{"success":true,"data":{"pressRelease":{"id":"173632","rtpr_id":"nPn7nf6G1a-20261020","ticker":"GPC","exchange":"NYSE","all_tickers":["GPC"],"title":"Genuine Parts Company Reports Third Quarter 2026 Results","author":"PR Newswire","published_at":"2026-10-20T10:55:00.061Z","article_body":"Genuine Parts Company Reports Third Quarter 2026 Results\nPR Newswire\n\nATLANTA, Oct. 20, 2026\n\nNarrows 2026 Outlook for Adjusted EPS to $7.50 to $7.75 from $7.50 to $8.00\n\nATLANTA, Oct. 20, 2026 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC), a\nleading global service provider of automotive and industrial replacement parts\nand value-added solutions, announced today its results for the third quarter\nended September 30, 2026.\n\n\"Our third quarter performance demonstrates the strength of our market leading\nbusinesses and our teams' continued focus on serving customers and executing\nour strategic priorities,\" said Will Stengel, Chairman and Chief Executive\nOfficer. \"We also achieved important milestones in our separation process and\nremain on track to launch GPC and Motion as two independent, leading companies\nin the first quarter of 2027.\"\n\nThird Quarter 2026 Results\n\nSales were $6.5 billion, a 4.2% increase compared to $6.3 billion in the same\nperiod of the prior year. The improvement is attributable to a 2.9% increase\nin comparable sales, a 0.9% benefit from acquisitions and a net 0.4% favorable\nimpact of foreign currency and other.\n\nNet income was $224 million, or $1.62 per diluted earnings per share. This\ncompares to net income of $226 million, or $1.62 per diluted share in the\nprior year period.\n\nAdjusted net income was $286 million, or $2.07 per diluted earnings per share.\nAdjusted net income excludes $61 million of after-tax adjustments, or $0.45\nper diluted share, which relates to costs associated with the company's global\nrestructuring initiative and the planned separation of the company's\nAutomotive and Industrial businesses. This compares to adjusted net income of\n$276 million, or $1.98 per diluted share in the prior year period. Refer to\nthe reconciliation of GAAP net income to adjusted net income and GAAP diluted\nnet income per common share to adjusted diluted net income per common share\nfor more information.\n\nThird Quarter 2026 Segment Highlights\n\nNorth America Automotive Parts Group (\"North America Automotive\")\n\nNorth America Automotive sales were $2.5 billion, up 2.2% from the same period\nin 2025. The improvement is primarily attributable to a 1.7% increase in\ncomparable sales and a 1.1% benefit from acquisitions. This was partially\noffset by a 0.6% unfavorable impact of foreign currency and other. Segment\nEBITDA of $194 million decreased 2.9%, with segment EBITDA margin of 7.6%,\ndown 40 basis points from the same period of the prior year.\n\nInternational Automotive Parts Group (\"International Automotive\")\n\nInternational Automotive sales were $1.6 billion, up 4.5% from the same period\nin 2025. The improvement is primarily attributable to a 1.7% benefit from\nacquisitions, a 1.7% favorable impact of foreign currency and a 1.1% increase\nin comparable sales. Segment EBITDA of $141 million increased 4.7%, with\nsegment EBITDA margin of 9.0%, flat versus the same period of the prior year.\n\nIndustrial Parts Group (\"Industrial\")\n\nIndustrial sales were $2.4 billion, up 6.1% from the same period in 2025. The\nimprovement is primarily attributable to a 5.5% increase in comparable sales,\na 0.5% favorable impact of foreign currency and a 0.1% benefit from\nacquisitions. Segment EBITDA of $317 million increased 11.2%, with segment\nEBITDA margin of 13.2%, up 60 basis points from the same period of the prior\nyear.\n\nYear to Date 2026 Results\n\nSales for the nine months ended September 30, 2026 were $19.3 billion, up\n5.6% from the same period in 2025. Net income for the nine months was $641\nmillion, or $4.64 per diluted share. This compares to net income of $675\nmillion, or $4.85 per diluted share in the prior year period. Adjusted net\nincome was $827 million in the first nine months of 2026, compared to adjusted\nnet income of $810 million in the prior year period. Adjusted diluted earnings\nper share were $5.99 compared to $5.82 in the prior year period.\n\nBalance Sheet, Cash Flow and Capital Allocation\n\nThe company generated cash flow from operations of $817 million for the first\nnine months of 2026. Net cash used in investing activities was $361 million,\nincluding $314 million for capital expenditures and $69 million for\nacquisitions. Net cash used in financing activities was $139 million,\nincluding net proceeds of debt (including net commercial paper) of\n$338 million, partially offset by $434 million for quarterly dividends paid\nto shareholders. Free cash flow was $502 million for the first nine months of\n2026. Refer to the reconciliation of GAAP net cash provided by operating\nactivities to free cash flow for more information.\n\nAs of September 30, 2026, total liquidity was $2.4 billion, consisting of\n$763 million in cash, and $1.6 billion of available capacity under the\ncompany's $2.0 billion Revolving Credit Agreement. This reflects $389 million\noutstanding under our commercial paper program.\n\n2026 Outlook\n\nThe company is narrowing the range for adjusted diluted earnings per share\noutlook from its previous full-year 2026 outlook provided in its earnings\nreleases on February 17, 2026, April 21, 2026 and July 21, 2026. The company\nconsidered its recent business trends and financial results, current growth\nplans, strategic initiatives, global economic outlook, geopolitical conflicts\nand the potential impact on results in updating its outlook, which is outlined\nin the table below. The updated GAAP earnings-per-share outlook includes\nexpected costs associated with the company's restructuring initiatives, and\nincludes costs related to the planned separation that have been incurred\nyear-to-date.\n For the Year Ending December 31, 2026\n Previous Outlook Updated Outlook\n Total sales growth 3% to 5.5% 3% to 5.5%\n North America Automotive sales growth 2.5% to 4.5% 2.5% to 4.5%\n International Automotive sales growth 5% to 8% 5% to 8%\n Industrial sales growth 3% to 6% 3% to 6%\n Diluted earnings per share $5.90 to $6.40 $5.60 to $5.85\n Adjusted diluted earnings per share $7.50 to $8.00 $7.50 to $7.75\n Effective tax rate Approx. 24% Approx. 24%\n Net cash provided by operating activities $1.0 billion to $1.2 billion $1.0 billion to $1.2 billion\n Free cash flow $550 million to $700 million $550 million to $700 million\n\nNon-GAAP Information\n\nThis release contains certain financial information not derived in accordance\nwith United States (\"U.S.\") generally accepted accounting principles (\"GAAP\").\nThese items include adjusted net income, adjusted diluted net income per\ncommon share, adjusted selling, administrative, and other expenses, and free\ncash flow. The company believes that the presentation of adjusted net income,\nadjusted diluted net income per common share, adjusted selling, administrative\nand other expenses and free cash flow, when considered together with the\ncorresponding GAAP financial measures and the reconciliations to those\nmeasures, provides meaningful supplemental information to both management and\ninvestors that is indicative of the company's core operations. The company\nconsiders these metrics useful to investors because they provide greater\ntransparency into management's view and assessment of the company's ongoing\noperating performance by removing items management believes are not\nrepresentative of the company's continuing operations and may distort the\ncompany's longer-term operating trends. The company believes these measures\nare useful and enhance the comparability of the results from period to period\nand with the company's competitors, as well as show ongoing results from\noperations distinct from items that are infrequent or not associated with the\ncompany's core operations. The company does not, nor does it suggest investors\nshould, consider such non-GAAP financial measures as superior to, in isolation\nfrom, or as a substitute for, GAAP financial information. The company has\nincluded a reconciliation of this additional information to the most\ncomparable GAAP measure following the financial statements below. The company\ndoes not provide a forward-looking outlook for certain financial measures on a\nGAAP basis because the company is unable to predict certain items contained in\nthe GAAP measures without unreasonable efforts. These items may include\nseparation costs, acquisition-related costs, litigation charges or\nsettlements, impairment charges, restructuring costs and certain other unusual\nadjustments.\n\nComparable Sales\n\nComparable sales is a key metric that refers to period-over-period comparisons\nof the company's net sales excluding the impact of acquisitions, foreign\ncurrency and other. The company's calculation of comparable sales is computed\nusing total business days for the period and is inclusive of sales from\ncompany-owned stores and sales into independent stores. The company considers\nthis metric useful to investors because it provides greater transparency into\nmanagement's view and assessment of the company's core ongoing operations.\nThis is a metric that is widely used by analysts, investors and competitors;\nhowever the company's calculation of the metric may not be comparable to\nsimilar measures disclosed by other companies, because not all companies and\nanalysts calculate this metric in the same manner.\n\nConference Call\n\nGenuine Parts Company will hold a conference call today at 8:30 a.m. Eastern\nTime to discuss the results of the quarter. A supplemental earnings deck will\nalso be available for reference. Interested parties may listen to the call and\nview the supplemental earnings deck on the company's investor relations\nwebsite\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4801554-1&h=2116186003&u=http%3A%2F%2Fwww.genpt.com%2Foverview&a=company%27s+investor+relations+website)\n. The call is also available by dialing 800-836-8184. A replay of the call\nwill be available on the company's website or toll-free at 888-660-6345,\nconference ID 26206#, two hours after the completion of the call.\n\nAbout Genuine Parts Company\n\nEstablished in 1928, Genuine Parts Company is a leading global service\nprovider of automotive and industrial replacement parts and value-added\nsolutions. Our Automotive Parts Group operates across North America, Europe\nand Australasia, while our Industrial Parts Group serves customers across\nNorth America and Australasia. We keep the world moving with a vast network of\nover 10,800 locations spanning 17 countries supported by more than 65,000\nteammates. Learn more at genpt.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4801554-1&h=1350600803&u=http%3A%2F%2Fwww.genpt.com%2F&a=genpt.com)\n.\n\nForward-Looking Statements\n\nSome statements in this release, as well as in other materials the company\nfiles with the Securities and Exchange Commission (\"SEC\"), release to the\npublic, or make available on the company's website, constitute forward-looking\nstatements that are subject to the safe harbor provisions of the Private\nSecurities Litigation Reform Act of 1995. All statements in the future tense\nand all statements accompanied by words such as \"expect,\" \"likely,\" \"outlook,\"\n\"forecast,\" \"preliminary,\" \"would,\" \"could,\" \"should,\" \"position,\" \"will,\"\n\"project,\" \"intend,\" \"plan,\" \"on track,\" \"anticipate,\" \"to come,\" \"may,\"\n\"possible,\" \"assume,\" or similar expressions are intended to identify such\nforward-looking statements. These forward-looking statements include the\ncompany's view of business and economic trends for the remainder of the year\nand the company's expectations regarding its ability to capitalize on these\nbusiness and economic trends; the company's full-year 2026 outlook and the\ncompany's ability to successfully execute on its strategic priorities,\nincluding the company's anticipated separation of Global Automotive and Global\nIndustrial into two independent, publicly traded companies. Senior officers\nmay also make verbal statements to analysts, investors, the media and others\nthat are forward-looking.\n\nThe company cautions you that all forward-looking statements involve risks and\nuncertainties, and while the company believes its expectations for the future\nare reasonable in view of currently available information, you are cautioned\nnot to place undue reliance on the company's forward-looking statements.\nActual results or events may differ materially from those indicated as a\nresult of various important factors. Such factors may include, among other\nthings, changes in general economic conditions, including persistent inflation\n(including the direct and indirect impact of tariffs and retaliatory tariffs)\nor deflation, geopolitical uncertainty and unrest (including from the conflict\ninvolving the United States and Iran) and declining consumer confidence; the\ncompany's ability to successfully implement the separation of Global\nAutomotive and Global Industrial and achieve the anticipated benefits of such\ntransaction; volatility in oil prices; significant costs, such as elevated\nfuel and freight expenses; the company's ability to maintain compliance with\nits debt covenants; its ability to successfully integrate acquired businesses\ninto its operations and to realize the anticipated synergies and benefits; its\nability to successfully implement its business initiatives in its three\nbusiness segments; slowing demand for its products; the ability to maintain\nfavorable supplier arrangements and relationships; changes in national and\ninternational legislation or government regulations or policies, including\nchanges to global trade regulations, environmental and social policy,\ninfrastructure programs and privacy legislation and related uncertainties, and\ntheir impact on the company, its suppliers and customers; changes in tax\npolicies; volatile exchange rates; the company's ability to successfully\nattract and retain employees in the current labor market; uncertain credit\nmarkets and other macroeconomic conditions; competitive product, service and\npricing pressures; failure or weakness in the company's disclosure controls\nand procedures and internal controls over financial reporting; the\nuncertainties and costs of litigation; public health emergencies, including\nthe effects on the financial health of the company's business partners and\ncustomers, on supply chains and its suppliers, on vehicle miles driven as well\nas other metrics that affect the company's business, and on access to capital\nand liquidity provided by the financial and capital markets; disruptions\ncaused by a failure or breach of the company's information systems; the\nsuccess of its global restructuring efforts and the annualized cost savings\narising therefrom, as well as other risks and uncertainties discussed in the\ncompany's Annual Report on Form 10-K and from time to time in its subsequent\nfilings with the SEC.\n\nForward-looking statements speak only as of the date they are made, and the\ncompany undertakes no duty to update any forward-looking statements except as\nrequired by law. You are advised, however, to review any further disclosures\nthe company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and\nother reports filed with the SEC.\n GENUINE PARTS COMPANY AND SUBSIDIARIES\n CONDENSED CONSOLIDATED STATEMENTS OF INCOME\n (UNAUDITED)\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands, except per share data) 2026 2025 2026 2025\n Net sales $ 6,521,308 $ 6,260,232 $ 19,323,199 $ 18,290,726\n Cost of goods sold 4,037,033 3,918,830 12,029,253 11,451,252\n Gross profit 2,484,275 2,341,402 7,293,946 6,839,474\n Operating expenses:\n Selling, administrative and other expenses 1,944,518 1,805,928 5,718,856 5,286,802\n Depreciation and amortization 137,490 127,475 403,234 365,928\n Provision for doubtful accounts 9,238 6,871 27,339 20,351\n Restructuring and other costs 64,545 66,835 193,426 167,317\n Total operating expenses 2,155,791 2,007,109 6,342,855 5,840,398\n Non-operating expense (income):\n Interest expense, net 45,970 40,342 135,723 117,769\n Other 3,866 2,258 (2,503) (580)\n Total non-operating expense 49,836 42,600 133,220 117,189\n Income before income taxes 278,648 291,693 817,871 881,887\n Income taxes 54,201 65,522 177,331 206,444\n Net income $ 224,447 $ 226,171 $ 640,540 $ 675,443\n Dividends declared per common share $ 1.0625 $ 1.03 $ 3.1875 $ 3.09\n Basic earnings per share $ 1.63 $ 1.63 $ 4.65 $ 4.86\n Diluted earnings per share $ 1.62 $ 1.62 $ 4.64 $ 4.85\n\n Weighted average common shares 137,862 139,099 137,753 138,959\n outstanding\n Dilutive effect of stock options and non- 469 307 351 298\n vested restricted stock awards\n Weighted average common shares 138,331 139,406 138,104 139,257\n outstanding – assuming dilution\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n SEGMENT INFORMATION\n (UNAUDITED)\n The following table presents net sales by segment and a reconciliation from\n segment EBITDA to net\n income:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n Net sales:\n North America Automotive $ 2,540,319 $ 2,484,591 $ 7,440,587 $ 7,193,749\n International Automotive 1,572,392 1,505,197 4,746,020 4,373,208\n Industrial 2,408,597 2,270,444 7,136,592 6,723,769\n Segment EBITDA:\n North America Automotive 193,860 199,626 558,393 543,121\n International Automotive 141,394 135,078 436,230 415,082\n Industrial 316,927 285,015 947,494 851,865\n Corporate EBITDA (1) (103,521) (93,374) (330,859) (263,131)\n Interest expense, net (45,970) (40,342) (135,723) (117,769)\n Depreciation and amortization (137,490) (127,475) (403,234) (365,928)\n Other unallocated costs (86,552) (66,835) (254,430) (181,352)\n Income before income taxes 278,648 291,693 817,871 881,887\n Income taxes (54,201) (65,522) (177,331) (206,444)\n Net income $ 224,447 $ 226,171 $ 640,540 $ 675,443\n\n (1) Corporate EBITDA consists of costs related to the company's Corporate\n headquarters' broad support to the company's business units and other costs\n that are managed centrally and not allocated to business segments. These\n include personnel and other costs for company-wide functions such as executive\n leadership, human resources, technology, cybersecurity, legal, corporate\n finance, internal audit, and risk management, as well as product liability\n costs and A/R Sales Agreement fees.\n\n \n The following table presents a summary of the other unallocated costs:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n Other unallocated costs:\n Restructuring and other costs (2) $ (64,545) $ (66,835) $ (193,426) $ (167,317)\n Separation costs (3) (21,204) — (54,912) —\n Acquisition and integration related (803) — (6,092) (14,035)\n costs and other (4)\n Total other unallocated costs $ (86,552) $ (66,835) $ (254,430) $ (181,352)\n\n (2) Amount reflects costs related to our global restructuring initiative which\n includes employee severance and other termination benefits, and the\n rationalization and optimization of certain distribution centers, stores and\n other facilities.\n (3) Amount primarily reflects legal and professional services and executive\n incentive plan costs related to the planned separation of the company's Global\n Automotive and Global Industrial businesses that was announced on February 17,\n 2026 and is targeted for completion in the first quarter of 2027.\n (4) Amount primarily reflects lease and other exit costs related to the\n integration of acquired independent automotive stores.\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n CONDENSED CONSOLIDATED BALANCE SHEETS\n (UNAUDITED)\n (in thousands, except share and per share data) September 30, 2026 December 31, 2025\n Assets\n Current assets:\n Cash and cash equivalents $ 763,151 $ 477,179\n Trade accounts receivable, net 2,619,491 2,370,939\n Merchandise inventories, net 6,435,802 6,071,996\n Prepaid expenses and other current assets 1,632,361 1,644,620\n Total current assets 11,450,805 10,564,734\n Goodwill 3,206,231 3,188,815\n Other intangible assets, net 1,743,938 1,855,714\n Property, plant and equipment, net 2,161,387 2,172,140\n Operating lease assets 2,062,454 2,084,487\n Other assets 872,340 929,650\n Total assets $ 21,497,155 $ 20,795,540\n\n Liabilities and equity\n Current liabilities:\n Trade accounts payable $ 6,394,876 $ 6,051,882\n Short-term borrowings 388,088 943,540\n Current portion of long-term debt 250,000 353,788\n Dividends payable 148,074 143,291\n Other current liabilities 2,180,515 2,295,204\n Total current liabilities 9,361,553 9,787,705\n Long-term debt 4,472,149 3,498,423\n Operating lease liabilities 1,713,902 1,739,478\n Pension and other post–retirement benefit liabilities 218,787 219,270\n Deferred tax liabilities 368,353 385,948\n Other long-term liabilities 703,492 724,353\n Equity:\n Preferred stock, par value – $1 per share; authorized – — —\n 10,000,000 shares; none issued\n Common stock, par value – $1 per share; authorized – 137,865 137,618\n 450,000,000 shares; issued and outstanding – 2026 –\n 137,864,682 shares; 2025 – 137,617,832 shares\n Additional paid-in capital 259,505 228,370\n Accumulated other comprehensive loss (518,474) (511,766)\n Retained earnings 4,770,080 4,568,769\n Total parent equity 4,648,976 4,422,991\n Noncontrolling interests in subsidiaries 9,943 17,372\n Total equity 4,658,919 4,440,363\n Total liabilities and equity $ 21,497,155 $ 20,795,540\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS\n (UNAUDITED)\n Nine Months Ended\n September 30,\n (in thousands) 2026 2025\n Operating activities:\n Net income $ 640,540 $ 675,443\n Adjustments to reconcile net income to net cash provided by (used in)\n operating activities:\n Depreciation and amortization 403,234 365,928\n Share-based compensation 45,095 37,183\n Other operating activities, including changes in operating assets and (272,222) (567,865)\n liabilities\n Net cash provided by operating activities 816,647 510,689\n Investing activities:\n Purchases of property, plant and equipment (314,476) (350,443)\n Proceeds from sale of property, plant and equipment 28,070 21,085\n Acquisitions of businesses (69,450) (181,987)\n Proceeds from divestitures of businesses 6,885 59\n Other investing activities (12,105) 23,335\n Net cash used in investing activities (361,076) (487,951)\n Financing activities:\n Proceeds from debt 1,291,217 44,600\n Payments on debt (997,776) (567,368)\n Net proceeds of commercial paper 44,968 886,175\n Shares issued from employee incentive plans (13,713) (16,316)\n Dividends paid (434,446) (420,571)\n Other financing activities (29,283) (20,237)\n Net cash used in financing activities (139,033) (93,717)\n Effect of exchange rate changes on cash and cash equivalents (30,566) 22,347\n Net increase (decrease) in cash and cash equivalents 285,972 (48,632)\n Cash and cash equivalents at beginning of period 477,179 479,991\n Cash and cash equivalents at end of period $ 763,151 $ 431,359\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME AND GAAP\n DILUTED NET INCOME PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME PER\n COMMON SHARE\n (UNAUDITED)\n The table below represents a reconciliation from GAAP net income to adjusted\n net income:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n GAAP net income $ 224,447 $ 226,171 $ 640,540 $ 675,443\n\n Adjustments:\n Restructuring and other costs (1) 64,545 66,835 193,426 167,317\n Separation costs (2) 21,204 — 54,912 —\n Acquisition and integration related 803 — 6,092 14,035\n costs and other (3)\n Total adjustments 86,552 66,835 254,430 181,352\n Tax impact of adjustments (4) (25,053) (17,411) (68,239) (46,340)\n Adjusted net income $ 285,946 $ 275,595 $ 826,731 $ 810,455\n\n \n The table below represents amounts per common share assuming dilution:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands, except per share data) 2026 2025 2026 2025\n GAAP diluted net income per common $ 1.62 $ 1.62 $ 4.64 $ 4.85\n share\n\n Adjustments:\n Restructuring and other costs (1) 0.47 0.48 1.40 1.20\n Separation costs (2) 0.15 — 0.40 —\n Acquisition and integration related 0.01 — 0.04 0.10\n costs and other (3)\n Total adjustments 0.63 0.48 1.84 1.30\n Tax impact of adjustments (4) (0.18) (0.12) (0.49) (0.33)\n Adjusted diluted net income per $ 2.07 $ 1.98 $ 5.99 $ 5.82\n common share\n Weighted average common shares 138,331 139,406 138,104 139,257\n outstanding – assuming dilution\n\n (1) Amount reflects costs related to our global restructuring initiative which\n includes employee severance and other termination benefits, and the\n rationalization and optimization of certain distribution centers, stores and\n other facilities.\n (2) Amount primarily reflects legal and professional services and executive\n incentive plan costs related to the planned separation of our Global\n Automotive and Global Industrial businesses that was announced on February 17,\n 2026 and is targeted for completion in the first quarter of 2027.\n (3) Amount primarily reflects lease and other exit costs related to the\n integration of acquired independent automotive stores.\n (4) We determine the tax effect of non-GAAP adjustments by considering the tax\n laws and statutory income tax rates applicable in the tax jurisdictions of the\n underlying non-GAAP adjustments, including any related valuation allowances.\n For the three and nine months ended September 30, 2026, we applied the\n statutory income tax rates to the taxable portion of all of our adjustments,\n which resulted in a tax impact of $25 million and $68 million, respectively.\n\n \n The table below clarifies where the items that have been adjusted above to\n improve comparability of the\n financial information from period to period are presented in the condensed\n consolidated statements of\n income.\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n Line item:\n Cost of goods sold $ 803 $ — $ 6,092 $ —\n Selling, administrative and other 21,204 — 54,912 14,035\n expenses\n Restructuring and other costs 64,545 66,835 193,426 167,317\n Total adjustments $ 86,552 $ 66,835 $ 254,430 $ 181,352\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n RECONCILIATION OF GAAP SELLING, ADMINISTRATIVE AND OTHER EXPENSES TO\n ADJUSTED SELLING, ADMINISTRATIVE AND OTHER EXPENSES\n (UNAUDITED)\n The table below represents a reconciliation from GAAP selling, administrative\n and other expenses to\n adjusted selling, administrative and other expenses:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n GAAP selling, administrative and $ 1,944,518 $ 1,805,928 $ 5,718,856 $ 5,286,802\n other expenses\n Adjustments:\n Separation costs (21,204) — (54,912) —\n Acquisition and integration related — — — (14,035)\n costs and other\n Total adjustments (1) (21,204) — (54,912) (14,035)\n Adjusted selling, administrative and $ 1,923,314 $ 1,805,928 $ 5,663,944 $ 5,272,767\n other expenses\n\n Net sales $ 6,521,308 $ 6,260,232 $ 19,323,199 $ 18,290,726\n GAAP SG&A expenses as a 29.8 % 28.8 % 29.6 % 28.9 %\n percentage of net sales\n Adjusted SG&A expenses as a 29.5 % 28.8 % 29.3 % 28.8 %\n percentage of net sales\n\n (1) Refer to the explanation of adjustments included within the reconciliation of\n GAAP net income to adjusted net income table for further information.\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n CHANGE IN NET SALES SUMMARY\n (UNAUDITED)\n Three Months Ended September 30, 2026\n Comparable Acquisitions Foreign Other GAAP Total\n Sales Currency Net Sales\n North America Automotive 1.7 % 1.1 % (0.3) % (0.3) % 2.2 %\n International Automotive 1.1 % 1.7 % 1.7 % — % 4.5 %\n Industrial 5.5 % 0.1 % 0.5 % — % 6.1 %\n Total Net Sales 2.9 % 0.9 % 0.5 % (0.1) % 4.2 %\n\n Nine Months Ended September 30, 2026\n Comparable Acquisitions Foreign Other GAAP Total\n Sales Currency Net Sales\n North America Automotive 2.2 % 1.3 % 0.1 % (0.2) % 3.4 %\n International Automotive 0.9 % 2.1 % 5.5 % — % 8.5 %\n Industrial 5.1 % 0.2 % 0.8 % — % 6.1 %\n Total Net Sales 2.9 % 1.1 % 1.7 % (0.1) % 5.6 %\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH\n FLOW\n (UNAUDITED)\n Nine Months Ended September 30,\n (in thousands) 2026 2025\n Net cash provided by operating activities $ 816,647 $ 510,689\n Purchases of property, plant and equipment (314,476) (350,443)\n Free cash flow $ 502,171 $ 160,246\n\n For the Year Ending December 31, 2026\n Net cash provided by operating activities $1.0 billion to $1.2 billion\n Purchases of property, plant and equipment $450 million to $500 million\n Free cash flow $550 million to $700 million\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/genuine-parts-company-reports-third-quarter-2026-results-302913314.html\n(https://www.prnewswire.com/news-releases/genuine-parts-company-reports-third-quarter-2026-results-302913314.html)\n\nSOURCE Genuine Parts Company\n\n\n\nInvestor Contact: Timothy Walsh - (678) 934-5349, Vice President - Investor Relations; Media Contact: Heather Ross - (678) 934-5220, Vice President - Global Strategic Communications\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS255289/GENUINE-PARTS-COMPANY-LOGO.jpg?id=OA3027875\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved.","article_body_html":"","raw_payload":{"data":{"id":"nPn7nf6G1a-20261020","title":"Genuine Parts Company Reports Third Quarter 2026 Results","author":"PR Newswire","ticker":"GPC","created":"2026-10-20T10:55:00.061Z","tickers":["GPC"],"exchange":"NYSE","article_body":"Genuine Parts Company Reports Third Quarter 2026 Results\nPR Newswire\n\nATLANTA, Oct. 20, 2026\n\nNarrows 2026 Outlook for Adjusted EPS to $7.50 to $7.75 from $7.50 to $8.00\n\nATLANTA, Oct. 20, 2026 /PRNewswire/ -- Genuine Parts Company (NYSE: GPC), a\nleading global service provider of automotive and industrial replacement parts\nand value-added solutions, announced today its results for the third quarter\nended September 30, 2026.\n\n\"Our third quarter performance demonstrates the strength of our market leading\nbusinesses and our teams' continued focus on serving customers and executing\nour strategic priorities,\" said Will Stengel, Chairman and Chief Executive\nOfficer. \"We also achieved important milestones in our separation process and\nremain on track to launch GPC and Motion as two independent, leading companies\nin the first quarter of 2027.\"\n\nThird Quarter 2026 Results\n\nSales were $6.5 billion, a 4.2% increase compared to $6.3 billion in the same\nperiod of the prior year. The improvement is attributable to a 2.9% increase\nin comparable sales, a 0.9% benefit from acquisitions and a net 0.4% favorable\nimpact of foreign currency and other.\n\nNet income was $224 million, or $1.62 per diluted earnings per share. This\ncompares to net income of $226 million, or $1.62 per diluted share in the\nprior year period.\n\nAdjusted net income was $286 million, or $2.07 per diluted earnings per share.\nAdjusted net income excludes $61 million of after-tax adjustments, or $0.45\nper diluted share, which relates to costs associated with the company's global\nrestructuring initiative and the planned separation of the company's\nAutomotive and Industrial businesses. This compares to adjusted net income of\n$276 million, or $1.98 per diluted share in the prior year period. Refer to\nthe reconciliation of GAAP net income to adjusted net income and GAAP diluted\nnet income per common share to adjusted diluted net income per common share\nfor more information.\n\nThird Quarter 2026 Segment Highlights\n\nNorth America Automotive Parts Group (\"North America Automotive\")\n\nNorth America Automotive sales were $2.5 billion, up 2.2% from the same period\nin 2025. The improvement is primarily attributable to a 1.7% increase in\ncomparable sales and a 1.1% benefit from acquisitions. This was partially\noffset by a 0.6% unfavorable impact of foreign currency and other. Segment\nEBITDA of $194 million decreased 2.9%, with segment EBITDA margin of 7.6%,\ndown 40 basis points from the same period of the prior year.\n\nInternational Automotive Parts Group (\"International Automotive\")\n\nInternational Automotive sales were $1.6 billion, up 4.5% from the same period\nin 2025. The improvement is primarily attributable to a 1.7% benefit from\nacquisitions, a 1.7% favorable impact of foreign currency and a 1.1% increase\nin comparable sales. Segment EBITDA of $141 million increased 4.7%, with\nsegment EBITDA margin of 9.0%, flat versus the same period of the prior year.\n\nIndustrial Parts Group (\"Industrial\")\n\nIndustrial sales were $2.4 billion, up 6.1% from the same period in 2025. The\nimprovement is primarily attributable to a 5.5% increase in comparable sales,\na 0.5% favorable impact of foreign currency and a 0.1% benefit from\nacquisitions. Segment EBITDA of $317 million increased 11.2%, with segment\nEBITDA margin of 13.2%, up 60 basis points from the same period of the prior\nyear.\n\nYear to Date 2026 Results\n\nSales for the nine months ended September 30, 2026 were $19.3 billion, up\n5.6% from the same period in 2025. Net income for the nine months was $641\nmillion, or $4.64 per diluted share. This compares to net income of $675\nmillion, or $4.85 per diluted share in the prior year period. Adjusted net\nincome was $827 million in the first nine months of 2026, compared to adjusted\nnet income of $810 million in the prior year period. Adjusted diluted earnings\nper share were $5.99 compared to $5.82 in the prior year period.\n\nBalance Sheet, Cash Flow and Capital Allocation\n\nThe company generated cash flow from operations of $817 million for the first\nnine months of 2026. Net cash used in investing activities was $361 million,\nincluding $314 million for capital expenditures and $69 million for\nacquisitions. Net cash used in financing activities was $139 million,\nincluding net proceeds of debt (including net commercial paper) of\n$338 million, partially offset by $434 million for quarterly dividends paid\nto shareholders. Free cash flow was $502 million for the first nine months of\n2026. Refer to the reconciliation of GAAP net cash provided by operating\nactivities to free cash flow for more information.\n\nAs of September 30, 2026, total liquidity was $2.4 billion, consisting of\n$763 million in cash, and $1.6 billion of available capacity under the\ncompany's $2.0 billion Revolving Credit Agreement. This reflects $389 million\noutstanding under our commercial paper program.\n\n2026 Outlook\n\nThe company is narrowing the range for adjusted diluted earnings per share\noutlook from its previous full-year 2026 outlook provided in its earnings\nreleases on February 17, 2026, April 21, 2026 and July 21, 2026. The company\nconsidered its recent business trends and financial results, current growth\nplans, strategic initiatives, global economic outlook, geopolitical conflicts\nand the potential impact on results in updating its outlook, which is outlined\nin the table below. The updated GAAP earnings-per-share outlook includes\nexpected costs associated with the company's restructuring initiatives, and\nincludes costs related to the planned separation that have been incurred\nyear-to-date.\n For the Year Ending December 31, 2026\n Previous Outlook Updated Outlook\n Total sales growth 3% to 5.5% 3% to 5.5%\n North America Automotive sales growth 2.5% to 4.5% 2.5% to 4.5%\n International Automotive sales growth 5% to 8% 5% to 8%\n Industrial sales growth 3% to 6% 3% to 6%\n Diluted earnings per share $5.90 to $6.40 $5.60 to $5.85\n Adjusted diluted earnings per share $7.50 to $8.00 $7.50 to $7.75\n Effective tax rate Approx. 24% Approx. 24%\n Net cash provided by operating activities $1.0 billion to $1.2 billion $1.0 billion to $1.2 billion\n Free cash flow $550 million to $700 million $550 million to $700 million\n\nNon-GAAP Information\n\nThis release contains certain financial information not derived in accordance\nwith United States (\"U.S.\") generally accepted accounting principles (\"GAAP\").\nThese items include adjusted net income, adjusted diluted net income per\ncommon share, adjusted selling, administrative, and other expenses, and free\ncash flow. The company believes that the presentation of adjusted net income,\nadjusted diluted net income per common share, adjusted selling, administrative\nand other expenses and free cash flow, when considered together with the\ncorresponding GAAP financial measures and the reconciliations to those\nmeasures, provides meaningful supplemental information to both management and\ninvestors that is indicative of the company's core operations. The company\nconsiders these metrics useful to investors because they provide greater\ntransparency into management's view and assessment of the company's ongoing\noperating performance by removing items management believes are not\nrepresentative of the company's continuing operations and may distort the\ncompany's longer-term operating trends. The company believes these measures\nare useful and enhance the comparability of the results from period to period\nand with the company's competitors, as well as show ongoing results from\noperations distinct from items that are infrequent or not associated with the\ncompany's core operations. The company does not, nor does it suggest investors\nshould, consider such non-GAAP financial measures as superior to, in isolation\nfrom, or as a substitute for, GAAP financial information. The company has\nincluded a reconciliation of this additional information to the most\ncomparable GAAP measure following the financial statements below. The company\ndoes not provide a forward-looking outlook for certain financial measures on a\nGAAP basis because the company is unable to predict certain items contained in\nthe GAAP measures without unreasonable efforts. These items may include\nseparation costs, acquisition-related costs, litigation charges or\nsettlements, impairment charges, restructuring costs and certain other unusual\nadjustments.\n\nComparable Sales\n\nComparable sales is a key metric that refers to period-over-period comparisons\nof the company's net sales excluding the impact of acquisitions, foreign\ncurrency and other. The company's calculation of comparable sales is computed\nusing total business days for the period and is inclusive of sales from\ncompany-owned stores and sales into independent stores. The company considers\nthis metric useful to investors because it provides greater transparency into\nmanagement's view and assessment of the company's core ongoing operations.\nThis is a metric that is widely used by analysts, investors and competitors;\nhowever the company's calculation of the metric may not be comparable to\nsimilar measures disclosed by other companies, because not all companies and\nanalysts calculate this metric in the same manner.\n\nConference Call\n\nGenuine Parts Company will hold a conference call today at 8:30 a.m. Eastern\nTime to discuss the results of the quarter. A supplemental earnings deck will\nalso be available for reference. Interested parties may listen to the call and\nview the supplemental earnings deck on the company's investor relations\nwebsite\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4801554-1&h=2116186003&u=http%3A%2F%2Fwww.genpt.com%2Foverview&a=company%27s+investor+relations+website)\n. The call is also available by dialing 800-836-8184. A replay of the call\nwill be available on the company's website or toll-free at 888-660-6345,\nconference ID 26206#, two hours after the completion of the call.\n\nAbout Genuine Parts Company\n\nEstablished in 1928, Genuine Parts Company is a leading global service\nprovider of automotive and industrial replacement parts and value-added\nsolutions. Our Automotive Parts Group operates across North America, Europe\nand Australasia, while our Industrial Parts Group serves customers across\nNorth America and Australasia. We keep the world moving with a vast network of\nover 10,800 locations spanning 17 countries supported by more than 65,000\nteammates. Learn more at genpt.com\n(https://edge.prnewswire.com/c/link/?t=0&l=en&o=4801554-1&h=1350600803&u=http%3A%2F%2Fwww.genpt.com%2F&a=genpt.com)\n.\n\nForward-Looking Statements\n\nSome statements in this release, as well as in other materials the company\nfiles with the Securities and Exchange Commission (\"SEC\"), release to the\npublic, or make available on the company's website, constitute forward-looking\nstatements that are subject to the safe harbor provisions of the Private\nSecurities Litigation Reform Act of 1995. All statements in the future tense\nand all statements accompanied by words such as \"expect,\" \"likely,\" \"outlook,\"\n\"forecast,\" \"preliminary,\" \"would,\" \"could,\" \"should,\" \"position,\" \"will,\"\n\"project,\" \"intend,\" \"plan,\" \"on track,\" \"anticipate,\" \"to come,\" \"may,\"\n\"possible,\" \"assume,\" or similar expressions are intended to identify such\nforward-looking statements. These forward-looking statements include the\ncompany's view of business and economic trends for the remainder of the year\nand the company's expectations regarding its ability to capitalize on these\nbusiness and economic trends; the company's full-year 2026 outlook and the\ncompany's ability to successfully execute on its strategic priorities,\nincluding the company's anticipated separation of Global Automotive and Global\nIndustrial into two independent, publicly traded companies. Senior officers\nmay also make verbal statements to analysts, investors, the media and others\nthat are forward-looking.\n\nThe company cautions you that all forward-looking statements involve risks and\nuncertainties, and while the company believes its expectations for the future\nare reasonable in view of currently available information, you are cautioned\nnot to place undue reliance on the company's forward-looking statements.\nActual results or events may differ materially from those indicated as a\nresult of various important factors. Such factors may include, among other\nthings, changes in general economic conditions, including persistent inflation\n(including the direct and indirect impact of tariffs and retaliatory tariffs)\nor deflation, geopolitical uncertainty and unrest (including from the conflict\ninvolving the United States and Iran) and declining consumer confidence; the\ncompany's ability to successfully implement the separation of Global\nAutomotive and Global Industrial and achieve the anticipated benefits of such\ntransaction; volatility in oil prices; significant costs, such as elevated\nfuel and freight expenses; the company's ability to maintain compliance with\nits debt covenants; its ability to successfully integrate acquired businesses\ninto its operations and to realize the anticipated synergies and benefits; its\nability to successfully implement its business initiatives in its three\nbusiness segments; slowing demand for its products; the ability to maintain\nfavorable supplier arrangements and relationships; changes in national and\ninternational legislation or government regulations or policies, including\nchanges to global trade regulations, environmental and social policy,\ninfrastructure programs and privacy legislation and related uncertainties, and\ntheir impact on the company, its suppliers and customers; changes in tax\npolicies; volatile exchange rates; the company's ability to successfully\nattract and retain employees in the current labor market; uncertain credit\nmarkets and other macroeconomic conditions; competitive product, service and\npricing pressures; failure or weakness in the company's disclosure controls\nand procedures and internal controls over financial reporting; the\nuncertainties and costs of litigation; public health emergencies, including\nthe effects on the financial health of the company's business partners and\ncustomers, on supply chains and its suppliers, on vehicle miles driven as well\nas other metrics that affect the company's business, and on access to capital\nand liquidity provided by the financial and capital markets; disruptions\ncaused by a failure or breach of the company's information systems; the\nsuccess of its global restructuring efforts and the annualized cost savings\narising therefrom, as well as other risks and uncertainties discussed in the\ncompany's Annual Report on Form 10-K and from time to time in its subsequent\nfilings with the SEC.\n\nForward-looking statements speak only as of the date they are made, and the\ncompany undertakes no duty to update any forward-looking statements except as\nrequired by law. You are advised, however, to review any further disclosures\nthe company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and\nother reports filed with the SEC.\n GENUINE PARTS COMPANY AND SUBSIDIARIES\n CONDENSED CONSOLIDATED STATEMENTS OF INCOME\n (UNAUDITED)\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands, except per share data) 2026 2025 2026 2025\n Net sales $ 6,521,308 $ 6,260,232 $ 19,323,199 $ 18,290,726\n Cost of goods sold 4,037,033 3,918,830 12,029,253 11,451,252\n Gross profit 2,484,275 2,341,402 7,293,946 6,839,474\n Operating expenses:\n Selling, administrative and other expenses 1,944,518 1,805,928 5,718,856 5,286,802\n Depreciation and amortization 137,490 127,475 403,234 365,928\n Provision for doubtful accounts 9,238 6,871 27,339 20,351\n Restructuring and other costs 64,545 66,835 193,426 167,317\n Total operating expenses 2,155,791 2,007,109 6,342,855 5,840,398\n Non-operating expense (income):\n Interest expense, net 45,970 40,342 135,723 117,769\n Other 3,866 2,258 (2,503) (580)\n Total non-operating expense 49,836 42,600 133,220 117,189\n Income before income taxes 278,648 291,693 817,871 881,887\n Income taxes 54,201 65,522 177,331 206,444\n Net income $ 224,447 $ 226,171 $ 640,540 $ 675,443\n Dividends declared per common share $ 1.0625 $ 1.03 $ 3.1875 $ 3.09\n Basic earnings per share $ 1.63 $ 1.63 $ 4.65 $ 4.86\n Diluted earnings per share $ 1.62 $ 1.62 $ 4.64 $ 4.85\n\n Weighted average common shares 137,862 139,099 137,753 138,959\n outstanding\n Dilutive effect of stock options and non- 469 307 351 298\n vested restricted stock awards\n Weighted average common shares 138,331 139,406 138,104 139,257\n outstanding – assuming dilution\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n SEGMENT INFORMATION\n (UNAUDITED)\n The following table presents net sales by segment and a reconciliation from\n segment EBITDA to net\n income:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n Net sales:\n North America Automotive $ 2,540,319 $ 2,484,591 $ 7,440,587 $ 7,193,749\n International Automotive 1,572,392 1,505,197 4,746,020 4,373,208\n Industrial 2,408,597 2,270,444 7,136,592 6,723,769\n Segment EBITDA:\n North America Automotive 193,860 199,626 558,393 543,121\n International Automotive 141,394 135,078 436,230 415,082\n Industrial 316,927 285,015 947,494 851,865\n Corporate EBITDA (1) (103,521) (93,374) (330,859) (263,131)\n Interest expense, net (45,970) (40,342) (135,723) (117,769)\n Depreciation and amortization (137,490) (127,475) (403,234) (365,928)\n Other unallocated costs (86,552) (66,835) (254,430) (181,352)\n Income before income taxes 278,648 291,693 817,871 881,887\n Income taxes (54,201) (65,522) (177,331) (206,444)\n Net income $ 224,447 $ 226,171 $ 640,540 $ 675,443\n\n (1) Corporate EBITDA consists of costs related to the company's Corporate\n headquarters' broad support to the company's business units and other costs\n that are managed centrally and not allocated to business segments. These\n include personnel and other costs for company-wide functions such as executive\n leadership, human resources, technology, cybersecurity, legal, corporate\n finance, internal audit, and risk management, as well as product liability\n costs and A/R Sales Agreement fees.\n\n \n The following table presents a summary of the other unallocated costs:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n Other unallocated costs:\n Restructuring and other costs (2) $ (64,545) $ (66,835) $ (193,426) $ (167,317)\n Separation costs (3) (21,204) — (54,912) —\n Acquisition and integration related (803) — (6,092) (14,035)\n costs and other (4)\n Total other unallocated costs $ (86,552) $ (66,835) $ (254,430) $ (181,352)\n\n (2) Amount reflects costs related to our global restructuring initiative which\n includes employee severance and other termination benefits, and the\n rationalization and optimization of certain distribution centers, stores and\n other facilities.\n (3) Amount primarily reflects legal and professional services and executive\n incentive plan costs related to the planned separation of the company's Global\n Automotive and Global Industrial businesses that was announced on February 17,\n 2026 and is targeted for completion in the first quarter of 2027.\n (4) Amount primarily reflects lease and other exit costs related to the\n integration of acquired independent automotive stores.\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n CONDENSED CONSOLIDATED BALANCE SHEETS\n (UNAUDITED)\n (in thousands, except share and per share data) September 30, 2026 December 31, 2025\n Assets\n Current assets:\n Cash and cash equivalents $ 763,151 $ 477,179\n Trade accounts receivable, net 2,619,491 2,370,939\n Merchandise inventories, net 6,435,802 6,071,996\n Prepaid expenses and other current assets 1,632,361 1,644,620\n Total current assets 11,450,805 10,564,734\n Goodwill 3,206,231 3,188,815\n Other intangible assets, net 1,743,938 1,855,714\n Property, plant and equipment, net 2,161,387 2,172,140\n Operating lease assets 2,062,454 2,084,487\n Other assets 872,340 929,650\n Total assets $ 21,497,155 $ 20,795,540\n\n Liabilities and equity\n Current liabilities:\n Trade accounts payable $ 6,394,876 $ 6,051,882\n Short-term borrowings 388,088 943,540\n Current portion of long-term debt 250,000 353,788\n Dividends payable 148,074 143,291\n Other current liabilities 2,180,515 2,295,204\n Total current liabilities 9,361,553 9,787,705\n Long-term debt 4,472,149 3,498,423\n Operating lease liabilities 1,713,902 1,739,478\n Pension and other post–retirement benefit liabilities 218,787 219,270\n Deferred tax liabilities 368,353 385,948\n Other long-term liabilities 703,492 724,353\n Equity:\n Preferred stock, par value – $1 per share; authorized – — —\n 10,000,000 shares; none issued\n Common stock, par value – $1 per share; authorized – 137,865 137,618\n 450,000,000 shares; issued and outstanding – 2026 –\n 137,864,682 shares; 2025 – 137,617,832 shares\n Additional paid-in capital 259,505 228,370\n Accumulated other comprehensive loss (518,474) (511,766)\n Retained earnings 4,770,080 4,568,769\n Total parent equity 4,648,976 4,422,991\n Noncontrolling interests in subsidiaries 9,943 17,372\n Total equity 4,658,919 4,440,363\n Total liabilities and equity $ 21,497,155 $ 20,795,540\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS\n (UNAUDITED)\n Nine Months Ended\n September 30,\n (in thousands) 2026 2025\n Operating activities:\n Net income $ 640,540 $ 675,443\n Adjustments to reconcile net income to net cash provided by (used in)\n operating activities:\n Depreciation and amortization 403,234 365,928\n Share-based compensation 45,095 37,183\n Other operating activities, including changes in operating assets and (272,222) (567,865)\n liabilities\n Net cash provided by operating activities 816,647 510,689\n Investing activities:\n Purchases of property, plant and equipment (314,476) (350,443)\n Proceeds from sale of property, plant and equipment 28,070 21,085\n Acquisitions of businesses (69,450) (181,987)\n Proceeds from divestitures of businesses 6,885 59\n Other investing activities (12,105) 23,335\n Net cash used in investing activities (361,076) (487,951)\n Financing activities:\n Proceeds from debt 1,291,217 44,600\n Payments on debt (997,776) (567,368)\n Net proceeds of commercial paper 44,968 886,175\n Shares issued from employee incentive plans (13,713) (16,316)\n Dividends paid (434,446) (420,571)\n Other financing activities (29,283) (20,237)\n Net cash used in financing activities (139,033) (93,717)\n Effect of exchange rate changes on cash and cash equivalents (30,566) 22,347\n Net increase (decrease) in cash and cash equivalents 285,972 (48,632)\n Cash and cash equivalents at beginning of period 477,179 479,991\n Cash and cash equivalents at end of period $ 763,151 $ 431,359\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME AND GAAP\n DILUTED NET INCOME PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME PER\n COMMON SHARE\n (UNAUDITED)\n The table below represents a reconciliation from GAAP net income to adjusted\n net income:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n GAAP net income $ 224,447 $ 226,171 $ 640,540 $ 675,443\n\n Adjustments:\n Restructuring and other costs (1) 64,545 66,835 193,426 167,317\n Separation costs (2) 21,204 — 54,912 —\n Acquisition and integration related 803 — 6,092 14,035\n costs and other (3)\n Total adjustments 86,552 66,835 254,430 181,352\n Tax impact of adjustments (4) (25,053) (17,411) (68,239) (46,340)\n Adjusted net income $ 285,946 $ 275,595 $ 826,731 $ 810,455\n\n \n The table below represents amounts per common share assuming dilution:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands, except per share data) 2026 2025 2026 2025\n GAAP diluted net income per common $ 1.62 $ 1.62 $ 4.64 $ 4.85\n share\n\n Adjustments:\n Restructuring and other costs (1) 0.47 0.48 1.40 1.20\n Separation costs (2) 0.15 — 0.40 —\n Acquisition and integration related 0.01 — 0.04 0.10\n costs and other (3)\n Total adjustments 0.63 0.48 1.84 1.30\n Tax impact of adjustments (4) (0.18) (0.12) (0.49) (0.33)\n Adjusted diluted net income per $ 2.07 $ 1.98 $ 5.99 $ 5.82\n common share\n Weighted average common shares 138,331 139,406 138,104 139,257\n outstanding – assuming dilution\n\n (1) Amount reflects costs related to our global restructuring initiative which\n includes employee severance and other termination benefits, and the\n rationalization and optimization of certain distribution centers, stores and\n other facilities.\n (2) Amount primarily reflects legal and professional services and executive\n incentive plan costs related to the planned separation of our Global\n Automotive and Global Industrial businesses that was announced on February 17,\n 2026 and is targeted for completion in the first quarter of 2027.\n (3) Amount primarily reflects lease and other exit costs related to the\n integration of acquired independent automotive stores.\n (4) We determine the tax effect of non-GAAP adjustments by considering the tax\n laws and statutory income tax rates applicable in the tax jurisdictions of the\n underlying non-GAAP adjustments, including any related valuation allowances.\n For the three and nine months ended September 30, 2026, we applied the\n statutory income tax rates to the taxable portion of all of our adjustments,\n which resulted in a tax impact of $25 million and $68 million, respectively.\n\n \n The table below clarifies where the items that have been adjusted above to\n improve comparability of the\n financial information from period to period are presented in the condensed\n consolidated statements of\n income.\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n Line item:\n Cost of goods sold $ 803 $ — $ 6,092 $ —\n Selling, administrative and other 21,204 — 54,912 14,035\n expenses\n Restructuring and other costs 64,545 66,835 193,426 167,317\n Total adjustments $ 86,552 $ 66,835 $ 254,430 $ 181,352\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n RECONCILIATION OF GAAP SELLING, ADMINISTRATIVE AND OTHER EXPENSES TO\n ADJUSTED SELLING, ADMINISTRATIVE AND OTHER EXPENSES\n (UNAUDITED)\n The table below represents a reconciliation from GAAP selling, administrative\n and other expenses to\n adjusted selling, administrative and other expenses:\n Three Months Ended Nine Months Ended\n September 30, September 30,\n (in thousands) 2026 2025 2026 2025\n GAAP selling, administrative and $ 1,944,518 $ 1,805,928 $ 5,718,856 $ 5,286,802\n other expenses\n Adjustments:\n Separation costs (21,204) — (54,912) —\n Acquisition and integration related — — — (14,035)\n costs and other\n Total adjustments (1) (21,204) — (54,912) (14,035)\n Adjusted selling, administrative and $ 1,923,314 $ 1,805,928 $ 5,663,944 $ 5,272,767\n other expenses\n\n Net sales $ 6,521,308 $ 6,260,232 $ 19,323,199 $ 18,290,726\n GAAP SG&A expenses as a 29.8 % 28.8 % 29.6 % 28.9 %\n percentage of net sales\n Adjusted SG&A expenses as a 29.5 % 28.8 % 29.3 % 28.8 %\n percentage of net sales\n\n (1) Refer to the explanation of adjustments included within the reconciliation of\n GAAP net income to adjusted net income table for further information.\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n CHANGE IN NET SALES SUMMARY\n (UNAUDITED)\n Three Months Ended September 30, 2026\n Comparable Acquisitions Foreign Other GAAP Total\n Sales Currency Net Sales\n North America Automotive 1.7 % 1.1 % (0.3) % (0.3) % 2.2 %\n International Automotive 1.1 % 1.7 % 1.7 % — % 4.5 %\n Industrial 5.5 % 0.1 % 0.5 % — % 6.1 %\n Total Net Sales 2.9 % 0.9 % 0.5 % (0.1) % 4.2 %\n\n Nine Months Ended September 30, 2026\n Comparable Acquisitions Foreign Other GAAP Total\n Sales Currency Net Sales\n North America Automotive 2.2 % 1.3 % 0.1 % (0.2) % 3.4 %\n International Automotive 0.9 % 2.1 % 5.5 % — % 8.5 %\n Industrial 5.1 % 0.2 % 0.8 % — % 6.1 %\n Total Net Sales 2.9 % 1.1 % 1.7 % (0.1) % 5.6 %\n\n \n GENUINE PARTS COMPANY AND SUBSIDIARIES\n RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH\n FLOW\n (UNAUDITED)\n Nine Months Ended September 30,\n (in thousands) 2026 2025\n Net cash provided by operating activities $ 816,647 $ 510,689\n Purchases of property, plant and equipment (314,476) (350,443)\n Free cash flow $ 502,171 $ 160,246\n\n For the Year Ending December 31, 2026\n Net cash provided by operating activities $1.0 billion to $1.2 billion\n Purchases of property, plant and equipment $450 million to $500 million\n Free cash flow $550 million to $700 million\n\nView original content to download\nmultimedia:https://www.prnewswire.com/news-releases/genuine-parts-company-reports-third-quarter-2026-results-302913314.html\n(https://www.prnewswire.com/news-releases/genuine-parts-company-reports-third-quarter-2026-results-302913314.html)\n\nSOURCE Genuine Parts Company\n\n\n\nInvestor Contact: Timothy Walsh - (678) 934-5349, Vice President - Investor Relations; Media Contact: Heather Ross - (678) 934-5220, Vice President - Global Strategic Communications\n\nPhoto: \nhttps://mmx.prnewswire.com/media/MS255289/GENUINE-PARTS-COMPANY-LOGO.jpg?id=OA3027875\n\nCopyright (c) 2026 PR Newswire Association,LLC. All Rights Reserved."},"type":"article","timestamp":"2026-10-20T10:55:00.202571274Z","server_sent_at_ms":1792493700202},"received_at":"2026-10-20T10:55:00.452Z","source_url":"https://www.prnewswire.com/news-releases/genuine-parts-company-reports-third-quarter-2026-results-302913314.html"},"analysis":{"id":"161722","press_release_id":"173632","analysis_json":{"industry":{"label":"Distributors","sector":"Consumer Discretionary"},"redFlags":["top end of adjusted EPS guidance trimmed by $0.25","GAAP EPS guidance cut meaningfully ($5.60-$5.85 vs $5.90-$6.40)","North America Automotive segment EBITDA margin down 40 bps"],"eventType":"earnings","narrative":"Genuine Parts Company posted Q3 2026 sales of $6.5 billion, up 4.2% year-over-year on 2.9% comparable sales growth, with adjusted diluted EPS of $2.07 versus $1.98 a year ago.\n\nGAAP EPS was flat at $1.62 as net income slipped to $224 million; the Industrial segment was the standout with sales up 6.1% and EBITDA up 11.2%, while North America Automotive EBITDA fell 2.9%.\n\nThe company narrowed full-year adjusted EPS guidance to $7.50-$7.75 from $7.50-$8.00 and cut GAAP EPS guidance to $5.60-$5.85, citing restructuring and separation costs.\n\nGPC remains on track to separate into two independent public companies, GPC and Motion, in the first quarter of 2027.","sentiment":"mixed","agentHooks":{"shouldPost":true,"suggestedAngle":"Industrial strength offsets soft North America Automotive as GPC trims the top of its adjusted EPS outlook ahead of the 2027 split."},"keyFigures":{"eps":1.62,"revenue":6521308000,"guidance":"FY2026 adjusted diluted EPS narrowed to $7.50-$7.75 from $7.50-$8.00; GAAP diluted EPS cut to $5.60-$5.85 from $5.90-$6.40; sales growth unchanged at 3%-5.5%","revenueYoy":"4.2%","customDimensions":{"net_income":224000000,"adjusted_eps":2.07,"total_liquidity":"$2.4 billion","free_cash_flow_ytd":502000000,"adjusted_net_income":286000000,"comparable_sales_growth":"2.9%","operating_cash_flow_ytd":817000000,"segment_ebitda_industrial":317000000,"segment_ebitda_margin_industrial":"13.2%"}},"quotedText":"We also achieved important milestones in our separation process and\nremain on track to launch GPC and Motion as two independent, leading companies\nin the first quarter of 2027.","namedEntities":{"people":[{"name":"Will Stengel","role":"Chairman and CEO"},{"name":"Timothy Walsh","role":"Vice President - Investor Relations"},{"name":"Heather Ross","role":"Vice President - Global Strategic Communications"}],"products":["NAPA (North America Automotive)","Motion (Industrial)"],"companies":[{"name":"Genuine Parts Company","ticker":"GPC"}],"dollarAmounts":[{"amount":"$6.5 billion","context":"Q3 2026 sales"},{"amount":"$224 million","context":"Q3 2026 net income"},{"amount":"$286 million","context":"Q3 2026 adjusted net income"},{"amount":"$19.3 billion","context":"nine-month 2026 sales"},{"amount":"$502 million","context":"nine-month free cash flow"},{"amount":"$434 million","context":"nine-month dividends paid"},{"amount":"$2.4 billion","context":"total liquidity as of September 30, 2026"}]},"materialImpact":{"score":3,"reasoning":"S&P 500 constituent reported modest Q3 growth (sales +4.2%, adjusted EPS $2.07 vs $1.98), but narrowed adjusted EPS guidance to $7.50-$7.75 from $7.50-$8.00 and cut GAAP EPS outlook to $5.60-$5.85 from $5.90-$6.40."},"tickerRelevance":{"others":[],"primary":"GPC"},"globalImportance":45,"audienceRelevance":45,"eventTypeSecondary":["guidance_update"],"importanceComponents":{"tickerTier":"S&P 500 large-cap","eventGravity":"routine earnings with modest guidance trim","sectorWeight":"consumer/industrial distribution, moderate market sensitivity","householdBrandBoost":false}},"event_type":"earnings","event_type_secondary":["guidance_update"],"sentiment":"mixed","material_impact_score":3,"narrative":"Genuine Parts Company posted Q3 2026 sales of $6.5 billion, up 4.2% year-over-year on 2.9% comparable sales growth, with adjusted diluted EPS of $2.07 versus $1.98 a year ago.\n\nGAAP EPS was flat at $1.62 as net income slipped to $224 million; the Industrial segment was the standout with sales up 6.1% and EBITDA up 11.2%, while North America Automotive EBITDA fell 2.9%.\n\nThe company narrowed full-year adjusted EPS guidance to $7.50-$7.75 from $7.50-$8.00 and cut GAAP EPS guidance to $5.60-$5.85, citing restructuring and separation costs.\n\nGPC remains on track to separate into two independent public companies, GPC and Motion, in the first quarter of 2027.","key_figures":{"eps":1.62,"revenue":6521308000,"guidance":"FY2026 adjusted diluted EPS narrowed to $7.50-$7.75 from $7.50-$8.00; GAAP diluted EPS cut to $5.60-$5.85 from $5.90-$6.40; sales growth unchanged at 3%-5.5%","revenueYoy":"4.2%","customDimensions":{"net_income":224000000,"adjusted_eps":2.07,"total_liquidity":"$2.4 billion","free_cash_flow_ytd":502000000,"adjusted_net_income":286000000,"comparable_sales_growth":"2.9%","operating_cash_flow_ytd":817000000,"segment_ebitda_industrial":317000000,"segment_ebitda_margin_industrial":"13.2%"}},"named_entities":{"people":[{"name":"Will Stengel","role":"Chairman and CEO"},{"name":"Timothy Walsh","role":"Vice President - Investor Relations"},{"name":"Heather Ross","role":"Vice President - Global Strategic Communications"}],"products":["NAPA (North America Automotive)","Motion (Industrial)"],"companies":[{"name":"Genuine Parts Company","ticker":"GPC"}],"dollarAmounts":[{"amount":"$6.5 billion","context":"Q3 2026 sales"},{"amount":"$224 million","context":"Q3 2026 net income"},{"amount":"$286 million","context":"Q3 2026 adjusted net income"},{"amount":"$19.3 billion","context":"nine-month 2026 sales"},{"amount":"$502 million","context":"nine-month free cash flow"},{"amount":"$434 million","context":"nine-month dividends paid"},{"amount":"$2.4 billion","context":"total liquidity as of September 30, 2026"}]},"model_name":"glm-5.3-flashx","prompt_hash":"sha256:5c812bd9e28b810d","schema_hash":"sha256:05005c02d9cffac9","created_at":"2026-10-20T10:55:10.355Z","global_importance":45,"audience_relevance":45,"importance_components":{"tickerTier":"S&P 500 large-cap","eventGravity":"routine earnings with modest guidance trim","sectorWeight":"consumer/industrial distribution, moderate market sensitivity","householdBrandBoost":false}},"durationMs":null,"modelName":"glm-5.3-flashx"}}