Genuine Parts Q2 2026 Earnings Call: Complete Transcript

On Tuesday, Genuine Parts (NYSE: GPC ) discussed second-quarter financial results during its earnings call. The full transcript is provided below. This content is powered APIs. For comprehensive financial data and transcripts, visit Access the full call at Summary Genuine Parts Company reported second quarter sales of $6.5 billion, a 6% increase year-over-year, with adjusted earnings per share of $2.15.

The company is on track for the planned separation of its automotive and industrial businesses in the first quarter of 2027, with significant progress made on related strategic and operational initiatives. Industrial segment sales grew by 7% with a 10% increase in EBITDA, while the North America Automotive segment saw a 4% sales increase and a 6% rise in EBITDA. The company's international automotive business experienced an 8% sales increase, with the UK and Germany showing strong performance.

Management reaffirmed their 2026 guidance with adjusted EPS expected to range between $7.50 and $8.00, but noted potential headwinds from the ongoing Iran conflict affecting costs and consumer sentiment. Strategic pricing and sourcing initiatives contributed to a 20 basis point expansion in gross margin, despite inflationary pressures. The company is preparing for Investor Days in December to provide detailed insights into the strategies of the separated entities. Management emphasized that there are no current discussions regarding a sale of the global automotive business to a competitor.

Full Transcript OPERATOR Good morning, ladies and gentlemen, and welcome to the Genuine Parts Co second quarter 2026 earnings conference call. At this time, all lines are in the listen-only mode. Following the presentation, we will conduct a question-and-answer session. If at any time during this call you require immediate assistance, please press 0 for the operator.

This call is being recorded on Tuesday, July 21, 2026. I would now like to turn the conference over to Tim Walsh. Please go ahead. Tim Walsh, Investor Relations Thank you and good morning everyone.

Welcome to Genuine Parts Co's second quarter 2026 earnings call. Joining us on the call today are Will Stengel, Chairman and Chief Executive Officer, and Bert Nappier, Executive Vice President and Chief Financial Officer. In addition to this morning's press release, a supplemental slide presentation can be found on the investors page of the Genuine Parts Co website. Today's call is being webcast and a replay will also be made available on the company's website.

After our prepared remarks, the call will be open for questions, the responses to which will reflect management's views as of today, July 21, 2026. If we're unable to get to your questions, please contact our Investor Relations Department. Please be advised this call may include certain non-GAAP financial measures which may be referred to during today's discussion of our results as reported under Generally Accepted Accounting Principles. A reconciliation of these measures is provided in the earnings press release.

Today's call may also include forward-looking statements regarding the company and its businesses as defined in the Private Securities Litigation Reform Act of 1995. The company's actual results could differ materially from any forward-looking statements due to several important factors described in the company's latest SEC filings, including this morning's press release. The company assumes no obligation to update any forward-looking statements made during this call. With that, I'll turn it over to Will.

Will Stengel, Chairman & CEO Thank you, Tim. Good morning, everyone, and thank you for joining our second quarter 2026 earnings call. I want to begin by thanking our teammates around the world for their hard work, resilience, and commitment to serving our customers. Their dedication continues to be a defining strength of Genuine Parts Co.

This morning, I'll review our second quarter results by segment, provide perspective on the current operating environment, and share an update on the planned separation of our automotive and industrial businesses. We remain on track for a separation in the first quarter of 2027. We delivered a strong second quarter reflecting focused teamwork and disciplined execution across the businesses, despite a dynamic global macro environment. I'm proud of the work the team is doing as we simultaneously navigate the developments in the Middle East, manage the business in a persistent inflationary environment, and execute a meaningful body of strategic work at the company.

Despite the environment, we executed well and delivered performance in the second quarter that exceeded our internal plans and underscores the agility and determination of our teams.

Turning to our financial results, a few highlights for the quarter include total Genuine Parts Co sales of 6.5 billion, an increase of approximately 400 million, or up approximately 6% compared to the second quarter of 2025; adjusted gross margin expansion of 20 basis points in line with our expectations and driven by strategic pricing and sourcing initiatives; segment EBITDA growth in all three business segments, with Industrial EBITDA increasing approximately 10% versus prior year; and adjusted earnings per share of $2.15, up from $2.10 in the same period last year.

Now turning to our results by business segment, total sales for Industrial were 2.4 billion, an increase of approximately $160 million or up 7% versus the same period in the prior year, with comparable sales up 6% during the quarter. The benefit from price inflation was approximately 2.5%. From a cadence perspective, all three months of the quarter were similar on an average daily sales basis, growing mid- to high-single digits versus last year. Motion delivered an excellent quarter with balanced growth across large corporate accounts, small- to medium-sized local customers, as well as its value