Genuine Parts narrows 2026 adjusted EPS outlook to $7.50-$7.75

Genuine Parts Company narrowed its full-year 2026 outlook for adjusted diluted earnings per share to a range of $7.50 to $7.75, down from a previous range of $7.50 to $8.00. The Atlanta-based company made the announcement on October 20, 2026, alongside the release of its financial results for the third quarter ended September 30, 2026.

The company reported third-quarter sales of $6.5 billion, a 4.2% increase from $6.3 billion in the same period of the prior year. This growth was driven by a 2.9% rise in comparable sales, a 0.9% benefit from acquisitions, and a net 0.4% favorable impact from foreign currency and other factors. Net income for the quarter stood at $224 million, or $1.62 per diluted share, matching the prior-year figure of $1.62 per diluted share on net income of $226 million.

Adjusted net income reached $286 million, or $2.07 per diluted share, compared to $276 million, or $1.98 per diluted share, in the prior-year period. The adjusted figure excludes $61 million in after-tax adjustments, equivalent to $0.45 per diluted share, related to global restructuring costs and the planned separation of the Automotive and Industrial businesses.

Segment performance varied across the company’s three main divisions. North America Automotive sales increased by 2.2% to $2.5 billion, while segment EBITDA declined by 2.9% to $194 million, with margins falling 40 basis points to 7.6%. International Automotive sales rose by 4.5% to $1.6 billion, with segment EBITDA increasing by 4.7% to $141 million and margins holding flat at 9.0%. The Industrial segment saw sales grow by 6.1% to $2.4 billion, with segment EBITDA rising by 11.2% to $317 million and margins expanding by 60 basis points to 13.2%.

For the nine months ended September 30, 2026, total sales were $19.3 billion, up 5.6% from the prior-year period. Net income for the nine-month period was $641 million, or $4.64 per diluted share, compared to $675 million, or $4.85 per diluted share, in the prior year. Adjusted net income for the first nine months was $827 million, or $5.99 per diluted share, up from $810 million, or $5.82 per diluted share, in the previous year.

Cash flow from operations totaled $817 million for the first nine months of 2026. Free cash flow was $502 million over the same period. As of September 30, 2026, total liquidity stood at $2.4 billion, comprising $763 million in cash and $1.6 billion in available capacity under the company’s $2.0 billion Revolving Credit Agreement.

Will Stengel, Chairman and Chief Executive Officer, stated that the third-quarter performance demonstrated the strength of the company’s market-leading businesses and its teams’ focus on strategic priorities. He noted that important milestones were achieved in the separation process and that the company remains on track to launch GPC and Motion as two independent companies in the first quarter of 2027.