— Sales of $6.2 billion
— Diluted EPS of $1.83
— Adjusted Diluted EPS of $2.10
— Revises 2025 Outlook:
— Revenue Growth of 1% to 3% from 2% to 4%
— Adjusted Diluted EPS of $7.50 to $8.00 from $7.75 to $8.25
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 second quarter ended June 30, 2025.
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“Our results for the quarter were in line with our expectations and reflect the execution of our strategic initiatives and cost restructuring actions against continued challenging market conditions,” said Will Stengel, President and Chief Executive Officer. “As we turn to the second half of the year, we remain focused on what we can control as we proactively manage through an evolving external environment. I want to thank our teammates across the globe for their relentless dedication and commitment to serving our customers.”
Second Quarter 2025 Results
Sales were $6.2 billion, a 3.4% increase compared to $6.0 billion in the same period of the prior year. The improvement is attributable to a 2.6% benefit from acquisitions, a 0.6% net favorable impact of foreign currency and other, and a 0.2% increase in comparable sales.
Net income was $255 million, or $1.83 per diluted earnings per share. This compares to net income of $296 million, or $2.11 per diluted share, in the prior year period.
Adjusted net income was $292 million, or $2.10 per diluted earnings per share. Adjusted net income excludes a net expense of $37 million after tax adjustments, or $0.27 per diluted share, which relates to costs associated with the company's global restructuring initiative. This compares to adjusted net income of $342 million, or $2.44 per diluted share, in the prior year period. 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.
Second Quarter 2025 Segment Highlights
Automotive Parts Group (“Automotive”)
Global Automotive sales were $3.9 billion, up 5.0% from the same period in 2024. The improvement is attributable to a 3.4% benefit from acquisitions, a 1.2% net favorable impact of foreign currency and other, and a 0.4% increase in comparable sales. Segment EBITDA of $338 million decreased 6.9%, with segment EBITDA margin of 8.6%, down 110 basis points from the same period of the prior year.
Industrial Parts Group (“Industrial”)
Industrial sales were $2.3 billion, up 0.7% from the same period in 2024. The improvement is attributable to a 1.3% benefit from acquisitions, partially offset by a 0.5% unfavorable impact of foreign currency and 0.1% decrease in comparable sales. Segment EBITDA of $288 million increased 1.1%, with segment EBITDA margin of 12.8%, up 10 basis points from the same period of the prior year.
Six Months 2025 Results
Sales for the six months ended June 30, 2025 were $12.0 billion, up 2.4% from the same period in 2024. Net income for the six months was $449 million, or $3.23 per diluted share. This compares to net income of $544 million, or $3.89 per diluted share, in the prior year period. Adjusted net income decreased 18.0% to $535 million in the first half of 2025, compared to adjusted net income of $652 million in the prior year period. Adjusted diluted earnings per share was $3.84 compared to $4.66 in the prior year period, a decrease of 17.6%.
Balance Sheet, Cash Flow and Capital Allocation
The company generated cash flow from operations of $169 million for the first six 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 $318 million, including $249 million for capital expenditures and $112 million for acquisitions. Net cash provided by financing activities was $103 million, consisting of $917 million in net proceeds from our commercial paper program, partially offset by $500 million used to repay the principal amount of our 1.75% Unsecured Senior Notes and $277 million for dividends paid to shareholders. Free cash flow was a deficit of $80 million for the first six months of 2025 after giving effect to $249 million in capital expenditures. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.
As of June 30, 2025, the company had $458 million in cash and cash equivalents, as well as $2 billion in undrawn capacity on the company's Revolving Credit Agreement, before giving effect to commercial paper borrowings.
2025 Outlook
The company is revising full-year 2025 guidance previously provided in its earnings release on April 22, 2025. The outlook now incorporates the anticipated impact of all U.S. tariffs currently in effect, as well as the company's updated view on market assumptions for the second half of the year. 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 our results through the second quarter were in line with our expectations, we are updating full-year guidance to reflect our latest perspective on the second half of the year,” said Bert Nappier, Executive Vice President and Chief Financial Officer. “Our outlook considers the impact of current U.S. tariffs along with our updated views on the market environment. The evolving tariff landscape brings with it a degree of uncertainty, and as a result, we expect to see a more moderated improvement in market conditions than we projected in February.”
The outlook 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 or in early 2026). This one-time, non-cash charge is not included in the 2025 outlook due to the uncertainty regarding when the termination of the plan will ultimately settle. 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 36617#, 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 the U.S., Canada, Mexico, Australasia, France, the U.K., Ireland, Germany, Poland, the Netherlands, Belgium, Spain and Portugal, while our Industrial Parts Group serves customers in the U.S., Canada, Mexico and Australasia. We keep the world moving with a vast network of over 10,700 locations spanning 17 countries supported by more than 63,000 teammates. Learn more at genpt.com.
Forward-Looking Statements
Some statements in this release, as well as in other materials we file with the Securities and Exchange Commission (SEC), release to the public, or make available on our 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 our view of business and economic trends for the remainder of the year, our expectations regarding our ability to capitalize on these business and economic trends and to execute our strategic priorities, and the updated full-year 2025 financial guidance provided above. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking.
We caution you that all forward-looking statements involve risks and uncertainties, and while we believe that our expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on our 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 unemployment, inflation (including the direct and indirect impact of tariffsand other similar measures, as well as the potential impact of retaliatory tariffs and othersimilar actions) or deflation, financial institution disruptions and geopolitical conflicts such as the conflict between Russia and Ukraine, the conflict in the Gaza strip and other continuing unrest in the Middle East; volatility in oil prices; significant cost increases, such as rising fuel and freight expenses; public health emergencies, including the effects on the financial health of our business partners and customers, on supply chains and our suppliers, on vehicle miles driven as well as other metrics that affect our business, and on access to capital and liquidity provided by the financial and capital markets; our ability to maintain compliance with our debt covenants; our ability to successfully integrate acquired businesses into our operations and to realize the anticipated synergies and benefits; our ability to successfully implement our business initiatives in our two business segments; slowing demand for our products; the ability to maintain favorable supplier arrangements and relationships; changes in national and international legislation or government regulations or policies, including changes to import tariffs, environmental and social policy, infrastructure programs and privacy legislation, and their direct and indirect impact to us, our suppliers and customers; changes in tax policies, including those included in the One Big Beautiful Bill Act; volatile exchange rates; our 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 our disclosure controls and procedures and internal controls over financial reporting; the uncertainties and costs of litigation; disruptions caused by a failure or breach of our information systems, as well as other risks and uncertainties discussed in our Annual Report on Form 10-K for the year ended December 31, 2024, our Quarterly Report on Form 10-Q for the quarter ended March 31, 2025 and from time to time in our subsequent filings with the SEC.
Forward-looking statements speak only as of the date they are made, and we undertake no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC.
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