Genuine Parts : GPC 1Q26 Earnings Presentation

Published: 2026-04-21 07:06:23 ET GPC

Published on 04/21/2026 at 07:06 am EDT

First Quarter 2026 Earnings Presentation

April 21, 2026

17%

Europe

73%

North America

10%

Australasia

Key Statistics

Founded 1928

Headquarters Atlanta, GA

Countries Served 17

Global Footprint

TTM Revenue by Region

Locations

Distribution Centers

Branches/Service Centers

Retail (Owned/Independent)

~10,840

~190

~710

~9,940

Employees 65,000+

TTM Financial Highlights

Revenue

North America Automotive

International Automotive

Industrial

$24.7B

39%

24%

37%

Adj. EBITDA Margin1 8.2%

Dividend Yield2 4.0%

Leading Global Distributor and Solutions Provider in Diversified "Break Fix" End Markets

1 See Appendix B 2 Calculated based on annual dividend per share divided by share price as of 3/31/26

GPC Q1'26 EARNINGS PRESENTATION | 3

We want to thank our GPC teammates around the world for their continued dedication to serving our customers

Despite navigating a dynamic global environment, first quarter results came in

ahead of our expectations

The recent conflict in Iran did not have a material impact on our financial results

We continue to advance our strategy and control what we can control, delivering solid sales growth and gross margin expansion, while taking proactive action to offset cost inflation

Delivered Solid Results While Making Meaningful Progress On Separation Workstreams

GPC Q1'26 EARNINGS PRESENTATION | 4

Global Sales

Increased 6.8%

Gross Margin

Improved 20 bps

Adj EBITDA1

Increased 4.8%

Adj EBITDA Margin1

Decreased 20 bps

Adj Diluted EPS1

Increased 1.1%

Financial Strength and Flexibility to Drive Growth

At March 31 As of March 31, 2026

Cash From Operations

Working Capital2

Capital Structure

Total Debt to Adj EBITDA1

Total Liquidity

All comparisons are YoY unless otherwise stated 1 Non-GAAP financial measures reconciled in Appendix B 2 Working capital is defined as current assets less current liabilities

GPC Q1'26 EARNINGS PRESENTATION | 5

Total Sales

$2.3B

Increased 5.2%

Comp Sales1

+3.9%

Segment EBITDA2

$314M

Increased 12.7%

Segment EBITDA Margin2

13.6%

Improved 90 bps

Accomplishments:

Market

Total Sales3

North America

+5.1%

Australasia

(2.8%)

Balanced growth across our large corporate account customers and small to medium-sized local accounts

Growth in 10 of 14 end markets, up from 9 in the fourth quarter of 2025 and 3 in same period of the prior year

MRO business grew over 5% and we continue to see an

increase in planned outage projects to start the year

Encouraging sequential improvement in our value-added solutions business, which grew approximately 4%

Strong Results Across The Board For Global Industrial

N. America Automotive

Total Sales

$2.4B

Increased 4.3%

Comp Sales1

+2.2%

Segment EBITDA2

$156M

Increased 6.3%

Segment EBITDA Margin2

6.6%

Improved 10 bps

International Automotive

Total Sales

$1.6B

Increased 13.2%

Comp Sales1

+0.3%

Segment EBITDA2

$145M

Increased 4.6%

Accomplishments:

Segment EBITDA Margin2

9.1%

Decreased 80 bps

Market

Total Sales3

Comp Sales1,3

U.S.

+3.6%

+3.1%

Canada

+4.1%

(2.5%)

Europe

+0.9%

(0.6%)

Australasia

+4.2%

+3.7%

Continued strong sales performance from company-owned stores in U.S., with comparable sales growth of approximately 5.5%

Benson acquisition provided a nice tailwind and we are ahead of

our financial and operational target plans

Despite soft market conditions, Europe sequentially improved from the fourth quarter with improvement in each geography

Australasia had another solid quarter with ongoing strength with both retail and trade customers

Diversified Global Sales Growth in Dynamic, Inflationary Environment

YTD 2026 Capital Deployment Key Priorities

Strategic Investments

56% ~$255M

39%

$98M YTD Capital Expenditures

Estimated $450M - $500M FY'26 Capital Expenditures

M&A

$14M YTD Capital Deployed

Estimated $300M - $350M FY'26 M&A Capital Outlay

Share Repurchases

5% ✓ ~7.5 million shares remain available for repurchase

Dividend

Strategic Investment

M&A Share Repurchases

Dividend

$142M YTD Cash Dividends Paid

FY'26 Cash Dividend of $4.25 Per Share, +3.2% From 2025

- 70th consecutive year of increased dividends paid to our shareholders

Disciplined and Consistent Approach to Strategic Capital Allocation

Total Sales Growth 3% to 5.5%

Comp Sales Growth 2% to 4.5%

Adj Gross Margin2 +40 bps to +60 bps

Adj SG&A as a % of Sales2 (50) bps to (30) bps

Adj EBITDA2 $2.0B to $2.2B

Adj EBITDA Growth2 2% to 9%

Diluted EPS $6.10 to $6.60

Adj Diluted EPS2 $7.50 to $8.00

Adj EPS Growth2 2% to 9%

Cash From Operations $1.0B to $1.2B

Free Cash Flow2 $550M to $700M

Other

Capex $450M to $500M

Depreciation & Amortization $515M to $540M

Interest Expense $180M to $190M

Corporate EBITDA as a % of Sales2 1.5% to 2%

Tax Rate ~24%

Automotive Industrial

North America Automotive

Industrial

Total Sales Growth 3% to 5%

Comp Sales Growth 1.5% to 3.5%

EBITDA2 $700M to $730M

EBITDA Growth2 5% to 9%

Total Sales Growth 3% to 6%

Comp Sales Growth 3% to 6%

EBITDA2 $1.22B to $1.28B

EBITDA Growth2 7% to 12%

International Automotive

Total Sales Growth 3% to 6%

Comp Sales Growth 1.5% to 3.5%

EBITDA2 $560M to $600M

EBITDA Growth2 4% to 10%

Global Automotive

Total Sales Growth 3% to 5%

Comp Sales Growth 1.5% to 3.5%

EBITDA2 $1.26B to $1.33B

EBITDA Growth2 4% to 9%

$100M-$150M Incremental

Run-Rate Cost as Part of

Separation

$50M-$75M

Dis-synergies

$50M-$75M

Standalone Cost

~50%

Automotive

~50%

Industrial

~0% Automotive

~100%

Industrial

Dis-Synergies Expected to be Manageable With Opportunities to Optimize Over the Medium-Term

Transition Services Agreements will be in Place, as Needed, to Support Both Organizations and Minimize Disruption

Existing Cloud IT Infrastructure Allows for an Easier Separation

Certain Indirect Sourcing and Back-Office Processes (A/P, A/R, Employee Service Center) are Shared With a Path to Establishing Independent Operations and Vendor Arrangements

Standalone Costs include Public Company

Resources and Teams

Estimate Excludes Existing Corporate HQ Expenses and One-Time Transaction Costs (ex: professional fees, etc.)

Estimated $100M - $150M Run-Rate Impact Associated With Standalone Cost and Dis-synergies

Appendix

Comparable Sales: Comparable sales or "comp sales" is a key metric that refers to period-over-period comparisons of the company's net sales excluding the impact of acquisitions, foreign currency and other. The company's calculation of comparable sales is computed using total business days for the period and is inclusive of sales from company-owned stores and sales into independent stores. The company considers this metric useful to investors because it provides greater transparency into management's view and assessment of the company's core ongoing operations. This is a metric that is widely used by analysts, investors and competitors, however the company's calculation of the metric may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate this metric in the same manner.

North America Automotive

Three Months Ended March 31,

(in thousands) 2026 2025

Net sales $ 2,363,032 $ 2,264,781

Cost of goods sold 1,454,347 1,396,617

Gross profit 908,685 868,164

Operating expenses 752,480 721,169

EBITDA $ 156,205 $ 146,995

Gross margin 38.5% 38.3%

Operating expenses as a percentage of net sales 31.8% 31.8%

EBITDA margin 6.6% 6.5%

International Automotive

Three Months Ended March 31,

(in thousands) 2026 2025

Net sales $ 1,585,516 $ 1,400,107

Cost of goods sold 866,327 760,207 Gross profit 719,189 639,900

Operating expenses 574,344 501,388

EBITDA $ 144,845 $ 138,512

Gross margin 45.4% 45.7%

Operating expenses as a percentage of net sales 36.2% 35.8%

EBITDA margin 9.1% 9.9%

Industrial

Three Months Ended March 31,

(in thousands) 2026 2025

Net sales $ 2,316,392 $ 2,201,181

Cost of goods sold 1,605,334 1,535,594 Gross profit 711,058 665,587

Operating expenses 396,938 386,876

EBITDA $ 314,120 $ 278,711

Gross margin 30.7% 30.2%

Operating expenses as a percentage of net sales 17.1% 17.6%

EBITDA margin 13.6% 12.7%

Segment Data

Appendix B

Reconciliation of Net Sales by Segment and Segment EBITDA to Net Income (Loss)

2026

2025

(in thousands)

TTM

Net sales:

North America Automotive

9,618,293

2,363,032

2,264,781

2,444,377

2,484,591

2,326,293

International Automotive

6,043,975

1,585,516

1,400,107

1,467,904

1,505,197

1,485,358

Industrial

9,036,744

2,316,392

2,201,181

2,252,144

2,270,444

2,197,764

Segment EBITDA:

North America Automotive

681,392

156,205

146,995

196,500

199,626

129,061

International Automotive

550,506

144,845

138,512

141,492

135,078

129,091

Industrial

1,181,831

314,120

278,711

288,138

285,015

294,558

Corporate EBITDA

(385,575)

(119,525)

(91,125)

(78,632)

(93,374)

(94,044)

Interest expense, net

(170,243)

(43,953)

(37,216)

(40,211)

(40,342)

(45,737)

Depreciation and amortization

(553,616)

(131,028)

(115,435)

(123,018)

(127,475)

(172,095)

Other unallocated costs

(1,258,371)

(75,271)

(68,805)

(45,712)

(66,835)

(1,070,553)

Income (loss) before income taxes

45,924

245,393

251,637

338,557

291,693

(829,719)

Income taxes benefit (expense)

14,164

(56,858)

(57,245)

(83,677)

(65,522)

220,221

Net income (loss)

60,088

188,535

194,392

254,880

226,171

(609,498)

Segment EBITDA margin:

North America Automotive

7.1%

6.6%

6.5%

8.0%

5.5%

International Automotive

9.1%

9.9%

9.6%

9.0%

8.7%

Industrial

13.1%

13.6%

12.7%

12.8%

12.6%

13.4%

Total Adjusted EBITDA margin

8.2%

7.9%

8.1%

8.9%

8.4%

7.6%

Reconciliation of Non-GAAP Financial Measures

Appendix B

Reconciliation of Net Income (Loss) to Adjusted EBITDA

2026

2025

(in thousands)

TTM

GAAP net income

60,088

188,535

194,392

254,880

226,171

(609,498)

Depreciation and amortization

553,616

131,028

115,435

123,018

127,475

172,095

Interest expense, net

170,243

43,953

37,216

40,211

40,342

45,737

Income taxes (benefit)

(14,164)

56,858

57,245

83,677

65,522

(220,221)

EBITDA:

769,783

420,374

404,288

501,786

459,510

(611,887)

Restructuring and other costs (1)

256,923

57,732

54,770

45,712

66,835

86,644

Separation and other costs (2)

17,539

Acquisition and integration related costs and other (3)

14,035

Asbestos-related product liability (4)

103,352

Pension settlement (5)

741,967

First Brands credit loss allowance (6)

150,500

Retirement obligation and other (7)

(11,910)

Adjusted EBITDA

2,028,154

495,645

473,093

547,498

526,345

458,666

Reconciliation of Net Income (Loss) to Adjusted Net Income

2026

$ 188,535

2025

Q1 Q2 Q3

$ 194,392 $ 254,880 $ 226,171 $

(609,498)

(in thousands)

GAAP net income (loss)

Adjustments:

Restructuring and other costs (1) 57,732 54,770 45,712 66,835 86,644

Separation and other costs (2)

17,539

Acquisition and integration related costs and other (3) - 14,035 - - -

Asbestos-related product liability (4)

103,352

Pension settlement (5) - - - - 741,967

First Brands credit loss allowance (6)

150,500

Retirement obligation and other (7) - - - - 30,111

Total adjustments

75,271

68,805

45,712

66,835

1,112,574

Tax impact of adjustments (19,255) (20,124) (8,805) (17,411) (287,110)

Adjusted net income

$ 243,073 $ 291,787 $ 275,595 $ 215,966

$ 244,551

Reconciliation of Diluted Net Income (Loss) Per Common Share to Adjusted Diluted Net Income Per Common Share

2026

2025

(in thousands, except per share data)

GAAP diluted net income (loss) per common share

1.37

1.40

1.83

1.62

(4.39)

Adjustments:

Restructuring and other costs (1)

0.42

0.39

0.33

0.48

0.62

Separation and other costs (2)

0.13

Acquisition and integration related costs and other (3)

0.10

Asbestos-related product liability (4)

0.74

Pension settlement (5)

5.34

First Brands credit loss allowance (6)

1.08

Retirement obligation and other (7)

0.22

Total adjustments

0.55

0.49

0.33

0.48

8.00

Tax impact of adjustments

(0.15)

(0.14)

(0.06)

(0.12)

(2.06)

Adjusted diluted net income per common share

$ 1.77

$ 1.75

$ 2.10

$ 1.98

$ 1.55

Weighted average common shares outstanding -

assuming dilution

138,030

139,200

139,244

139,406

138,903

Reconciliation of Selling, Administrative & Other Expenses to Adj Selling, Administrative & Other Expenses

Three Months Ended March 31,

(in thousands) 2026 2025

GAAP selling, administrative and other expenses

1,856,830

1,709,679

Adjustments:

Separation and other costs (2) (17,539) -

Acquisition and integration related costs and other (3) - (14,035) Total adjustments (17,539) (14,035)

Adjusted selling, administrative and other expenses $ 1,839,291 $ 1,695,644

Net sales $ 6,264,940 $ 5,866,069

GAAP SG&A expenses as a percent of net sales 29.6% 29.1%

Adjusted SG&A expenses as a percent of net sales 29.4% 28.9%

Disclaimer

Genuine Parts Company published this content on April 21, 2026, and is solely responsible for the information contained herein. Distributed via Public Technologies (PUBT), unedited and unaltered, on April 21, 2026 at 11:05 UTC.