Genuine Parts Q3 Earnings Miss Expectations, '25 Sales Forecast Raised

Genuine Parts Company GPC reported third-quarter 2025 adjusted earnings of $1.98 per share, which missed the Zacks Consensus Estimate of $2.02. The bottom line, however, increased from the year-ago quarter’s earnings of $1.88 per share. 

The company reported net sales of $6.26 billion, which surpassed the Zacks Consensus Estimate of $6.13 billion and grew 5% year over year. The increase was driven by a 2.3% contribution from comparable sales, a 1.8% boost from acquisitions and a 0.8% favorable impact from forex transactions.

Genuine Parts Company Price, Consensus and EPS Surprise

Genuine Parts Company price-consensus-eps-surprise-chart | Genuine Parts Company Quote

Segmental Performance

The Automotive segment’s net sales totaled $4 billion in the reported quarter, up 5% year over year, thanks to comps growth, acquisition benefits and favorable forex transactions. The sales also surpassed our estimate of $3.87 billion. The segment’s comparable sales grew 1.6% year over year. EBITDA from the unit increased 5.9% to $335 million. EBITDA margin came in at 8.4%, up 110 basis points from the year-ago period.

The Industrial Parts segment’s net sales rose 4.6% year over year to $2.3 billion, courtesy of acquisition benefits and comps growth. The sales also beat our estimate of $2.24 billion. The segment’s comparable sales rose 3.7% in the reported quarter. EBITDA grew 6.6% to $285 million, with a margin of 12.6%, up 30 basis points year over year.

Financial Performance

Genuine Parts had cash and cash equivalents worth $431 million as of Sept. 30, 2025, down from $480 million as of Dec. 31, 2024. Long-term debt was $3.75 billion at the end of the third quarter.

2025 Guidance

For 2025, Genuine Parts expects overall sales growth of 3-4% versus the prior guided range of 1-3%. Automotive sales are now anticipated to increase 4-5%, compared with the previous forecast of 1.5-3.5% growth. Expectations for industrial sales growth were raised to 2-3% from 1-3% projected earlier.

The company now envisions adjusted earnings per share between $7.50 and $7.75 compared with the prior guided range of $7.5-$8. Operating cash flow is expected in the band of $1.1-$1.3 billion, unchanged from the previous guidance. The FCF projection was maintained in the range of $700-$900 million.

Zacks Rank & Other Key Picks

Genuine Parts carries a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Some better-ranked stocks in the auto space are BRP Inc. DOOO, Mobileye Global Inc. MBLY and Autoliv Inc. ALV. While Polaris and Mobileye sport a Zacks Rank #1, Autoliv carries a Zacks Rank #2 at present.

The Zacks Consensus Estimate for DOOO’s 2025 sales and earnings indicates year-over-year growth of 3% and 1%, respectively. EPS estimates for 2025 and 2026 have improved by 2 cents and 5 cents, respectively, in the past 30 days. BRP surpassed earnings estimates in each of the trailing four quarters, the average surprise being 49.5%.

The Zacks Consensus Estimate for MBLY’s 2025 sales and earnings indicates year-over-year growth of 11.6% and 36%, respectively. EPS estimates for 2025 and 2026 have improved by 1 cent and 2 cents, respectively, in the past 60 days. Mobileye surpassed earnings estimates in each of the trailing four quarters, the average surprise being 9.4%.

The Zacks Consensus Estimate for ALV’s 2025 sales and earnings indicates year-over-year growth of 2.4% and 13.3%, respectively. EPS estimates for 2025 and 2026 have improved by 11 cents and 16 cents, respectively, in the past seven days. Autoliv surpassed earnings estimates in each of the trailing four quarters, the average surprise being 12.5%.

Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report

This article originally published on Zacks Investment Research (zacks.com).

Zacks Investment Research