Genuine Parts Company

Genuine Parts delivered a mixed third quarter for fiscal 2025, narrowly missing on the bottom line while topping revenue expectations against a backdrop of persistently soft market conditions. Adjusted diluted EPS of $1.98 came in 0.56% below the $1.99 consensus estimate, while revenue of $6.26 billion exceeded forecasts by 2.21%, rising 4.9% year-over-year on the back of comparable sales growth, acquisition contributions, and a modest currency tailwind. The gap between adjusted and GAAP results was shaped in part by $66.83 million in pre-tax restructuring charges tied to the company's ongoing effort to rationalize and optimize its distribution center and store network. Both segments contributed, with Automotive sales up 5.0% to $3.99 billion and Industrial up 4.6% to $2.27 billion, the latter posting 30 basis points of EBITDA margin expansion. Looking ahead, management raised its full-year revenue growth outlook to 3%-4% but trimmed the top end of adjusted EPS guidance to a $7.50-$7.75 range, a signal that the soft demand environment is expected to linger into the fourth quarter. Adding to the cautious tone, S&P recently downgraded the company's credit rating, citing elevated leverage expected to remain at or above 4x through 2026.