SEC Form 10-Q filed by Genuine Parts Company

7/22/25 1:16:29 PM ET

$GPC

Automotive Aftermarket

Consumer Discretionary

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gpc-20250630

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2025


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-5690

__________________________________________

GENUINE PARTS COMPANY

(Exact name of registrant as specified in its charter)

__________________________________________


GA						58-0254510
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

2999 WILDWOOD PARKWAY,

30339

ATLANTA,

(Address of principal executive offices)

(Zip Code)

678-934-5000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of each exchange on which registered

Common Stock, $1.00 par value per share

GPC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 139,092,294 shares of common stock outstanding as of July 17, 2025.


Table of Contents

PART I		Page

Item 1.	Financial Statements	2
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Income	3
	Condensed Consolidated Statements of Comprehensive Income	4
	Condensed Consolidated Statements of Equity	5
	Condensed Consolidated Statements of Cash Flows	7
	Notes to Condensed Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	28
Item 4.	Controls and Procedures	28

PART II

Item 1.	Legal Proceedings	29
Item 1A.	Risk Factors	29
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	29
Item 5.	Other Information	29
Item 6.	Exhibits	30
	Signatures	31


(in thousands, except share and per share data)	June 30, 2025		December 31, 2024
Assets
Current assets:
Cash and cash equivalents	$	457,993	$	479,991
Trade accounts receivable, less allowance for doubtful accounts (2025 – $76,830; 2024 – $68,976)	2,600,737		2,182,856
Merchandise inventories, net	5,774,046		5,514,427
Prepaid expenses and other current assets	1,640,974		1,675,310
Total current assets	10,473,750		9,852,584
Goodwill	3,094,594		2,897,270
Other intangible assets, less accumulated amortization	1,877,578		1,799,031
Property, plant and equipment, less accumulated depreciation (2025 – $1,950,462; 2024 – $1,771,785)	2,053,449		1,950,760
Operating lease assets	1,939,322		1,769,720
Other assets	992,374		1,013,340
Total assets	$	20,431,067	$	19,282,705

Liabilities and equity
Current liabilities:
Trade accounts payable	$	5,996,943	$	5,923,684
Short-term borrowings	961,451		41,705
Current portion of long-term debt	101,230		500,000
Dividends payable	143,265		134,355
Other current liabilities	2,010,259		1,925,636
Total current liabilities	9,213,148		8,525,380
Long-term debt	3,744,118		3,742,640
Operating lease liabilities	1,614,961		1,458,391
Pension and other post–retirement benefit liabilities	222,244		218,629
Deferred tax liabilities	430,497		441,705
Other long-term liabilities	487,181		544,109
Equity:
Preferred stock, par value – $1 per share; authorized – 10,000,000 shares; none issued	—		—
Common stock, par value – $1 per share; authorized – 450,000,000 shares; issued and outstanding – 2025 – 139,092,221 shares; 2024 – 138,779,664 shares	139,092		138,780
Additional paid-in capital	205,146		196,532
Accumulated other comprehensive loss	(1,068,219)		(1,261,743)
Retained earnings	5,426,894		5,263,838
Total parent equity	4,702,913		4,337,407
Noncontrolling interests in subsidiaries	16,005		14,444
Total equity	4,718,918		4,351,851
Total liabilities and equity	$	20,431,067	$	19,282,705


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2025		2024		2025		2024
Net sales	$	6,164,425	$	5,962,567	$	12,030,494	$	11,746,198
Cost of goods sold	3,840,037		3,782,264		7,532,422		7,491,240
Gross profit	2,324,388		2,180,303		4,498,072		4,254,958
Operating expenses:
Selling, administrative and other expenses	1,771,195		1,647,456		3,480,874		3,222,383
Depreciation and amortization	123,018		99,202		238,453		189,812
Provision for doubtful accounts	7,625		5,678		13,480		11,889
Restructuring and other costs	45,712		29,760		100,482		112,802
Total operating expenses	1,947,550		1,782,096		3,833,289		3,536,886
Non-operating expenses (income):
Interest expense, net	40,211		21,921		77,427		39,611
Other	(1,930)		(9,915)		(2,838)		(32,921)
Total non-operating expenses (income)	38,281		12,006		74,589		6,690
Income before income taxes	338,557		386,201		590,194		711,382
Income taxes	83,677		90,657		140,922		166,944
Net income	$	254,880	$	295,544	$	449,272	$	544,438
Basic earnings per share	$	1.83	$	2.12	$	3.23	$	3.91
Diluted earnings per share	$	1.83	$	2.11	$	3.23	$	3.89


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Net income	$	254,880	$	295,544	$	449,272	$	544,438
Other comprehensive income (loss), net of income taxes:
Foreign currency translation adjustments,net of income taxes in 2025 — $40,342 and $57,108; 2024 — $3,419 and $11,611	136,828		15,278		186,157		(64,642)
Pension and postretirement benefit adjustments, net of income taxes in 2025 — $1,325 and $2,652; 2024 — $1,063 and $2,126	3,683		2,887		7,367		5,775
Other comprehensive income (loss), net of income taxes	140,511		18,165		193,524		(58,867)
Comprehensive income	$	395,391	$	313,709	$	642,796	$	485,571


	Three Months Ended June 30, 2025
(in thousands, except share and per share data)	Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Parent Equity		Non-controlling Interests in Subsidiaries		Total Equity
April 1, 2025	138,788,979	$	138,789	$	204,595	$	(1,208,730)	$	5,315,279	$	4,449,933	$	14,630	$	4,464,563
Net income	—	—		—		—		254,880		254,880		—		254,880
Other comprehensive income, net of tax	—	—		—		140,511		—		140,511		—		140,511
Cash dividend declared, $1.03 per share	—	—		—		—		(143,265)		(143,265)		—		(143,265)
Shares issued from employee incentive plans	303,242	303		(15,055)		—		—		(14,752)		—		(14,752)
Share-based compensation	—	—		15,606		—		—		15,606		—		15,606
Purchase of stock	—	—		—		—		—		—		—		—
Noncontrolling interest activities	—	—		—		—		—		—		1,375		1,375
June 30, 2025	139,092,221	$	139,092	$	205,146	$	(1,068,219)	$	5,426,894	$	4,702,913	$	16,005	$	4,718,918


	Six Months Ended June 30, 2025
(in thousands, except share and per share data)	Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Parent Equity		Non-controlling Interests in Subsidiaries		Total Equity
January 1, 2025	138,779,664	$	138,780	$	196,532	$	(1,261,743)	$	5,263,838	$	4,337,407	$	14,444	$	4,351,851
Net income	—	—		—		—		449,272		449,272		—		449,272
Other comprehensive income, net of tax	—	—		—		193,524		—		193,524		—		193,524
Cash dividend declared, $2.06 per share	—	—		—		—		(286,216)		(286,216)		—		(286,216)
Shares issued from employee incentive plans	312,557	312		(15,566)		—		—		(15,254)		—		(15,254)
Share-based compensation	—	—		24,180		—		—		24,180		—		24,180
Purchase of stock	—	—		—		—		—		—		—		—
Noncontrolling interest activities	—	—		—		—		—		—		1,561		1,561
June 30, 2025	139,092,221	$	139,092	$	205,146	$	(1,068,219)	$	5,426,894	$	4,702,913	$	16,005	$	4,718,918


	Three Months Ended June 30, 2024
(in thousands, except share and per share data)	Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Parent Equity		Non-controlling Interests in Subsidiaries		Total Equity
April 1, 2024	139,335,342	$	139,335	$	179,349	$	(1,053,904)	$	5,137,597	$	4,402,377	$	14,799	$	4,417,176
Net income	—	—		—		—		295,544		295,544		—		295,544
Other comprehensive income, net of tax	—	—		—		18,165		—		18,165		—		18,165
Cash dividend declared, $1.00 per share	—	—		—		—		(139,376)		(139,376)		—		(139,376)
Shares issued from employee incentive plans	259,702	259		(16,828)		—		—		(16,569)		—		(16,569)
Share-based compensation	—	—		18,006		—		—		18,006		—		18,006
Purchase of stock	(249,026)	(248)		—		—		(37,251)		(37,499)		—		(37,499)
Noncontrolling interest activities	—	—		—		—		—		—		676		676
June 30, 2024	139,346,018	$	139,346	$	180,527	$	(1,035,739)	$	5,256,514	$	4,540,648	$	15,475	$	4,556,123


	Six Months Ended June 30, 2024
(in thousands, except share and per share data)	Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Parent Equity		Non-controlling Interests in Subsidiaries		Total Equity
January 1, 2024	139,567,071	$	139,567	$	173,025	$	(976,872)	$	5,065,327	$	4,401,047	$	15,938	$	4,416,985
Net income	—	—		—		—		544,438		544,438		—		544,438
Other comprehensive loss, net of tax	—	—		—		(58,867)		—		(58,867)		—		(58,867)
Cash dividend declared, $2.00 per share	—	—		—		—		(278,761)		(278,761)		—		(278,761)
Shares issued from employee incentive plans	288,513	288		(19,068)		—		—		(18,780)		—		(18,780)
Share-based compensation	—	—		26,570		—		—		26,570		—		26,570
Purchase of stock	(509,566)	(509)		—		—		(74,490)		(74,999)		—		(74,999)
Noncontrolling interest activities	—	—		—		—		—		—		(463)		(463)
June 30, 2024	139,346,018	$	139,346	$	180,527	$	(1,035,739)	$	5,256,514	$	4,540,648	$	15,475	$	4,556,123


		June 30, 2025				December 31, 2024
Instrument	Balance Sheet Location	Notional		Balance		Notional		Balance
Net investment hedges:
Forward contract	Prepaid expenses and other current assets	$	245,960	$	4,394	$	1,867,966	$	85,834
Forward contracts	Other current liabilities	$	1,633,396	$	83,467	$	—	$	—
Foreign currency debt	Long-term debt	€	475,000	$	556,700	€	475,000	$	494,285


	Gain (Loss) Recognized in AOCL before Reclassifications				Gain Recognized in Interest Expense for Excluded Components
(in thousands)	2025		2024		2025		2024
Three Months Ended June 30,
Net investment hedges:
Forward contracts	$	(110,006)	$	6,994	$	5,755	$	4,651
Foreign currency debt	(42,228)		5,670		—		—
Total	$	(152,234)	$	12,664	$	5,755	$	4,651


(in thousands)	June 30, 2025
Obligations outstanding at the beginning of the period	$	3,365,836
Invoices confirmed during the period	2,035,678
Confirmed invoices paid during the period	(2,215,695)
Confirmed obligations outstanding at the end of the period	$	3,185,819


	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2025			2024			2025			2024
Net sales	$	3,912,281		$	3,726,991		$	7,577,169		$	7,301,011
Cost of goods sold	2,275,249			2,219,302			4,432,073			4,381,018
Gross profit	1,637,032			1,507,689			3,145,096			2,919,993
Operating expenses	1,299,040			1,144,820			2,521,597			2,237,448
EBITDA	$	337,992		$	362,869		$	623,499		$	682,545

Gross margin (1)	41.8		%	40.5		%	41.5		%	40.0		%
Operating expenses as a percentage of net sales	33.2		%	30.7		%	33.3		%	30.6		%
EBITDA margin (2)	8.6		%	9.7		%	8.2		%	9.3		%


	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2025			2024			2025			2024
Net sales	$	2,252,144		$	2,235,576		$	4,453,325		$	4,445,187
Cost of goods sold	1,564,815			1,555,514			3,100,409			3,102,814
Gross profit	687,329			680,062			1,352,916			1,342,373
Operating expenses	399,191			395,102			786,067			778,426
EBITDA	$	288,138		$	284,960		$	566,849		$	563,947

Gross margin (1)	30.5		%	30.4		%	30.4		%	30.2		%
Operating expenses as a percentage of net sales	17.7		%	17.7		%	17.7		%	17.5		%
EBITDA margin (2)	12.8		%	12.7		%	12.7		%	12.7		%


	As of June 30,
(in thousands)	2025		2024
Assets:
Automotive	$	11,337,753	$	10,075,903
Industrial	3,464,425		3,532,669
Corporate (5)	656,717		583,199
Goodwill and other intangible assets	4,972,172		4,677,622
Total assets	$	20,431,067	$	18,869,393
Long-lived assets:
United States	$	1,199,197	$	1,071,053
Europe	417,116		358,682
Canada	199,785		163,864
Australasia	236,388		193,344
Mexico	963		879
Total long-lived assets	$	2,053,449	$	1,787,822


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2025		2024		2025		2024
Depreciation and amortization:
Automotive	$	57,611	$	49,089	$	117,714	$	95,829
Industrial	9,828		8,166		19,492		16,314
Corporate	17,788		7,262		26,585		8,884
Intangible asset amortization	37,791		34,685		74,662		68,785
Total depreciation and amortization	$	123,018	$	99,202	$	238,453	$	189,812
Capital expenditures:
Automotive	$	66,911	$	80,930	$	132,045	$	146,662
Industrial	4,070		20,290		19,236		32,703
Corporate	58,001		38,457		97,541		78,966
Total capital expenditures	$	128,982	$	139,677	$	248,822	$	258,331
Net sales:
United States	$	3,991,977	$	3,899,904	$	7,845,755	$	7,683,833
Europe	1,013,110		961,854		1,985,975		1,938,636
Canada	547,322		531,711		1,010,796		1,004,514
Australasia	586,697		546,648		1,139,051		1,076,481
Mexico	25,319		22,450		48,917		42,734
Total net sales	$	6,164,425	$	5,962,567	$	12,030,494	$	11,746,198


	Changes in Accumulated Other Comprehensive Loss by Component, Net of Income Taxes
(in thousands)	Pension and Other Post-Retirement Benefits		Foreign Currency Translation		Total
Beginning balance, January 1, 2025	$	(581,000)	$	(680,743)	$	(1,261,743)
Other comprehensive income before reclassifications	—		186,157		186,157
Amounts reclassified from accumulated other comprehensive loss	7,367		—		7,367
Other comprehensive income, net of income taxes	7,367		186,157		193,524
Ending balance, June 30, 2025	$	(573,633)	$	(494,586)	$	(1,068,219)


(in thousands)	Severance and other employee costs		Other restructuring costs (1)		Total
Liability as of January 1, 2025	$	23,830	$	926	$	24,756
Restructuring and other costs	36,600		63,882		100,482
Cash payments	(31,249)		(57,268)		(88,517)
Non-cash charges	—		(5,778)		(5,778)
Translation	1,847		41		1,888
Liability as of June 30, 2025	$	31,028	$	1,803	$	32,831


Period	Total Number of Shares Purchased (1)	Average Price Paid Per Share	Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2)	Maximum Number of Shares That May Yet Be Purchased Under the Plans or Programs
April 1, 2025 through April 30, 2025	11,424	$117.10	—	7,452,811
May 1, 2025 through May 31, 2025	131,181	$118.66	—	7,452,811
June 1, 2025 through June 30, 2025	—	$—	—	7,452,811
Totals	142,605	$118.54	—	7,452,811


Exhibit 3.1						Amended and Restated Articles of Incorporation of the Company, dated April 23, 2007 (incorporated herein by reference from Exhibit 3.1 to the Company’s Current Report on Form 8-K dated April 23, 2007)

Exhibit 3.2						By-Laws of the Company, as amended and restated November 19, 2018 (incorporated herein by reference from Exhibit 3.2 to the Company’s Current Report on Form 8-K dated November 19, 2018)

Exhibit 31.1						Certification pursuant to SEC Rule 13a-14(a) signed by the Chief Executive Officer – filed herewith

Exhibit 31.2						Certification pursuant to SEC Rule 13a-14(a) signed by the Chief Financial Officer – filed herewith

Exhibit 32						Certification Pursuant to 18 U.S.C. Section 1350, as Adopted Pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by the Chief Executive Officer and Chief Financial Officer – furnished herewith

Exhibit 101.INS						XBRL Instance Document - The instance document does not appear in the interactive data file because its XBRL tags are embedded within the inline XBRL document.

Exhibit 101.SCH						XBRL Taxonomy Extension Schema Document

Exhibit 101.CAL						XBRL Taxonomy Extension Calculation Linkbase Document

Exhibit 101.DEF						XBRL Taxonomy Extension Definition Linkbase Document

Exhibit 101.LAB						XBRL Taxonomy Extension Labels Linkbase Document

Exhibit 101.PRE						XBRL Taxonomy Extension Presentation Linkbase Document

Exhibit 104						The cover page from this Quarterly Report on Form 10-Q for the period ended June 30, 2025 formatted in Inline XBRL


						Genuine Parts Company (Registrant)

Date: July 22, 2025						/s/ Bert Nappier
						Bert Nappier
						Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial and Accounting Officer)

Date	Price Target	Rating	Analyst
4/4/2025	$135.00	In-line → Outperform	Evercore ISI
4/1/2025	$114.00	Neutral → Sell	Goldman
1/17/2025		Buy → Neutral	Northcoast
1/16/2025	$155.00	Buy	Loop Capital
10/12/2023	$160.00	Neutral	UBS
6/28/2023	$195.00	Buy	Northcoast
6/1/2023	$185.00 → $189.00	Neutral → Buy	BofA Securities
5/2/2023	$163.00 → $164.00	Sell → Neutral	Goldman

SEC Form 10-Q filed by Genuine Parts Company

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