- Genuine Parts Company (GPC, Financial) reported Q1 2025 sales of $5.9 billion, a 1.4% increase year-over-year.
- The company's net income fell by 22% to $194 million, or $1.40 per diluted share.
- Genuine Parts Company reaffirmed its 2025 guidance, projecting 2-4% revenue growth and adjusted EPS of $7.75 to $8.25.
The Genuine Parts Company (GPC) announced its first-quarter 2025 financial results with sales totaling $5.9 billion, marking a 1.4% increase compared to the previous year's $5.8 billion. This growth was driven primarily by a 3.0% advantage from acquisitions, which was somewhat offset by a 0.8% drop in comparable sales and a 0.8% negative impact from foreign currency fluctuations.
Net income for the quarter stood at $194 million, or $1.40 per diluted share, down from $249 million or $1.78 per share in the same period last year. The adjusted earnings per share (EPS) were $1.75, a decline from $2.22 the previous year.
The company's Automotive Parts Group posted sales of $3.7 billion, an increase of 2.5%. This improvement was largely fueled by a 4.1% benefit from acquisitions, despite a 0.8% decrease in comparable sales and a similar unfavorable effect from currency changes. The Industrial Parts Group reported sales of $2.2 billion, reflecting a modest 0.4% decline.
Genuine Parts Company remains optimistic about the rest of the year, reaffirming its 2025 outlook. The company anticipates a revenue growth of 2-4% and adjusted diluted EPS in the range of $7.75 to $8.25. It also expects operating cash flow to range between $1.2 and $1.4 billion and free cash flow from $800 million to $1 billion.
Despite the quarterly drop in earnings, GPC continues with its capital allocation plans, spending $120 million on capital expenditures, $74 million on acquisitions, and returning $134 million to shareholders through dividends. As of March 31, 2025, the company reported $420 million in cash and cash equivalents and has $2 billion in undrawn credit capacity.
