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

“Our third quarter results were in line with our expectations and demonstrate the ongoing execution of our strategic initiatives,” said Will Stengel, President and Chief Executive Officer.

“We continue to proactively manage costs in an inflationary environment and remain focused on what we can control. I want to thank our teammates across the globe for their determination and commitment to serving our customers with excellence.”

Canadian market performance, Benson acquisition

Stengel also called out Canada’s performance during the conference call:

“Turning to Canada, total sales increased approximately 3% in local currency versus the same period last year, with comparable sales increasing approximately 2%. Both our automotive and heavy-duty businesses are performing well with heavy-duty outperforming in the quarter. The economic conditions in Canada have weakened through the course of the year, but our team continues to outperform the market.

“We’re pleased to share we’ve signed a definitive agreement to acquire Benson Auto Parts one of the largest independent aftermarket players in Canada, operating approximately 85 stores in Ontario and Quebec.

“This is an attractive strategic transaction that adds talent, store footprint in priority markets and a diversified product offering to better serve our customers in Canada. We expect the transaction to close in the fourth quarter and is subject to customary closing conditions.”

Stengel was also asked about supply infrasture investments and ROI from that–a Nashville, Tenn. facility has been the subject of significant investment–but Stengel also chose to highlight an example in Canada: “I can think of one building in Canada that we’ve made recent investments, and they’ve got double-digit growth in the market post investment. And so that’s kind of the marker that we set.”

Third Quarter 2025 Results

Sales were $6.3 billion, a 4.9% increase compared to $6.0 billion in the same period of the prior year. The improvement is attributable to a 2.3% increase in comparable sales, a 1.8% benefit from acquisitions and a 0.8% favorable impact of foreign currency and other.

All figures in USD.

Net income was $226 million compared to net income of $227 million, in the prior year period. Diluted earnings per share was $1.62, in line with the same period of the prior year.

Adjusted net income was $276 million which excludes a net expense of $49 million after tax adjustments, or $0.36 per diluted share, in costs associated with the company’s global restructuring initiative. This compares to adjusted net income of $263 million for the same period of the prior year. On a per share diluted basis, adjusted net income was $1.98, a 5.3% increase compared to $1.88 in the same period of the prior year. 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.

Third Quarter 2025 Segment Highlights

Automotive Parts Group (“Automotive”)

Global Automotive sales were $4.0 billion, up 5.0% from the same period in 2024. The improvement is attributable to a 2.3% benefit from acquisitions, a 1.6% increase in comparable sales and a 1.1% favorable impact of foreign currency and other. Segment EBITDA of $335 million increased 5.9%, with segment EBITDA margin of 8.4%, up 10 basis points from the same period of the prior year.

Industrial Parts Group (“Industrial”)

Industrial sales were $2.3 billion, up 4.6% from the same period in 2024. The improvement is attributable to a 3.7% increase in comparable sales and a 1.1% benefit from acquisitions, partially offset by a 0.2% unfavorable impact of foreign currency. Segment EBITDA of $285 million increased 6.6%, with segment EBITDA margin of 12.6%, up 30 basis points from the same period of the prior year.

Nine Months 2025 Results

Sales for the nine months ended September 30, 2025 were $18.3 billion, up 3.2% from the same period in 2024. Net income for the nine months was $675 million, or $4.85 per diluted share. This compares to net income of $771 million, or $5.51 per diluted share, in the prior year period. Adjusted net income was $810 million in the first nine months of 2025, compared to adjusted net income of $915 million in the prior year period. Adjusted diluted earnings per share was $5.82 compared to $6.55 in the prior year period.

Balance Sheet, Cash Flow and Capital Allocation

The company generated cash flow from operations of $511 million for the first nine 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 $488 million, including $350 million for capital expenditures and $182 million for acquisitions. Net cash used in financing activities was $94 million, consisting of $567 million used to repay the principal amount of our 1.75% Unsecured Senior Notes and $421 million for dividends paid to shareholders, partially offset by $886 million in net proceeds from our commercial paper program. Free cash flow was $160 million for the first nine months of 2025. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.

As of September 30, 2025, the company had $431 million in cash and cash equivalents, as well as $1.1 billion in undrawn capacity on the company’s Revolving Credit Agreement, after giving effect to commercial paper borrowings.

2025 Outlook

The company is updating full-year 2025 guidance previously provided in its earnings release on July 22, 2025. 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 we delivered third-quarter results in line with our expectations, the broader market backdrop did not improve,” said Bert Nappier, Executive Vice President and Chief Financial Officer. “We are updating our 2025 outlook to reflect our year-to-date results, along with our expectations that current market conditions will remain consistent with what we experienced in the third quarter.”

The outlook below 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). This one-time, non-cash charge is not included in the 2025 outlook due to uncertainty on the final charge. 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		1% to 3%		3% to 4%
Automotive sales growth		1.5% to 3.5%		4% to 5%
Industrial sales growth		1% to 3%		2% to 3%
Diluted earnings per share (1)		$6.55 to $7.05		$6.55 to $6.80
Adjusted diluted earnings per share		$7.50 to $8.00		$7.50 to $7.75
Effective tax rate		Approximately 24%		Approximately 24%
Net cash provided by operating activities		$1.1 billion to $1.3 billion		$1.1 billion to $1.3 billion
Free cash flow		$700 million to $900 million		$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 uncertainty on the final charge. The pension plan settlement process involves several regulatory steps and approvals. Subject to completion of these steps and approvals, settlement is expected by late 2025. 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 are estimated to be in a range of $650 million and $750 million. 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.