Genuine Parts Company (NYSE:GPC) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Company ParticipantsBert Nappier - EVP and CFOTim Walsh - VP of Investor RelationsWill Stengel - President and CEOConference Call ParticipantsBret Jordan - Managing Director and Senior Equity Research AnalystChris Dankert - Senior Equity AnalystChris Horvers - Managing Director and Senior Equity Research AnalystGreg Melich - Equity Research AnalystKate McShane - Managing Director and Senior Equity AnalystMichael Lasser - Ma ...

Genuine Parts Company (NYSE:GPC) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Company ParticipantsBert Nappier - EVP and CFOTim Walsh - VP of Investor RelationsWill Stengel - President and CEOConference Call ParticipantsBret Jordan - Managing Director and Senior Equity Research AnalystChris Dankert - Senior Equity AnalystChris Horvers - Managing Director and Senior Equity Research AnalystGreg Melich - Equity Research AnalystKate McShane - Managing Director and Senior Equity AnalystMichael Lasser - Ma ...

Genuine Parts Company (NYSE:GPC) Q4 2025 Earnings call February 17, 2026 08:30 AM ET Speaker7At this time, I would like to turn the conference over to Tim Walsh, Vice President of Investor Relations. Please go ahead, sir.Speaker9Thank you, and good morning, everyone. Welcome to Genuine Parts Company's fourth quarter 2025 earnings call. Joining us on the call today are Will Stengel, Chair-elect and Chief Executive Officer, and Bert Nappier, Executive Vice President and Chief Financial Officer. In addition to ...

分组1 - Genuine Parts (GPC) reported quarterly earnings of $1.55 per share, missing the Zacks Consensus Estimate of $1.79 per share, and down from $1.61 per share a year ago, representing an earnings surprise of -13.60% [1] - The company posted revenues of $6.01 billion for the quarter ended December 2025, which was 0.43% below the Zacks Consensus Estimate, but an increase from $5.77 billion year-over-year [2] - Genuine Parts has surpassed consensus revenue estimates three times over the last four quarters, indicating a generally positive trend in revenue performance [2] 分组2 - The stock has increased approximately 19.7% since the beginning of the year, contrasting with a slight decline of 0.1% in the S&P 500 [3] - The current consensus EPS estimate for the upcoming quarter is $1.99 on revenues of $6.16 billion, and for the current fiscal year, it is $8.42 on revenues of $25.23 billion [7] - The Zacks Industry Rank for Automotive - Retail and Wholesale - Parts is in the bottom 22% of over 250 Zacks industries, suggesting potential challenges for the sector [8]

Fourth Quarter & Full-Year 2025 Earnings Presentation February 17, 2026 Safe Harbor Statement FORWARD-LOOKING STATEMENTS: Some statements in this presentation, as well as in other materials the company files with the Securities and Exchange Commission (SEC), release to the public, or make available on the company's 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 s ...

Financial Performance - Fourth quarter 2025 sales reached $6.0 billion, a 4.1% increase from $5.8 billion in the same period of the prior year, driven by a 1.7% increase in comparable sales and a 1.5% benefit from acquisitions [5]. - Gross profit for the fourth quarter was $2.1 billion, representing 35.0% of sales, impacted by $160 million in non-recurring charges, with adjusted gross profit at 37.6%, up 70 basis points year-over-year [6]. - The company reported a net loss of $609 million, or $(4.39) per diluted share, compared to a net income of $133 million, or $0.96 per diluted share in the prior year [8]. - Adjusted net income for the fourth quarter was $216 million, or $1.55 per diluted share, down from $224 million, or $1.61 per diluted share in the prior year [9]. - Full-year 2025 sales totaled $24.3 billion, a 3.5% increase from 2024, with net income of $66 million, or $0.47 per diluted share, compared to $904 million, or $6.47 per diluted share in the prior year [14]. - The company reported a net loss of $609,498 for the three months ended December 31, 2025, compared to a net income of $133,056 in the same period of 2024 [30]. - GAAP net income for Q4 2025 was $(609,498) thousand, compared to $133,056 thousand in Q4 2024, while adjusted net income was $215,966 thousand for Q4 2025, down from $224,369 thousand in Q4 2024 [41]. - GAAP diluted net income per share for Q4 2025 was $(4.39), compared to $0.96 in Q4 2024, while adjusted diluted net income per share was $1.55 [41]. Cash Flow and Liquidity - The company generated cash flow from operations of $891 million in 2025, with free cash flow of $421 million [15]. - The company ended 2025 with total liquidity of $1.5 billion, including $477 million in cash and $1.1 billion available under its Revolving Credit Agreement [16]. - Net cash provided by operating activities for the year ended December 31, 2025, was $890,762, down from $1,251,251 in 2024, a decrease of 28.8% [40]. - Free cash flow for the twelve months ended December 31, 2025, was $420,924 thousand, a decrease from $683,912 thousand in 2024 [50]. Dividends and Shareholder Returns - The Board of Directors approved a 3.2% increase in the quarterly cash dividend for 2026, raising it to an annual rate of $4.25 per share [17]. - The company declared dividends of $1.03 per common share for the three months ended December 31, 2025, compared to $1.00 in the same period of 2024 [30]. Business Strategy and Future Outlook - For 2026, the company projects total sales growth of 3% to 5.5%, with diluted earnings per share guidance of $6.10 to $6.60 [19]. - The company announced plans to separate its Automotive and Industrial businesses into two independent public companies, aimed at creating scaled market leaders [20]. Operational Metrics - Total operating expenses for the twelve months ended December 31, 2025, were $7,980,047, up from $7,294,399 in 2024, indicating an increase of 9.4% [30]. - Trade accounts receivable increased to $2,370,939 as of December 31, 2025, from $2,182,856 in 2024, showing a rise of 8.6% [37]. - Merchandise inventories rose to $6,071,996 as of December 31, 2025, compared to $5,514,427 in 2024, marking an increase of 10.1% [37]. - The company’s total assets increased to $20,795,540 as of December 31, 2025, from $19,282,705 in 2024, reflecting a growth of 7.8% [37]. Charges and Adjustments - The company incurred a pension settlement charge of $741,967 for the year ended December 31, 2025, which was not present in 2024 [40]. - The company incurred total adjustments of $1,112,574 thousand in Q4 2025, primarily due to restructuring costs and pension settlements [41]. - The company’s pension settlement charge for Q4 2025 amounted to $741,967 thousand, significantly impacting net income [44]. - Total adjustments for selling, administrative, and other expenses in Q4 2025 were $(81,742) thousand, leading to adjusted expenses of $1,782,499 thousand [45]. Segment Performance - North America Automotive segment reported a 1.7% increase in comparable sales for Q4 2025, while International Automotive segment saw a 0.9% decline [48]. - Adjusted gross profit for Q4 2025 was $2,261,424 thousand, up from $2,131,812 thousand in Q4 2024, with adjusted gross profit as a percentage of net sales at 37.6% [45].

Core Viewpoint - Genuine Parts Company plans to separate its Automotive Parts Group and Industrial Parts Group into two independent, publicly traded companies to enhance shareholder value and operational focus, with the separation expected to be completed in Q1 2027 [1][2]. Group 1: Separation Details - The separation is anticipated to qualify as a tax-free transaction for U.S. federal tax purposes for shareholders [1]. - The decision follows a comprehensive strategic and operational review aimed at capitalizing on market opportunities and improving business structures [1][2]. - Each new entity will have tailored management teams and capital structures aligned with their specific business objectives [1][2]. Group 2: Global Automotive Overview - Global Automotive is the largest global network of automotive parts and repair centers, generating over $15 billion in sales and $1.2 billion in EBITDA in 2025 [1][2]. - The business operates under the NAPA brand and has over 10,000 locations, targeting a fragmented $200 billion market driven by non-discretionary demand [1][2]. - Global Automotive is focused on technology and supply chain transformations to enhance growth and margin expansion [1][2]. Group 3: Global Industrial Overview - Global Industrial, operating under the Motion brand, generated approximately $9 billion in sales and over $1.1 billion in EBITDA in 2025 [2]. - The business serves over 180,000 global customers and is positioned to capitalize on a $150 billion market through a differentiated value proposition [2]. - Motion aims to maintain strong financial performance with double-digit EBITDA margins and attractive returns on invested capital [2]. Group 4: Transaction and Future Plans - The transaction is expected to be completed in Q1 2027, pending customary conditions and does not require shareholder approval [2]. - Upcoming investor days are planned for the second half of 2026 to discuss operational initiatives and strategic goals for both businesses [2].

Provides 2026 Outlook During the quarter, the company had a net loss of $609 million, or $(4.39) per diluted earnings per share. This compares to net income of $133 million, or $0.96 per diluted share in the prior year period. Adjusted net income was $216 million, or $1.55 per diluted earnings per share. Adjusted net income excludes a net expense of $825 million after tax adjustments, or $5.94 per diluted share, which relates to certain non- recurring expenses outlined in the reconciliation of GAAP net inco ...

The company is preparing to separate its auto- parts and industrial-parts businesses. ...

Market Overview - U.S. equities started February on a subdued note, with investors becoming more selective regarding AI exposure, leading to a decline in stocks as the market adjusted high expectations and penalized companies perceived as potential AI "losers" [1] - Retail investors are advised to adopt a disciplined approach by reassessing allocations, tightening risk controls, and ensuring alignment with long-term goals [1] Stock Selection Criteria - Traditional stock selection based on sales growth is emphasized as a more reliable metric compared to earnings-focused metrics [2] - Sales growth is viewed as a clear indicator of a company's underlying momentum, reflecting actual demand for products and services, and can signal future profit potential [3] - Revenue trends should be analyzed in context, comparing growth with peers and industry norms to distinguish between sustainable strength and temporary boosts [4] Screening Parameters for Winning Stocks - Stocks are shortlisted based on a 5-Year Historical Sales Growth (%) greater than the industry average and a cash flow exceeding $500 million [5] - Additional criteria include a Price/Sales (P/S) Ratio lower than the industry average, indicating better value for each dollar of revenue [6] - Estimate revisions for future sales that exceed industry standards are also considered, as they can lead to stock price increases [6] - Operating Margin over the last five years should be greater than 5%, indicating effective cost control and sales growth outpacing costs [7] - Return on Equity (ROE) should be above 5%, ensuring that sales growth translates into profits and that the company is not hoarding cash [8] - Stocks with a Zacks Rank of 1 (Strong Buy) or 2 (Buy) are preferred, as they are known to outperform in various market conditions [8] Recommended Stocks - Genuine Parts Company (GPC) is highlighted, with an expected sales growth rate of 3.7% for 2026 and a Zacks Rank of 2 [9][10] - Wheaton Precious Metals Corp. (WPM) is noted for its expected sales growth rate of 35.4% for 2026, also holding a Zacks Rank of 2 [9][11] - FirstEnergy Corporation (FE) is projected to have a sales increase of 3.6% in 2026, currently carrying a Zacks Rank of 2 [9][12]