Genuine Parts Company (GPC)
Description
Global distributor of automotive and industrial replacement parts and related services.
Historical Reports
Financial Information
- Report Date
- 2025-04-30
- Report Period
- Q1 2025
- Debt
- $5.09 billion
- Debt History
- Debt increased by approximately 18.8% compared to December 2024
- Debt Trend
- Increasing
Profit Information
- Profit
- $194.39 million
- Profit History
- Profit decreased by approximately 21.9% compared to Q1 2024
- Profit Trend
- Decreasing
Detailed Report
Genuine Parts Company – Q1 2025 Financial Report
Report Date: 2025-04-30 Period Covered: Q1 2025 (three months ended March 31, 2025)
Executive Summary
Genuine Parts Company (GPC) reported net sales of $5.8661 billion for Q1 2025, up 1.4% versus $5.7836 billion in Q1 2024. Gross profit rose to $2.1737 billion (37.1% margin), driven by pricing and acquisitions, partially offset by one less selling day and currency headwinds. Net income was $194.4 million ($1.40 diluted EPS), down from $248.9 million ($1.78 diluted EPS) in Q1 2024, primarily reflecting higher depreciation, interest expense, restructuring and planned pension changes.
Profit & Debt Analysis
- Net Income: $194.4 million, a 21.9% decline YoY
- Gross Margin: expanded 120 bps to 37.1%
- Operating Expenses (SG&A + restructuring): $1.886 billion (32.2% of sales)
- EBITDA: $404.3 million, down from $433.5 million
- Total Debt: $5.09 billion, up 18.8%
Drivers of Q1 2025 performance:
- Positive impact from prior-year acquisitions and pricing initiatives
- One fewer selling day reduced revenue and diluted fixed cost leverage
- Increased interest expense on higher debt (commercial paper and revolver usage)
- Planned pension plan termination reduced pension income
- Restructuring costs of $54.8 million versus $83.0 million in Q1 2024
Pros and Cons
Pros:
- Gross margin improvement driven by sourcing and pricing discipline
- Acquisition integration delivering incremental sales and synergies
- Strong cash flow generation; $420 million cash-on-hand end of Q1
- Well-capitalized balance sheet with $5.09 billion debt and $20 billion revolver capacity
Cons:
- Profit pressure from higher depreciation and interest expense
- One fewer selling day and modest industrial market softness
- Ongoing restructuring and pension termination costs
- Currency headwinds and uncertain tariff impacts
Statistics Breakdown
Segment Performance (Q1 2025 vs Q1 2024)
| Segment | Net Sales (M) | Change | EBITDA (M) | Margin |
|---|---|---|---|---|
| Automotive | $3,664.9 | +2.5% | $285.5 | 7.8% |
| Industrial | $2,201.2 | –0.4% | $278.7 | 12.7% |
| Corporate | N/A | N/A | –$91.1 | N/A |
| Total | $5,866.1 | +1.4% | $473.1 | 8.1%* |
*Adjusted EBITDA margin excludes restructuring and acquisition-related costs.
Geographic Net Sales (Q1 2025)
| Region | Sales (M) | % of Total |
|---|---|---|
| North America | $4,340.9 | 74.0% |
| Europe | $972.9 | 16.6% |
| Canada | $463.5 | 7.9% |
| Australasia | $552.4 | 9.4% |
| Mexico | $23.6 | 0.4% |
Company Direction Insights
Genuine Parts Company remains on a moderate growth trajectory, leveraging acquisitions and targeted pricing strategies to bolster margins. The strong balance sheet and ample revolver availability support disciplined capital deployment into technology, supply-chain optimization, dividends and M&A. Key risks include tariff volatility, currency fluctuations and continued cost inflation. Over the next 12–18 months, GPC is poised to drive further operational efficiencies through its restructuring program, complete its defined benefit pension termination and pursue bolt-on acquisitions. Maintaining gross margin expansion and controlling SG&A will be critical, while managing debt levels and interest costs to sustain profitable growth and enhance shareholder returns.