporate EBITDA (1)		(119,525)		(91,125)
Interest expense, net		(43,953)		(37,216)
Depreciation and amortization		(131,028)		(115,435)
Other unallocated costs		(75,271)		(68,805)
Income before income taxes		245,393		251,637
Income taxes		(56,858)		(57,245)
Net income		$     188,535		$        194,392

(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 Months Ended March 31,
(in thousands)		2026		2025
Other unallocated costs:
Restructuring and other costs (2)		$       (57,732)		$       (54,770)
Separation costs (3)		(17,539)		—
Acquisition and integration related costs and other (4)		—		(14,035)
Total other unallocated costs		$       (75,271)		$       (68,805)

(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.

GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED)
(in thousands, except share and per share data)		March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents		$              500,023		$              477,179
Trade accounts receivable, net (2026 – $80,950; 2025 – $85,537)		2,533,850		2,370,939
Merchandise inventories, net		6,127,233		6,071,996
Prepaid expenses and other current assets		1,723,404		1,644,620
Total current assets		10,884,510		10,564,734
Goodwill		3,181,594		3,188,815
Other intangible assets, net		1,806,123		1,855,714
Property, plant and equipment, net (2026 – $2,200,146; 2025 – $2,137,108)		2,142,689		2,172,140
Operating lease assets		2,069,896		2,084,487
Other assets		891,765		929,650
Total assets		$          20,976,577		$          20,795,540
Liabilities and equity
Current liabilities:
Trade accounts payable		$            6,177,867		$            6,051,882
Short-term borrowings		1,160,797		943,540
Current portion of long-term debt		356,222		353,788
Dividends payable		147,820		143,291
Other current liabilities		2,113,831		2,295,204
Total current liabilities		9,956,537		9,787,705
Long-term debt		3,478,884		3,498,423
Operating lease liabilities		1,717,913		1,739,478
Pension and other post–retirement benefit liabilities		219,504		219,270
Deferred tax liabilities		374,234		385,948
Other long-term liabilities		737,288		724,353
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 and outstanding – 2026 – 137,624,545 shares; 2025 – 137,617,832 shares		137,625		137,618
Additional paid-in capital		240,228		228,370
Accumulated other comprehensive loss		(513,465)		(511,766)
Retained earnings		4,611,029		4,568,769
Total parent equity		4,475,417		4,422,991
Noncontrolling interests in subsidiaries		16,800		17,372
Total equity		4,492,217		4,440,363
Total liabilities and equity		$          20,976,577		$          20,795,540

GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
		Three Months Ended March 31,
(in thousands)		2026		2025
Operating activities:
Net income		$   188,535		$   194,392
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization		131,028		115,435
Share-based compensation		12,168		8,574
Excess tax benefits from share-based compensation		(46)		(182)
Other operating activities, including changes in operating assets and liabilities		(267,769)		(359,046)
Net cash provided by (used in) operating activities		63,916		(40,827)
Investing activities:
Purchases of property, plant and equipment		(97,552)		(119,840)
Proceeds from sale of property, plant and equipment		14,592		15,814
Acquisitions of businesses		(13,797)		(74,127)
Proceeds from divestitures of businesses		6,282		—
Other investing activities		(2,435)		23,335
Net cash used in investing activities		(92,910)		(154,818)
Financing activities:
Proceeds from debt		254,755		20,011
Payments on debt		(300,258)		(522,352)
Net proceeds of commercial paper		263,541		772,108
Shares issued from employee incentive plans		(304)		(502)
Dividends paid		(141,746)		(134,355)
Other financing activities		(19,275)		(6,168)
Net cash provided by financing activities		56,713		128,742
Effect of exchange rate changes on cash and cash equivalents		(4,875)		7,359
Net increase (decrease) in cash and cash equivalents		22,844		(59,544)
Cash and cash equivalents at beginning of period		477,179		479,991
Cash and cash equivalents at end of period		$   500,023		$   420,447

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 Months Ended March 31,
(in thousands)		2026		2025
GAAP net income		$       188,535		$       194,392
Adjustments:
Restructuring and other costs (1)		57,732		54,770
Separation costs (2)		17,539		—
Acquisition and integration related costs and other (3)		—		14,035
Total adjustments		75,271		68,805
Tax impact of adjustments (4)		(19,255)		(20,124)
Adjusted net income		$       244,551		$       243,073

The table below represent amounts per common share assuming dilution:
		Three Months Ended March 31,
(in thousands, except per share data)		2026		2025
GAAP diluted net income per common share		$            1.37		$            1.40
Adjustments:
Restructuring and other costs (1)		0.42		0.39
Separation costs (2)		0.13		—
Acquisition and integration related costs and other (3)		—		0.10
Total adjustments		0.55		0.49
Tax impact of adjustments (4)		(0.15)		(0.14)
Adjusted diluted net income per common share		$            1.77		$            1.75
Weighted average common shares outstanding – assuming dilution		138,030		139,200

(1)	Adjustment 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)	Adjustment 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.
(3)	Adjustment primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.
(4)	The company determines 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 months ended March 31, 2026, the company applied the statutory income tax rates to the taxable portion of all adjustments, which resulted in a tax impact of $19 million.

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 Months Ended March 31,
(in thousands)		2026		2025
Line item:
Selling, administrative and other expenses		$        17,539		$        14,035
Restructuring and other costs		57,732		54,770
Total adjustments		$        75,271		$        68,805

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:
		Three Months Ended March 31,
(in thousands)		2026		2025
GAAP selling, administrative and other expenses		$    1,856,830		$    1,709,679
Adjustments:
Separation costs		(17,539)		—
Acquisition and integration related costs and other		—		(14,035)
Total adjustments (1)		(17,539)		(14,035)
Adjusted selling, administrative and other expenses		$    1,839,291		$    1,695,644
Net sales		$    6,264,940		$    5,866,069
GAAP SG&A expenses as a percentage of net sales		29.6 %		29.1 %
Adjusted SG&A expenses as a percentage of net sales		29.4 %		28.9 %

(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)
		Three Months Ended March 31, 2026
		Comparable Sales		Acquisitions		Foreign Currency		Other		GAAP Total Net Sales
North America Automotive		2.2 %		1.6 %		0.7 %		(0.2) %		4.3 %
International Automotive		0.3 %		2.3 %		10.6 %		— %		13.2 %
Industrial		3.9 %		0.3 %		1.0 %		— %		5.2 %
Total Net Sales		2.4 %		1.3 %		3.2 %		(0.1) %		6.8 %

GENUINE PARTS COMPANY AND SUBSIDIARIES RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW  (UNAUDITED)
		Three Months Ended March 31,
(in thousands)		2026		2025
Net cash provided by (used in) operating activities		$                        63,916		$                       (40,827)
Purchases of property, plant and equipment		(97,552)		(119,840)
Free cash flow		$                       (33,636)		$                     (160,667)
		For the Year Ending December 31, 2026
Net cash provided by operating activities		$1.0 billion to $1.2 billion
Purchases of property, plant and equipment		$450 million to $500 million
Free cash flow		$550 million to $700 million

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SOURCE Genuine Parts Company

FAQ

What were Genuine Parts Company (GPC) Q1 2026 sales and comparable sales?

GPC reported $6.3 billion in Q1 2026 sales, a 6.8% increase. According to the company, comparable sales rose 2.4%, with acquisitions and favorable foreign currency contributing the remainder of the growth.

How did Genuine Parts Company (GPC) report earnings per share for Q1 2026?

GPC reported GAAP diluted EPS of $1.37 and adjusted diluted EPS of $1.77 for Q1 2026. According to the company, adjusted results exclude $56 million after-tax costs tied to restructuring and separation activities.

What guidance did Genuine Parts Company (GPC) reaffirm for full-year 2026 adjusted EPS and sales growth?

GPC reaffirmed full-year 2026 adjusted diluted EPS guidance of $7.50 to $8.00 and total sales growth of 3% to 5.5%. According to the company, guidance reflects current trends and anticipated macroeconomic factors.

What cash flow and liquidity did Genuine Parts Company (GPC) report for Q1 2026?

GPC generated $64 million of operating cash flow and had a $34 million free cash flow deficit in Q1 2026. According to the company, total liquidity was approximately $1.3 billion including cash and revolver capacity.

How did Genuine Parts Company (GPC) segments perform in Q1 2026, especially Industrial and International Automotive?

Industrial segment sales rose to $2.3 billion with EBITDA up 12.7% and margin up 90 bps. According to the company, International Automotive sales increased but its EBITDA margin declined by 80 basis points year-over-year.