Genuine Parts Company, a leading global service provider of automotive and industrial replacement parts and value-added solutions, announced today its results for the second quarter ended June 30, 2025.

“Our results for the quarter were in line with our expectations and reflect the execution of our strategic initiatives and cost restructuring actions against continued challenging market conditions,” said Will Stengel, President and Chief Executive Officer.

“As we turn to the second half of the year, we remain focused on what we can control as we proactively manage through an evolving external environment. I want to thank our teammates across the globe for their relentless dedication and commitment to serving our customers.”

Second Quarter 2025 Results

Sales were $6.2 billion, a 3.4% increase compared to $6.0 billion in the same period of the prior year. The improvement is attributable to a 2.6% benefit from acquisitions, a 0.6% net favorable impact of foreign currency and other, and a 0.2% increase in comparable sales.

All figures in USD.

Net income was $255 million, or $1.83 per diluted earnings per share. This compares to net income of $296 million, or $2.11 per diluted share, in the prior year period.

Adjusted net income was $292 million, or $2.10 per diluted earnings per share. Adjusted net income excludes a net expense of $37 million after tax adjustments, or $0.27 per diluted share, which relates to costs associated with the company’s global restructuring initiative.

This compares to adjusted net income of $342 million, or $2.44 per diluted share, in the prior year period. Refer to the reconciliation of GAAP net income to adjusted net income and GAAP diluted earnings per share to adjusted diluted earnings per share for more information.

Second Quarter 2025 Segment Highlights

Automotive Parts Group

Global Automotive sales were $3.9 billion, up 5.0% from the same period in 2024. The improvement is attributable to a 3.4% benefit from acquisitions, a 1.2% net favorable impact of foreign currency and other, and a 0.4% increase in comparable sales. Segment EBITDA of $338 million decreased 6.9%, with segment EBITDA margin of 8.6%, down 110 basis points from the same period of the prior year.

Industrial Parts Group

Industrial sales were $2.3 billion, up 0.7% from the same period in 2024. The improvement is attributable to a 1.3% benefit from acquisitions, partially offset by a 0.5% unfavorable impact of foreign currency and 0.1% decrease in comparable sales. Segment EBITDA of $288 million increased 1.1%, with segment EBITDA margin of 12.8%, up 10 basis points from the same period of the prior year.

Six Months 2025 Results

Sales for the six months ended June 30, 2025 were $12.0 billion, up 2.4% from the same period in 2024. Net income for the six months was $449 million, or $3.23 per diluted share.

This compares to net income of $544 million, or $3.89 per diluted share, in the prior year period. Adjusted net income decreased 18.0% to $535 million in the first half of 2025, compared to adjusted net income of $652 million in the prior year period. Adjusted diluted earnings per share was $3.84 compared to $4.66 in the prior year period, a decrease of 17.6%.

Balance Sheet, Cash Flow and Capital Allocation

The company generated cash flow from operations of $169 million for the first six months of 2025. The reduction in the company’s operating cash flows year-over-year is driven by lower net income, accelerated tax payments versus 2024 and changes in working capital. Net cash used in investing activities was $318 million, including $249 million for capital expenditures and $112 million for acquisitions. Net cash provided by financing activities was $103 million, consisting of $917 million in net proceeds from our commercial paper program, partially offset by $500 million used to repay the principal amount of our 1.75% Unsecured Senior Notes and $277 million for dividends paid to shareholders. Free cash flow was a deficit of $80 million for the first six months of 2025 after giving effect to $249 million in capital expenditures. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.

As of June 30, 2025, the company had $458 million in cash and cash equivalents, as well as $2 billion in undrawn capacity on the company’s Revolving Credit Agreement, before giving effect to commercial paper borrowings.

2025 Outlook

The company is revising full-year 2025 guidance previously provided in its earnings release on April 22, 2025. The outlook now incorporates the anticipated impact of all U.S. tariffs currently in effect, as well as the company’s updated view on market assumptions for the second half of the year. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, current trade environment and geopolitical conflicts and the potential impact these factors may have on results in updating its guidance, which is outlined in the table below.

“While our results through the second quarter were in line with our expectations, we are updating full-year guidance to reflect our latest perspective on the second half of the year,” said Bert Nappier, Executive Vice President and Chief Financial Officer.

“Our outlook considers the impact of current U.S. tariffs along with our updated views on the market environment. The evolving tariff landscape brings with it a degree of uncertainty, and as a result, we expect to see a more moderated improvement in market conditions than we projected in February.”

The outlook does not include the previously announced one-time, non-cash charge the company expects to record when its U.S. pension plan termination settles (which is expected to occur in late 2025 or in early 2026).

This one-time, non-cash charge is not included in the 2025 outlook due to the uncertainty regarding when the termination of the plan will ultimately settle. However, to the extent the one-time, non-cash charge is recognized in 2025, diluted earnings per share in the table below will be impacted. The one-time, non-cash charge will not impact adjusted diluted earnings per share. See footnote one below for additional information.

		For the Year Ending December 31, 2025
		Previous Outlook		Current Outlook
Total sales growth		2% to 4%		1% to 3%
Automotive sales growth		2% to 4%		1.5% to 3.5%
Industrial sales growth		2% to 4%		1% to 3%
Diluted earnings per share (1)		$6.95 to $7.45		$6.55 to $7.05
Adjusted diluted earnings per share		$7.75 to $8.25		$7.50 to $8.00
Effective tax rate		Approximately 24%		Approximately 24%
Net cash provided by operating       activities		$1.2 billion to $1.4 billion		$1.1 billion to $1.3 billion
Free cash flow		$800 million to $1.0 billion		$700 million to $900 million

(1)

As noted above, GAAP (as defined below) diluted earnings per share outlook for 2025 does not include the potential impact of the one-time, non-cash charge the company will incur upon settlement of its U.S. pension plan termination given the timing uncertainty. The pension plan settlement process involves several regulatory steps and approvals. Subject to completion of these steps and approvals, settlement is expected between late 2025 and early 2026. The one-time, non-cash charge to be recognized at settlement will be equal to the actuarial losses accumulated in accumulated other comprehensive income, which totaled approximately $735 million ($540 million, net of tax) as of December 31, 2024. The actual amount of the settlement charges will depend on the valuation of the pension obligation at the settlement date, which is dependent upon interest rates, the lump sum election rate, the cost to purchase annuities, U.S. pension plan asset returns, and other factors. Additional information can be found in the Employee Benefits Plans footnote to the company’s consolidated financial statements included in its Annual Report on Form 10-K for the year ended December 31, 2024. In addition, given the bespoke nature of the one-time, non-cash charge, which is not representative of the company’s continuing operations, non-GAAP adjusted diluted earnings per share will exclude the impact of the one-time, non-cash charge.

Comparable Sales

Comparable sales is a key metric that refers to period-over-period comparisons of our sales excluding the impact of acquisitions, foreign currency and other. Our calculation of comparable sales is computed using total business days for the period and is inclusive of both company-owned stores and sales to our independent owners’ 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 in our industry, however our 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.

Conference Call

Genuine Parts Company held a conference call July 22 at 8:30 a.m. Eastern Time to discuss the results of the quarter. A supplemental earnings deck will also be available for reference. Interested parties may listen to the call and view the supplemental earnings deck on the company’s investor relations website. The call is also available by dialing 800-836-8184. A replay of the call will be available on the company’s website or toll-free at 888-660-6345, conference ID 36617#, two hours after the completion of the call.

About Genuine Parts Company 

Established in 1928, Genuine Parts Company is a leading global service provider of automotive and industrial replacement parts and value-added solutions. Our Automotive Parts Group operates across the U.S., Canada, Mexico, Australasia, France, the U.K., Ireland, Germany, Poland, the Netherlands, Belgium, Spain and Portugal, while our Industrial Parts Group serves customers in the U.S., Canada, Mexico and Australasia. We keep the world moving with a vast network of over 10,700 locations spanning 17 countries supported by more than 63,000 teammates. Learn more at genpt.com.