GPC

Tesla TSLA reported third-quarter 2026 adjusted earnings of 48 cents per share, beating the Zacks Consensus Estimate of 45 cents by 6.67%. However, earnings declined 4% from 50 cents in the year-ago quarter, reflecting higher operating expenses. Revenues totaled $28.05 billion, down marginally from $28.1 billion a year ago. Revenues surpassed the Zacks Consensus Estimate of $27.78 billion by 0.96%. Growing Full Self-Driving (FSD) adoption and strength in services supported results. Tesla, Inc. price-consensus-eps-surprise-chart | Tesla, Inc. Quote Tesla produced 464,391 vehicles during the quarter, up 4% year over year. Model 3/Y production increased 5% to 457,387 units, while production of other models declined 40% to 7,004 units. Vehicle deliveries declined 2% year over year to 486,532 units. Model 3/Y deliveries slipped 1% to 478,237 units, while other model deliveries plunged 48% to 8,295 units. Global vehicle inventory was 11 days of supply compared with 10 days a year earlier. Management highlighted record quarterly deliveries across several markets, including Canada, Australia, Japan and Taiwan. Tesla exited the quarter with its highest passenger vehicle order backlog in four years. Deliveries were primarily constrained by production, with battery availability remaining a key bottleneck in increasing vehicle output. Automotive revenues declined 3% year over year to $20.56 billion. Automotive sales contributed $20.09 billion, while regulatory credit revenues dropped to $113 million from $417 million. Automotive leasing revenues totaled $353 million compared with $429 million a year ago. Despite lower revenues, automotive gross margin improved to 18.5% from 17% in the year-ago period. Excluding regulatory credits, automotive gross margin expanded sequentially to 18.1% from 16.3%. Management attributed the sequential improvement to a favorable regional delivery mix, particularly increased deliveries in Asia Pacific. However, lower vehicle average selling prices and reduced regulatory credit revenues remained headwinds. Energy generation and storage revenues decreased 16% year over year to $2.88 billion from $3.42 billion partly due to tariff-related customer refunds. Energy storage deployments reached 13.7 gigawatt-hours, up 10% year over year. Energy gross margin improved sequentially to 33.1% from 20.4%, primarily benefiting from tariff refunds and warranty-related adjustments. The company commenced production at Megafactory Texas, which has planned annual capacity of 50 GWh. Management highlighted record energy storage orders and backlog, supported by growing demand from data centers. Tesla also shipped its first Megapacks incorporating domestically manufactured lithium iron phosphate battery cells. Services and other revenues surged 33% year over year to $4.61 billion. Segment gross profit reached a record $734 million, increasing $86 million sequentially, while gross margin improved to 15.9% from 14.1%. Growth was supported by charging, insurance and parts sales. Meanwhile, active paid FSD customers climbed 67% year over year to 1.74 million. More than 75% of new vehicle deliveries in North America included paid FSD subscriptions at delivery. Tesla also expanded its autonomous transportation operations by introducing Cybercab rides in Austin. Cumulative unsupervised Robotaxi miles increased eightfold sequentially, approaching 2 million miles by quarter-end. Total gross profit increased 9% year over year to $5.49 billion, while gross margin expanded 160 basis points to 19.6%. However, operating expenses surged 39% to $4.78 billion, driven by higher research and development spending, stock-based compensation and administrative costs. Consequently, operating income declined 56% to $718 million, with operating margin contracting to 2.6% from 5.8%. Adjusted EBITDA declined 8% to $3.90 billion. Its corresponding margin contracted to 13.9% from 15%, underscoring continued profitability pressure from investments in artificial intelligence, robotics and manufacturing expansion. Tesla generated operating cash flow of $6.26 billion, broadly flat year over year. Capital expenditures increased to $4.73 billion from $2.25 billion, while free cash flow declined 62% to $1.53 billion. Cash, cash equivalents and short-term investments totaled $45.45 billion as of Sept. 30, 2026, up from $43.52 billion at the end of June. Management trimmed its 2026 capital expenditure outlook to approximately $20 billion from $25 billion guided earlier. Spending priorities include Robotaxi fleet expansion, Optimus production, semiconductor manufacturing, solar capacity and additional computing infrastructure. Tesla is targeting annual vehicle production capacity of approximately 5 million units by 2030. Management also expects Optimus deliveries to external customers toward the end of 2027, while Robotaxi operations are projected to make a more meaningful contribution to revenues and profitability during the second half of next year. TSLA currently carries a Zacks Rank #4 (Sell). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Genuine Parts Company GPC reported third-quarter 2026 adjusted earnings of $2.07 per share, missing the Zacks Consensus Estimate of $2.09. The bottom line increased 4.5% from $1.98 in the year-ago quarter. Revenues rose 4.2% year over year to $6.52 billion and surpassed the consensus estimate of $6.5 billion. Comparable sales increased 2.9%, led by strong Industrial demand. Genuine Parts ended September with $2.4 billion of liquidity, including $763 million in cash. General Motors GM delivered strong third-quarter 2026 results yesterday. Its earnings per share grew 32.2% year over year to $3.70 and topped the Zacks Consensus Estimate of $3.55. Revenues of $50.02 billion increased 3% year over year and outpaced the consensus mark of $48.21 billion.On a further encouraging note, General Motors raised its adjusted automotive free cash flow forecast to $11.5-$12.5 billion from $9.5-$11.5 billion and authorized a $20-billion multi-year share repurchase program. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tesla, Inc. (TSLA) : Free Stock Analysis Report Genuine Parts Company (GPC) : Free Stock Analysis Report General Motors Company (GM) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

This article first appeared on GuruFocus. - Total GPC Sales: $6.5 billion, up approximately 4% (4.2%) year-over-year, including 290 bps comparable sales growth, 90 bps from acquisitions, and 50 bps FX benefit. - Gross Margin: 38.1%, up 70 bps, driven by strategic pricing and sourcing initiatives, partially offset by product cost inflation. - Adjusted EPS: $2.07, up approximately 5% year-over-year. - Adjusted SG&A: 29.5% of sales, up 70 bps; absolute dollars up $120 million (5% core growth). - Adjusted EBITDA: Up approximately 4%; margin of 8.4%, flat versus prior year. - Industrial Segment Sales: $2.4 billion, up 6% (approximately $140 million); comparable sales up 5.5%; price inflation ~2%. - Industrial Segment EBITDA: $317 million, up approximately 11%; margin of 13.2%, up 60 bps. - North America Automotive Sales: Total sales up approximately 2%; comparable sales up approximately 2%; price contribution ~2.5%. - North America Automotive EBITDA: $194 million; margin of 7.6%, down 40 bps. - Company-Owned Store Comps: Up approximately 3.5%; commercial up approximately 5%. - NAPA System Sales: End-customer sales growth of approximately 3%; commercial comps up ~4%, retail comps down ~3%. - Canada Automotive Sales: Total sales up approximately 9% in local currency; comparable sales up 1%. - International Automotive Sales: Total sales up 4.5%; comparable sales up approximately 1%. - International Automotive EBITDA: $141 million, up approximately 5%; margin of 9.0%, flat versus prior year. - Europe Sales: Total sales up approximately 4% in local currency; comparable sales up 1%. - Asia Pacific Sales: Total sales up approximately 2% in local currency; comparable sales up approximately 1%. - Cash from Operations: $817 million year-to-date. - Free Cash Flow: Approximately $500 million year-to-date. - Capital Expenditures: Approximately $315 million year-to-date. - Shareholder Returns: Approximately $434 million returned via dividends year-to-date. - Restructuring: ~$200 million in costs year-to-date; $105 million in savings realized, including ~$36 million ($0.20/share) in Q3. - Iran Conflict Impact: $16 million EBITDA impact ($0.09/share) in Q3; $30$40 million expected for H2 2026. - Full-Year Adjusted EPS Guidance: Narrowed to $7.50$7.75, up 3.5% at midpoint; diluted EPS guidance of $5.60$5.85. - Warning! GuruFocus has detected 5 Warning Signs with GPC. - Is GPC fairly valued? Test your thesis with our free DCF calculator. Release Date: October 20, 2026 For the complete transcript of the earnings call, please refer to the full earnings call transcript. - Total sales increased 4% to $6.5 billion, with gross margin expansion of 70 basis points driven by strategic pricing and sourcing initiatives. - Industrial segment delivered strong performance with sales up 6% and segment EBITDA up 11% to 13.2% of sales, benefiting from a healthy industrial market backdrop. - Adjusted EPS grew 5% to $2.07, and the company remains on track to complete the separation of its Automotive and Industrial businesses in Q1 2027. - North America Automotive comparable sales increased approximately 2%, with company-owned stores comps up 3.5% and commercial up 5%, showing solid execution. - The new automated distribution center in Eastern Pennsylvania went live on time and on budget, and the company continues to invest in supply chain modernization to drive productivity and service improvements. - North America Automotive segment EBITDA margin declined 40 basis points to 7.6% due to cost inflation in freight, fuel, rent, and healthcare, partially offset by restructuring actions. - The Iran conflict is estimated to have a $16 million negative impact on EBITDA in Q3, and the company expects $30-$40 million impact in the second half, up from previous estimates. - SG&A as a percentage of sales increased 70 basis points, with absolute SG&A up $120 million year-over-year, driven by cost inflation and acquisitions. - Retail comparable sales in North America Automotive decreased approximately 3%, reflecting a cautious consumer and pressure from higher fuel prices and inflation. - Full-year adjusted EPS guidance was narrowed to $7.50-$7.75, with expectations to finish towards the lower end due to persistent cost pressures and moderating demand in Global Automotive. Q: With North America Automotive comps up ~1.7% but EBITDA margin down 40 basis points, how much of the disconnect is transitory cost pressure versus a structural change in earnings power, and what comp level is needed for positive margin flow-through? A: CFO Bert Nappier explained the 40 bps decline reflects a $6 million absolute EBITDA decrease driven by SG&A inflation tied to the Iran conflictfreight, fuel and rent rose $15 million year-over-year, with diesel up 50% and unleaded up 30%. A summer merit increase for US hourly NAPA workers also weighed on the quarter. Absent these inflation-driven costs, segment margin would have improved 20 basis points. He deferred the long-term margin algorithm to Investor Day. Q: What is the expected inflation trajectory through year-end and into 2027, given higher-than-expected costs in 2026? A: CFO Bert Nappier said the 2.5% price inflation seen in Q3 should carry through Q4, up from the original ~2% assumption. He was not ready to call 2027 but expects low single-digit top-line benefit and low single-digit COGS impact to persist. Freight and rent are trending mid-single digits, healthcare is up double digits (~15% in the quarter), putting total cost inflation around 3.4% for the yearoffset by restructuring actions that held people costs flat as a percentage of sales. Q: What exactly does the "Iran conflict" impact includeis it only cost pressure, or also a sales impact? A: CFO Bert Nappier clarified the Iran impact spans both: a top-line hit from moderating Global Automotive demand (particularly retail) that led to a 0.5-point cut to full-year growth in July, and cost pressure concentrated in freight and fuel. The Q3 EBITDA impact was $16 million, and the second-half estimate was raised to $30$40 million from $20$30 million, based on diesel now above $6 versus the $4.50 assumption previously used. Rent inflation, by contrast, stems from post-COVID lease renewals, not the conflict. Q: With higher interest rates raising inventory carrying costs for independent owners, should we assume part of the North American business remains under pressure? A: CEO-elect Court Carruthers said the top quartile of independent owners is performing similarly to company-owned stores, which are doing well. The strongest owners have solid balance sheets and are investing in inventory, people and service capability, and GPC has initiatives underway to partner more closely with them, plus new technology tools to ensure the right inventory in each local store. He cited optimism about early returns, with more detail to come at Investor Day. Q: How is the performance gap between top-quartile and bottom-quartile independent owners trending? A: CFO Bert Nappier said the bottom quartile actually improved sequentially from Q2 to Q3, indicating the actions being taken are lifting performance across the board. Inventory optimizationthe right part in the right place at the right timeremains a continuous improvement effort that progressed through the year. CEO-elect Court Carruthers added that the bottom two quartiles both improved from Q2 to Q3, with good progress in sell-out into the marketplace. Q: The implied Q4 Motion top-line guide looks weaker than typical seasonalityis that conservatism given broadening end demand? A: CFO Bert Nappier said the team is being prudent: Q4 is always dynamic with holidays, and in the past two years some customers slowed production around Christmas and New Year. Motion exited September and started October in a very similar, solid place, and October is an important month, but management is hedging on November and December. He stressed not to overread the guideMotion had a very solid Q3 and enters 2027 with good momentum. Q: What opportunity does the new Eastern Pennsylvania NAPA DC represent in terms of cost and network consolidation? A: CEO-elect Court Carruthers sees both revenue and cost upside: a broader product mix positioned closer to stores and customers to improve fill rates and availability, plus opex leverage from robotics/automation and real estate consolidation. CEO Will Stengel added that international data points from similar investments are making GPC smarter about value creation as it leans into US supply chain investments under its multiyear plan. Q: Is the UK outperformance driven by a more rational market or improving underlying demand? A: CEO Will Stengel attributed it primarily to improving controllable execution rather than market conditions. Significant supply chain investments made in the UK a couple of years ago are now proving out, and scale matters against smaller local disruptive playersthe breadth of offering and capabilities position GPC as a winner. Underlying demand is improving in a choppy market, but he credited GPC's own actions more than the market. Q: Has September's softer auto sales trend continued into Q4? A: CFO Bert Nappier said Q4 started as Q3 exited, without overemphasizing Septemberthe full-quarter trend is what matters, and fundamentals remain steady. He expects Q4 top line to look much like Q3, with Industrial solid (October picked up where September left off) and Automotive showing solid commercial growth but pressured retail due to the Iran conflict across all geographies. Europe and Asia Pacific remain muted, and easier comps support the Q4 top-line outlook. Q: Does this quarter's Industrial strength versus Automotive pressure change the earnings growth algorithm for each stand-alone company post-separation? A: CFO Bert Nappier declined to detail the earnings power of each business before the December Investor Days (GPC on December 8, Motion on December 9 in New York). He noted three solid quarters in 2026, good momentum on both sides, and that both companies have the size and scale that matter in distribution, with 2027 outlooks to be shared in December. For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Genuine Parts GPC continues to face operating challenges following its third-quarter 2026 earnings release, as elevated expenses and uneven automotive demand weigh on profitability. While the company's Industrial segment remains a growth driver, margin pressures and geopolitical disruptions are limiting its ability to translate sales gains into stronger earnings. The planned separation of its Automotive and Industrial businesses could also introduce high costs and execution risks. Shares of GPC are down 6.4% over the past year compared with the industry's 11.6% fall. Image Source: Zacks Investment Research Let's examine the key factors weighing on GPC stock. Genuine Parts continues to face elevated health care, freight, rent and wage expenses across its markets. Although pricing actions and sourcing efficiencies have helped offset product cost inflation, operating expenses continue to limit profitability. In the third quarter of 2026, adjusted gross margin expanded 70 basis points (bps) to 38.1%, but adjusted EBITDA margin remained flat at 8.4%, indicating that higher expenses absorbed the gross margin improvement. The pressure was more evident in the Automotive segment. North America Automotive EBITDA declined 2.9%, while its EBITDA margin contracted 40 bps to 7.6%. Despite restructuring savings, persistent supplier cost increases and elevated freight and fuel expenses could continue to constrain margin expansion through the end of 2026. The Iran conflict has increased operating expenses and weakened automotive demand across key markets. Management estimated the conflict reduced third-quarter 2026 EBITDA by $16 million, or 9 cents per share, while lowering EBITDA margin by approximately 20 bps. The cost burden has continued to accumulate. Fuel and diesel prices increased approximately 30% and 50%, respectively, year over year, while incremental conflict-related operating expenses reached around $35 million in the first nine months of 2026. Management expects an additional $15-$25 million in related costs in the fourth quarter. Continued geopolitical uncertainty could further increase energy, freight and supplier expenses while weighing on consumer spending. GPC's Automotive business faces an uncertain demand environment as consumers remain sensitive to fuel prices and weakening confidence. North America Automotive comparable sales growth slowed to 1.7% in the third quarter of 2026 from 2.6% in the second quarter. U.S. comparable sales increased just 1.8%, while NAPA retail comparable sales declined approximately 3%. International markets also recorded modest growth, with comparable sales increasing 1.3% in Canada, 1.1% in Europe and 0.7% in Australasia. However, these gains have not eliminated concerns about the underlying weakness in automotive retail demand. The combination of slower sales momentum and mounting operating expenses could further pressure Automotive profitability. Continued weakness in retail sales could make it harder for GPC to achieve a meaningful recovery in its Automotive business. Genuine Parts remains on track to separate its Automotive and Industrial businesses in the first quarter of 2027. Although the move is intended to sharpen strategic focus and allow each business to pursue distinct growth strategies, the transition is expected to bring substantial additional costs. Following the separation, the Automotive business is expected to absorb roughly $250 million in additional corporate costs and dis-synergies, while Industrial is expected to incur approximately $100 million. Separation-related costs totaled $21 million before taxes in the third quarter of 2026, bringing the nine-month total to roughly $55 million. These expenses primarily reflect advisory services, professional fees and other transition activities. The separation will also require distinct corporate functions, technology systems and capital structures, increasing execution requirements. Given persistent cost inflation, uneven automotive demand and rising separation expenses, Genuine Parts faces significant challenges to improving profitability. These headwinds, coupled with a narrower earnings outlook, could weigh on future performance, making selling GPC stock the prudent approach. Genuine Parts Company price-consensus-chart | Genuine Parts Company Quote GPC currently carries Zacks Rank #4 (Sell). Some better-ranked stocks in the Auto space are Honda Motor HMC, Lucid Group, Inc. LCID and Toyota TM. HMC sports a Zacks Rank #1 (Strong Buy), while LCID and TM carry a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank stocks here. The Zacks Consensus Estimate for HMC's current-year earnings is pegged at $2.29 per share, indicating a 208.5% year-over-year increase. The estimate for earnings has moved northward over the past 60 days. The Zacks Consensus Estimate for LCID's current-year loss is pegged at $12.15 per share, 0.5% wider year over year. Its earnings missed the Zacks Consensus Estimate in each of the trailing four quarters, with the average negative earnings surprise being 30.3%. The Zacks Consensus Estimate for TM's current fiscal-year earnings is pegged at $20.3 per share, indicating a 3.5% year-over-year increase. The estimate for earnings has moved down over the past 30 days. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genuine Parts Company (GPC) : Free Stock Analysis Report Toyota Motor Corporation (TM) : Free Stock Analysis Report Honda Motor Co., Ltd. (HMC) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Genuine Parts just dropped its Q3 2026 scorecard and the first verdict came from the tape, not the income statement. The stock fell about 5% to US$123.52 after the release, even though sales landed at about US$6.5b and adjusted earnings per share printed at US$2.07. The real story sits in profit quality. Gross margin improved while the Industrial unit lifted earnings before interest, tax, depreciation and amortisation margins. Yet the market reaction treated the whole update as a problem, rather than a mixed picture that leans on improving efficiency. Love Genuine Parts' firmer margins but uneasy about a market that sells first and asks questions later? Compare this update with our list of solid balance sheet and fundamentals stocks (25 results). - Revenue (Q3 2026 vs. Q3 2025): US$6,521.3m vs. US$6,260.2m (up about 4%). - Net Income (Q3 2026 vs. Q3 2025): US$224.4m vs. US$226.2m (broadly flat). - Basic EPS (Q3 2026 vs. Q3 2025): US$1.63 vs. US$1.63 (steady year on year). - Industrial Segment EBITDA Margin (Q3 2026): 13.2% of segment sales, up about 60 bps year on year, with EBITDA of US$317m on US$2.4b sales. Earnings only tell part of the story for Genuine Parts, while investors who care about valuation often pay closer attention to the cash moving through the business. Based on Genuine Parts' cash flows alone, the stock could be a whopping 48% undervalued. The bullish script argues that Genuine Parts can reshape its portfolio and cost base into a higher margin twin engine. "Company wide restructuring and cost programs, with expected cost savings of more than US$200 million on a full year basis in 2026, are aimed at offsetting inflation in wages and rent and can support EBITDA margin expansion and earnings growth over time." Year to date, restructuring has delivered US$105m of savings against roughly US$200m guided, with US$200m of related charges. Execution is progressing but only about halfway banked. Q3 gross margin expanded 70 bps and Motion EBITDA margin reached 13.2%, which shows early operating leverage. However, Automotive compression and Iran related freight costs mean the margin story is not running clean. One Narrative disagrees with today's price. → See where this Narrative says Genuine Parts should trade. The bearish script questions whether Genuine Parts can keep Motion humming without the industrial cycle breaking. "Although the core industrial MRO business represents about 80% of Motion sales and grew around 7% in the quarter, a reversal in deferred maintenance trends or weaker equipment and machinery demand could slow this steady stream of orders and cap future revenue and operating leverage." Q3 shows that risk has not hit yet. Industrial sales reached US$2.4b with growth across 12 of 14 end markets, core MRO expanded around 5% and Motion EBITDA margin moved to 13.2%. The stress point this quarter is elsewhere, in Iran driven freight costs and Automotive compression, not in Motion demand. Genuine Parts showed that a solid margin profile can still coincide with a sharp share price pullback. The real opportunity sits in assessing stocks that could be undervalued before the market adjusts. - Company 1 - 43% below our estimate - expand a solar tracker and software platform into storage and inverter projects as pipelines face connection bottlenecks. - Company 2 - 49% below our estimate - push a digital-first store network and frequent drink launches while heavier rent and delivery spending tests store profitability. - Company 3 - 30% below our estimate - shift from standalone hardware to higher margin integrated data center solutions as large AI buyers seek complete systems from fewer suppliers. Three companies from the same screener. Open every one of the 34 undervalued companies on it → This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Companies discussed in this article include GPC. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email [email protected]

- Interested in Genuine Parts Company? Here are five stocks we like better. - Third-quarter results improved: Genuine Parts reported sales of $6.5 billion, up 4%, and adjusted EPS of $2.07, up about 5%. Industrial segment growth offset softer automotive retail demand, while gross margin expanded to 38.1%. - Industrial led performance: Industrial sales rose 6% and EBITDA increased 11%, supported by maintenance demand, deferred customer investments and data-center-related activity. Automotive sales grew more modestly, with commercial strength offset by retail pressure from higher fuel prices and inflation. - Costs pressured the outlook: Iran-related freight and fuel costs reduced third-quarter EBITDA by an estimated $16 million, prompting the company to raise its second-half cost estimate to $30 million-$40 million and narrow full-year adjusted EPS guidance to $7.50-$7.75. The planned separation into independent Automotive and Industrial companies remains on track for the first quarter of 2027. - O'Reilly Automotive's Stock Slump Hides a Stronger Business Genuine Parts (NYSE:GPC) reported third-quarter 2026 sales growth of 4% and adjusted earnings per share growth of about 5%, as strength in its Industrial business helped offset softer automotive demand tied to higher fuel costs and cautious consumer conditions. Total sales rose to $6.5 billion, up more than $250 million from a year earlier. Adjusted diluted earnings per share were $2.07. Gross margin expanded 70 basis points to 38.1%, supported by pricing and sourcing initiatives, while adjusted EBITDA margin was flat at 8.4% as higher operating costs offset those gains. → Berkshire Just Backed This Little-Known Stock—Should You Chase It? - 5 Dividend Kings to Buy in July with Irresistible Value and Yield Management also said its planned separation into independent Automotive and Industrial public companies remains on track for completion in the first quarter of 2027. The company plans to provide further details on each business at Investor Days in New York City on Dec. 8 and Dec. 9. Industrial sales totaled $2.4 billion, rising 6% year over year, with comparable sales up 5.5%. Price inflation contributed roughly 2% to the segment's sales growth. Segment EBITDA increased about 11% to $317 million, while EBITDA margin rose 60 basis points to 13.2%. → These 3 Green Stocks Have a Growth Story That Goes Far Beyond Washington - Don't Try to Catch These 3 Falling Knives Chairman and CEO Will Stengel said Motion's core break-fix maintenance, repair and operations business, which represents about 80% of segment sales, grew approximately 5% during the quarter. The remaining, more capital-intensive portion of sales increased nearly 10%. The company cited nine consecutive Purchasing Managers' Index readings above 50, deferred maintenance activity and delayed customer investments beginning to move forward. Stengel also said investment in data centers and artificial-intelligence infrastructure was positively affecting the wider manufacturing economy. → Broadcom's CEO Sees Years of AI Demand But Warns of a Bigger Threat to the Boom Genuine Parts recorded growth in 12 of the 14 industrial end markets it tracks, including high-single-digit growth in equipment and machinery. Food products, iron and steel, automotive, fabricated metals, distribution and logistics, oil and gas extraction, and equipment rental and leasing also grew. Lumber and wood, along with rubber and plastics, experienced softer demand. Chief Financial and Operating Officer Bert Nappier said Industrial demand remained solid entering October, though the company is taking a prudent view of the fourth quarter because of holiday-related production schedules among customers. North America Automotive sales increased about 2%, with comparable sales also up about 2%. Segment EBITDA was $194 million, or 7.6% of sales, down 40 basis points from the prior-year period. In the U.S., total sales rose roughly 1.5% and comparable sales increased about 2%. Pricing contributed approximately 2.5% to sales growth. Company-owned store comparable sales rose about 3.5%, including approximately 5% growth in commercial sales. Independent same-store purchases were slightly higher than a year earlier. Across the NAPA system, including sales from company-owned and independent locations to end customers, comparable sales grew about 3%. Commercial customer sales increased about 4%, while retail customer sales fell approximately 3%. Stengel attributed the retail pressure to higher fuel prices, persistent inflation and a recent interest-rate increase. Management said the effects of the conflict in Iran have weighed on consumer sentiment and automotive demand across geographies, particularly on the retail side. Nappier said North America Automotive's margin decline reflected higher freight, fuel and rent costs, which totaled $15 million year over year, as well as a merit increase for NAPA's U.S. hourly workforce. He said that absent inflation-driven costs, the segment would have posted a 20-basis-point margin improvement. In Canada, sales increased approximately 9% in local currency and comparable sales rose 1%. The Benson acquisition was performing ahead of plan financially and operationally, according to Stengel. International Automotive sales rose 4.5%, with comparable sales up about 1%. Segment EBITDA increased about 5% to $141 million, while its 9.0% EBITDA margin was unchanged. European local-currency sales rose around 4%, with comparable sales up 1%, including improved recent performance in the United Kingdom. Asia-Pacific local-currency sales increased about 2%, with comparable sales up about 1%; its two-wheel motorcycle business generated double-digit local-currency sales growth. Nappier said the company estimated the Iran conflict reduced third-quarter EBITDA by $16 million, or $0.09 per share, primarily through higher freight and fuel costs. Fuel and diesel prices were up 30% and 50%, respectively, from the prior year, management said. Healthcare costs increased about 15% during the quarter, while freight expense rose 12%. Adjusted selling, general and administrative expense as a percentage of sales increased 70 basis points to 29.5%. The company incurred about $200 million of restructuring costs year to date and realized $105 million in savings, including approximately $36 million in the third quarter. Third-quarter reported results also included $87 million in pretax costs related to restructuring and the planned separation, including $21 million of separation-related costs, primarily third-party advisory fees. For the full year, Genuine Parts narrowed its adjusted EPS outlook to $7.50 to $7.75, representing 3.5% growth at the midpoint compared with 2025. It expects reported diluted EPS of $5.60 to $5.85. Nappier said the company expects to finish the year toward the lower end of its adjusted guidance range. The company now expects Iran-related incremental costs of $30 million to $40 million in the second half, compared with its earlier forecast of $20 million to $30 million. Nappier said the company expects about 2.5% price inflation through the remainder of 2026 but was not prepared to provide a 2027 inflation forecast. The company said Court Carruthers will become chief executive officer of GPC following the separation, with Nappier serving as chief financial and operating officer. Stengel is set to become chairman and chief executive officer of Motion. Carruthers, who had spent six weeks in the role at the time of the call, emphasized customer service, field execution, independent-owner partnerships and supply-chain modernization. He said GPC would take a market-by-market approach to its company-owned and independent store mix. Management highlighted a new automated NAPA distribution center in eastern Pennsylvania that opened on time and on budget during the third quarter. Carruthers said the facility is intended to expand product availability while creating productivity and real-estate consolidation opportunities. A second U.S. NAPA distribution center is expected to begin operations by year-end. Year to date, Genuine Parts generated $817 million in operating cash flow and approximately $500 million in free cash flow. It invested approximately $315 million in capital expenditures and returned about $434 million to shareholders through dividends. Genuine Parts Company (NYSE:GPC) is a distributor of automotive and industrial replacement parts. Its Automotive Parts Group supplies components and accessories for cars, trucks and other vehicles, serving professional repair shops, commercial customers and do-it-yourself consumers through distribution networks, stores and digital channels. The company's Industrial Parts Group distributes products used to maintain and repair manufacturing, commercial and other industrial equipment. Its offerings include bearings, power-transmission components, motion-control products, industrial supplies and related maintenance, repair and operations products. This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Genuine Parts Q3 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for October 2026.

Image source: The Motley Fool. Tuesday, Oct. 20, 2026 - Vice President of Investor Relations - Timothy Walsh - Chairman and Chief Executive Officer - William Stengel - chief executive officer elect - Court Carruthers - Executive Vice President and Chief Financial and Operating Officer - Herbert C. Nappier Operator: Good day, ladies and gentlemen. And welcome to the Genuine Parts Company Third Quarter 26 Earnings Conference Call. At this time, all lines are in a listen-only mode. Following the presentation. If at any time during this call you require immediate assistance, This call is being recorded on Tuesday, October 20, 2026. At this time, I would like to turn the conference call over to Timothy Walsh, Vice President of Investor Relations. Please go ahead, sir. Timothy Walsh: Thank you, and good morning, everyone. Welcome to Genuine Parts Company's third quarter 2026 earnings call. Joining us on the call today are Will Stengel, Chairman and Chief Executive Officer; Court Carruthers, chief executive officer elect; and Herbert C. Nappier, Executive Vice President and Chief Financial and Operating Officer. In addition to this morning's press release, a supplemental slide presentation can be found on the Investors page of the Genuine Parts Company website. Today's call is being webcast. And a replay will also be made available on the company's website after the call. Following our prepared remarks, the call will be open for questions. The responses to which will reflect management's views as of today, October 20, 2026. If we are unable to get to your questions, please contact our Investor Relations department. Please be advised this call may include certain non-GAAP financial measures which may be referred to during today's discussion of our results as reported under Generally accepted accounting principles. A reconciliation of these measures is provided in the earnings press release. Today's call may also involve forward looking statements regarding the company and its businesses as defined in the Private Securities Litigation Reform Act of 2000. The company's actual results could differ materially from any forward looking statements due to several important factors described in the company's latest SEC filings, including this morning's press release. The company assumes no obligation to update any forward looking statements made during this call. With that, I will turn it over to Will. William Stengel: Thank you, Timothy. Good morning, everyone. And thank you for joining our third quarter 2026 earnings call. I want to begin by recognizing our team members around the world for their exceptional teamwork and disciplined execution against a challenging macroeconomic backdrop. Our teams are managing the business well as we simultaneously advance the important work to create 2 stand-alone public companies. Our commitment to serving customers remains a daily priority and a key driver of our performance. This morning, I will review our third quarter results by segment, and share an update on the planned separation, which remains on track for completion in the first quarter of 2027. Following my remarks, you will hear from Court on his early observations from his first 6 weeks and Bert will close with an update on our financial performance during the quarter, and provide color on our outlook. We delivered a solid third quarter, in line with our expectations supported by focused execution across our businesses. While the global operating environment remains dynamic, with geopolitical uncertainty in The Middle East, persistent cost inflation, and a cautious consumer, our teams continue to be agile and operate the business with discipline. Turning to our financial results, a few high highlights for the third quarter include total GPC sales of $6.5 billion an increase of over $250 million or up 4% compared to the third quarter of 2025. Gross margin expansion of 70 basis points in line with our expectations driven by strategic pricing and sourcing initiatives. Segment EBITDA for Industrial increased 11% versus prior year, to 13.2% of sales, And adjusted earnings per share of $2.07 an increase of 5% versus the same period last year. Now turning to our results by business segment. Total sales for Industrial were $2.4 billion an increase of $140 million or 6% versus the same period in the prior year, with comparable sales 5.5%. During the quarter, the benefit from price inflation was 2%. From a cadence perspective, all 3 months of the quarter were similar on an average daily sales basis growing mid to high single digits versus last year. With September being the strongest month of the quarter. Motion delivered another strong quarter, with continued growth across large corporate accounts, small to medium sized local customers, and its value added solutions offerings. We are encouraged by the industrial market backdrop and the current level of customer activity. Including 9 consecutive PMI readings over 50 and solid performance year to date. Following a prolonged period of industrial market contraction, deferred maintenance and delayed investments are beginning to be addressed by customers. We believe data center and AI infrastructure investment is also having a positive impact on the broader manufacturing economy. Looking at the performance across our diversified end markets, we saw growth in 12 of our 14 end markets we track. Which is up from 11 in the second quarter and 7 in the same period of the prior year. During the quarter, we saw notable growth in equipment and machinery, which was up high single digits. We also saw mid single digit to double digit growth in food products, iron and steel, automotive fabricated metals, DC and logistics, oil and gas extraction, and equipment rental and leasing. This growth was slightly offset by softer demand in lumber and wood, and rubber and plastics. Motion has the diversified scale, unique value proposition, and 1 Motion invoice customer approach, to differentiate itself from the competition in a highly fragmented market. By solving customers' problems with technical, industry, and technology expertise, and becoming deeply familiar with and embedded in customers' operations, Motion delivers differentiated solutions that create customer loyalty and recurring profitable growth. An action bias and service culture across the Motion team is a key to the success. Our core break fix MRO business, which accounts for approximately 80% of Motion sales, was up 5% during the quarter and the remaining 20% of Motion sales, which originates from more capital intensive projects was up nearly 10%. Larger customer orders and capital project activity were solid in the quarter. Industrial segment EBITDA in the third quarter was $317 million up approximately 11%, 13.2% of sales. Which represents a 60 basis point increase from the same period last year. The strong results were driven by our multiyear sales effectiveness pricing and sourcing initiatives. Combined with disciplined cost management as we continue to invest to support long term growth. As we look ahead, we are encouraged by the momentum across motion. Despite a dynamic environment, Motion is positioned well to benefit from attractive near and long term industrial manufacturing trends. Core MRO demand remains healthy, capital intensive project activity continues to strengthen, and our strategic initiatives are delivering tangible benefits with exciting runway for continued performance. We look forward to sharing more on the business, our initiatives, capital allocation priorities, and financial outlook at Motion's Investor Day on December 9. Moving now to our Automotive segments. In North America Automotive, total sales in the third quarter increased 2%. With comparable sales also increasing 2%. The team continues to execute against our strategic priorities, while managing a cautious consumer backdrop and ongoing inflationary pressures. Both of which have been impacted by the conflict in The Middle East. During the quarter, North America automotive segment EBITDA was $194 million or 7.6% of sales. Our profit continues to benefit from our strategic initiatives, operating cost discipline and restructuring actions which was more than offset by pressure from cost inflation in healthcare, rent and freight. Bert will share more on the specific impact of higher fuel costs in his comments. Within North America, total sales in the U.S. were up 1.5% for the quarter. With comparable sales up 2%. Price contribution was 2.5%. From a cadence perspective, average daily sales were up low single digits in July and August. And slightly positive in September. Consumers remain under pressure from higher fuel prices, persistent inflation, and the recent interest rate increase. Despite the softer environment, sales performance at our company owned stores was solid. In the third quarter, comparable sales at our company owned stores increased 3.5%. With commercial up 5%. Independent same store purchases were up slightly versus the same period of the prior year, and have shown sequential improvement on a 2-year stack through the year. We continue to execute company owned store initiatives well, and enhancements to our commercial segments like major accounts and auto care are building momentum. We are also pleased with our independent owner initiatives. With our top quartile owners growing at comparable levels to our company owned stores. We held sessions with hundreds of owners during the quarter, and the tone is positive with good alignment on our go forward priorities. Looking at the comparable sales performance of NAPA to the end which includes our company owned sales as well as the sales out to the end customer from our independent stores, the NAPA system delivered sales growth of 3% in the third quarter. By customer type, comparable sales to our commercial customers for the quarter were up 4%. While comparable sales to our retail customers decreased 3%. Within commercial, we saw solid growth in all 4 customer segments, with particular strength in other wholesale, fleet and government customers. We were pleased to go live on time and on budget with a new distribution center in Eastern Pennsylvania in the third quarter. This modern facility is the first of its kind in the NAPA network. it is heavily automated with robotics to drive productivity and service in the local markets. The operational metrics are on track, and the NAPA supply chain team is building momentum with another plan building go live in 2026. In Canada, our team continues to do well despite ongoing softer market conditions. We saw solid sales growth again in the third quarter with total sales increasing approximately 9% local currency versus the same period last year. And comparable sales 1%. The Benson acquisition continues to support our performance with financial and operational results tracking ahead of plan. Turning to our International Automotive business. Total sales during the quarter increased 4.5%, with comparable sales up approximately 1%. International Automotive segment EBITDA for the quarter was $141 million up approximately 5%, and was 9.0% of sales, Which is flat versus the same period last year. By geography, in Europe, total sales for the quarter increased 4% in local currency. With comparable sales positive 1%. Our results improved slightly from the second quarter and continued the sequential improvement throughout 2026. With notable recent improvement in our business in the U.K. We feel confident our teams are continuing to perform better than the market, driven by our initiatives with key account customers, and the NAPA brand offering. Our investments in supply chain and infrastructure are scaling as intended and driving meaningful cost efficiency and improved inventory productivity. Positioning the business to deliver stronger performance as the market recovers. Lastly, our team in Asia-Pacific had a solid quarter despite challenging market conditions. Driven by the ongoing conflict in Iran, 5 interest rate increases in 9 months, and low business and consumer confidence. Despite these conditions, our teams continue to be focused motivated, executing at a high level to win profitable market share, as well as adding capabilities. Total sales in the third quarter increased 2% in local currency, with comparable sales up approximately 1%. Which is similar to the second quarter with trade business outperforming retail. Our 2-wheel motorcycle business had another strong quarter, with double digit sales growth in local currency. Lastly, I want to provide an update on our announced plan to separate our automotive and industrial businesses into 2 independent public companies. As mentioned, we remain on track for the separation plan for the first quarter of 2027. During the quarter, we were pleased to announce the leaders who will guide both companies following the separation. The organization design solved for continuity, to build on the business momentum, and capabilities to ensure each business is prepared for its next chapter. The appointments reflect a thoughtful and deliberate process by our board of directors and position both companies to execute their distinct strategies and create long term shareholder value. Court Carruthers will serve as Chief Executive Officer of GPC, supported by Bert as Chief Financial and Operating Officer. Court has deep relevant expertise to lead GPC, and has served as a GPC director for more than a year to learn and help guide the business. Not only does he have commercial expertise, but he is a great culture fit with our teams. Day to day leadership of the operation will continue to be led by Alain Masse in North America, Franck Baduel in Europe, and Rob Cameron in Australasia. Juan-Jacques Lafont, Co Founder of the GPC European Automotive Business, and current GPC Director. Will serve as non-executive Chairman. Together, this is a best in class global automotive team with expertise and momentum for the next chapter at GPC. I am honored to lead Motion as Chairman and Chief Executive Officer following the separation. Alongside James F. Howe, President and Chief Operating Officer Howard Yu, Chief Financial Officer and the experienced and talented Motion leadership team. The go-forward Motion executive team has over 300 years of cumulative industrial, product and customer experience. And almost all go-forward Motion executives have no change to their existing motion roles. We look forward to standing Motion up as a public company and are confident in our ability to do so with excellence. In addition to providing leadership clarity, we have continued to progress our work on the Form 10 capital structure and capital allocation priorities. Our operational separation work across people, systems, and contracts also continues to track the plan and is in line with our previously disclosed cost estimates. We have been active to recruit new directors and are pleased to share that information as we finalize our work. Similar to our management team, we have skilled director candidates. That will add relevant expertise to the board. Overall, I am really pleased with the separation progress to date and we remain focused on advancing the remaining work required to complete the separation in the first quarter of 2027. I would like to especially thank all those, including our global PMO team, who are instrumental in executing this significant body of work. In closing, we are encouraged by our performance year to date. In a dynamic operating environment, our teams are controlling what we can control, executing with discipline, serving our customers with excellence, and advancing our strategic priorities that strengthen our market leading positions across the globe. We have meaningful momentum, clear priorities, and the right leadership in place to complete the separation. And position both GPC and Motion to create long term shareholder value. Thank you to our teammates around the world for your continued hard work and commitment. I will now turn the call over to Court. Court Carruthers: Thanks, William, and good morning, everyone. I am excited and honored to be stepping into the CEO role at GPC upon the separation of Motion early next year. I am incredibly grateful for the warm welcome I have received across the global organization. We have an exceptional and passionate team at GPC, and I am proud to be part of it. Over my first 6 weeks in the role, I have spent time meeting with team members, connecting with independent owners, and experiencing our operations firsthand, visiting many stores and DCs. I came into this role with a deep appreciation for GPC's century long history our brands, and our position in the marketplace. And I am excited to help continue building on this legacy. These experiences have only strengthened my appreciation for the business and reinforced my confidence in what we can accomplish together. GPC has been delivering against a clear strategy to position the company for continued momentum following the planned separation. We will continue focusing on the priorities that matter most putting the right resources behind them, and executing with discipline. We believe the separation gives us greater flexibility and focus to successfully compete across our global markets. I would also like to share a few observations from my time in the field. First, everything begins with the customer. The mechanic in the garage turning a wrench. This is the core of who GPC serves and how the business was built. We win by delivering the parts, products, and service that mechanics need to keep their customers and the world moving. We do this by having the right inventory delivering reliably, solving problems quickly, and being easy to do business with. The more we help our customers succeed, the more GPC wins in the market. Second, our people are 1 of our greatest competitive advantages. Their deep experience, strong local relationships, and commitment to customers are capabilities that cannot be easily replicated. And they make the difference in how we execute every day. Our responsibility is to give our teams the network, tools, and leadership they need to perform at their best while fostering a culture focused on providing exceptional service to customers. Third, we have an opportunity to move with greater focus and speed post separation. We will have a short list of priorities disciplined execution, and local teams empowered to make decisions closer to the customer. We will act on the best available information learn quickly, and adjust when needed to keep getting better every day. The strength of our model was on full display at our recent independent owner meeting in Atlanta. Spending time with our independent owners reinforce the commercial value they bring to the customers and communities they serve. They know their markets. They know their customers. They build trusted local relationships. And they bring an entrepreneurial mindset to the business every day. Just as important, they tell us what is working and what is not. Our responsibility is to listen to that feedback and ensure we are supporting both our independent owners and our company stores with the products, technology, and supply chain they need to win. Local market knowledge, combined with GPC's global scale and capabilities, is a real competitive advantage. At the same time, we know the right model can differ by market, and we are taking a thoughtful market by market approach to have the right store mix to best serve customers and drive strong local performance. I saw another important element of our investment strategy during my recent visit to the NAPA Robotics Lab and a number of our US distribution centers. It was valuable to see firsthand the technology and automation we are deploying across our operations and the additional opportunities we have to expand those capabilities across the network. This technology is driving value that is practical and measurable. it is helping team members work more productively improving accuracy and product flow, strengthening our ability to serve customers consistently. These investments are also about strengthening our broader supply chain and improving product availability, areas where we are making meaningful progress and where we see significant opportunity ahead. We will continue to invest with discipline, and learn from each deployment, measuring what works and scaling projects that deliver meaningful results. My time in the field with our team members reinforced the strength of our commitment to customers and the value of staying close to where our strategy comes to life. Every customer interaction is an opportunity to deliver excellent service build trust, and demonstrate the difference our teams make each and every day. The direct conversations and practical insights from our field teams are invaluable. Their firsthand knowledge helps us identify opportunities, build on what is working, make better decisions that strengthen our business and the customer experience. I left those visits encouraged by the pride, knowledge, and commitment to win that I saw with our teams. As I look ahead, our operational priorities are straightforward. Win with customers, build the best team and culture; listen, focus, and execute. I am energized by what I have seen, grateful for the feedback I have received, and confident in the outstanding opportunity ahead. We have a remarkable legacy, strong businesses, trusted brands, and talented team members all around the world. At our Investor Day in December, we will provide greater clarity on the priorities that will shape GPC's exciting next chapter of growth. Serving customers, supporting team members, and driving stronger performance as the global automotive aftermarket leader. I look forward to updating you on our progress. With that, I will turn the call over to Herbert. Herbert C. Nappier: Thanks, Court, and good morning, everyone. Our teams delivered on another solid quarter. With 4% sales growth, and profitability in line with our expectations. Our results reflect our focus on serving our customers and continued execution across our strategic initiatives while advancing our work on our planned separation of GPC and Motion. Notably, we delivered on our third quarter commitments against the backdrop of a dynamic operating environment evidenced by the recent trends in fuel costs which finished the quarter appreciably higher than our expectations in July. During the third quarter, adjusted earnings per share was $2.07 an increase of 5%. Our results were driven by higher sales, particularly in industrial, gross margin expansion, and the benefits from our global restructuring initiatives. Which were partially offset by the continued cost inflation and operating expenses. Including the impact of the Iran conflict. The estimated impact of the Iran conflict on EBITDA in the quarter was $16 million or $0.09 per share. Our earnings also include a $0.08 impact from higher depreciation and interest expense as expected. Before I take you through the details of the quarter, my comments this morning will focus on adjusted results. Which exclude nonrecurring costs related to our global restructuring program, and costs related to the planned separation of our businesses. Collectively, these items totaled $87 million of pretax costs or $61 million after-tax. Included in $87 million is $21 million of onetime costs related to our separation activities. Primarily related to third party adviser fees. Now let's turn to the details of the third quarter. Total GPC sales increased 4.2% which included a 290 basis point improvement in comparable sales. A 90 basis point benefit from acquisitions and a 50 basis point benefit from foreign currency. Each of our segments delivered positive comparable sales growth. With our automotive segments increasing low single digits despite fuel and diesel prices being up 30%, 50% respectively, from the same time last year, which led to moderating demand across our geographies. Particularly on the retail side of the business. James in industrial continued to be strong with mid single digit comp growth. Price inflation was 2.5% at North American auto. With international auto at 3% and industrial at 2%. Our gross margin was 38.1%, an increase of 70 basis points and in line with our expectations. The improvement in our gross margin was primarily driven by the ongoing execution of our strategic pricing and sourcing initiatives, partially offset by higher product costs from inflation. Our adjusted SG and A as a percentage of sales in the third quarter was 29.5%. An increase of 70 basis points. On an as adjusted basis, SG and A grew year over year in absolute dollars $120 million Foreign currency and acquisitions represented $30 million of the growth year over year with 2-thirds of this increase being driven by acquisitions. The remaining $90 million of core SG and A growth was 5% from the prior year. The current external environment is driving cost inflation across multiple expense categories, including people costs, as well as freight, fuel, and rent expenses. Higher people costs are driven by our continued investment in team members through annual merit wage increases, including mandatory minimum wage increases outside the U.S. In addition, rapidly rising US health care costs which are up 15% in the quarter, continue to pressure results. Freight expense was a notable headwind in the quarter, as expected. With costs growing 12%. The elevated prices of diesel and fuel that I shared earlier were a significant driver of these higher expenses. We continue to work diligently to bend the curve of rising costs in the current environment. As an example, our people related costs as a percentage of sales was flat versus prior year, despite the pressure from merit and the health care costs that I just mentioned. A testament to our restructuring initiatives and cost actions. Year to date, we have incurred restructuring costs of approximately $200 million and realized $105 million in cost savings. Including approximately $36 million in the third quarter or a benefit of $0.20 per share. For the quarter, total adjusted EBITDA increased 4% with adjusted EBITDA margin of 8.4%, flat versus prior year, as the benefits from our gross margin expansion and restructuring activities were offset by higher SG and A expenses, driven by cost inflation including the impacts of the Iran conflict. The incremental costs from the 20 basis point negative impact to EBITDA margin for the quarter. During the third quarter, our EBITDA performance within the 3 business segments includes the following highlights. For the North American automotive segment, EBITDA margin was 7.6%. Down 40 basis points from last year. The decrease was primarily driven by cost inflation and cost of goods sold and in operating expenses, including higher costs for freight and fuel partially offset by our restructuring and cost actions. International auto segment EBITDA increased 5% and EBITDA margin remained flat at 9% versus the prior year. Strong gross margin expansion was offset by continued inflation in people costs, including mandatory minimum wage increases, as well as higher freight and rent expense. Benefits from our restructuring program help mitigate these cost pressures. Industrial segment EBITDA increased 11%, with EBITDA margin of 13.2% up 60 basis points year over year. The increase was driven by gross margin expansion, which benefited from our strategic pricing and sourcing initiatives. Turning to our cash flows. Year to date, we have generated $817 million in cash from operations and approximately $500 million in free cash flow. Our cash flow from operations benefited from an improvement in net working capital of approximately $260 million Year-to-date, we have invested approximately $315 million in the business in the form of capital expenditures. As we continue to modernize our supply chain infrastructure and IT systems. As an example, we are launching 2 distribution centers at NAPA in the U.S., 1 of which went live in the third quarter with the other expected to go live by year end. These investments will drive meaningful productivity benefits and improve service to our customers. We also returned approximately $434 million back to our shareholders in the form of dividends. Now turning to our outlook. As we detailed in our press release this morning, with 3 quarters of 2026 now complete, we are narrowing the range of our guidance for 2026 adjusted earnings per share. For the full year, we now expect diluted earnings per share which includes the expenses related to our restructuring efforts and year to date separation costs, to be in the range of $5.60 to $5.85. And we now expect adjusted diluted earnings per share to be in the range of $7.50 to $7.75 up 3.5% at the midpoint of the range versus 2025. Note, our adjusted EPS guidance does not include onetime costs associated with the separation. We will continue to be transparent and call those out as they are incurred. While we have delivered on our commitments in 2026, the impact of the Iran conflict has impacted our business, particularly in global automotive, as market conditions remain challenged. As you will recall, in July, we lowered our revenue outlook for global automotive for the second half of the year based on moderating demand. Our experience indicates that higher energy prices from the Iran conflict are weakening consumer sentiment. Our third quarter results were in line with our revised expectations shared in July. Further, year-to-date, our results include approximately $35 million in incremental operating expenses relative to our original expectations for 2026, or $0.20 per share. As we turn to the fourth quarter, we have considered the following factors in our outlook. We expect the conflict in Iran to persist for the remainder of 2026, and as a result, we expect continued moderating trading conditions for global automotive for the balance of the year consistent with what we experienced in the third quarter. Our outlook for gross margin reflects continued cost increases from our suppliers. As they face higher input and shipping costs. Our global teams are working to manage any potential increases in a strategic and thoughtful manner. Broadly, we expect to pass through many of these cost increases and as a result, we have not updated our expectations for gross margin for the remainder of the year. Given the elevated price of fuel as we exited the third quarter, we have incorporated revised assumptions on operating expenses. Including higher freight and fuel costs for the balance of the year. We now expect approximately $15 million to $25 million of incremental costs for the remainder of the year as a result of the Iran conflict. With the $16 million impact in the third quarter, we would expect an impact of $30 million to $40 million for the second half of 26 up from our previous estimate of $20 million to $30 million Collectively, given these factors, and the impacts we have absorbed from the Iran conflict year to date that I shared previously, we would expect to finish 2026 towards the lower end of the narrowed range. The detailed elements of our outlook including sales, gross margin, SG and A and capex remain unchanged, and can be found in our earnings presentation. Before I close, I would like to share some additional comments around the separation of GPC and Motion. We are advancing our work on the capital structure and capital allocation for both companies and look forward to providing further details at our Investor Days in December. As a reminder, we will host both Investor Days in New York City. December 8 for GPC, and December 9 for Motion. We hope you will join us and please contact our Investor Relations team with any questions or for additional information. In closing, we are pleased with our performance over the first 9 months of 2026. As we balanced running the business delivering on our commitments and managing through the impacts of the Iran conflict with the work related to a complex separation of the businesses. Our teams remain focused, agile, and disciplined And while the external environment remains dynamic, we are confident in the strength of our business and our ability to deliver for our customers and our shareholders. Thank you, and we will now turn it back to the operator for your questions. Operator: Thank you, ladies and gentlemen. We will now begin the question and answer session. To ask a question, please press the star followed by the 2. If you are using a speakerphone, please lift the handset before pressing any keys. Also, I would like to remind everyone to ask only 1 question and 1 follow-up. Once again, that is star 1 should you wish to ask a question. Our first question is from Greg Melich from Evercore ISI. Your line is now open. Greg Melich: Hi, thanks. I wanted to follow-up on the commentary on inflation. We had a lot of costs that you were not expecting earlier in the year. So if inflation in the third quarter was 2.5% across the business. Given where we are today, what do you expect that to be through the end of the year and into next year? Herbert C. Nappier: Greg, it is Bert. Good morning. I think 2.5% for the rest of the year. So as I said in my prepared comments, as we have gone through 3 quarters, we had originally thought that benefit would be around 2 points raised at 0.5 here based on the third quarter experience, and that will carry through to the fourth quarter. Probably not ready to call the ball yet on 2027 inflation. Assuming that the conflict persists, I think we are gonna always remain in that low single digit top line benefit. When you look beyond the top line, again, the low single benefit low single digit impact to cost of goods sold is holding in consistent with our original assumptions. And then on the cost side, to the original part of your question, we have seen it across line items, and it is probably better to talk about it through a line item prism versus overall freight is holding in kind of mid single digits, rent the same freight was a little higher here in the third quarter than had it been trending. And I think that is on the back of fuel Healthcare is holding in at that double-digit level, which is a headwind here in the U.S. And then the net of all that probably puts us around a 3% to 4% cost inflation percentage point impact for the year. So we are working hard to offset that with our restructuring and cost actions. that is just an important point. We have been able to manage people costs for the year flat year over year as a percentage of sales. So a lot of good discipline in the business to combat the things we cannot control. Greg Melich: Got it. And then my follow-up was, I think I heard in the prepared comments that sales in September in auto were a little softer than they were in July and August. I am just wondering if that trend has continued into the fourth quarter. Herbert C. Nappier: I would say the fourth quarter, Greg, is probably started as we exited the third quarter, not with an over emphasis on September, more to the full quarter trend for Q3. The fundamentals of the business across the board remain steady. And I would say that from an overall perspective, we expect the fourth quarter performance on the top line to look a lot like what we saw in the third quarter. With the incremental cost pressure that I mentioned in my prepared remarks. The fourth quarter is always a dynamic quarter. I mean, we think about the holidays and how that impacts the quarter. We also have to think about motion and what some of our, customers do on the production side as we get through the holiday period, maybe taking a little time off. But as I look at it business by business, industrial, October picked up where we left off in September. Solid trends across the industrial business. As we think about automotive, I think the theme will remain with solid commercial growth with retail remaining pressured, mostly because of the Iran conflict, I think. And all of our geographies, as we said in July, are feeling the impact on the automotive side of this Iran conflict. We have assumed that persists for the rest of the year in our outlook. And as we look by geography, we are going to continue to watch Europe and Asia-Pac a steady start to Q3, but both markets, I think, are overall muted. In The US, NAPA is performing kind of in line with where we exited the overall quarter rate, Without an overemphasis on September. If you remember, I think easier comps in the fourth quarter so we feel good about the outlook on the top line for the rest of the year. Greg Melich: Appreciate the color, and look forward to December. William Stengel: Thanks, Greg. Herbert C. Nappier: Thanks, Greg. Operator: Thank you. Your next question is from Michael Lasser from UBS. Your line is now open. Michael Lasser: Hi. Good morning. This is Alexis Souissi on for Michael Lasser. Thank you for taking our questions. So with 1.7%, yet even as margin declined 40 basis points How much of the disconnect is transitory cost pressure versus a structural change in the earnings power of the business? And what level of comp would you need to consistently produce positive margin flow through? Herbert C. Nappier: Thanks for the question. I will take that 1. Just a frame the North American EBITDA margin pressure. that is a $6 million absolute decrease in EBITDA year over year driving the 40 basis point decline And I think the impact is precisely to your question. it is SG and A, and it is related to the inflation we are feeling from the Iran conflict. We had increases in freight, fuel, and rent that totaled $15 million year over year. that is on the back of fuel. As I said in my prepared remarks, diesel is up 50% year over year. US unleaded is up 30%. And that is driving that increase. The other factor there is that during the summer, we put in an hourly merit a merit increase for our US hourly workforce at NAPA. It was the right thing to do for our team. They have been working hard and really powering through all the activities through the course of the year. That impacted the comp a little bit in the third quarter. Had we not had the inflation driven impact in these costs, we talked about a 20 basis point improvement. In that segment margin for the quarter. And so I think it is really on the back of what is happening in the external environment In terms of the algorithm for the long term, I think probably wait to give you some color on that at Investor Day. We will be able to see how we think the rest of the year is going to play out if the conflict persists or if it is going to turn into 2027, and we will be, able to give you a little bit more detail there. Michael Lasser: Thank you. And then as a follow-up, with industrial strengthening while North American Automotive profitability being pressured, does the. This quarter change your view of the earnings growth algorithms in each stand alone company and how it can sustain that after the separation. Herbert C. Nappier: I will take that 1, too. I think the Investor Days in December are a great time for us to discuss how we think about the earnings power for each business. We do not want to take away any reason for anybody not to come see us in New York in December, so we will hold that 1 as well. But I think, look, when we think about where we are headed, we have had a really solid third quarter. In fact, we have had really 3 solid quarters for 2026. there is good momentum in the business. Both sides and the overall team are excited about where we are headed. We have 2 fantastic companies They are built to be successful. They have size and scale. That matters in distribution. And we are going to be able to have a fantastic opportunity to update you on both in December and talk about where both businesses are going in 2027. Thanks, Greg. Operator: Thank you. Thank you. Your next question is from Scot Ciccarelli from Truist. Your line is now open. Scot Ciccarelli: Good morning, guys. Thanks for the time. I guess I have a. I am looking for a. Hi. Looking for a clarification and then a question. On the clarification, you mentioned the Iran conflict multiple times. You know, I would presume that is just cost pressure, and I kinda get the freight and fuel. But Bert, I think you then mentioned rent, and I think there might have been a reference earlier in the call on sales impact. So if you can just kind of, like, clarify what all the Iran conflict is, that would be helpful. And then secondly, as you pointed out in the past, higher interest rates over the last few years have increased inventory carrying costs for your independent owners. So as we are kinda breaking through the new highs in the interest rate environment, should we assume that part of your North American business will let's call it, continue to remain under pressure? Herbert C. Nappier: Yes, Scot. I will start with the first part of your question on Iran. I think we have isolated the Iran impact to the top line, which we talked about in July and we moderated our outlook for the global automotive segment in that regard took about a half a point of the growth out versus our original expectations for the year. And our third quarter experience came in line almost to the dollar with our forecast for the third quarter. So I would say our views on moderating demand particularly on the retail side of the business and auto held true, and I think that is going to be the case for the fourth quarter as well. When I think about the cost pressure, the cost pressure for Iran really lies in freight and fuel. And so we have given you that impact for the quarter, 16 million We ticked it up a bit for the rest of the year versus that second half. Original expectation that I gave you of $20 million to $30 million. We now see that to be $30 million to $40 million. And when we gave you the $20 million to $30 million, it was based on diesel at $4.50. And on a downward trend, diesel's now at over $6 and kind of an elevated steady trend up 35% from when I gave you that outlook. So we have ticked that up based on current expectations. The rent expense pressure is really coming out of, as we have talked about before, renewals happening in a post COVID, period. And so we are seeing those being elevated. Versus when they were negotiated 5 years ago, 6 years ago. And that schematic is playing through. So I do not know that the rent piece has anything to do with the Iran conflict. it is just overall cost inflation across the business. So that is the 2 pieces. On the independent owner, maybe I will leave it to Will and Court. Court Carruthers: Yeah. Yeah. Hey, Scot, it is Court. Happy to take that 1. I think a couple comments on the independent owners. The first 1 we talked about in the prepared comments, the fact that the top quartile of independent owners is performing, at a very similar level to company stores which are performing well. Something we will talk about at Investor Day and do not want to, get into all of it today. it is just our actions to further partner with the top owners, the largest owners, the strongest owners in the network today. Have very solid balance sheets, are investing in inventory, are investing in people and service capability in their local markets. And we have a number of initiatives underway to more closely partner with those stronger owners. We have also introduced, some technology tools and some other programs to help support making sure we have the right inventory in each local independent store to help them win in the local market. So we are really optimistic about early returns from those programs, and we will talk more about that at Investor Day. Scot Ciccarelli: Okay. Thanks, guys. Herbert C. Nappier: Thanks, Scot. Operator: Thank you. Your next question is from Christopher Dankert from D.A. Davidson. Your line is now open. Christopher Dankert: Hey, good morning guys. Thanks for taking the questions. I guess first off on Motion, if I look at the implied guide for the fourth quarter from top line perspective here, I mean, looks a little bit weaker both from a 2 year stack basis and a typical seasonality basis. Is that just a measure of conservatism? Because I guess with the end demand broadening out here, I would have expected a little bit more on motion. Maybe just you could comment there would be helpful. Herbert C. Nappier: Yeah, Christopher, I think we are being a little bit prudent. As I said a minute ago, the fourth quarter is always a dynamic period. You got the holidays. We have seen in the past 2 years some of our customers slow down production in the fourth quarter particularly as we get into the Christmas and New Year period. As I said a minute ago, the overall fundamentals are very steady. Motion has left off September and started October in a very similar place. And October is an important month. But I think we are just hedging a little bit on being prudent about November, December. And, again, I would not overread anything. Motion's performing very well. They had a very solid Q3 as Will outlined in his prepared remarks. And we remain bullish on the opportunities in the space. Customers are enthusiastic, and I think we will turn into 2027 with good momentum. Christopher Dankert: Yeah. that is fair, and I certainly appreciate the clarity there. I guess shifting gears to NAPA, here. Again, the new DC at Eastern PA, obviously exciting I assume we are gonna talk about this a whole lot at the Analyst Day, but anything you can give us in terms of is there a cost opportunity? Is there some consolidation going on associated with that? Any. Anything else you can kind of tease us with around the opportunity in the DC network for NAPA? Court Carruthers: Yeah. Sure. it is Court here and we will definitely spend lots of time on this at Investor Day, but I think, you know, there is both the revenue and the cost opportunity revenue in terms of broadening the scope of the products that we have in the supply chain. So getting a broader mix of products closer to stores and closer to customers, mission critical in terms of improving fill rates and product availability, which we are very confident will help drive further revenue. And then through the robotics and automation, as well as the real estate consolidation, we also will outline some of the operating leverage that comes from that. So we think this is a great win better service to customers, great working environment for team members, and a good cost out opportunity as well. William Stengel: And Chris, I would just add as well. You know, we have had, lots of data points investments like this that are proving out and getting us smarter on how we create value when we make these types of investments. So as you guys know, we have been on a multiyear investment plan to invest in all things supply chain. And we are leaning into our U.S. investments now. I think all of that previous work is gonna make us even smarter and better. Christopher Dankert: Thanks for the color, guys. I am looking forward to catching up in a few weeks here. Herbert C. Nappier: Thanks, Christopher. Operator: Thank you. Thank you. Your next question is from Bret Jordan from Jefferies. Your line is now open. Bret Jordan: You talked about the performance of the top quartile of independents. Could you talk about sort of the gap to the average or the bottom quartile? Has the performance narrowed or the outperformers outperforming incrementally? I guess it seems from your comp sell-in to independents and the sell out you commented on, maybe there is less total field inventory of the independents in the third quarter? Herbert C. Nappier: Yeah, Bret. This is Bert. I would just say that the as we started this core trialing exercise through the mid part of the year, we shared last quarter, relative to the sequential performance in Q2 to Q3, the bottom quartile is actually moving up. And so I would just say that I think that is an indication of, as Court just outlined, the actions we are taking are actually improving the performance across the board. And so we are pleased with that and to see the early innings of that start to have an effect is building momentum particularly as we get to Investor Day and being able to share a little bit more color on all the actions we are taking. But he did a nice job outlining those a few minutes ago and we will get into some more detail there. I think across the board, the inventory, it is always a place where we are trying to continue to improve. it is about the right part at the right place at the right time, as you know. that is a continuous improvement exercise, and we have seen that happen through the course of the year as well, which is why I think the bottom quartile are moving up relative to the second quarter. And we are looking forward to how that really translates into 2027 performance as well. Court Carruthers: And I think just sequentially, those bottom 2 quartiles did improve from Q2 to Q3. So we feel like we are seeing good progress with those efforts in terms of sales out into the marketplace. Operator: Thank you. Your next question is from Bret Jordan from Jefferies. Your line is now open. Bret Jordan: [Inaudible], I am on twice. You have called out outperformance in the U.K. Is that. And GSF have been pretty price competitive over there. Are they laying off? Is the market being more rational? Or is it just improving underlying demand in that market? William Stengel: I think it is improving underlying demand in a choppy market, sequentially. And I think more importantly, it is improving controllable execution. As you know, we have made some very significant supply chain investments into the U.K. a couple of years ago, and I think it is, to my earlier point, it is another proof point of kind of the power of those investments once they get up and running. So we are doing some really nice work We have got a great platform in the U.K. Scale matters. So even if you have some of these local smaller disruptive players over time, the breadth of the offering and the capabilities that we have in the U.K., I think, is a winner. So we are seeing it more from what we are doing rather than what the market's giving us. Bret Jordan: Appreciate it. Herbert C. Nappier: Thank you. William Stengel: Thanks, Bret. Operator: Thank you. There are no further questions at this time. I will now hand the call back over to our CEO, William Stengel. William Stengel: Thank you for joining us this morning, and thank you for your support of both GPC and Motion. We look forward to sharing more with you at our Investor Days in December. Have a great rest of your week. Thanks, everyone. Operator: Thank you, ladies and gentlemen. The conference is now ended. Thank you all for joining. You may now disconnect your lines. Before you buy stock in Genuine Parts, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Genuine Parts wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $376,696!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $1,333,920!* Now, it's worth noting Stock Advisor's total average return is 925% — a market-crushing outperformance compared to 212% for the S&P 500. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built by individual investors for individual investors. See the 10 stocks » *Stock Advisor returns as of October 20, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool recommends Genuine Parts. The Motley Fool has a disclosure policy. Genuine Parts (GPC) Q3 2026 Earnings Call Transcript was originally published by The Motley Fool

Narrows 2026 Outlook for Adjusted EPS to $7.50 to $7.75 from $7.50 to $8.00 ATLANTA, Oct. 20, 2026 /PRNewswire/ -- 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 third quarter ended September 30, 2026. "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," said 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." Third Quarter 2026 Results Sales were $6.5 billion, a 4.2% increase compared to $6.3 billion in the same period of the prior year. The improvement is attributable to a 2.9% increase in comparable sales, a 0.9% benefit from acquisitions and a net 0.4% favorable impact of foreign currency and other. Net income was $224 million, or $1.62 per diluted earnings per share. This compares to net income of $226 million, or $1.62 per diluted share in the prior year period. Adjusted net income was $286 million, or $2.07 per diluted earnings per share. Adjusted net income excludes $61 million of after-tax adjustments, or $0.45 per diluted share, which relates to costs associated with the company's global restructuring initiative and the planned separation of the company's Automotive and Industrial businesses. This compares to adjusted net income of $276 million, or $1.98 per diluted share in the prior year period. Refer to the reconciliation of GAAP net income to adjusted net income and GAAP diluted net income per common share to adjusted diluted net income per common share for more information. Third Quarter 2026 Segment Highlights North America Automotive Parts Group ("North America Automotive") North America Automotive sales were $2.5 billion, up 2.2% from the same period in 2025. The improvement is primarily attributable to a 1.7% increase in comparable sales and a 1.1% benefit from acquisitions. This was partially offset by a 0.6% unfavorable impact of foreign currency and other. Segment EBITDA of $194 million decreased 2.9%, with segment EBITDA margin of 7.6%, down 40 basis points from the same period of the prior year. International Automotive Parts Group ("International Automotive") International Automotive sales were $1.6 billion, up 4.5% from the same period in 2025. The improvement is primarily attributable to a 1.7% benefit from acquisitions, a 1.7% favorable impact of foreign currency and a 1.1% increase in comparable sales. Segment EBITDA of $141 million increased 4.7%, with segment EBITDA margin of 9.0%, flat versus the same period of the prior year. Industrial Parts Group ("Industrial") Industrial sales were $2.4 billion, up 6.1% from the same period in 2025. The improvement is primarily attributable to a 5.5% increase in comparable sales, a 0.5% favorable impact of foreign currency and a 0.1% benefit from acquisitions. Segment EBITDA of $317 million increased 11.2%, with segment EBITDA margin of 13.2%, up 60 basis points from the same period of the prior year. Year to Date 2026 Results Sales for the nine months ended September 30, 2026 were $19.3 billion, up 5.6% from the same period in 2025. Net income for the nine months was $641 million, or $4.64 per diluted share. This compares to net income of $675 million, or $4.85 per diluted share in the prior year period. Adjusted net income was $827 million in the first nine months of 2026, compared to adjusted net income of $810 million in the prior year period. Adjusted diluted earnings per share were $5.99 compared to $5.82 in the prior year period. Balance Sheet, Cash Flow and Capital Allocation The company generated cash flow from operations of $817 million for the first nine months of 2026. Net cash used in investing activities was $361 million, including $314 million for capital expenditures and $69 million for acquisitions. Net cash used in financing activities was $139 million, including net proceeds of debt (including net commercial paper) of $338 million, partially offset by $434 million for quarterly dividends paid to shareholders. Free cash flow was $502 million for the first nine months of 2026. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information. As of September 30, 2026, total liquidity was $2.4 billion, consisting of $763 million in cash, and $1.6 billion of available capacity under the company's $2.0 billion Revolving Credit Agreement. This reflects $389 million outstanding under our commercial paper program. 2026 Outlook The company is narrowing the range for adjusted diluted earnings per share outlook from its previous full-year 2026 outlook provided in its earnings releases on February 17, 2026, April 21, 2026 and July 21, 2026. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results in updating its outlook, which is outlined in the table below. The updated GAAP earnings-per-share outlook includes expected costs associated with the company's restructuring initiatives, and includes costs related to the planned separation that have been incurred year-to-date. | | For the Year Ending December 31, 2026 | | Previous Outlook | | Updated Outlook Total sales growth | | 3% to 5.5% | | 3% to 5.5% North America Automotive sales growth | | 2.5% to 4.5% | | 2.5% to 4.5% International Automotive sales growth | | 5% to 8% | | 5% to 8% Industrial sales growth | | 3% to 6% | | 3% to 6% Diluted earnings per share | | $5.90 to $6.40 | | $5.60 to $5.85 Adjusted diluted earnings per share | | $7.50 to $8.00 | | $7.50 to $7.75 Effective tax rate | | Approx. 24% | | Approx. 24% Net cash provided by operating activities | | $1.0 billion to $1.2 billion | | $1.0 billion to $1.2 billion Free cash flow | | $550 million to $700 million | | $550 million to $700 million Non-GAAP Information This release contains certain financial information not derived in accordance with United States ("U.S.") generally accepted accounting principles ("GAAP"). These items include adjusted net income, adjusted diluted net income per common share, adjusted selling, administrative, and other expenses, and free cash flow. The company believes that the presentation of adjusted net income, adjusted diluted net income per common share, adjusted selling, administrative and other expenses and free cash flow, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides meaningful supplemental information to both management and investors that is indicative of the company's core operations. The company considers these metrics useful to investors because they provide greater transparency into management's view and assessment of the company's ongoing operating performance by removing items management believes are not representative of the company's continuing operations and may distort the company's longer-term operating trends. The company believes these measures are useful and enhance the comparability of the results from period to period and with the company's competitors, as well as show ongoing results from operations distinct from items that are infrequent or not associated with the company's core operations. The company does not, nor does it suggest investors should, consider such non-GAAP financial measures as superior to, in isolation from, or as a substitute for, GAAP financial information. The company has included a reconciliation of this additional information to the most comparable GAAP measure following the financial statements below. The company does not provide a forward-looking outlook for certain financial measures on a GAAP basis because the company is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include separation costs, acquisition-related costs, litigation charges or settlements, impairment charges, restructuring costs and certain other unusual adjustments. Comparable Sales Comparable sales is a key metric that refers to period-over-period comparisons of the company's net sales excluding the impact of acquisitions, foreign currency and other. The company's calculation of comparable sales is computed using total business days for the period and is inclusive of sales from company-owned stores and sales into independent stores. The company considers this metric useful to investors because it provides greater transparency into management's view and assessment of the company's core ongoing operations. This is a metric that is widely used by analysts, investors and competitors; however the company's calculation of the metric may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate this metric in the same manner. Conference Call Genuine Parts Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss the results of the quarter. A supplemental earnings deck will also be available for reference. Interested parties may listen to the call and view the supplemental earnings deck on the company's investor relations website. The call is also available by dialing 800-836-8184. A replay of the call will be available on the company's website or toll-free at 888-660-6345, conference ID 26206#, two hours after the completion of the call. About Genuine Parts Company Established in 1928, Genuine Parts Company is a leading global service provider of automotive and industrial replacement parts and value-added solutions. Our Automotive Parts Group operates across North America, Europe and Australasia, while our Industrial Parts Group serves customers across North America and Australasia. We keep the world moving with a vast network of over 10,800 locations spanning 17 countries supported by more than 65,000 teammates. Learn more at genpt.com. Forward-Looking Statements Some statements in this release, as well as in other materials the company files with the Securities and Exchange Commission ("SEC"), release to the public, or make available on the company's website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words such as "expect," "likely," "outlook," "forecast," "preliminary," "would," "could," "should," "position," "will," "project," "intend," "plan," "on track," "anticipate," "to come," "may," "possible," "assume," or similar expressions are intended to identify such forward-looking statements. These forward-looking statements include the company's view of business and economic trends for the remainder of the year and the company's expectations regarding its ability to capitalize on these business and economic trends; the company's full-year 2026 outlook and the company's ability to successfully execute on its strategic priorities, including the company's anticipated separation of Global Automotive and Global Industrial into two independent, publicly traded companies. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking. The company cautions you that all forward-looking statements involve risks and uncertainties, and while the company believes its expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on the company's forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, changes in general economic conditions, including persistent inflation (including the direct and indirect impact of tariffs and retaliatory tariffs) or deflation, geopolitical uncertainty and unrest (including from the conflict involving the United States and Iran) and declining consumer confidence; the company's ability to successfully implement the separation of Global Automotive and Global Industrial and achieve the anticipated benefits of such transaction; volatility in oil prices; significant costs, such as elevated fuel and freight expenses; the company's ability to maintain compliance with its debt covenants; its ability to successfully integrate acquired businesses into its operations and to realize the anticipated synergies and benefits; its ability to successfully implement its business initiatives in its three business segments; slowing demand for its products; the ability to maintain favorable supplier arrangements and relationships; changes in national and international legislation or government regulations or policies, including changes to global trade regulations, environmental and social policy, infrastructure programs and privacy legislation and related uncertainties, and their impact on the company, its suppliers and customers; changes in tax policies; volatile exchange rates; the company's ability to successfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; failure or weakness in the company's disclosure controls and procedures and internal controls over financial reporting; the uncertainties and costs of litigation; public health emergencies, including the effects on the financial health of the company's business partners and customers, on supply chains and its suppliers, on vehicle miles driven as well as other metrics that affect the company's business, and on access to capital and liquidity provided by the financial and capital markets; disruptions caused by a failure or breach of the company's information systems; the success of its global restructuring efforts and the annualized cost savings arising therefrom, as well as other risks and uncertainties discussed in the company's Annual Report on Form 10-K and from time to time in its subsequent filings with the SEC. Forward-looking statements speak only as of the date they are made, and the company undertakes no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures the company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC. GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED) | | Three Months Ended September 30, | | Nine Months Ended September 30, (in thousands, except per share data) | | 2026 | | 2025 | | 2026 | | 2025 Net sales | | $ 6,521,308 | | $ 6,260,232 | | $ 19,323,199 | | $ 18,290,726 Cost of goods sold | | 4,037,033 | | 3,918,830 | | 12,029,253 | | 11,451,252 Gross profit | | 2,484,275 | | 2,341,402 | | 7,293,946 | | 6,839,474 Operating expenses: | | | | | | | | Selling, administrative and other expenses | | 1,944,518 | | 1,805,928 | | 5,718,856 | | 5,286,802 Depreciation and amortization | | 137,490 | | 127,475 | | 403,234 | | 365,928 Provision for doubtful accounts | | 9,238 | | 6,871 | | 27,339 | | 20,351 Restructuring and other costs | | 64,545 | | 66,835 | | 193,426 | | 167,317 Total operating expenses | | 2,155,791 | | 2,007,109 | | 6,342,855 | | 5,840,398 Non-operating expense (income): | | | | | | | | Interest expense, net | | 45,970 | | 40,342 | | 135,723 | | 117,769 Other | | 3,866 | | 2,258 | | (2,503) | | (580) Total non-operating expense | | 49,836 | | 42,600 | | 133,220 | | 117,189 Income before income taxes | | 278,648 | | 291,693 | | 817,871 | | 881,887 Income taxes | | 54,201 | | 65,522 | | 177,331 | | 206,444 Net income | | $ 224,447 | | $ 226,171 | | $ 640,540 | | $ 675,443 Dividends declared per common share | | $ 1.0625 | | $ 1.03 | | $ 3.1875 | | $ 3.09 Basic earnings per share | | $ 1.63 | | $ 1.63 | | $ 4.65 | | $ 4.86 Diluted earnings per share | | $ 1.62 | | $ 1.62 | | $ 4.64 | | $ 4.85 | | | | | | | | Weighted average common shares outstanding | | 137,862 | | 139,099 | | 137,753 | | 138,959 Dilutive effect of stock options and non- vested restricted stock awards | | 469 | | 307 | | 351 | | 298 Weighted average common shares outstanding – assuming dilution | | 138,331 | | 139,406 | | 138,104 | | 139,257 GENUINE PARTS COMPANY AND SUBSIDIARIES SEGMENT INFORMATION (UNAUDITED) The following table presents net sales by segment and a reconciliation from segment EBITDA to net income: | | Three Months Ended September 30, | | Nine Months Ended September 30, (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 Net sales: | | | | | | | | North America Automotive | | $ 2,540,319 | | $ 2,484,591 | | $ 7,440,587 | | $ 7,193,749 International Automotive | | 1,572,392 | | 1,505,197 | | 4,746,020 | | 4,373,208 Industrial | | 2,408,597 | | 2,270,444 | | 7,136,592 | | 6,723,769 Segment EBITDA: | | | | | | | | North America Automotive | | 193,860 | | 199,626 | | 558,393 | | 543,121 International Automotive | | 141,394 | | 135,078 | | 436,230 | | 415,082 Industrial | | 316,927 | | 285,015 | | 947,494 | | 851,865 Corporate EBITDA (1) | | (103,521) | | (93,374) | | (330,859) | | (263,131) Interest expense, net | | (45,970) | | (40,342) | | (135,723) | | (117,769) Depreciation and amortization | | (137,490) | | (127,475) | | (403,234) | | (365,928) Other unallocated costs | | (86,552) | | (66,835) | | (254,430) | | (181,352) Income before income taxes | | 278,648 | | 291,693 | | 817,871 | | 881,887 Income taxes | | (54,201) | | (65,522) | | (177,331) | | (206,444) Net income | | $ 224,447 | | $ 226,171 | | $ 640,540 | | $ 675,443 | (1) | Corporate EBITDA consists of costs related to the company's Corporate headquarters' broad support to the company's business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology, cybersecurity, legal, corporate finance, internal audit, and risk management, as well as product liability costs and A/R Sales Agreement fees. The following table presents a summary of the other unallocated costs: | | Three Months Ended September 30, | | Nine Months Ended September 30, (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 Other unallocated costs: | | | | | | | | Restructuring and other costs (2) | | $ (64,545) | | $ (66,835) | | $ (193,426) | | $ (167,317) Separation costs (3) | | (21,204) | | — | | (54,912) | | — Acquisition and integration related costs and other (4) | | (803) | | — | | (6,092) | | (14,035) Total other unallocated costs | | $ (86,552) | | $ (66,835) | | $ (254,430) | | $ (181,352) | (2) | Amount reflects costs related to our global restructuring initiative which includes employee severance and other termination benefits, and the rationalization and optimization of certain distribution centers, stores and other facilities. (3) | Amount primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of the company's Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027. (4) | Amount primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores. GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED BALANCE SHEETS (UNAUDITED) (in thousands, except share and per share data) | | September 30, 2026 | | December 31, 2025 Assets | | | | Current assets: | | | | Cash and cash equivalents | | $ 763,151 | | $ 477,179 Trade accounts receivable, net | | 2,619,491 | | 2,370,939 Merchandise inventories, net | | 6,435,802 | | 6,071,996 Prepaid expenses and other current assets | | 1,632,361 | | 1,644,620 Total current assets | | 11,450,805 | | 10,564,734 Goodwill | | 3,206,231 | | 3,188,815 Other intangible assets, net | | 1,743,938 | | 1,855,714 Property, plant and equipment, net | | 2,161,387 | | 2,172,140 Operating lease assets | | 2,062,454 | | 2,084,487 Other assets | | 872,340 | | 929,650 Total assets | | $ 21,497,155 | | $ 20,795,540 | | | | Liabilities and equity | | | | Current liabilities: | | | | Trade accounts payable | | $ 6,394,876 | | $ 6,051,882 Short-term borrowings | | 388,088 | | 943,540 Current portion of long-term debt | | 250,000 | | 353,788 Dividends payable | | 148,074 | | 143,291 Other current liabilities | | 2,180,515 | | 2,295,204 Total current liabilities | | 9,361,553 | | 9,787,705 Long-term debt | | 4,472,149 | | 3,498,423 Operating lease liabilities | | 1,713,902 | | 1,739,478 Pension and other post–retirement benefit liabilities | | 218,787 | | 219,270 Deferred tax liabilities | | 368,353 | | 385,948 Other long-term liabilities | | 703,492 | | 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 – 137,864,682 shares; 2025 – 137,617,832 shares | | 137,865 | | 137,618 Additional paid-in capital | | 259,505 | | 228,370 Accumulated other comprehensive loss | | (518,474) | | (511,766) Retained earnings | | 4,770,080 | | 4,568,769 Total parent equity | | 4,648,976 | | 4,422,991 Noncontrolling interests in subsidiaries | | 9,943 | | 17,372 Total equity | | 4,658,919 | | 4,440,363 Total liabilities and equity | | $ 21,497,155 | | $ 20,795,540 GENUINE PARTS COMPANY AND SUBSIDIARIES CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED) | | Nine Months Ended September 30, (in thousands) | | 2026 | | 2025 Operating activities: | | | | Net income | | $ 640,540 | | $ 675,443 Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | | | Depreciation and amortization | | 403,234 | | 365,928 Share-based compensation | | 45,095 | | 37,183 Other operating activities, including changes in operating assets and liabilities | | (272,222) | | (567,865) Net cash provided by operating activities | | 816,647 | | 510,689 Investing activities: | | | | Purchases of property, plant and equipment | | (314,476) | | (350,443) Proceeds from sale of property, plant and equipment | | 28,070 | | 21,085 Acquisitions of businesses | | (69,450) | | (181,987) Proceeds from divestitures of businesses | | 6,885 | | 59 Other investing activities | | (12,105) | | 23,335 Net cash used in investing activities | | (361,076) | | (487,951) Financing activities: | | | | Proceeds from debt | | 1,291,217 | | 44,600 Payments on debt | | (997,776) | | (567,368) Net proceeds of commercial paper | | 44,968 | | 886,175 Shares issued from employee incentive plans | | (13,713) | | (16,316) Dividends paid | | (434,446) | | (420,571) Other financing activities | | (29,283) | | (20,237) Net cash used in financing activities | | (139,033) | | (93,717) Effect of exchange rate changes on cash and cash equivalents | | (30,566) | | 22,347 Net increase (decrease) in cash and cash equivalents | | 285,972 | | (48,632) Cash and cash equivalents at beginning of period | | 477,179 | | 479,991 Cash and cash equivalents at end of period | | $ 763,151 | | $ 431,359 GENUINE PARTS COMPANY AND SUBSIDIARIES RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME AND GAAP DILUTED NET INCOME PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME PER COMMON SHARE (UNAUDITED) The table below represents a reconciliation from GAAP net income to adjusted net income: | | Three Months Ended September 30, | | Nine Months Ended September 30, (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 GAAP net income | | $ 224,447 | | $ 226,171 | | $ 640,540 | | $ 675,443 | | | | | | | | Adjustments: | | | | | | | | Restructuring and other costs (1) | | 64,545 | | 66,835 | | 193,426 | | 167,317 Separation costs (2) | | 21,204 | | — | | 54,912 | | — Acquisition and integration related costs and other (3) | | 803 | | — | | 6,092 | | 14,035 Total adjustments | | 86,552 | | 66,835 | | 254,430 | | 181,352 Tax impact of adjustments (4) | | (25,053) | | (17,411) | | (68,239) | | (46,340) Adjusted net income | | $ 285,946 | | $ 275,595 | | $ 826,731 | | $ 810,455 The table below represents amounts per common share assuming dilution: | | Three Months Ended September 30, | | Nine Months Ended September 30, (in thousands, except per share data) | | 2026 | | 2025 | | 2026 | | 2025 GAAP diluted net income per common share | | $ 1.62 | | $ 1.62 | | $ 4.64 | | $ 4.85 | | | | | | | | Adjustments: | | | | | | | | Restructuring and other costs (1) | | 0.47 | | 0.48 | | 1.40 | | 1.20 Separation costs (2) | | 0.15 | | — | | 0.40 | | — Acquisition and integration related costs and other (3) | | 0.01 | | — | | 0.04 | | 0.10 Total adjustments | | 0.63 | | 0.48 | | 1.84 | | 1.30 Tax impact of adjustments (4) | | (0.18) | | (0.12) | | (0.49) | | (0.33) Adjusted diluted net income per common share | | $ 2.07 | | $ 1.98 | | $ 5.99 | | $ 5.82 Weighted average common shares outstanding – assuming dilution | | 138,331 | | 139,406 | | 138,104 | | 139,257 | (1) | Amount reflects costs related to our global restructuring initiative which includes employee severance and other termination benefits, and the rationalization and optimization of certain distribution centers, stores and other facilities. (2) | Amount primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of our Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027. (3) | Amount primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores. (4) | We determine the tax effect of non-GAAP adjustments by considering the tax laws and statutory income tax rates applicable in the tax jurisdictions of the underlying non-GAAP adjustments, including any related valuation allowances. For the three and nine months ended September 30, 2026, we applied the statutory income tax rates to the taxable portion of all of our adjustments, which resulted in a tax impact of $25 million and $68 million, respectively. The table below clarifies where the items that have been adjusted above to improve comparability of the financial information from period to period are presented in the condensed consolidated statements of income. | | Three Months Ended September 30, | | Nine Months Ended September 30, (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 Line item: | | | | | | | | Cost of goods sold | | $ 803 | | $ — | | $ 6,092 | | $ — Selling, administrative and other expenses | | 21,204 | | — | | 54,912 | | 14,035 Restructuring and other costs | | 64,545 | | 66,835 | | 193,426 | | 167,317 Total adjustments | | $ 86,552 | | $ 66,835 | | $ 254,430 | | $ 181,352 GENUINE PARTS COMPANY AND SUBSIDIARIES RECONCILIATION OF GAAP SELLING, ADMINISTRATIVE AND OTHER EXPENSES TO ADJUSTED SELLING, ADMINISTRATIVE AND OTHER EXPENSES (UNAUDITED) The table below represents a reconciliation from GAAP selling, administrative and other expenses to adjusted selling, administrative and other expenses: | | Three Months Ended September 30, | | Nine Months Ended September 30, (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 GAAP selling, administrative and other expenses | | $ 1,944,518 | | $ 1,805,928 | | $ 5,718,856 | | $ 5,286,802 Adjustments: | | | | | | | | Separation costs | | (21,204) | | — | | (54,912) | | — Acquisition and integration related costs and other | | — | | — | | — | | (14,035) Total adjustments (1) | | (21,204) | | — | | (54,912) | | (14,035) Adjusted selling, administrative and other expenses | | $ 1,923,314 | | $ 1,805,928 | | $ 5,663,944 | | $ 5,272,767 | | | | | | | | Net sales | | $ 6,521,308 | | $ 6,260,232 | | $ 19,323,199 | | $ 18,290,726 GAAP SG&A expenses as a percentage of net sales | | 29.8 % | | 28.8 % | | 29.6 % | | 28.9 % Adjusted SG&A expenses as a percentage of net sales | | 29.5 % | | 28.8 % | | 29.3 % | | 28.8 % | (1) | Refer to the explanation of adjustments included within the reconciliation of GAAP net income to adjusted net income table for further information. GENUINE PARTS COMPANY AND SUBSIDIARIES CHANGE IN NET SALES SUMMARY (UNAUDITED) | | Three Months Ended September 30, 2026 | | Comparable Sales | | Acquisitions | | Foreign Currency | | Other | | GAAP Total Net Sales North America Automotive | | 1.7 % | | 1.1 % | | (0.3) % | | (0.3) % | | 2.2 % International Automotive | | 1.1 % | | 1.7 % | | 1.7 % | | — % | | 4.5 % Industrial | | 5.5 % | | 0.1 % | | 0.5 % | | — % | | 6.1 % Total Net Sales | | 2.9 % | | 0.9 % | | 0.5 % | | (0.1) % | | 4.2 % | | Nine Months Ended September 30, 2026 | | Comparable Sales | | Acquisitions | | Foreign Currency | | Other | | GAAP Total Net Sales North America Automotive | | 2.2 % | | 1.3 % | | 0.1 % | | (0.2) % | | 3.4 % International Automotive | | 0.9 % | | 2.1 % | | 5.5 % | | — % | | 8.5 % Industrial | | 5.1 % | | 0.2 % | | 0.8 % | | — % | | 6.1 % Total Net Sales | | 2.9 % | | 1.1 % | | 1.7 % | | (0.1) % | | 5.6 % GENUINE PARTS COMPANY AND SUBSIDIARIES RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW (UNAUDITED) | | Nine Months Ended September 30, (in thousands) | | 2026 | | 2025 Net cash provided by operating activities | | $ 816,647 | | $ 510,689 Purchases of property, plant and equipment | | (314,476) | | (350,443) Free cash flow | | $ 502,171 | | $ 160,246 | | For the Year Ending December 31, 2026 Net cash provided by operating activities | | $1.0 billion to $1.2 billion Purchases of property, plant and equipment | | $450 million to $500 million Free cash flow | | $550 million to $700 million View original content to download multimedia:https://www.prnewswire.com/news-releases/genuine-parts-company-reports-third-quarter-2026-results-302913314.html

Genuine Parts Company GPC reported third-quarter 2026 adjusted earnings of $2.07 per share, missing the Zacks Consensus Estimate of $2.09. The bottom line increased 4.5% from $1.98 in the year-ago quarter. Revenues rose 4.2% year over year to $6.52 billion and surpassed the consensus estimate of $6.5 billion. Comparable sales increased 2.9%, led by strong Industrial demand. Acquisitions and favorable currency movements also supported growth, while North America Automotive faced margin pressure. Genuine Parts Company price-consensus-eps-surprise-chart | Genuine Parts Company Quote The revenue increase included a 0.9% contribution from acquisitions and a combined 0.4% favorable impact from foreign currency and other factors. Growth was recorded across North America Automotive, International Automotive and Industrial operations. Adjusted gross margin expanded 70 basis points to 38.1%. However, adjusted selling, administrative and other expenses represented 29.5% of sales, up from 28.8% a year earlier, partly offsetting the gross-margin improvement. Industrial sales advanced 6.1% year over year to $2.41 billion. Comparable sales climbed 5.5%, while favorable currency movements added 0.5% and acquisitions contributed 0.1%. The segment generated EBITDA of $317 million, up 11.2% from the prior-year period. EBITDA margin expanded 60 basis points to 13.2%. Growth was recorded in 12 of 14 end markets, while eight markets improved sequentially. Maintenance, repair and operations sales grew approximately 5%, supported by large corporate accounts. Value-added solutions sales increased nearly 10%, improving sequentially from the second quarter. North America Automotive sales rose 2.2% to $2.54 billion, driven by a 1.7% comparable-sales gain and a 1.1% contribution from acquisition. Foreign currency and other factors had a combined 0.6% unfavorable impact. Segment EBITDA declined 2.9% to $194 million, while EBITDA margin contracted 40 basis points to 7.6%. Company-owned stores in the United States delivered comparable-sales growth of approximately 3.5%, including roughly 5% growth in the commercial business. The Benson acquisition continued to perform ahead of financial and operational expectations. International Automotive revenues rose 4.5% to $1.57 billion. Foreign currency and acquisitions each contributed 1.7%, while comparable sales increased 1.1%. Segment EBITDA improved 4.7% to $141 million, with margin remaining flat at 9%. Europe recorded sequential improvement in comparable sales, particularly in the United Kingdom. Australasia delivered positive sales growth despite a challenging operating environment. Local-currency sales increased 3.6% in Europe and 1.7% in Australasia. GAAP net income declined to $224 million from $226 million a year earlier, while diluted earnings remained flat at $1.62 per share. Adjusted net income increased to $286 million from $276 million. The difference between GAAP and adjusted results reflected approximately $61 million of after-tax adjustments. Restructuring and other costs totaled $64.5 million before taxes, while separation expenses reached $21.2 million. Adjusted EBITDA increased 4.2% to $549 million, with margin unchanged at 8.4%. GPC remains on track to separate its Automotive and Industrial businesses into two publicly traded companies in the first quarter of 2027. GPC lowered the upper end of its 2026 adjusted earnings guidance to $7.75 per share from $8, retaining the lower end at $7.5. The company reduced its GAAP earnings forecast to $5.6-$5.85 per share from $5.9-$6.4. Total sales growth guidance remains at 3-5.5%. North America Automotive growth is projected at 2.5-4.5%, International Automotive at 5-8% and Industrial at 3-6%. The company maintained its adjusted EBITDA outlook of $2-$2.2 billion. Cash from operations totaled $817 million in the first nine months of 2026, up from $511 million a year earlier. Free cash flow reached $502 million compared with $160 million in the prior-year period. Genuine Parts ended September with $2.4 billion of liquidity, including $763 million in cash. Year-to-date capital expenditures were $314 million, acquisition spending totaled $69 million and cash dividends reached $434 million. The company continues to expect full-year operating cash flow of $1-$1.2 billion and free cash flow of $550-$700 million. GPC currently carries a Zacks Rank #3 (Hold). Some better-ranked stocks in the Auto-Tires-Trucks space are Rivian Automotive, Inc. RIVN, Fox Factory Holding Corp. FOXF and Lucid Group, Inc. LCID. RIVN is expected to report third-quarter fiscal 2026 results on Oct. 29. The Zacks Consensus Estimate for loss is pegged at 67 cents per share. RIVN currently carries a Zacks Rank #2 (Buy). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. FOXF is expected to report third-quarter fiscal 2026 results on Nov. 5. The Zacks Consensus Estimate for loss is pegged at 48 cents per share. FOXF currently sports a Zacks Rank #1. LCID is expected to report third-quarter 2026 results on Nov. 9. The Zacks Consensus Estimate for loss is pegged at $2.78 per share. LCID currently carries a Zacks Rank #2. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Genuine Parts Company (GPC) : Free Stock Analysis Report Fox Factory Holding Corp. (FOXF) : Free Stock Analysis Report Lucid Group, Inc. (LCID) : Free Stock Analysis Report Rivian Automotive, Inc. (RIVN) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research