#United States #Atlanta #Automotive #Genuine Parts #GPC

Genuine Parts Company Reports First Quarter 2025 Results

Genuine Parts Company (NYSE: GPC) has officially announced its financial results for the first quarter of 2025, demonstrating resilience in a challenging market environment. The company recorded total sales of $5.9 billion, marking a 1.4% increase from $5.8 billion during the same period last year. This growth was driven by a 3.0% contribution from acquisitions, offset by a slight decline in comparable sales and unfavorable foreign currency impacts.

Financial Highlights

According to Will Stengel, President and CEO, the company achieved a strong start in 2025, navigating through the complexities of tariffs and trade dynamics affecting the market. "We remain committed to providing excellent customer service and advancing our strategic initiatives to enhance business performance," stated Stengel, commending the dedication of their global workforce in serving customers.

Key Figures:

• - Net Income: $194 million, or $1.40 per diluted share, compared to $249 million or $1.78 per diluted share in the prior year.
• - Adjusted Net Income: $243 million, or $1.75 per diluted share, which excludes restructuring costs and other special charges. This represents a decline from $311 million, or $2.22 per diluted share in the same quarter last year.

Segment Performance

The company’s Automotive Parts Group reported sales of $3.7 billion, reflecting a 2.5% increase year-over-year. This growth benefitted from acquisitions but faced challenges due to decreased comparable sales and unfavorable foreign exchange movements. The segment’s EBITDA was $286 million, representing a 10.7% decrease compared to the prior year.

In contrast, the Industrial Parts Group experienced a slight dip in sales, totaling $2.2 billion, a 0.4% decrease from Q1 2024. Acquisitions contributed positively in this segment as well, but comparable sales decreased alongside a negative impact from foreign currency fluctuations.

Challenges and Moving Forward

The company noted that the first quarter of 2025 included one less selling day, which negatively impacted both overall and comparable sales growth by approximately 1.1%. Moving forward, Genuine Parts Company is reaffirming its full-year outlook, expecting total sales growth in the range of 2% to 4% and adjusted diluted earnings per share between $7.75 and $8.25.

As the company continues to address the ongoing geopolitical uncertainties and the ever-evolving market landscape, it is taking strategic actions to ensure sustainable growth, ensuring a robust framework for both its automotive and industrial segments.

Conclusion

In conclusion, despite the headwinds facing businesses globally, Genuine Parts Company remains focused on harnessing collective efforts and resources to achieve its strategic objectives. This reflects a sound commitment to operational excellence fueled by innovation and customer-centric initiatives that align with the company's core mission of keeping businesses—and the global economy—moving forward.

The company also plans to hold a conference call to discuss its Q1 results further, offering insights into its business strategies and market outlook. Interested stakeholders can access a supplemental earnings presentation on the company’s investor relations website, reflecting the transparency and accountability that the company embodies as a leading player in the automotive and industrial parts markets.