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GPC Tops Q2 Earnings Estimates, Slashes 2025 View Amid Tariffs

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Key Takeaways

  • GPC posted Q2 adjusted EPS of $2.10, which topped estimates but declined from $2.44 a year ago.
  • Total sales rose 3.4% to $6.16B, driven by acquisitions and favorable currency exchange.
  • GPC cut its 2025 EPS and sales outlook, citing tariff impacts across automotive and industrial units.

Genuine Parts Company (GPC - Free Report) reported second-quarter 2025 adjusted earnings of $2.10 per share, which beat the Zacks Consensus Estimate of $2.08. The bottom line, however, declined from the year-ago quarter’s earnings of $2.44 per share. The company reported net sales of $6.16 billion, which surpassed the Zacks Consensus Estimate of $6.11 billion and grew 3.4% year over year. The increase was driven by a 2.06% contribution from acquisitions, a 0.6% boost from favorable currency exchange and a 0.2% rise in comparable sales.

GPC currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

Genuine Parts Company Price, Consensus and EPS Surprise

Genuine Parts Company Price, Consensus and EPS Surprise

Genuine Parts Company price-consensus-eps-surprise-chart | Genuine Parts Company Quote

Segmental Performance

The Automotive segment’s net sales totaled $3.9 billion in the reported quarter, up 5% year over year, largely on acquisition benefits. The sales also surpassed our estimate of $3.84 billion. The segment’s comparable sales grew 0.4% year over year. EBITDA from the unit decreased 6.9% to $338 million. EBITDA margin came in at 8.6%, down 110 basis points from the year-ago period.

The Industrial Parts segment’s net sales rose 0.7% year over year to $2.3 billion courtesy of acquisition benefits. The sales also beat our estimate of $2.26 billion. The segment’s comparable sales decreased 0.1% in the reported quarter. EBITDA grew 1.1% to $288 million, with a margin of 12.8%, up 10 basis points year over year.

Financial Performance

Genuine Parts had cash and cash equivalents worth $458 million as of June 30, 2025, down from $480 million as of Dec. 31, 2024. Long-term debt increased to $3,744 million from $3,742 million as of Dec. 31, 2024. The company exited the second quarter with $1.5 billion in total liquidity.

Genuine Parts Revises 2025 Guidance

For 2025, Genuine Parts expects overall sales growth of 1-3% versus the prior guided range of 2-4%. Automotive sales are now anticipated to increase 1.5-3.5%, compared with the previous forecast of 2-4%. Expectations for industrial sales growth were trimmed to 1-3% from 2-4% projected earlier.

The company now envisions adjusted earnings per share between $7.50 and $8 compared with the prior guided range of $7.75-$8.25. Operating cash flow is expected in the band of $1.1-$1.3 billion versus the previous guidance of $1.2-$1.4 billion. The FCF projection was also narrowed to $700-$900 million from $800 million-$1 billion forecast earlier.

Other Key Q2 Auto Releases

General Motors (GM - Free Report) came out with quarterly earnings of $2.53 per share, beating the Zacks Consensus Estimate of $2.39 per share. This compares to earnings of $3.06 per share a year ago. It posted revenues of $47.12 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 1.89%. This compares to year-ago revenues of $47.97 billion. General Motors expects net income attributable to shareholders in the band of $7.7-$9.5 billion in 2025. Adjusted EPS is forecast between $8.25 and $10.

Autoliv, Inc. (ALV - Free Report) came out with quarterly earnings of $2.21 per share, beating the Zacks Consensus Estimate of $2.07 per share. This compares to earnings of $1.87 per share a year ago. It posted revenues of $2.71 billion for the quarter ended June 2025, surpassing the Zacks Consensus Estimate by 3.36%. This compares to year-ago revenues of $2.61 billion.Autoliv expects 2025 organic sales growth of around 3% compared with 0.4% reported in 2024. The adjusted operating margin is anticipated to be in the range of 10-10.5%, up from $9.7% in 2024.  


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