Genuine Parts Company Reports Third Quarter 2025 Results and Updates Full-Year Outlook
-
Sales of
$6.3 billion -
Diluted EPS of
$1.62 -
Adjusted Diluted EPS of
$1.98 -
Updates 2025 Outlook:
- Revenue Growth to 3% to 4% from 1% to 3%
-
Adjusted Diluted EPS to
$7.50 to$7.75 from$7.50 to$8.00
"Our third quarter results were in line with our expectations and demonstrate the ongoing execution of our strategic initiatives," said
Third Quarter 2025 Results
Sales were
Net income was $226 million compared to net income of
Adjusted net income was
Third Quarter 2025 Segment Highlights
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
Nine Months 2025 Results
Sales for the nine months ended
Balance Sheet, Cash Flow and Capital Allocation
The company generated cash flow from operations of
As of
2025 Outlook
The company is updating full-year 2025 guidance previously provided in its earnings release on
"While we delivered third-quarter results in line with our expectations, the broader market backdrop did not improve," said
The outlook below does not include the previously announced one-time, non-cash charge the company expects to record when its
|
|
|
For the Year Ending |
||
|
|
|
Previous Outlook |
|
Current Outlook |
|
Total sales growth |
|
1% to 3% |
|
3% to 4% |
|
Automotive sales growth |
|
1.5% to 3.5% |
|
4% to 5% |
|
Industrial sales growth |
|
1% to 3% |
|
2% to 3% |
|
Diluted earnings per share (1) |
|
|
|
|
|
Adjusted diluted earnings per share |
|
|
|
|
|
Effective tax rate |
|
Approximately 24% |
|
Approximately 24% |
|
Net cash provided by operating activities |
|
|
|
|
|
Free cash flow |
|
|
|
|
|
|
|
|
(1) |
As noted above, GAAP (as defined below) diluted earnings per share outlook for 2025 does not include the potential impact of the one-time, non-cash charge the company will incur upon settlement of its |
Non-GAAP Information
This release contains certain financial information not derived in accordance with
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
About
Established in 1928,
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 tariffs and other similar measures, as well as the potential impact of retaliatory tariffs and other similar actions) or deflation, financial institution disruptions and geopolitical conflicts such as the conflict between
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
|
GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) |
||||||||
|
|
||||||||
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
(in thousands, except per share data) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net sales |
|
$ 6,260,232 |
|
$ 5,970,198 |
|
$ 18,290,726 |
|
$ 17,716,396 |
|
Cost of goods sold |
|
3,918,830 |
|
3,771,757 |
|
11,451,252 |
|
11,262,997 |
|
Gross profit |
|
2,341,402 |
|
2,198,441 |
|
6,839,474 |
|
6,453,399 |
|
Operating expenses: |
|
|
|
|
|
|
|
|
|
Selling, administrative and other expenses |
|
1,805,928 |
|
1,722,400 |
|
5,286,802 |
|
4,944,783 |
|
Depreciation and amortization |
|
127,475 |
|
106,036 |
|
365,928 |
|
295,848 |
|
Provision for doubtful accounts |
|
6,871 |
|
7,119 |
|
20,351 |
|
19,008 |
|
Restructuring and other costs |
|
66,835 |
|
41,023 |
|
167,317 |
|
153,825 |
|
Total operating expenses |
|
2,007,109 |
|
1,876,578 |
|
5,840,398 |
|
5,413,464 |
|
Non-operating expenses (income): |
|
|
|
|
|
|
|
|
|
Interest expense, net |
|
40,342 |
|
27,818 |
|
117,769 |
|
67,429 |
|
Other |
|
2,258 |
|
(3,548) |
|
(580) |
|
(36,469) |
|
Total non-operating expenses (income) |
|
42,600 |
|
24,270 |
|
117,189 |
|
30,960 |
|
Income before income taxes |
|
291,693 |
|
297,593 |
|
881,887 |
|
1,008,975 |
|
Income taxes |
|
65,522 |
|
71,011 |
|
206,444 |
|
237,955 |
|
Net income |
|
$ 226,171 |
|
$ 226,582 |
|
$ 675,443 |
|
$ 771,020 |
|
Dividends declared per common share |
|
$ 1.03 |
|
$ 1.00 |
|
$ 3.09 |
|
$ 3.00 |
|
Basic earnings per share |
|
$ 1.63 |
|
$ 1.63 |
|
$ 4.86 |
|
$ 5.53 |
|
Diluted earnings per share |
|
$ 1.62 |
|
$ 1.62 |
|
$ 4.85 |
|
$ 5.51 |
|
|
|
|
|
|
|
|
|
|
|
Weighted average common shares outstanding |
|
139,099 |
|
139,193 |
|
138,959 |
|
139,326 |
|
Dilutive effect of stock options and non- vested restricted stock awards |
|
307 |
|
406 |
|
298 |
|
500 |
|
Weighted average common shares outstanding – assuming dilution |
|
139,406 |
|
139,599 |
|
139,257 |
|
139,826 |
|
GENUINE PARTS COMPANY AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) |
||||||||
|
|
||||||||
|
The following table presents a reconciliation from EBITDA to net income: |
||||||||
|
|
||||||||
|
|
|
Three Months Ended
|
|
Nine Months Ended |
||||
|
(in thousands) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Net sales: |
|
|
|
|
|
|
|
|
|
Automotive |
|
$ 3,989,788 |
|
$ 3,799,789 |
|
$ 11,566,957 |
|
$ 11,100,800 |
|
Industrial |
|
2,270,444 |
|
2,170,409 |
|
6,723,769 |
|
6,615,596 |
|
Segment EBITDA: |
|
|
|
|
|
|
|
|
|
Automotive |
|
$ 334,704 |
|
$ 316,142 |
|
$ 958,203 |
|
$ 998,687 |
|
Industrial |
|
285,015 |
|
267,287 |
|
851,864 |
|
831,234 |
|
Corporate EBITDA (1) |
|
(93,374) |
|
(106,686) |
|
(263,131) |
|
(267,306) |
|
Interest expense, net |
|
(40,342) |
|
(27,818) |
|
(117,769) |
|
(67,429) |
|
Depreciation and amortization |
|
(127,475) |
|
(106,036) |
|
(365,928) |
|
(295,848) |
|
Other unallocated costs |
|
(66,835) |
|
(45,296) |
|
(181,352) |
|
(190,363) |
|
Income before income taxes |
|
291,693 |
|
297,593 |
|
881,887 |
|
1,008,975 |
|
Income taxes |
|
(65,522) |
|
(71,011) |
|
(206,444) |
|
(237,955) |
|
Net income |
|
$ 226,171 |
|
$ 226,582 |
|
$ 675,443 |
|
$ 771,020 |
|
|
||||||||
|
(1) Corporate EBITDA consists of costs related to our Corporate headquarters' broad support to our 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
|
|
Nine Months Ended
|
||||
|
(in thousands) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Other unallocated costs: |
|
|
|
|
|
|
|
|
|
Restructuring and other costs (2) |
|
$ (66,835) |
|
$ (41,023) |
|
$ (167,317) |
|
$ (161,312) |
|
Acquisition and integration related costs and other (3) |
|
— |
|
(4,273) |
|
(14,035) |
|
(29,051) |
|
Total other unallocated costs |
|
$ (66,835) |
|
$ (45,296) |
|
$ (181,352) |
|
$ (190,363) |
|
|
||||||||
|
(2) Amount reflects costs related to our global restructuring initiative which includes a voluntary
retirement offer in the stores and other facilities. |
||||||||
|
|
||||||||
|
(3) 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) |
|
|
|
|
|
Assets |
|
|
|
|
|
Current assets: |
|
|
|
|
|
Cash and cash equivalents |
|
$ 431,359 |
|
$ 479,991 |
|
Trade accounts receivable, less allowance for doubtful
accounts (2025 – |
|
2,639,775 |
|
2,182,856 |
|
Merchandise inventories, net |
|
5,873,796 |
|
5,514,427 |
|
Prepaid expenses and other current assets |
|
1,722,027 |
|
1,675,310 |
|
Total current assets |
|
10,666,957 |
|
9,852,584 |
|
|
|
3,127,271 |
|
2,897,270 |
|
Other intangible assets, less accumulated amortization |
|
1,855,978 |
|
1,799,031 |
|
Property, plant and equipment, less accumulated depreciation
(2025 – |
|
2,091,463 |
|
1,950,760 |
|
Operating lease assets |
|
1,970,911 |
|
1,769,720 |
|
Other assets |
|
982,288 |
|
1,013,340 |
|
Total assets |
|
$ 20,694,868 |
|
$ 19,282,705 |
|
|
|
|
|
|
|
Liabilities and equity |
|
|
|
|
|
Current liabilities: |
|
|
|
|
|
Trade accounts payable |
|
$ 6,100,223 |
|
$ 5,923,684 |
|
Short-term borrowings |
|
910,752 |
|
41,705 |
|
Current portion of long-term debt |
|
101,944 |
|
500,000 |
|
Dividends payable |
|
143,271 |
|
134,355 |
|
Other current liabilities |
|
2,126,911 |
|
1,925,636 |
|
Total current liabilities |
|
9,383,101 |
|
8,525,380 |
|
Long-term debt |
|
3,745,774 |
|
3,742,640 |
|
Operating lease liabilities |
|
1,639,972 |
|
1,458,391 |
|
Pension and other post–retirement benefit liabilities |
|
222,413 |
|
218,629 |
|
Deferred tax liabilities |
|
428,340 |
|
441,705 |
|
Other long-term liabilities |
|
470,141 |
|
544,109 |
|
Equity: |
|
|
|
|
|
Preferred stock, par value – 10,000,000 shares; none issued |
|
— |
|
— |
|
Common stock, par value – 450,000,000 shares; issued and outstanding – 2025 – 139,110,499 shares; 2024 – 138,779,664 shares |
|
139,111 |
|
138,780 |
|
Additional paid-in capital |
|
217,068 |
|
196,532 |
|
Accumulated other comprehensive loss |
|
(1,079,342) |
|
(1,261,743) |
|
Retained earnings |
|
5,509,794 |
|
5,263,838 |
|
Total parent equity |
|
4,786,631 |
|
4,337,407 |
|
Noncontrolling interests in subsidiaries |
|
18,496 |
|
14,444 |
|
Total equity |
|
4,805,127 |
|
4,351,851 |
|
Total liabilities and equity |
|
$ 20,694,868 |
|
$ 19,282,705 |
|
GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) |
||||
|
|
||||
|
|
|
Nine Months Ended
|
||
|
(in thousands) |
|
2025 |
|
2024 |
|
Operating activities: |
|
|
|
|
|
Net income |
|
$ 675,443 |
|
$ 771,020 |
|
Adjustments to reconcile net income to net cash provided by operating activities: |
|
|
|
|
|
Depreciation and amortization |
|
365,928 |
|
295,848 |
|
Share-based compensation |
|
37,183 |
|
37,280 |
|
Excess tax deficiency (benefits) from share-based compensation |
|
6,226 |
|
(8,301) |
|
Other operating activities, including changes in operating assets and liabilities |
|
(574,091) |
|
378 |
|
Net cash provided by operating activities |
|
510,689 |
|
1,096,225 |
|
Investing activities: |
|
|
|
|
|
Purchases of property, plant and equipment |
|
(350,443) |
|
(385,590) |
|
Proceeds from sale of property, plant and equipment |
|
21,085 |
|
74,215 |
|
Acquisitions of businesses |
|
(181,987) |
|
(954,207) |
|
Other investing activities |
|
23,394 |
|
20,390 |
|
Net cash used in investing activities |
|
(487,951) |
|
(1,245,192) |
|
Financing activities: |
|
|
|
|
|
Proceeds from debt |
|
44,600 |
|
797,602 |
|
Payments on debt |
|
(567,368) |
|
(124,337) |
|
Net proceeds of commercial paper |
|
886,175 |
|
— |
|
Shares issued from employee incentive plans |
|
(16,316) |
|
(16,524) |
|
Dividends paid |
|
(420,571) |
|
(411,396) |
|
Purchases of stock |
|
— |
|
(112,499) |
|
Other financing activities |
|
(20,237) |
|
(8,018) |
|
Net cash provided by (used in) financing activities |
|
(93,717) |
|
124,828 |
|
Effect of exchange rate changes on cash and cash equivalents |
|
22,347 |
|
250 |
|
Net decrease in cash and cash equivalents |
|
(48,632) |
|
(23,889) |
|
Cash and cash equivalents at beginning of period |
|
479,991 |
|
1,102,007 |
|
Cash and cash equivalents at end of period |
|
$ 431,359 |
|
$ 1,078,118 |
|
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
|
|
Nine Months Ended
|
||||
|
(in thousands) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
GAAP net income |
|
$ 226,171 |
|
$ 226,582 |
|
$ 675,443 |
|
$ 771,020 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring and other costs (1) |
|
66,835 |
|
41,023 |
|
167,317 |
|
161,312 |
|
Acquisition and integration related costs and other (2) |
|
— |
|
4,273 |
|
14,035 |
|
29,051 |
|
Total adjustments |
|
66,835 |
|
45,296 |
|
181,352 |
|
190,363 |
|
Tax impact of adjustments (3) |
|
(17,411) |
|
(8,865) |
|
(46,340) |
|
(45,911) |
|
Adjusted net income |
|
$ 275,595 |
|
$ 263,013 |
|
$ 810,455 |
|
$ 915,472 |
|
|
||||||||
|
The table below represents amounts per common share assuming dilution: |
||||||||
|
|
||||||||
|
|
|
Three Months Ended
|
|
Nine Months Ended
|
||||
|
(in thousands, except per share data) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
GAAP diluted net income per common share |
|
$ 1.62 |
|
$ 1.62 |
|
$ 4.85 |
|
$ 5.51 |
|
|
|
|
|
|
|
|
|
|
|
Adjustments: |
|
|
|
|
|
|
|
|
|
Restructuring and other costs (1) |
|
0.48 |
|
0.29 |
|
1.20 |
|
1.15 |
|
Acquisition and integration related costs and other (2) |
|
— |
|
0.03 |
|
0.10 |
|
0.22 |
|
Total adjustments |
|
0.48 |
|
0.32 |
|
1.30 |
|
1.37 |
|
Tax impact of adjustments (3) |
|
(0.12) |
|
(0.06) |
|
(0.33) |
|
(0.33) |
|
Adjusted diluted net income per common share |
|
$ 1.98 |
|
$ 1.88 |
|
$ 5.82 |
|
$ 6.55 |
|
Weighted average common shares outstanding – assuming dilution |
|
139,406 |
|
139,599 |
|
139,257 |
|
139,826 |
|
|
||||||||
|
(1) Amount reflects costs related to our global restructuring initiative which includes a voluntary
retirement offer in the stores and other facilities. |
||||||||
|
|
||||||||
|
(2) Amount primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores. |
||||||||
|
|
||||||||
|
(3) 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 applied the statutory income tax rates to the taxable portion of all of our adjustments, which resulted
in a tax impact of |
||||||||
|
|
||||||||
|
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
|
|
Nine Months Ended
|
||||
|
(in thousands) |
|
2025 |
|
2024 |
|
2025 |
|
2024 |
|
Line item: |
|
|
|
|
|
|
|
|
|
Cost of goods sold |
|
$ — |
|
$ — |
|
$ — |
|
$ 7,487 |
|
Selling, administrative and other expenses |
|
— |
|
4,273 |
|
14,035 |
|
29,051 |
|
Restructuring and other costs |
|
66,835 |
|
41,023 |
|
167,317 |
|
153,825 |
|
Total adjustments |
|
$ 66,835 |
|
$ 45,296 |
|
$ 181,352 |
|
$ 190,363 |
|
GENUINE PARTS COMPANY AND SUBSIDIARIES CHANGE IN NET SALES SUMMARY (UNAUDITED) |
||||||||||
|
|
||||||||||
|
|
|
Three Months Ended |
||||||||
|
|
|
Comparable Sales |
|
Acquisitions |
|
Foreign Currency |
|
Other |
|
GAAP Total
|
|
Automotive |
|
1.6 % |
|
2.3 % |
|
1.0 % |
|
0.1 % |
|
5.0 % |
|
Industrial |
|
3.7 % |
|
1.1 % |
|
(0.2) % |
|
— % |
|
4.6 % |
|
Total |
|
2.3 % |
|
1.8 % |
|
0.7 % |
|
0.1 % |
|
4.9 % |
|
|
||||||||||
|
|
|
Nine Months Ended |
||||||||
|
|
|
Comparable Sales |
|
Acquisitions |
|
Foreign Currency |
|
Other |
|
GAAP Total
|
|
Automotive |
|
0.4 % |
|
3.2 % |
|
0.1 % |
|
0.5 % |
|
4.2 % |
|
Industrial |
|
0.9 % |
|
1.2 % |
|
(0.5) % |
|
— % |
|
1.6 % |
|
Total |
|
0.6 % |
|
2.5 % |
|
(0.1) % |
|
0.2 % |
|
3.2 % |
|
GENUINE PARTS COMPANY AND SUBSIDIARIES RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) |
||||
|
|
||||
|
|
|
Nine Months Ended |
||
|
(in thousands) |
|
2025 |
|
2024 |
|
Net cash provided by operating activities |
|
$ 510,689 |
|
$ 1,096,225 |
|
Purchases of property, plant and equipment |
|
(350,443) |
|
(385,590) |
|
Free Cash Flow |
|
$ 160,246 |
|
$ 710,635 |
|
|
||||
|
|
|
For the Year Ending |
||
|
Net cash provided by operating activities |
|
|
||
|
Purchases of property, plant and equipment |
|
|
||
|
Free Cash Flow |
|
|
||
View original content to download multimedia:https://www.prnewswire.com/news-releases/genuine-parts-company-reports-third-quarter-2025-results-and-updates-full-year-outlook-302589624.html
SOURCE