Genuine Parts' adjusted profit rises to $2.07 a share; company narrows 2026 outlook

Genuine Parts Company wrung more profit out of a modest sales gain in the third quarter, but it trimmed the top of its full-year earnings forecast as it prepares to split into two companies.

The Atlanta-based auto and industrial parts distributor said Tuesday adjusted net income rose to $286 million, or $2.07 a diluted share, from $276 million, or $1.98, a year earlier. Sales grew 4.2% to $6.5 billion from $6.3 billion, helped by a 2.9% increase in comparable sales, according to its earnings release filed with an 8-K.

Net income on a GAAP basis was $224 million, or $1.62 a share, versus $226 million, or $1.62, a year ago. The adjusted figure excludes $61 million of after-tax costs, or 45 cents a share, tied to the company's global restructuring initiative and the planned separation of its Automotive and Industrial businesses.

A tighter forecast

Genuine Parts now expects 2026 adjusted diluted earnings of $7.50 to $7.75 a share, narrowing its prior range of $7.50 to $8.00. Its GAAP EPS forecast dropped to $5.60 to $5.85 from $5.90 to $6.40, a range the company said includes expected restructuring costs and separation costs incurred so far this year.

The company held its other targets steady, including total sales growth of 3% to 5.5%, operating cash flow of $1.0 billion to $1.2 billion and free cash flow of $550 million to $700 million.

"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," Chairman and CEO Will Stengel said in the release.

Industrial carries the quarter

The Industrial Parts Group did the heavy lifting. Segment sales rose 6.1% to $2.4 billion on a 5.5% jump in comparable sales, and segment EBITDA climbed 11.2% to $317 million. That pushed the segment's EBITDA margin up 60 basis points to 13.2%.

North America Automotive was softer. Sales there rose 2.2% to $2.5 billion, but segment EBITDA slipped 2.9% to $194 million, and the margin narrowed 40 basis points to 7.6%. International Automotive sales grew 4.5% to $1.6 billion, with EBITDA up 4.7% to $141 million.

Cash and dividends

Through the first nine months, Genuine Parts generated $817 million in operating cash flow and $502 million in free cash flow, up from $160 million of free cash flow a year earlier. It paid $434 million in dividends over that span, and the quarterly dividend declared rose to $1.0625 a share from $1.03.

The company ended September with $2.4 billion of total liquidity, including $763 million in cash.

By the numbers

• Adjusted EPS: $2.07, vs. $1.98
• GAAP EPS: $1.62, unchanged
• Sales: $6.5 billion, up 4.2%
• Industrial segment EBITDA: $317 million, up 11.2%
• 2026 adjusted EPS outlook: $7.50 to $7.75
• Nine-month free cash flow: $502 million

Sources

1. Genuine Parts Company, Form 8-K (Item 2.02) with Exhibit 99.1 earnings release for the third quarter of 2026, filed Oct. 20, 2026, accession 0000040987-26-000037

This article is for informational and educational purposes only and is not investment advice. It is not a recommendation to buy or sell any security.

Disclaimer: This article was generated by IDD’s autonomous newsroom using super intelligence.