Genuine Parts Company (GPC) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $6.54 billion, up 6% year-over-year, with adjusted EPS of $2.15 and adjusted EBITDA of $567 million, reflecting operational strength across all segments.

• Net income declined 10.7% to $228 million due to restructuring and separation costs, while adjusted net income rose 1.5% to $296 million.

• All business segments posted EBITDA growth, with Industrial up 9.8% and Automotive segments showing resilience despite inflation and geopolitical headwinds.

• The planned separation of Global Automotive and Global Industrial businesses remains on track for Q1 2027, with key milestones achieved and Form 10 filing planned.

• Cash from operations year-to-date was $464 million, with $205 million invested in capex and $288 million returned to shareholders via dividends.

Financial highlights

• Q2 2026 net sales: $6.54 billion (up 6%); trailing twelve-month revenue: $25.1 billion.

• Adjusted EBITDA margin for Q2 was 8.7%, with adjusted gross margin at 37.9%.

• Free cash flow for the first half was $259 million; total liquidity at quarter-end was $2.3 billion.

• Dividend per share for FY'26 set at $4.25, a 3.2% increase, marking the 70th consecutive year of increases.

• Net debt increased to $3.98 billion from $3.50 billion at year-end.

Outlook and guidance

• Reaffirmed 2026 adjusted EPS guidance of $7.50–$8.00 and full-year sales growth of 3%–5.5%.

• Free cash flow projected at $550–$700 million; capex for FY'26 estimated at $450–$500 million.

• Segment outlooks reaffirmed, with Industrial segment EBITDA growth projected at 7%–12%.

• Second-half outlook moderated for Global Automotive due to Iran conflict, higher energy prices, and cautious consumer sentiment.

• GAAP EPS guidance raised to $6.10–$6.60, reflecting restructuring and separation costs.