Genuine Parts Company (GPC) investor relations material

Financial performance and outlook

• Achieved 5% top-line growth, 60 basis point gross margin improvement, 10% Adjusted EBITDA growth, and 5% earnings growth, with strong sequential trends in NAPA and Motion businesses.

• Updated full-year outlook, narrowing EPS range to $7.50–$7.75 due to macro conditions, but expect a solid fourth quarter.

• Raised revenue outlook for the year, expecting continued but moderating gross margin expansion and SG&A leverage in Q4.

• Interest expense outlook updated, adding some pressure but maintaining a positive full-year view.

Restructuring and cost management

• Ongoing restructuring over two years focused on efficiency, productivity, facility consolidation, and workforce optimization.

• Realized $0.20 benefit in Q3 from restructuring, with $200 million annualized run-rate benefits expected from 2026.

• Restructuring has instilled a disciplined, efficiency-focused culture across the organization.

• Cost structure improvements position the business for leverage as market volumes recover.

Tariffs, pricing, and elasticity

• Tariff environment has stabilized operationally, with a command center monitoring global impacts.

• Tariffs and related cost impacts have been low single-digit, managed through scale and supplier partnerships.

• No significant market pushback on price increases; elasticity impact minimal due to non-discretionary, break-fix nature of business.

• Price increases have leveled out, with no further acceleration expected into 2026.

• Assortment strategy and proprietary brands, especially in Europe, help manage customer value and price sensitivity.