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, 2026.

“The GPC team delivered solid second quarter results, driven by continued sales growth and disciplined execution across our businesses,” said Will Stengel, Chairman and Chief Executive Officer.

“Our teams performed well despite a dynamic global environment, and we remain on track to complete our planned separation in the first quarter of 2027.”

In the results conference call Stengel addressed the rumoured O’Reilly Automotive offer of $10B USD for GPC’s automotive business.

“We are aware of recent market speculation about a potential transaction between the Global Automotive business and a competitor. I want to take this opportunity to officially confirm that we are not currently in discussions with any competitor. We remain committed to maximizing shareholder value and will always evaluate all potential options in that pursuit. We’re making progress towards a separation in the first quarter of 2027 and are excited by the opportunity to create value as two industry-leading public companies,” he said, referring to previously announced plans to split its automotive and industrial units.

Turning to the result for the quarter , he said they speak to ongoing strength of the service customer and non-discretionery repairs.

“By customer type, comparable sales to our commercial customers for the quarter were up approximately 4%, while comparable sales to our retail customers decreased approximately 3%. Within commercial, we saw solid growth in all four customer segments, with particular strength in other wholesale and major account customers.

“Across our product categories during the quarter, we saw continued relative strength in our non-discretionary repair and maintenance and service categories, which were both up low to mid-single digits. As a reminder, combined, these categories account for approximately 85% of our U.S. business. Discretionary categories sequentially improved in the second quarter and were up low single digits.”

Stengel also called out the strong performance in Canada.

“In Canada, our team is executing well despite ongoing softer market conditions. We saw sequential improvement from the first quarter, with total sales increasing 9% in local currency versus the same period last year and comparable sales up 1%.”

Genuine Parts completed its acquisition of The Benson Group in November 2025. Headquartered in Cornwall, Ontario, The Benson Group is a distributor of automotive and heavy-vehicle parts and services with 85 locations across Ontario and Quebec at the time of the acquisition.

“The Benson acquisition continues to provide a nice tailwind for our business, and we will remain ahead of our financial and operational target plans,” said Stengel.

Second Quarter 2026 Results

Sales were $6.5 billion, a 6.0% increase compared to $6.2 billion in the same period of the prior year. The improvement is attributable to a 3.4% increase in comparable sales, a net 1.4% favorable impact of foreign currency and a 1.2% benefit from acquisitions.

All figures in USD.

Net income was $228 million, or $1.65 per diluted earnings per share. This compares to net income of $255 million, or $1.83 per diluted share in the prior year period.

Adjusted net income was $296 million, or $2.15 per diluted earnings per share. Adjusted net income excludes $69 million of after-tax adjustments, or $0.50 per diluted share, which relates to costs associated with the company’s global restructuring initiative and the planned separation of the company’s Global Automotive and Global Industrial businesses.

This compares to adjusted net income of $292 million, or $2.10 per diluted share in the prior year period. Refer to the reconciliation of GAAP net income to adjusted net income and GAAP diluted net income per common share to adjusted diluted net income per common share for more information.

Second Quarter 2026 Segment Highlights

North America Automotive Parts Group (“North America Automotive”)

North America Automotive sales were $2.5 billion, up 3.8% from the same period in 2025. The improvement is primarily attributable to a 2.6% increase in comparable sales and a 1.3% benefit from acquisitions.

Segment EBITDA of $208 million increased 6.0%, with segment EBITDA margin of 8.2%, up 20 basis points from the same period of the prior year.

International Automotive Parts Group (“International Automotive”)

International Automotive sales were $1.6 billion, up 8.2% from the same period in 2025. The improvement is primarily attributable to a 4.9% favorable impact of foreign currency, a 2.7% benefit from acquisitions and a 0.6% increase in comparable sales. Segment EBITDA of $150 million increased 6.0%, with segment EBITDA margin of 9.4%, down 20 basis points from the same period of the prior year.

Industrial Parts Group (“Industrial”)

Industrial sales were $2.4 billion, up 7.1% from the same period in 2025. The improvement is primarily attributable to a 6.1% increase in comparable sales, a 0.8% favorable impact of foreign currency and a 0.2% benefit from acquisitions. Segment EBITDA of $316 million increased 9.8%, with segment EBITDA margin of 13.1%, up 30 basis points from the same period of the prior year.

Year to Date 2026 Results

Sales for the six months ended June 30, 2026 were $12.8 billion, up 6.4% from the same period in 2025. Net income for the six months was $416 million, or $3.01 per diluted share. This compares to net income of $449 million, or $3.23 per diluted share, in the prior year period. Adjusted net income increased 1.1% to $541 million in the first half of 2026, compared to adjusted net income of $535 million in the prior year period. Adjusted diluted earnings per share was $3.92 compared to $3.84 in the prior year period, an increase of 2.1%.

Balance Sheet, Cash Flow and Capital Allocation

The company generated cash flow from operations of $464 million for the first six months of 2026. Net cash used in investing activities was $228 million, including $205 million for capital expenditures and $38 million for acquisitions. Net cash used in financing activities was $124 million, including net proceeds of debt (including net commercial paper) of $204 million, partially offset by $288 million for quarterly dividends paid to shareholders. Free cash flow was $259 million for the first six months of 2026. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.

As of June 30, 2026, total liquidity was $2.3 billion, consisting of $559 million in cash, $500 million available under the Delayed Draw Loan Facility, and $1.2 billion of available capacity under the company’s $2.0 billion Revolving Credit Agreement. This reflects $70 million drawn on the revolver and $683 million outstanding under our commercial paper program.

2026 Outlook

The company is reaffirming its adjusted diluted earnings per share outlook and updating elements of its previous full-year 2026 outlook provided in its earnings releases on February 17, 2026 and April 21, 2026. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results in updating its outlook, which is outlined in the table below. The updated GAAP earnings-per-share outlook includes expected costs associated with the company’s restructuring initiatives, and includes costs related to the planned separation that have been incurred year-to-date. 

		For the Year Ending December 31, 2026
		Previous Outlook	Updated Outlook
Total sales growth		3% to 5.5%	3% to 5.5%
North America Automotive sales growth		3% to 5%	2.5% to 4.5%
International Automotive sales growth		3% to 6%	5% to 8%
Industrial sales growth		3% to 6%	3% to 6%
Diluted earnings per share		$6.10 to $6.60	$5.90 to $6.40
Adjusted diluted earnings per share		$7.50 to $8.00	$7.50 to $8.00
Effective tax rate		Approx. 24%	Approx. 24%
Net cash provided by operating activities		$1.0 billion to $1.2 billion	$1.0 billion to $1.2 billion
Free cash flow		$550 million to $700 million	$550 million to $700 million

Conference Call

Genuine Parts Company scheduled a conference call for July 21, 2026 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 72948#, two hours after the completion of the call.