Genuine Parts posted Q4 2025 revenue of $6.01B, up 4.1% year-over-year, but adjusted EPS of $1.55 missed analyst estimates of $1.79 by ~13.6%. GAAP EPS plunged to -$4.39 due to massive non-recurring charges. Full-year revenue reached $24.3B with adjusted EPS of $7.37. Shares dropped 14.1% following the report as weak 2026 guidance further spooked investors.
About Genuine Parts Company
Genuine Parts Company (NYSE: GPC) is a leading global service provider of automotive and industrial replacement parts and value-added solutions, headquartered in Atlanta, Georgia. Founded in 1928 by Carlyle Fraser, the company has grown from a single auto parts store with six employees and $40,000 in capital into a global operation spanning 17 countries with over 10,700 locations and more than 60,000 teammates.
GPC operates through two primary segments: the Automotive Parts Group (including the iconic NAPA Auto Parts brand across North America, Europe, and Australasia) and the Industrial Parts Group (through its Motion subsidiary, serving MRO and OEM customers). The company currently trades at a share price of approximately $116.16, with a market capitalization of roughly $16.2 billion.
Its trailing P/E ratio stands at 19.99, and its TTM dividend yield is approximately 3.5%. Notably, GPC announced its 70th consecutive annual dividend increase alongside Q4 results, reinforcing its status as a Dividend Aristocrat. The company also revealed plans to separate its Global Automotive and Global Industrial divisions into two independent, publicly traded companies, targeting completion in Q1 2027.
Top Financial Highlights
- Q4 2025 total revenue reached USD 6.01 billion, reflecting a 4.1% increase from USD 5.77 billion in Q4 2024, supported by 1.7% comparable sales growth, 1.5% acquisition contribution, and 0.9% favorable foreign exchange impact.
- Full year 2025 total revenue amounted to USD 24.3 billion, rising 3.5% or approximately USD 800 million compared to 2024.
- Q4 2025 GAAP net loss totaled USD 609 million, or negative USD 4.39 per diluted share, reflecting USD 825 million in after tax non recurring charges related to restructuring actions and vendor credit losses.
- Q4 2025 adjusted net income reached USD 216 million, or USD 1.55 per diluted share, compared to USD 224 million or USD 1.61 per share in Q4 2024.
- Full year 2025 GAAP net income stood at USD 66 million, or USD 0.47 per diluted share.
- Full year 2025 adjusted net income totaled approximately USD 1.0 billion, or USD 7.37 per diluted share, compared to USD 1.1 billion or USD 8.16 per diluted share in 2024.
- Q4 2025 gross profit reached USD 2.1 billion, representing 35.0% of sales on a GAAP basis, while adjusted gross margin improved to 37.6%, increasing 70 basis points year over year.
- Q4 2025 operating cash flow generated USD 380 million, with full year operating cash flow of approximately USD 890 million.
- Full year free cash flow totaled USD 421 million.
- Industrial segment Q4 sales reached USD 2.2 billion, increasing 4.6% year over year, with comparable sales growth of 3.4% and a segment EBITDA margin of 13.4%, up 50 basis points.
- North America Automotive Q4 sales totaled USD 2.33 billion, with company owned NAPA stores delivering approximately 4% comparable sales growth.
- International Automotive Q4 sales reached USD 1.49 billion, rising approximately 5% in local currency terms.
- Restructuring benefits in 2025 totaled approximately USD 175 million, exceeding the expected range of USD 110 million to USD 135 million.
- Cash on hand at the end of Q4 stood at USD 477 million.
- For 2026, total sales growth is projected between 3% and 5.5%, adjusted diluted earnings per share are expected between USD 7.50 and USD 8.00, and operating cash flow is forecast between USD 1.0 billion and USD 1.2 billion.
Beat or Miss?
GPC’s Q4 2025 results showed a top-line beat but a significant bottom-line miss. The company’s 2026 EPS guidance also came in well below the Street consensus of approximately $8.41.
| Metric | Reported | Analyst Estimate | Difference |
| Q4 Revenue | $6.01 billion | ~$6.00 billion | +$9 million (slight beat) |
| Q4 Adjusted EPS | $1.55 | ~$1.80 | -$0.25 (miss of ~14%) |
| FY 2025 Revenue | $24.3 billion | N/A | +3.5% YoY |
| FY 2025 Adjusted EPS | $7.37 | N/A | Down from $8.16 in FY 2024 |
| FY 2026 Adj. EPS Guidance | $7.50–$8.00 | ~$8.41 (consensus) | Midpoint ~8% below consensus |
What Leadership Is Saying?
Will Stengel, President & CEO:
“2025 was a dynamic year across the businesses and geographies, marked by tariffs, global trade policies, interest rates, and a cautious consumer. Despite the environmental realities, we advanced our strategy and delivered growth, expanded gross margins, took proactive action to offset cost inflation, and continued to invest in strategic capabilities.”
Bert Nappier, EVP & CFO:
“We closed 2025 with Q4 sales growth of 4% and adjusted gross margin expansion of 70 basis points. Our sales performance was highlighted by a near 5% increase in sales within industrial, as well as strength in our U.S. NAPA company-owned stores, with approximately 4% comparable sales growth in the quarter. Q4 Adjusted EPS of $1.55 Impacted by Higher Depreciation and Interest Costs.
Historical Performance
The year-over-year comparison reveals top-line growth but pressure on profitability, largely due to massive non-recurring charges in Q4 2025.
| Category | Q4 2025 | Q4 2024 | Change (%) |
| Total Revenue | $6.01 billion | $5.77 billion | 4.10% |
| Gross Profit (GAAP) | $2.10 billion | $2.07 billion | +1.5% |
| Gross Margin (GAAP) | 35.00% | 35.90% | -90 bps |
| Adjusted Gross Margin | 37.60% | 36.90% | +70 bps |
| GAAP Net Income (Loss) | -$609 million | $133 million | N/M (large non-recurring charges) |
| Adjusted Net Income | $216 million | $224 million | -3.6% |
| Adjusted Diluted EPS | $1.55 | $1.61 | -3.70% |
| Operating Cash Flow | $380 million | N/A | N/A |
| Dividends Per Share | $1.03 | $1.00 | +3.0% |
Competitor Performance
The auto parts and industrial distribution sector showed mixed performance across key players in Q4 2025. GPC led on revenue scale, while competitors faced their own margin and earnings challenges.
| Category | GPC (Q4 2025) | LKQ (Q4 2025) | O’Reilly (Q4 2025) | Advance Auto (Q4 2025) |
| Revenue | $6.01 billion | $3.31 billion | $4.41 billion | $2.0 billion |
| Revenue Growth (YoY) | +4.1% | +2.7% | ~6.4% (FY) | -1.0% |
| EPS (Adjusted) | $1.55 | $0.59 | $0.71 | $0.86 |
| EPS vs. Estimate | Missed (~14% below) | Missed (~8% below) | Missed (~1.4% below) | Beat (+100%) |
| Key Trend | Gross margin expansion; non-recurring charges drag | Revenue up, profitability down; strategic review initiated | 33rd consecutive year of comp growth; 10% FY EPS growth | Turnaround progressing; significant margin expansion |
2026 Outlook
- The outlook for the year ended December 31, 2026, indicates total sales growth in the range of 3% to 5.5%.
- North America automotive sales growth is projected between 3% and 5%.
- International automotive sales growth is expected to range from 3% to 6%.
- Industrial sales growth is also forecast at 3% to 6%.
- Diluted earnings per share are anticipated to be between $6.10 and $6.60.
- Adjusted diluted earnings per share are projected in the range of $7.50 to $8.00.
- The effective tax rate is expected to be approximately 24%.
- Net cash provided by operating activities is estimated at $1.0 billion to $1.2 billion.
- Free cash flow is projected to range from $550 million to $700 million.
How the Market Reacted?
The market response to GPC’s Q4 2025 results was decidedly negative. On February 17, 2026, the stock gapped down sharply, opening at approximately $137.38 versus the prior close of $147.16, and traded down about 11.6% intraday on the combined impact of the earnings miss and below-consensus 2026 guidance. The EPS miss of ~$0.25 against the consensus of ~$1.80 was the primary catalyst, while the 2026 adjusted EPS guidance midpoint of $7.75 coming in roughly 8% below the Street consensus of ~$8.41 compounded the selling pressure.
Despite the sell-off, some analysts maintained constructive long-term views: Truist Financial raised its price target to $162 with a “Buy” rating just days before the report, and UBS Group reiterated a “Neutral” rating. The announcement of the planned tax-free separation into two publicly traded companies (Global Automotive and Global Industrial), targeting Q1 2027, was viewed as a potential long-term value unlock, though it was insufficient to offset near-term earnings disappointment.
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