GENUINE PARTS CO recently released its latest 10-Q report. Genuine Parts Company distributes automotive and industrial replacement parts and related services through three segments: North America Automotive Parts Group, International Automotive Parts Group, and Industrial Parts Group. The company supplies parts, tools, equipment, and maintenance solutions for vehicles and industrial applications, and it also provides inventory management, repair services, and technical support. Founded in 1928 and headquartered in Atlanta, Georgia, it operates across North America, Europe, and Australasia.
In Item 2, management said first-quarter 2026 net sales rose 6.8% to $6.265 billion from $5.866 billion a year earlier. Comparable sales increased 2.4%, foreign currency and other added 3.1%, and acquisitions contributed 1.3%; management estimated comparable sales included about 3.0% price inflation, including tariff-related effects.
Gross profit increased 7.6% to $2.339 billion, and gross margin improved 20 basis points to 37.3%. Cost of goods sold rose to $3.926 billion from $3.692 billion.
Selling, administrative and other expenses climbed 8.6% to $1.857 billion. Management attributed the increase to higher salaries and wages, rent and freight, acquisition-related operating costs, about $70 million of foreign-currency impact, and $18 million of separation-related costs tied to the planned split of the automotive and industrial businesses. Restructuring initiatives provided an estimated $26 million benefit to SG&A in the quarter.
Operating income was $286.3 million, down from $287.9 million a year earlier. Income before taxes fell 2.5% to $245.4 million, and net income declined 3.0% to $188.5 million from $194.4 million.
Diluted EPS was $1.37, down from $1.40, while adjusted diluted EPS rose to $1.77 from $1.75.
By segment, North America Automotive sales increased 4.3% to about $2.4 billion, with comparable sales up 2.2% and acquisitions adding 1.6%. International Automotive sales rose 13.2% to about $1.6 billion, helped by a 10.6% foreign-exchange benefit and 2.3% from acquisitions. Industrial sales increased 5.2% to about $2.3 billion, driven by 3.9% comparable sales growth.
Segment EBITDA rose to $156.2 million in North America Automotive, $144.8 million in International Automotive, and $314.1 million in Industrial. Corporate EBITDA was a loss of $119.5 million, wider than the $91.1 million loss a year earlier, and total adjusted EBITDA increased 4.8% to $495.6 million. Total adjusted EBITDA margin was 7.9%, down from 8.1%.
Management said tariffs continued to push up customer prices and input costs during the quarter, with tariff exposure as importer of record representing less than 0.5% of total purchases. It also said the planned separation of Global Automotive and Global Industrial is targeted for completion in the first quarter of 2027. The market has reacted to these announcements by moving the company's shares 0.15% to a price of $105.28. If you want to know more, read the company's complete 10-Q report here.
