Third Quarter 2026
Filed Oct 20, 2026Genuine Parts Company Reports Third Quarter 2026 Results; narrows 2026 adjusted diluted earnings per share outlook to $7.50 to $7.75 from $7.50 to $8.00
Sales and adjusted diluted earnings per share increased, led by Industrial, while GAAP net income declined, North America Automotive EBITDA and margin fell, and the company narrowed both GAAP and adjusted EPS outlook ranges.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| Net sales, three months ended September 30, 2026 (in thousands)GAAP | $6.52B | – | 4.2% |
| Cost of goods sold, three months ended September 30, 2026 (in thousands)GAAP | 4.04B | – | – |
| Gross profit, three months ended September 30, 2026 (in thousands)GAAP | 2.48B | – | – |
| Selling, administrative and other expenses, three months ended September 30, 2026 (in thousands)GAAP | 1.94B | – | – |
| Adjusted selling, administrative and other expenses, three months ended September 30, 2026 (in thousands)non-GAAP | 1.92B | – | – |
| GAAP SG&A expenses as a percentage of net sales, three months ended September 30, 2026GAAP | 29.8 % | – | – |
| Adjusted SG&A expenses as a percentage of net sales, three months ended September 30, 2026non-GAAP | 29.5 % | – | – |
| Depreciation and amortization, three months ended September 30, 2026 (in thousands)GAAP | 137.5M | – | – |
| Provision for doubtful accounts, three months ended September 30, 2026 (in thousands)GAAP | 9.24M | – | – |
| Restructuring and other costs, three months ended September 30, 2026 (in thousands)GAAP | 64.55M | – | – |
| Interest expense, net, three months ended September 30, 2026 (in thousands)GAAP | 45.97M | – | – |
| Income before income taxes, three months ended September 30, 2026 (in thousands)GAAP | 278.6M | – | – |
| Income taxes, three months ended September 30, 2026 (in thousands)GAAP | 54.20M | – | – |
| Net income, three months ended September 30, 2026 (in thousands)GAAP | $224.4M | – | – |
| Adjusted net income, three months ended September 30, 2026 (in thousands)non-GAAP | $285.9M | – | – |
| Diluted earnings per share, three months ended September 30, 2026GAAP | $ 1.62 | – | – |
| Adjusted diluted net income per common share, three months ended September 30, 2026non-GAAP | $ 2.07 | – | – |
| Net sales, nine months ended September 30, 2026 (in thousands)GAAP | $19.32B | – | 5.6% |
| Gross profit, nine months ended September 30, 2026 (in thousands)GAAP | 7.29B | – | – |
| Total operating expenses, nine months ended September 30, 2026 (in thousands)GAAP | 6.34B | – | – |
| Net income, nine months ended September 30, 2026 (in thousands)GAAP | $640.5M | – | – |
| Adjusted net income, nine months ended September 30, 2026 (in thousands)non-GAAP | $826.7M | – | – |
| Diluted earnings per share, nine months ended September 30, 2026GAAP | $ 4.64 | – | – |
| Adjusted diluted net income per common share, nine months ended September 30, 2026non-GAAP | $ 5.99 | – | – |
| Net cash provided by operating activities, nine months ended September 30, 2026 (in thousands)GAAP | $816.6M | – | – |
| Free cash flow, nine months ended September 30, 2026 (in thousands)non-GAAP | $502.2M | – | – |
| Purchases of property, plant and equipment, nine months ended September 30, 2026 (in thousands)GAAP | −314.5M | – | – |
| Acquisitions of businesses, nine months ended September 30, 2026 (in thousands)GAAP | −69.45M | – | – |
| Cash and cash equivalents, September 30, 2026 (in thousands)GAAP | $763.2M | – | – |
| Short-term borrowings, September 30, 2026 (in thousands)GAAP | 388.1M | – | – |
| Current portion of long-term debt, September 30, 2026 (in thousands)GAAP | 250M | – | – |
| Long-term debt, September 30, 2026 (in thousands)GAAP | 4.47B | – | – |
Segments
| Segment | Revenue | q/q | y/y |
|---|---|---|---|
| North America Automotive, three months ended September 30, 20261.7 % comparable sales, 1.1 % acquisitions, (0.3) % foreign currency and (0.3) % other. Segment EBITDA was $194 million, decreased 2.9%, and segment EBITDA margin was 7.6%, down 40 basis points. | $2.54B | – | 2.2 % |
| International Automotive, three months ended September 30, 20261.1 % comparable sales, 1.7 % acquisitions and 1.7 % foreign currency. Segment EBITDA was $141 million, increased 4.7%, and segment EBITDA margin was 9.0%, flat versus the same period of the prior year. | $1.57B | – | 4.5 % |
| Industrial, three months ended September 30, 20265.5 % comparable sales, 0.1 % acquisitions and 0.5 % foreign currency. Segment EBITDA was $317 million, increased 11.2%, and segment EBITDA margin was 13.2%, up 60 basis points. | $2.41B | – | 6.1 % |
| North America Automotive, nine months ended September 30, 20262.2 % comparable sales, 1.3 % acquisitions, 0.1 % foreign currency and (0.2) % other. | $7.44B | – | 3.4 % |
| International Automotive, nine months ended September 30, 20260.9 % comparable sales, 2.1 % acquisitions and 5.5 % foreign currency. | $4.75B | – | 8.5 % |
| Industrial, nine months ended September 30, 20265.1 % comparable sales, 0.2 % acquisitions and 0.8 % foreign currency. | $7.14B | – | 6.1 % |
Amounts quoted below without a unit are in thousands, as in the filing’s tables. Per-share figures are as printed.
For the Year Ending December 31, 2026 outlook
- RevenueTotal sales growth 3% to 5.5%
- Tax rateApprox. 24%
- NoteNorth America Automotive sales growth 2.5% to 4.5%
- NoteInternational Automotive sales growth 5% to 8%
- NoteIndustrial sales growth 3% to 6%
- NoteDiluted earnings per share $5.60 to $5.85
- NoteAdjusted diluted earnings per share $7.50 to $7.75
- NoteNet cash provided by operating activities $1.0 billion to $1.2 billion
- NotePurchases of property, plant and equipment $450 million to $500 million
- NoteFree cash flow $550 million to $700 million
Capital returns
- Dividends declared per common share for the three months ended September 30, 2026 were $ 1.0625.
- Dividends paid for the nine months ended September 30, 2026 were (434,446) (in thousands).
What drove it
- Total third-quarter net sales growth reflected 2.9 % comparable sales, 0.9 % acquisitions, 0.5 % foreign currency and (0.1) % other.
- Industrial had the strongest third-quarter comparable-sales growth at 5.5 % and the highest reported segment EBITDA margin at 13.2%.
- Adjusted third-quarter net income excluded restructuring and other costs, separation costs, and acquisition and integration related costs and other.
- Separation costs primarily reflected legal and professional services and executive incentive plan costs related to the planned separation of Global Automotive and Global Industrial businesses, targeted for completion in the first quarter of 2027.
Concerns
- GAAP net income was $ 224,447 (in thousands), compared with $ 226,171 in the prior-year quarter, despite net sales growth.
- North America Automotive segment EBITDA decreased 2.9% and its 7.6% segment EBITDA margin was down 40 basis points.
- GAAP selling, administrative and other expenses as a percentage of net sales were 29.8 %, compared with 28.8 % in the prior-year quarter.
- The updated diluted earnings per share outlook was reduced to $5.60 to $5.85 from $5.90 to $6.40, and adjusted diluted earnings per share outlook was narrowed to $7.50 to $7.75 from $7.50 to $8.00.
What to watch
- Progress toward the planned separation of Global Automotive and Global Industrial businesses, targeted for completion in the first quarter of 2027.
- North America Automotive comparable sales, EBITDA and margin performance.
- Whether Industrial sustains its 5.5 % comparable-sales growth and 13.2% segment EBITDA margin.
- Restructuring costs, separation costs and their impact on GAAP earnings.
- Delivery against full-year adjusted diluted earnings per share outlook of $7.50 to $7.75 and free cash flow outlook of $550 million to $700 million.
Balance sheet and cash flow
- Total liquidity as of September 30, 2026 was $2.4 billion, consisting of $763 million in cash and $1.6 billion of available capacity under the $2.0 billion Revolving Credit Agreement.
- The company reported $389 million outstanding under its commercial paper program.
- Net cash used in investing activities for the nine months ended September 30, 2026 was (361,076) (in thousands), including purchases of property, plant and equipment of (314,476) and acquisitions of businesses of (69,450).
- Net cash used in financing activities for the nine months ended September 30, 2026 was (139,033) (in thousands).
Analysis
Third-quarter sales were $6.5 billion, up 4.2% from $6.3 billion in the prior-year period. Comparable sales increased 2.9%, acquisitions contributed 0.9%, and foreign currency and other had a net 0.4% favorable impact according to the release. Industrial was the principal growth and profitability contributor, with sales up 6.1%, comparable sales up 5.5%, segment EBITDA up 11.2%, and a 13.2% segment EBITDA margin. International Automotive sales increased 4.5%, while North America Automotive sales increased 2.2%.
Profitability was mixed. GAAP net income was $224 million, compared with $226 million in the prior-year quarter, and diluted earnings per share remained $1.62. Adjusted net income increased to $286 million from $276 million, while adjusted diluted earnings per share rose to $2.07 from $1.98. The adjustment included $61 million of after-tax adjustments, or $0.45 per diluted share, related to global restructuring and the planned separation. GAAP SG&A expenses as a percentage of sales increased to 29.8 % from 28.8 %, while adjusted SG&A expenses as a percentage of sales increased to 29.5 % from 28.8 %.
The segment mix underscores the contrast within the portfolio. Industrial posted the highest reported segment EBITDA margin and expanded by 60 basis points. International Automotive's 9.0% margin was flat. North America Automotive's segment EBITDA declined 2.9%, and its 7.6% margin contracted 40 basis points. The company also reported $21,204 in separation costs during the quarter and $64,545 in restructuring and other costs, both presented in thousands in the financial statements.
Cash generation improved over the first nine months. Operating cash flow was $816,647 (in thousands), compared with $510,689 in the prior-year period, and free cash flow was $502,171, compared with $160,246. The company spent (314,476) on purchases of property, plant and equipment and (69,450) on acquisitions. It paid (434,446) in dividends, held $763,151 in cash and cash equivalents, and reported total liquidity of $2.4 billion as of September 30, 2026.
The company retained its total sales-growth and segment sales-growth outlooks, its approximately 24% effective tax-rate outlook, operating cash flow outlook and free cash flow outlook. It reduced the diluted earnings per share outlook to $5.60 to $5.85 from $5.90 to $6.40 and narrowed adjusted diluted earnings per share to $7.50 to $7.75 from $7.50 to $8.00. The revised GAAP earnings-per-share outlook includes expected restructuring costs and separation costs incurred year-to-date.
Management, verbatim
Our third quarter performance demonstrates the strength of our market leading businesses and our teams’ continued focus on serving customers and executing our strategic priorities,
Will Stengel, Chairman and Chief Executive Officer
We also achieved important milestones in our separation process and remain on track to launch GPC and Motion as two independent, leading companies in the first quarter of 2027.
Will Stengel, Chairman and Chief Executive Officer
Not in the filing
stated, not guessed- Gross margin was not reported.
- Operating income was not reported as a line item.
- Third-quarter operating cash flow was not reported.
- Third-quarter free cash flow was not reported.
- Share repurchases were not reported.
- Total debt was not reported as a line item.
- A prior standalone outlook document was not provided, so actual results were not compared with prior guidance.
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.