Genuine Parts Co. Reports Solid Sales Growth

By Tamara Parker • Tuesday, October 21 15:37 • Permanent Link

In its recent 10-Q report, Genuine Parts Co. revealed its operations in two segments * Automotive Parts Group and Industrial Parts Group. The company distributes a wide range of automotive and industrial replacement parts, accessories, and solutions, including parts for hybrid and electric vehicles, trucks, SUVs, buses, motorcycles, farm equipment, and heavy-duty equipment. It also offers custom services, accessories, tools, and equipment for servicing heavy-duty and diesel vehicles. Additionally, it operates independent repair shops and auto care centers under the NAPA brand, and provides DIY workshops and training sessions to customers.

The company's third quarter results reflect solid sales growth, with net sales increasing by 4.9% to $6.3 billion compared to the same prior year period. Automotive sales growth was driven by increases in core sales, contributions from acquisitions, and a benefit from foreign currency. Industrial sales growth was driven by increases in comparable sales and a modest contribution from acquisitions. Despite sales growth and gross margin expansion, net income remained flat with the prior year period. This was primarily due to higher depreciation and interest expense from planned investments, and higher SG&A expenses resulting from various cost increases.

For the three months ended September 30, 2025, Automotive net sales were $4.0 billion, representing a 5.0% increase from 2024, while Industrial net sales were $2.3 billion, reflecting a 4.6% increase compared to 2024. Gross profit increased by 6.5% during the three months ended September 30, 2025, and gross margin expanded by approximately 60 basis points compared to the prior year period.

SG&A expenses increased by 4.8% during the three months ended September 30, 2025, and by 6.9% during the nine months ended September 30, 2025. The increase was primarily due to acquisitions and other cost increases. Despite the challenging macroeconomic environment, the company's net sales for the three and nine months ended September 30, 2025, increased primarily due to growth in comparable sales and contributions from acquisitions.

Today the company's shares have moved -0.97% to a price of $131.81. For more information, read the company's full 10-Q submission here.

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