Genuine Parts Company reported fourth‑quarter 2025 results on February 17, 2026, with sales of $6.0 billion, a 4.1% year‑over‑year increase. The company posted a GAAP net loss of $609 million, translating to a diluted loss of $4.39 per share. Adjusted earnings per share were $1.55, falling short of the $1.82 consensus estimate by 13.6%. The loss was driven largely by a $825 million one‑time pension settlement charge and other non‑recurring expenses.
Segment performance showed North America Automotive sales up 2.4%, International Automotive up 6.4%, and Industrial up 4.6%. North America Automotive EBITDA declined 14.0% and margin fell 110 basis points, while overall gross profit margin was 35.0% versus 35.9% in the prior year. Adjusted gross margin improved to 37.6%, up 70 basis points from the previous year, reflecting the exclusion of the pension settlement and other one‑time charges.
Comparing to the prior year, Q4 2024 adjusted EPS was $1.61 and net income was $133.06 million. Revenue for Q4 2025 beat the $6.01 billion estimate but missed the $6.06 billion consensus, a shortfall of 0.5%. The adjusted EPS miss of $0.27 per share represents a 14.8% shortfall relative to the $1.82 estimate.
Management provided 2026 guidance of total sales growth of 3.0%–5.5% and adjusted EPS of $7.50–$8.00, below analyst consensus of $8.42 or $7.64. CEO Will Stengel announced a plan to split the company into Global Automotive and Global Industrial, to be completed in the first quarter of 2027. The board also approved a 3.2% increase in the quarterly dividend, raising the annual rate to $4.25 per share.
Investors reacted negatively, citing the EPS and revenue misses, the conservative 2026 guidance, the significant one‑time pension settlement charge, and the announced business separation as key headwinds.
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