Genuine Parts Company Reports Third Quarter 2026 Results

Industrial segment EBITDA rose 11.2%, while North America Automotive segment EBITDA declined 2.9%.

Rhea-AI Summary

Genuine Parts Company (NYSE: GPC) narrowed its full-year adjusted earnings outlook after reporting third-quarter sales growth of 4.2%. Sales reached $6.5 billion, including 2.9% comparable-sales growth. Net income fell to $224 million from $226 million a year earlier; diluted earnings per share remained $1.62. Adjusted earnings per share rose to $2.07 from $1.98.

The company now expects 2026 adjusted EPS of $7.50–$7.75, versus $7.50–$8.00 previously, and GAAP EPS of $5.60–$5.85, versus $5.90–$6.40. Sales-growth guidance remains 3%–5.5%. Industrial sales rose 6.1%, while North America Automotive segment earnings declined. Nine-month operating cash flow was $817 million and free cash flow was $502 million. The company remains on track to separate GPC and Motion in the first quarter of 2027.

21 points · 0 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

1 major · 12 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Moderate pointThird-quarter sales rose 4.2% to $6.5 billion, including 2.9% comparable-sales growth.
• Moderate pointThird-quarter adjusted net income rose to $286 million from $276 million; adjusted EPS increased to $2.07 from $1.98.
• Moderate pointIndustrial third-quarter sales rose 6.1% to $2.4 billion, including 5.5% comparable-sales growth.
• Moderate pointIndustrial third-quarter EBITDA—earnings before interest, taxes, depreciation and amortization—rose 11.2% to $317 million.
• Moderate pointInternational Automotive third-quarter sales rose 4.5% to $1.6 billion, including 1.1% comparable-sales growth.
• Moderate pointNorth America Automotive third-quarter sales rose 2.2% to $2.5 billion, including 1.7% comparable-sales growth.
• Moderate pointNine-month sales increased 5.6% to $19.3 billion from the same period in 2025.
• Moderate pointNine-month adjusted net income rose to $827 million from $810 million; adjusted EPS reached $5.99 versus $5.82.
• Moderate pointNine-month operating cash flow reached $817 million, with free cash flow of $502 million.

12 minor points

• Minor pointIndustrial third-quarter EBITDA margin increased 60 basis points to 13.2% year over year.
• Minor pointInternational Automotive third-quarter EBITDA rose 4.7% to $141 million; its margin remained 9.0%.
• Minor pointSeptember 30 liquidity totaled $2.4 billion, including $763 million cash and $1.6 billion available revolving-credit capacity.
• Minor pointNine-month net debt proceeds, including commercial paper, provided $338 million in funding.
• Minor pointThird-quarter dividends declared increased to $1.0625 per share from $1.03 a year earlier.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company maintains expected 2026 sales growth of 3% to 5.5%.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company maintains 2026 North America Automotive sales-growth guidance of 2.5% to 4.5%.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company maintains 2026 International Automotive sales-growth guidance of 5% to 8%.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company maintains 2026 Industrial sales-growth guidance of 3% to 6%.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company maintains expected 2026 operating cash flow of $1.0 billion to $1.2 billion.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company maintains expected 2026 free cash flow of $550 million to $700 million.
• Minor point. Forward-looking: it has not happened yet and may not happen.The company targets the separation into independent GPC and Motion companies for first-quarter 2027.

Negative

• Major point. Forward-looking: it has not happened yet and may not happen.2026 adjusted EPS guidance narrowed to $7.50–$7.75 from $7.50–$8.00, lowering the upper end.
• Moderate pointNine-month net income fell to $641 million from $675 million; diluted EPS declined to $4.64 from $4.85.
• Moderate pointNorth America Automotive third-quarter EBITDA fell 2.9% to $194 million year over year.
• Minor point. Forward-looking: it has not happened yet and may not happen.2026 GAAP diluted EPS guidance fell to $5.60–$5.85 from $5.90–$6.40.
• Minor pointThird-quarter net income declined to $224 million from $226 million; diluted EPS remained $1.62.

7 minor points

• Minor pointNorth America Automotive third-quarter EBITDA margin declined 40 basis points to 7.6% year over year.
• Minor pointThird-quarter restructuring costs were $64.545 million, down from $66.835 million a year earlier.
• Minor pointThird-quarter separation costs were $21.204 million, versus none a year earlier.
• Minor pointThird-quarter acquisition, integration and other costs were $803,000, versus none a year earlier.
• Minor pointThird-quarter corporate EBITDA was negative $103.521 million, versus negative $93.374 million a year earlier.
• Minor pointThird-quarter net interest expense increased to $45.970 million from $40.342 million a year earlier.
• Minor pointCommercial paper outstanding totaled $389 million at September 30, 2026.

News Explained

The adjusted third-quarter result excludes $61 million after-tax, or $0.45 per diluted share, for restructuring and planned-separation costs; the updated GAAP outlook includes expected restructuring costs and separation costs incurred year to date.

Key Figures

Quarterly sales: $6.5 billion; up 4.2% Net income: $224 million; $1.62 diluted EPS Adjusted diluted EPS: $2.07 +3 more

Quarterly sales

$6.5 billion; up 4.2%

Q3 2026 versus prior-year period

Net income

$224 million; $1.62 diluted EPS

Q3 2026; prior-year net income was $226 million and diluted EPS was $1.62

Adjusted diluted EPS

$2.07

Q3 2026; compared with $1.98 in the prior-year period

Adjusted net income

$286 million

Q3 2026; compared with $276 million in the prior-year period

Adjusted diluted EPS outlook

$7.50–$7.75 (previously $7.50–$8.00)

FY 2026; the upper end of the range was narrowed

Diluted EPS outlook

$5.60–$5.85 (previously $5.90–$6.40)

FY 2026 GAAP outlook

Previous Earnings Reports

1 past event · Latest: Jul 21

Same Type 1 event

1. Jul 21

   Quarterly earnings

   24h Move

   -2.7%

   Reaffirmed adjusted EPS outlook while reducing GAAP EPS guidance

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

Key Terms

gaap, ebitda, free cash flow, diluted earnings per share

4 terms

gaap financial

"financial information 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

ebitda financial

"Segment EBITDA of $194 million decreased 2.9%"

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.

View in glossary

free cash flow financial

"Free cash flow was $502 million for the first nine 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

diluted earnings per share financial

"Adjusted net income was $286 million, or $2.07 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.

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

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Narrows 2026 Outlook for Adjusted EPS to $7.50 to $7.75 from $7.50 to $8.00

ATLANTA, Oct. 20, 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 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 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.

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 growth		2.5% to 4.5%		2.5% to 4.5%
International Automotive sales growth		5% to 8%		5% to 8%
Industrial sales growth		3% to 6%		3% to 6%
Diluted earnings per share		$5.90 to $6.40		$5.60 to $5.85
Adjusted diluted earnings per share		$7.50 to $8.00		$7.50 to $7.75
Effective tax rate		Approx. 24%		Approx. 24%
Net cash provided by operating activities		$1.0 billion to $1.2 billion		$1.0 billion to $1.2 billion
Free cash flow		$550 million to $700 million		$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, 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.

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.

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.

GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)
		Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share data)		2026		2025		2026		2025
Net sales		$    6,521,308		$    6,260,232		$  19,323,199		$  18,290,726
Cost of goods sold		4,037,033		3,918,830		12,029,253		11,451,252
Gross profit		2,484,275		2,341,402		7,293,946		6,839,474
Operating expenses:
Selling, administrative and other expenses		1,944,518		1,805,928		5,718,856		5,286,802
Depreciation and amortization		137,490		127,475		403,234		365,928
Provision for doubtful accounts		9,238		6,871		27,339		20,351
Restructuring and other costs		64,545		66,835		193,426		167,317
Total operating expenses		2,155,791		2,007,109		6,342,855		5,840,398
Non-operating expense (income):
Interest expense, net		45,970		40,342		135,723		117,769
Other		3,866		2,258		(2,503)		(580)
Total non-operating expense		49,836		42,600		133,220		117,189
Income before income taxes		278,648		291,693		817,871		881,887
Income taxes		54,201		65,522		177,331		206,444
Net income		$      224,447		$      226,171		$      640,540		$     675,443
Dividends declared per common share		$        1.0625		$            1.03		$        3.1875		$           3.09
Basic earnings per share		$            1.63		$            1.63		$            4.65		$           4.86
Diluted earnings per share		$            1.62		$            1.62		$            4.64		$           4.85
Weighted average common shares       outstanding		137,862		139,099		137,753		138,959
Dilutive effect of stock options and non-      vested restricted stock awards		469		307		351		298
Weighted average common shares      outstanding – assuming dilution		138,331		139,406		138,104		139,257

 

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 September 30,				Nine Months Ended September 30,
(in thousands)		2026		2025		2026		2025
Net sales:
North America Automotive		$    2,540,319		$    2,484,591		$    7,440,587		$    7,193,749
International Automotive		1,572,392		1,505,197		4,746,020		4,373,208
Industrial		2,408,597		2,270,444		7,136,592		6,723,769
Segment EBITDA:
North America Automotive		193,860		199,626		558,393		543,121
International Automotive		141,394		135,078		436,230		415,082
Industrial		316,927		285,015		947,494		851,865
Corporate EBITDA (1)		(103,521)		(93,374)		(330,859)		(263,131)
Interest expense, net		(45,970)		(40,342)		(135,723)		(117,769)
Depreciation and amortization		(137,490)		(127,475)		(403,234)		(365,928)
Other unallocated costs		(86,552)		(66,835)		(254,430)		(181,352)
Income before income taxes		278,648		291,693		817,871		881,887
Income taxes		(54,201)		(65,522)		(177,331)		(206,444)
Net income		$       224,447		$       226,171		$      640,540		$      675,443

(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 September 30,				Nine Months Ended September 30,
(in thousands)		2026		2025		2026		2025
Other unallocated costs:
Restructuring and other costs (2)		$       (64,545)		$       (66,835)		$    (193,426)		$     (167,317)
Separation costs (3)		(21,204)		—		(54,912)		—
Acquisition and integration related       costs and other (4)		(803)		—		(6,092)		(14,035)
Total other unallocated costs		$       (86,552)		$       (66,835)		$    (254,430)		$     (181,352)

(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)		September 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents		$               763,151		$              477,179
Trade accounts receivable, net		2,619,491		2,370,939
Merchandise inventories, net		6,435,802		6,071,996
Prepaid expenses and other current assets		1,632,361		1,644,620
Total current assets		11,450,805		10,564,734
Goodwill		3,206,231		3,188,815
Other intangible assets, net		1,743,938		1,855,714
Property, plant and equipment, net		2,161,387		2,172,140
Operating lease assets		2,062,454		2,084,487
Other assets		872,340		929,650
Total assets		$          21,497,155		$         20,795,540
Liabilities and equity
Current liabilities:
Trade accounts payable		$            6,394,876		$           6,051,882
Short-term borrowings		388,088		943,540
Current portion of long-term debt		250,000		353,788
Dividends payable		148,074		143,291
Other current liabilities		2,180,515		2,295,204
Total current liabilities		9,361,553		9,787,705
Long-term debt		4,472,149		3,498,423
Operating lease liabilities		1,713,902		1,739,478
Pension and other post–retirement benefit liabilities		218,787		219,270
Deferred tax liabilities		368,353		385,948
Other long-term liabilities		703,492		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 –      137,864,682 shares; 2025 – 137,617,832 shares		137,865		137,618
Additional paid-in capital		259,505		228,370
Accumulated other comprehensive loss		(518,474)		(511,766)
Retained earnings		4,770,080		4,568,769
Total parent equity		4,648,976		4,422,991
Noncontrolling interests in subsidiaries		9,943		17,372
Total equity		4,658,919		4,440,363
Total liabilities and equity		$          21,497,155		$          20,795,540

 

GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)
		Nine Months Ended September 30,
(in thousands)		2026		2025
Operating activities:
Net income		$   640,540		$   675,443
Adjustments to reconcile net income to net cash provided by (used in)       operating activities:
Depreciation and amortization		403,234		365,928
Share-based compensation		45,095		37,183
Other operating activities, including changes in operating assets and       liabilities		(272,222)		(567,865)
Net cash provided by operating activities		816,647		510,689
Investing activities:
Purchases of property, plant and equipment		(314,476)		(350,443)
Proceeds from sale of property, plant and equipment		28,070		21,085
Acquisitions of businesses		(69,450)		(181,987)
Proceeds from divestitures of businesses		6,885		59
Other investing activities		(12,105)		23,335
Net cash used in investing activities		(361,076)		(487,951)
Financing activities:
Proceeds from debt		1,291,217		44,600
Payments on debt		(997,776)		(567,368)
Net proceeds of commercial paper		44,968		886,175
Shares issued from employee incentive plans		(13,713)		(16,316)
Dividends paid		(434,446)		(420,571)
Other financing activities		(29,283)		(20,237)
Net cash used in financing activities		(139,033)		(93,717)
Effect of exchange rate changes on cash and cash equivalents		(30,566)		22,347
Net increase (decrease) in cash and cash equivalents		285,972		(48,632)
Cash and cash equivalents at beginning of period		477,179		479,991
Cash and cash equivalents at end of period		$   763,151		$   431,359

 

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 September 30,				Nine Months Ended September 30,
(in thousands)		2026		2025		2026		2025
GAAP net income		$      224,447		$      226,171		$      640,540		$      675,443
Adjustments:
Restructuring and other costs (1)		64,545		66,835		193,426		167,317
Separation costs (2)		21,204		—		54,912		—
Acquisition and integration related      costs and other (3)		803		—		6,092		14,035
Total adjustments		86,552		66,835		254,430		181,352
Tax impact of adjustments (4)		(25,053)		(17,411)		(68,239)		(46,340)
Adjusted net income		$      285,946		$      275,595		$      826,731		$      810,455

 

The table below represents amounts per common share assuming dilution:
		Three Months Ended September 30,				Nine Months Ended September 30,
(in thousands, except per share data)		2026		2025		2026		2025
GAAP diluted net income per common      share		$           1.62		$           1.62		$           4.64		$           4.85
Adjustments:
Restructuring and other costs (1)		0.47		0.48		1.40		1.20
Separation costs (2)		0.15		—		0.40		—
Acquisition and integration related       costs and other (3)		0.01		—		0.04		0.10
Total adjustments		0.63		0.48		1.84		1.30
Tax impact of adjustments (4)		(0.18)		(0.12)		(0.49)		(0.33)
Adjusted diluted net income per      common share		$           2.07		$           1.98		$           5.99		$           5.82
Weighted average common shares      outstanding – assuming dilution		138,331		139,406		138,104		139,257

(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 Months Ended September 30,				Nine Months Ended September 30,
(in thousands)		2026		2025		2026		2025
Line item:
Cost of goods sold		$             803		$               —		$           6,092		$                —
Selling, administrative and other      expenses		21,204		—		54,912		14,035
Restructuring and other costs		64,545		66,835		193,426		167,317
Total adjustments		$        86,552		$        66,835		$       254,430		$       181,352

 

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 September 30,				Nine Months Ended September 30,
(in thousands)		2026		2025		2026		2025
GAAP selling, administrative and      other expenses		$   1,944,518		$   1,805,928		$   5,718,856		$   5,286,802
Adjustments:
Separation costs		(21,204)		—		(54,912)		—
Acquisition and integration related      costs and other		—		—		—		(14,035)
Total adjustments (1)		(21,204)		—		(54,912)		(14,035)
Adjusted selling, administrative and      other expenses		$   1,923,314		$   1,805,928		$   5,663,944		$   5,272,767
Net sales		$   6,521,308		$   6,260,232		$ 19,323,199		$ 18,290,726
GAAP SG&A expenses as a       percentage of net sales		29.8 %		28.8 %		29.6 %		28.9 %
Adjusted SG&A expenses as a      percentage of net sales		29.5 %		28.8 %		29.3 %		28.8 %

(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 September 30, 2026
		Comparable Sales		Acquisitions		Foreign Currency		Other		GAAP Total Net Sales
North America Automotive		1.7 %		1.1 %		(0.3) %		(0.3) %		2.2 %
International Automotive		1.1 %		1.7 %		1.7 %		— %		4.5 %
Industrial		5.5 %		0.1 %		0.5 %		— %		6.1 %
Total Net Sales		2.9 %		0.9 %		0.5 %		(0.1) %		4.2 %

		Nine Months Ended September 30, 2026
		Comparable Sales		Acquisitions		Foreign Currency		Other		GAAP Total Net Sales
North America Automotive		2.2 %		1.3 %		0.1 %		(0.2) %		3.4 %
International Automotive		0.9 %		2.1 %		5.5 %		— %		8.5 %
Industrial		5.1 %		0.2 %		0.8 %		— %		6.1 %
Total Net Sales		2.9 %		1.1 %		1.7 %		(0.1) %		5.6 %

 

GENUINE PARTS COMPANY AND SUBSIDIARIES RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED)
		Nine Months Ended September 30,
(in thousands)		2026		2025
Net cash provided by operating activities		$                   816,647		$                   510,689
Purchases of property, plant and equipment		(314,476)		(350,443)
Free cash flow		$                   502,171		$                   160,246

		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

View original content to download multimedia:https://www.prnewswire.com/news-releases/genuine-parts-company-reports-third-quarter-2026-results-302913314.html

SOURCE Genuine Parts Company

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What is Genuine Parts Company's updated 2026 earnings guidance?

Genuine Parts Company expects adjusted diluted EPS of $7.50 to $7.75, compared with its previous $7.50 to $8.00 range. GAAP diluted EPS guidance is $5.60 to $5.85, down from $5.90 to $6.40. Expected total sales growth remains 3% to 5.5%.

When does GPC expect to complete the Motion separation?

GPC targets completion of the separation in the first quarter of 2027. The planned separation would establish GPC and Motion as two independent companies, separating the Automotive and Industrial businesses.

What costs does GPC's updated 2026 GAAP earnings outlook include?

The updated GAAP earnings outlook includes expected restructuring costs and separation costs already incurred year to date. Its inclusion of separation costs is limited to those incurred year to date, rather than an estimate of all future separation costs.

How does GPC calculate comparable sales?

GPC calculates comparable sales by excluding acquisitions, foreign currency and other effects from period-over-period sales comparisons. The calculation uses total business days and includes sales from company-owned stores and sales into independent stores. The company cautions that its calculation may differ from similarly named measures used by other companies.