| Imagery Source: Genuine Parts Company |
| Information Source: Genuine Parts Company |
|
|
|
|
- Adjusted Diluted EPS of $2.10
|
|
|
-
- Revenue Growth of 1% to 3% from 2% to 4%
|
-
- Adjusted Diluted EPS of $7.50 to $8.00 from $7.75 to $8.25
|
| Genuine Parts Company (NYSE: GPC), 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 favourable impact of foreign currency and other, and a 0.2% increase in comparable sales. |
| 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 ("Automotive") |
| 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 favourable 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") |
| 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% unfavourable impact of foreign currency and a 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 were $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 moderate 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 recognised 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 full document, click the link below |
| Genuine Parts Company |
| Stay ahead of the curve! Subscribe to InsidEntity for daily updates on all your favourite companies. |
