GENUINE PARTS CO recently released its 10-Q report for the quarter and six months ended June 30, 2026. Genuine Parts Company distributes automotive and industrial replacement parts and related solutions through three segments: North America Automotive Parts Group, International Automotive Parts Group, and Industrial Parts Group. The company serves repair shops, industrial customers, and other end users with parts, tools, equipment, and support services, and it is headquartered in Atlanta, where it was incorporated in 1928.
In Item 2, management said second-quarter net sales rose 6.0% to $6.54 billion from $6.16 billion a year earlier, while six-month sales increased 6.4% to $12.80 billion from $12.03 billion. Comparable sales rose 3.4% in the quarter and 2.9% in the first half, with management estimating that about 2.5% of comparable sales growth in both periods came from price inflation, including tariff-related effects.
Gross profit in the quarter increased 6.3% to $2.47 billion from $2.32 billion, and gross margin edged up to 37.8% from 37.7%. For the six months, gross profit rose 6.9% to $4.81 billion from $4.50 billion, with gross margin at 37.6% versus 37.4%.
Operating expenses climbed faster than sales. In the quarter, selling, administrative and other expenses rose 8.3% to $1.92 billion, depreciation and amortization increased 9.5% to $134.7 million, and restructuring and other costs jumped 55.6% to $71.1 million. For the six months, SG&A increased 8.4% to $3.77 billion, depreciation and amortization rose 11.4% to $265.7 million, and restructuring and other costs increased 28.3% to $128.9 million.
Net income fell 10.7% in the quarter to $227.6 million from $254.9 million, and diluted EPS declined to $1.65 from $1.83. For the first half, net income decreased 7.4% to $416.1 million from $449.3 million, with diluted EPS down to $3.01 from $3.23.
Management said adjusted results were stronger than reported earnings. Adjusted diluted EPS increased to $2.15 from $2.10 in the quarter and to $3.92 from $3.84 for the six months. Total adjusted EBITDA rose 3.6% in the quarter to $567.0 million and 4.1% in the first half to $1.06 billion.
By segment, second-quarter EBITDA was $208.3 million for North America Automotive, up 6.0%; $150.0 million for International Automotive, up 6.0%; and $316.4 million for Industrial, up 9.8%. For the six months, EBITDA reached $364.5 million in North America Automotive, $294.8 million in International Automotive, and $630.6 million in Industrial, with Industrial posting the strongest growth at 11.2%.
Management attributed part of the pressure on results to higher costs tied to tariffs, fuel, freight, and the Middle East conflict. It said the conflict involving the United States and Iran reduced income before income taxes by about $20 million in the second quarter, primarily in International Automotive. It also said tariffs continued to lift product costs and customer pricing during the first half.
The company also reiterated its plan to separate into two publicly traded companies, one for Automotive and one for Industrial, with completion targeted for the first quarter of 2027. Following these announcements, the company's shares moved -1.99%, and are now trading at a price of $119.965. If you want to know more, read the company's complete 10-Q report here.
