Genuine Parts narrows 2026 adjusted EPS outlook to $7.50 to $7.75 as adjusted profit rises

Genuine Parts Company (GPC) said Tuesday it earned $224 million, or $1.62 per diluted share, in the quarter ended Sept. 30, 2026. A year earlier the company reported net income of $226 million, or $1.62 per diluted share.

Adjusted net income was $286 million, or $2.07 per diluted share, compared with $276 million, or $1.98, a year earlier, the company said in a press release furnished with its 8-K.

The company, founded in 1928, operates more than 10,800 locations in 17 countries.

Here's how the company did:

• Sales: $6.52 billion vs. $6.26 billion a year earlier
• Net income: $224 million vs. $226 million a year earlier
• Diluted earnings per share: $1.62 vs. $1.62 a year earlier
• Adjusted diluted earnings per share: $2.07 vs. $1.98 a year earlier
• Comparable sales: up 2.9%

Sales rose 4.2% from a year earlier. The increase was made up of 2.9% comparable sales growth, a 0.9% benefit from acquisitions and a net 0.4% favorable impact from foreign currency and other.

The company said adjusted results exclude $61 million of after-tax adjustments, or 45 cents per diluted share, tied to its global restructuring initiative and to the planned separation of its Automotive and Industrial businesses.

For the first nine months, sales were $19.3 billion, up 5.6% from the same period a year earlier.

Net income for the nine months was $641 million, or $4.64 per diluted share, against $675 million, or $4.85, a year earlier. Adjusted net income was $827 million, or $5.99 per diluted share, compared with $810 million, or $5.82.

Here's how the company's segments did during the quarter:

• North America Automotive: sales of $2.5 billion, up 2.2%; segment EBITDA of $194 million, down 2.9%
• International Automotive: sales of $1.6 billion, up 4.5%; segment EBITDA of $141 million, up 4.7%
• Industrial: sales of $2.4 billion, up 6.1%; segment EBITDA of $317 million, up 11.2%

Segment EBITDA, or earnings before interest, taxes, depreciation and amortization, is the measure the company uses for each business unit.

North America Automotive's segment EBITDA margin was 7.6%, down 40 basis points from a year earlier. International Automotive's margin was flat at 9.0%.

Industrial's segment EBITDA margin was 13.2%, up 60 basis points, and its comparable sales rose 5.5%. Comparable sales rose 1.7% in North America Automotive and 1.1% in International Automotive.

In the filing, the company narrowed its 2026 adjusted diluted earnings per share outlook to $7.50 to $7.75 from $7.50 to $8.00. It lowered its GAAP diluted earnings per share outlook to $5.60 to $5.85 from $5.90 to $6.40.

The company said the updated GAAP outlook includes expected restructuring costs and separation costs incurred so far this year. It had given its previous full-year outlook in earnings releases on Feb. 17, April 21 and July 21, 2026.

The company left unchanged its total sales growth outlook of 3% to 5.5%, its effective tax rate of approximately 24%, its operating cash flow outlook of $1.0 billion to $1.2 billion and its free cash flow outlook of $550 million to $700 million.

“Our third quarter performance demonstrates the strength of our market leading businesses and our teams’ continued focus on serving customers and executing our strategic priorities,” said Chairman and Chief Executive Officer Will Stengel.

“We also achieved important milestones in our separation process and remain on track to launch GPC and Motion as two independent, leading companies in the first quarter of 2027.”

Restructuring and other costs were $64.5 million in the quarter, compared with $66.8 million a year earlier. Separation costs were $21.2 million, against none a year earlier.

Adjusted selling, administrative and other expenses were 29.5% of net sales, against 28.8% a year earlier.

Cash from operations was $817 million for the first nine months, and free cash flow was $502 million, compared with $160 million a year earlier. The company defines free cash flow as operating cash flow less purchases of property, plant and equipment.

At Sept. 30, the company had $763 million in cash and total liquidity of $2.4 billion, including $1.6 billion of available capacity under its $2.0 billion revolving credit agreement. It had $389 million outstanding under its commercial paper program.

The company declared dividends of $1.0625 per common share in the quarter, compared with $1.03 a year earlier, and paid $434 million in dividends over the nine months.

The filing does not give a quarter-end headcount.

The company scheduled a conference call for Tuesday at 8:30 a.m. Eastern Time to discuss the results.