GPC 10-Q

Genuine Parts Co (GPC)

10-Q 2026-07-21 For: 2026-06-30

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Added on July 21, 2026

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


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	3
	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	30
Item 4.	Controls and Procedures	30

PART II

Item 1.	Legal Proceedings	31
Item 1A.	Risk Factors	31
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	31
Item 5.	Other Information	31
Item 6.	Exhibits	32
	Signatures	33


(in thousands, except share and per share data)	June 30, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	559,118	$	477,179
Trade accounts receivable, less allowance for doubtful accounts (2026 – $86,670; 2025 – $85,537)	2,652,749		2,370,939
Merchandise inventories, net	6,287,933		6,071,996
Prepaid expenses and other current assets	1,565,881		1,644,620
Total current assets	11,065,681		10,564,734
Goodwill	3,190,572		3,188,815
Other intangible assets, less accumulated amortization	1,774,401		1,855,714
Property, plant and equipment, less accumulated depreciation (2026 – $2,270,687; 2025 – $2,137,108)	2,152,789		2,172,140
Operating lease assets	2,018,088		2,084,487
Other assets	856,762		929,650
Total assets	$	21,058,293	$	20,795,540

Liabilities and equity
Current liabilities:
Trade accounts payable	$	6,279,867	$	6,051,882
Short-term borrowings	752,474		943,540
Current portion of long-term debt	250,000		353,788
Dividends payable	148,070		143,291
Other current liabilities	2,117,656		2,295,204
Total current liabilities	9,548,067		9,787,705
Long-term debt	3,976,648		3,498,423
Operating lease liabilities	1,673,663		1,739,478
Pension and other post–retirement benefit liabilities	219,833		219,270
Deferred tax liabilities	378,977		385,948
Other long-term liabilities	717,316		724,353
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 – 2026 – 137,859,581 shares; 2025 – 137,617,832 shares	137,860		137,618
Additional paid-in capital	244,572		228,370
Accumulated other comprehensive loss	(548,532)		(511,766)
Retained earnings	4,692,112		4,568,769
Total parent equity	4,526,012		4,422,991
Noncontrolling interests in subsidiaries	17,777		17,372
Total equity	4,543,789		4,440,363
Total liabilities and equity	$	21,058,293	$	20,795,540


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands, except per share data)	2026		2025		2026		2025
Net sales	$	6,536,951	$	6,164,425	$	12,801,891	$	12,030,494
Cost of goods sold	4,066,244		3,840,037		7,992,220		7,532,422
Gross profit	2,470,707		2,324,388		4,809,671		4,498,072
Operating expenses:
Selling, administrative and other expenses	1,917,508		1,771,195		3,774,338		3,480,874
Depreciation and amortization	134,716		123,018		265,744		238,453
Provision for doubtful accounts	10,998		7,625		18,101		13,480
Restructuring and other costs	71,149		45,712		128,881		100,482
Total operating expenses	2,134,371		1,947,550		4,187,064		3,833,289
Non-operating expense (income):
Interest expense, net	45,800		40,211		89,753		77,427
Other	(3,294)		(1,930)		(6,369)		(2,838)
Total non-operating expense	42,506		38,281		83,384		74,589
Income before income taxes	293,830		338,557		539,223		590,194
Income taxes	66,272		83,677		123,130		140,922
Net income	$	227,558	$	254,880	$	416,093	$	449,272
Basic earnings per share	$	1.65	$	1.83	$	3.02	$	3.23
Diluted earnings per share	$	1.65	$	1.83	$	3.01	$	3.23


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Net income	$	227,558	$	254,880	$	416,093	$	449,272
Other comprehensive income (loss), net of income taxes:
Foreign currency translation adjustments, net of income taxes in 2026 — $445 and $14,582; 2025 — $40,342 and $57,108	(35,358)		136,828		(34,680)		186,157
Pension and postretirement benefit adjustments, net of income taxes in 2026 — $821 and $761; 2025 — $1,325 and $2,652	291		3,683		(2,086)		7,367
Other comprehensive income (loss), net of income taxes	(35,067)		140,511		(36,766)		193,524
Comprehensive income	$	192,491	$	395,391	$	379,327	$	642,796


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


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


	Three Months Ended June 30, 2026
(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, 2026	137,624,545	$	137,625	$	240,228	$	(513,465)	$	4,611,029	$	4,475,417	$	16,800	$	4,492,217
Net income	—	—		—		—		227,558		227,558		—		227,558
Other comprehensive loss, net of tax	—	—		—		(35,067)		—		(35,067)		—		(35,067)
Cash dividend declared, $1.0625 per share	—	—		—		—		(146,475)		(146,475)		—		(146,475)
Shares issued from employee incentive plans	235,036	235		(13,186)		—		—		(12,951)		—		(12,951)
Share-based compensation	—	—		17,530		—		—		17,530		—		17,530
Noncontrolling interest activities	—	—		—		—		—		—		977		977
June 30, 2026	137,859,581	$	137,860	$	244,572	$	(548,532)	$	4,692,112	$	4,526,012	$	17,777	$	4,543,789


	Six months ended June 30, 2026
(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, 2026	137,617,832	$	137,618	$	228,370	$	(511,766)	$	4,568,769	$	4,422,991	$	17,372	$	4,440,363
Net income	—	—		—		—		416,093		416,093		—		416,093
Other comprehensive loss, net of tax	—	—		—		(36,766)		—		(36,766)		—		(36,766)
Cash dividend declared, $2.125 per share	—	—		—		—		(292,750)		(292,750)		—		(292,750)
Shares issued from employee incentive plans	241,749	242		(13,496)		—		—		(13,254)		—		(13,254)
Share-based compensation	—	—		29,698		—		—		29,698		—		29,698
Noncontrolling interest activities	—	—		—		—		—		—		405		405
June 30, 2026	137,859,581	$	137,860	$	244,572	$	(548,532)	$	4,692,112	$	4,526,012	$	17,777	$	4,543,789


	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
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


		June 30, 2026				December 31, 2025
Instrument	Balance Sheet Location	Notional		Balance		Notional		Balance
Net investment hedges:
Forward contracts	Prepaid expenses and other current assets	$	612,326	$	22,273	$	245,960	$	7,146
Forward contracts	Other current liabilities	$	1,154,200	$	25,850	$	1,633,396	$	66,516
Foreign currency debt	Long-term debt	€	475,000	$	542,640	€	475,000	$	558,030


	Gain (Loss) Recognized in AOCL before Reclassifications				Gain Recognized in Interest Expense for Excluded Components
(in thousands)	2026		2025		2026		2025
Three Months Ended June 30,
Net investment hedges:
Forward contracts	$	(3,487)	$	(110,006)	$	5,499	$	5,755
Foreign currency debt	1,805		(42,228)		—		—
Total	$	(1,682)	$	(152,234)	$	5,499	$	5,755


(in thousands)	June 30, 2026
Obligations outstanding at the beginning of the period	$	3,140,825
Invoices confirmed during the period	2,048,099
Confirmed invoices paid during the period	(2,017,462)
Confirmed obligations outstanding at the end of the period	$	3,171,462


	As of June 30,
(in thousands)	2026		2025
Assets:
North America Automotive	$	6,817,795	$	7,149,458
International Automotive	3,994,000		4,188,295
Industrial	2,771,155		3,464,425
Corporate (5)	2,510,370		656,717
Goodwill and other intangible assets	4,964,973		4,972,172
Total assets	$	21,058,293	$	20,431,067
Net property, plant and equipment:
United States	$	1,257,461	$	1,199,197
Europe	413,861		417,116
Canada	217,796		199,785
Australasia	262,412		236,388
Mexico	1,259		963
Total net property, plant and equipment	$	2,152,789	$	2,053,449


	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2026			2025			2026			2025
Net sales	$	2,537,236		$	2,444,377		$	4,900,268		$	4,709,158
Cost of goods sold	1,547,497			1,486,192			3,001,844			2,882,809
Gross profit	989,739			958,185			1,898,424			1,826,349
Operating expenses	781,411			761,685			1,533,891			1,482,854
EBITDA	$	208,328		$	196,500		$	364,533		$	343,495

Gross margin (1)	39.0		%	39.2		%	38.7		%	38.8		%
Operating expenses as a percentage of net sales	30.8		%	31.2		%	31.3		%	31.5		%
EBITDA margin (2)	8.2		%	8.0		%	7.4		%	7.3		%


	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2026			2025			2026			2025
Net sales	$	1,588,112		$	1,467,904		$	3,173,628		$	2,868,011
Cost of goods sold	854,023			789,057			1,720,350			1,549,264
Gross profit	734,089			678,847			1,453,278			1,318,747
Operating expenses	584,098			537,355			1,158,442			1,038,743
EBITDA	$	149,991		$	141,492		$	294,836		$	280,004

Gross margin (1)	46.2		%	46.2		%	45.8		%	46.0		%
Operating expenses as a percentage of net sales	36.8		%	36.6		%	36.5		%	36.2		%
EBITDA margin (2)	9.4		%	9.6		%	9.3		%	9.8		%


	Three Months Ended June 30,						Six Months Ended June 30,
(in thousands)	2026			2025			2026			2025
Net sales	$	2,411,603		$	2,252,144		$	4,727,995		$	4,453,325
Cost of goods sold	1,659,459			1,564,815			3,264,793			3,100,409
Gross profit	752,144			687,329			1,463,202			1,352,916
Operating expenses	435,697			399,191			832,635			786,067
EBITDA	$	316,447		$	288,138		$	630,567		$	566,849

Gross margin (1)	31.2		%	30.5		%	30.9		%	30.4		%
Operating expenses as a percentage of net sales	18.1		%	17.7		%	17.6		%	17.7		%
EBITDA margin (2)	13.1		%	12.8		%	13.3		%	12.7		%


	Three Months Ended June 30,				Six Months Ended June 30,
(in thousands)	2026		2025		2026		2025
Depreciation and amortization:
North America Automotive	$	41,166	$	29,108	$	81,716	$	61,389
International Automotive	33,025		28,503		63,598		56,325
Industrial	11,224		9,828		22,296		19,492
Corporate	10,240		17,788		19,273		26,585
Intangible asset amortization	39,061		37,791		78,861		74,662
Total depreciation and amortization	$	134,716	$	123,018	$	265,744	$	238,453

Capital expenditures:
North America Automotive	$	39,923	$	34,699	$	52,726	$	66,485
International Automotive	28,998		32,214		73,030		65,562
Industrial	8,376		4,070		20,448		19,236
Corporate	30,542		58,001		59,187		97,541
Total capital expenditures	$	107,839	$	128,984	$	205,391	$	248,824

Net sales:
United States	$	4,185,683	$	3,991,977	$	8,199,885	$	7,845,755
Europe	1,075,576		1,013,110		2,167,550		1,985,975
Canada	589,295		547,322		1,089,867		1,010,796
Australasia	654,141		586,697		1,282,624		1,139,051
Mexico	32,256		25,319		61,965		48,917
Total net sales	$	6,536,951	$	6,164,425	$	12,801,891	$	12,030,494


	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, 2026	$	(39,893)	$	(471,873)	$	(511,766)
Other comprehensive income (loss) before reclassifications	(2,444)		(34,680)		(37,124)
Amounts reclassified from accumulated other comprehensive loss	358		—		358
Other comprehensive income (loss), net of income taxes	(2,086)		(34,680)		(36,766)
Ending balance, June 30, 2026	$	(41,979)	$	(506,553)	$	(548,532)


(in thousands)	Severance and other employee costs		Other restructuring costs (1)		Total
Liability as of January 1, 2026	$	17,988	$	709	$	18,697
Restructuring and other costs	23,525		105,357		128,882
Cash payments	(23,798)		(92,540)		(116,338)
Non-cash charges	—		(13,020)		(13,020)
Translation	(237)		(11)		(248)
Liability as of June 30, 2026	$	17,478	$	495	$	17,973


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, 2026 through April 30, 2026	457	$106.56	—	7,452,811
May 1, 2026 through May 31, 2026	109,108	$104.99	—	7,452,811
June 1, 2026 through June 30, 2026	—	$—	—	7,452,811
Totals	109,565	$105.00	—	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 10.1						Amendment No. 7 to the Syndicated Facility Agreement, dated as of April 28, 2026 (incorporated by reference from Exhibit 10.1 to the Company's Current Report on Form 8-K dated April 28, 2026)

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, 2026 formatted in Inline XBRL


						Genuine Parts Company (Registrant)

Date: July 21, 2026						/s/ Bert Nappier
						Bert Nappier
						Executive Vice President and Chief Financial Officer (Duly Authorized Officer and Principal Financial and Accounting Officer)


1.			I have reviewed this quarterly report on Form 10-Q of Genuine Parts Company;


2.			Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;


3.			Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;


4.			The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:


			a)			Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;


			b)			Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;


			c)			Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and


			d)			Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and


			a)			All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and


			b)			Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.


Date: July 21, 2026			/s/ William P. Stengel, II
			William P. Stengel, II Chairman and Chief Executive Officer


Date: July 21, 2026			/s/ Bert Nappier
			Bert Nappier Executive Vice President and Chief Financial Officer


1			The Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934; and


2			The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.