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, 2025.

"Our third quarter results were in line with our expectations and demonstrate the ongoing execution of our strategic initiatives," said Will Stengel, President and Chief Executive Officer. "We continue to proactively manage costs in an inflationary environment and remain focused on what we can control. I want to thank our teammates across the globe for their determination and commitment to serving our customers with excellence."

Third Quarter 2025 Results

Sales were $6.3 billion, a 4.9% increase compared to $6.0 billion in the same period of the prior year. The improvement is attributable to a 2.3% increase in comparable sales, a 1.8% benefit from acquisitions and a 0.8% favorable impact of foreign currency and other.

Net income was $226 million compared to net income of $227 million, in the prior year period. Diluted earnings per share was $1.62, in line with the same period of the prior year.

Adjusted net income was $276 million which excludes a net expense of $49 million after tax adjustments, or $0.36 per diluted share, in costs associated with the company's global restructuring initiative. This compares to adjusted net income of $263 million for the same period of the prior year. On a per share diluted basis, adjusted net income was $1.98, a 5.3% increase compared to $1.88 in the same period of the prior year. Refer to the reconciliation of GAAP net income to adjusted net income and GAAP diluted earnings per share to adjusted diluted earnings per share for more information.

Third Quarter 2025 Segment Highlights

Automotive Parts Group ("Automotive")

Global Automotive sales were $4.0 billion, up 5.0% from the same period in 2024. The improvement is attributable to a 2.3% benefit from acquisitions, a 1.6% increase in comparable sales and a 1.1% favorable impact of foreign currency and other. Segment EBITDA of $335 million increased 5.9%, with segment EBITDA margin of 8.4%, up 10 basis points from the same period of the prior year.

Industrial Parts Group ("Industrial")

Industrial sales were $2.3 billion, up 4.6% from the same period in 2024. The improvement is attributable to a 3.7% increase in comparable sales and a 1.1% benefit from acquisitions, partially offset by a 0.2% unfavorable impact of foreign currency. Segment EBITDA of $285 million increased 6.6%, with segment EBITDA margin of 12.6%, up 30 basis points from the same period of the prior year.

Nine Months 2025 Results

Sales for the nine months ended September 30, 2025 were $18.3 billion, up 3.2% from the same period in 2024. Net income for the nine months was $675 million, or $4.85 per diluted share. This compares to net income of $771 million, or $5.51 per diluted share, in the prior year period. Adjusted net income was $810 million in the first nine months of 2025, compared to adjusted net income of $915 million in the prior year period. Adjusted diluted earnings per share was $5.82 compared to $6.55 in the prior year period.

Balance Sheet, Cash Flow and Capital Allocation

The company generated cash flow from operations of $511 million for the first nine months of 2025. The reduction in the company's operating cash flows year-over-year is driven by lower net income, accelerated tax payments versus 2024 and changes in working capital. Net cash used in investing activities was $488 million, including $350 million for capital expenditures and $182 million for acquisitions. Net cash used in financing activities was $94 million, consisting of $567 million used to repay the principal amount of our 1.75% Unsecured Senior Notes and $421 million for dividends paid to shareholders, partially offset by $886 million in net proceeds from our commercial paper program. Free cash flow was $160 million for the first nine months of 2025. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.

As of September 30, 2025, the company had $431 million in cash and cash equivalents, as well as $1.1 billion in undrawn capacity on the company's Revolving Credit Agreement, after giving effect to commercial paper borrowings.

2025 Outlook

The company is updating full-year 2025 guidance previously provided in its earnings release on July 22, 2025. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, current trade environment and geopolitical conflicts and the potential impact these factors may have on results in updating its guidance, which is outlined in the table below.

"While we delivered third-quarter results in line with our expectations, the broader market backdrop did not improve," said Bert Nappier, Executive Vice President and Chief Financial Officer. "We are updating our 2025 outlook to reflect our year-to-date results, along with our expectations that current market conditions will remain consistent with what we experienced in the third quarter."

The outlook below does not include the previously announced one-time, non-cash charge the company expects to record when its U.S. pension plan termination settles (which is expected to occur in late 2025). This one-time, non-cash charge is not included in the 2025 outlook due to uncertainty on the final charge. However, to the extent the one-time, non-cash charge is recognized in 2025, diluted earnings per share in the table below will be impacted. The one-time, non-cash charge will not impact adjusted diluted earnings per share. See footnote one below for additional information.

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 and free cash flow. The company believes that the presentation of adjusted net income, adjusted diluted net income per common share 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 our continuing operations and may distort our longer-term operating trends. For example, certain of the non-GAAP metrics contained herein exclude costs relating to our global restructuring initiative and ongoing integration of acquired independent automotive stores, which are one-time events that do not recur in the ordinary course of our business. We believe these measures are useful and enhance the comparability of our results from period to period and with our 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. We do not provide forward-looking guidance for certain financial measures on a GAAP basis because we are 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 and certain other unusual adjustments.

Comparable Sales

Comparable sales is a key metric that refers to period-over-period comparisons of our sales excluding the impact of acquisitions, foreign currency and other. Our calculation of comparable sales is computed using total business days for the period and is inclusive of both company-owned stores and sales to our independent owners' 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 in our industry, however our 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 76425#, two hours after the completion of the call.