Genuine Parts Company
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −3.38%.
Did GPC Beat Earnings? Q4 2025 Results
Genuine Parts Company delivered a bruising Q4 2025 miss, as a cascade of one-time charges obscured modest top-line growth and left investors focused on the bigger story unfolding beneath the headline numbers. Adjusted EPS came in at $1.55, falling well short of the $1.81 consensus estimate by 14.36%, while revenue of $6.01 billion edged past a 4.2% year-over-year gain but still missed the $6.05 billion consensus by 0.65%. The primary culprit was a $741.97 million non-cash pension settlement charge tied to the termination of GPC's U.S. defined benefit plan, which pushed the company to a GAAP net loss of $609.50 million for the quarter. The real headline, however, was GPC's announcement of a planned tax-free separation into two independent public companies, Global Automotive and Global Industrial, targeted for Q1 2027, a move that has already drawn a Strong Buy upgrade from at least one major analyst who sees the shares as meaningfully undervalued. Looking ahead, management guided 2026 adjusted EPS of $7.50 to $8.00 on total sales growth of 3% to 5.5%, while also extending its remarkable streak of consecutive dividend increases to 70 years.
- 1.7% comparable sales growth overall, driven by North America Automotive (1.7%) and Industrial (3.4%)
- 1.5% benefit from acquisitions across all segments
- Favorable foreign currency impact of 5.1% in International Automotive
- Adjusted gross profit margin expanded 70 basis points to 37.6%
- Industrial segment EBITDA margin expanded 50 basis points to 13.4%
“We continued to advance our GPC strategies in 2025 while navigating a dynamic environment, thanks to the commitment of our teammates. We stayed focused on what we can control, executing defined initiatives to deliver growth and improve productivity. As GPC has evolved with its markets for nearly a century, today's announcement to separate our automotive and industrial businesses is another exciting step forward in our history that is expected to unlock value for our stakeholders and better position our businesses for an even stronger future.”
Genuine Parts CEO, on the earnings call
Forward Guidance & Outlook
For full-year 2026, GPC is guiding: total sales growth of 3% to 5.5%; North America Automotive sales growth of 3% to 5%; International Automotive sales growth of 3% to 6%; Industrial sales growth of 3% to 6%; GAAP diluted EPS of $6.10 to $6.60; adjusted diluted EPS of $7.50 to $8.00; effective tax rate of approximately 24%; net cash provided by operating activities of $1.0 billion to $1.2 billion; and free cash flow of $550 million to $700 million. The company also announced its intention to separate into two independent publicly traded companies (Global Automotive and Global Industrial), targeted for completion in Q1 2027.
GPC YoY Financials
GPC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.