Genuine Parts Company (GPC) Q1 2026 earnings summary

Executive summary

• First quarter 2026 sales reached $6.3 billion, up 6.8% year-over-year, driven by growth across all segments, favorable currency impacts, and acquisitions.

• Adjusted net income was $245 million ($1.77 per diluted share), slightly above the prior year, while net income declined 3% to $189 million due to inflation, separation, and restructuring costs.

• Gross margin expanded by 20 basis points to 37.3%, supported by strategic pricing and sourcing initiatives.

• The planned separation of Global Automotive and Global Industrial businesses is progressing on track for Q1 2027.

• The recent conflict in Iran had no material impact on Q1 financial results.

Financial highlights

• Adjusted EBITDA was $496 million, up 4.8% year-over-year, with a margin of 7.9%.

• Adjusted diluted EPS was $1.77, up 1.1% year-over-year.

• Cash from operations was $64 million; working capital stood at $928 million.

• Dividend increased by 3.2%, marking the 70th consecutive year of increases.

• Operating cash flow was $63.9 million, with a $250 million benefit from the A/R Sales Agreement.

Outlook and guidance

• 2026 total sales growth expected between 3% and 5.5%; adjusted EBITDA guidance is $2.0B to $2.2B.

• Adjusted diluted EPS guidance reaffirmed at $7.50 to $8.00; GAAP diluted EPS expected at $6.10 to $6.60.

• Free cash flow projected at $550 million to $700 million for 2026; capex at $450 million to $500 million.

• Guidance incorporates $10–$20 million EBITDA downside risk from the Iran conflict, mainly in Q2.

• Transformation and cost action expenses expected at $225–$250 million, with $100–$125 million benefit in 2026.