Genuine Parts Q4 Earnings Miss Expectations, Dividend Raised

Genuine Parts Company GPC reported fourth-quarter 2025 adjusted earnings of $1.55 per share, which missed the Zacks Consensus Estimate of $1.79. The bottom line fell from the year-ago quarter’s earnings of $1.61 per share. 

The company reported net sales of $6.01 billion, which marginally missed the Zacks Consensus Estimate of $6.04 billion but grew 4.2 % year over year. The increase was driven by a 1.7% contribution from comparable sales, a 1.5% boost from acquisitions and a 0.9% favorable impact from forex transactions.

Genuine Parts has announced plans to split into two independent publicly traded companies, and the transaction is expected to close in the first quarter of 2027. One entity will comprise its Automotive Parts Group (Global Automotive), while the other will consist of its Industrial Parts Group (Global Industrial).

In the fourth quarter of 2025, the company reorganized its Automotive Parts Group into two separate business segments. The North America Automotive Parts Group (North America Automotive) now includes all automotive operations in the United States and Canada, while the International Automotive Parts Group (International Automotive) comprises automotive operations across Europe and Australasia.

Genuine Parts Company Price, Consensus and EPS Surprise

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

Segmental Performance

The North America Automotive segment’s net sales totaled $2.33 billion in the reported quarter, up 2.4% year over year, thanks to comps growth and acquisition benefits, partially offset by the unfavorable impact of other. The sales, however, missed our estimate of $2.44 billion. The segment’s comparable sales grew 1.7% year over year. EBITDA from the unit fell 14% to $129 million. EBITDA margin came in at 5.5%, down 110 basis points from the year-ago period.

The International Automotive segment’s net sales totaled $1.49 billion in the reported quarter, up 6.4% year over year, due to favorable impact of foreign currency, benefit from acquisitions, partially offset by decrease in comparable sales. The sales surpassed our estimate of $1.42 billion. The segment’s comparable sales declined 0.9% year over year. EBITDA from the unit fell 4.3% to $129 million. EBITDA margin came in at 8.7%, down 100 basis points from the year-ago period.

The Industrial Parts segment’s net sales rose 4.6% year over year to $2.2 billion, courtesy of acquisition benefits, comps growth and favorable forex transactions. The sales beat our estimate of $2.18 billion. The segment’s comparable sales rose 3.4% in the reported quarter. EBITDA grew 8.7% to $295 million, with a margin of 13.4%, up 50 basis points year over year.

Financial Performance

Genuine Parts had cash and cash equivalents worth $477 million as of Dec. 31, 2025, down from $480 million as of Dec. 31, 2024. Long-term debt was $3.5 billion at the end of the fourth quarter.

The company raised its quarterly dividend by 3.2% to $1.0625 per common share, which will be paid on April 2, 2026, to shareholders of record as of March 6, 2026. This marks the 70th consecutive year the company has increased its annual dividend paid to shareholders.

Genuine Parts Provide 2026 Guidance

For 2026, Genuine Parts expects overall sales growth of 3-5.5%. North America Automotive sales are now anticipated in the range of 3-5%. International Automotive sales growth is expected in the range of 3-6%.

Expectations for industrial sales growth are expected to be in the band of 3-6%.

The company now envisions adjusted earnings per share between $7.50 and $8.00. Operating cash flow is expected in the band of $1-$1.2 billion. The FCF is expected to be in the range of $550-$700 million.

Zacks Rank & Key Picks

Genuine Parts carries a Zacks Rank #3 (Hold) at present.

Some better-ranked stocks in the auto space are Ford Motor F, Modine Manufacturing MOD and Strattec Security STRT, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.3% and 39.5%. The EPS estimate for 2026 and 2027 has improved 5 cents each in the past 30 days.

The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 85 cents respectively, in the past 30 days.

The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved $1.01 and 48 cents, respectively, in the past 30 days.

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

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