gpc-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 10-Q


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission file number: 1-5690

__________________________________________

GENUINE PARTS COMPANY

(Exact name of registrant as specified in its charter)

__________________________________________


GA						58-0254510
(State or other jurisdiction of incorporation or organization)						(I.R.S. Employer Identification No.)

2999 WILDWOOD PARKWAY,

30339

ATLANTA,

(Address of principal executive offices)

(Zip Code)

678-934-5000

(Registrant’s telephone number, including area code)

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol

Name of each exchange on which registered

Common Stock, $1.00 par value per share

GPC

New York Stock Exchange

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company” and “emerging growth company” in Rule 12b-2 of the Exchange Act.

Large accelerated filer

☒

Accelerated filer

☐

Non-accelerated filer

☐

Smaller reporting company

☐

Emerging growth company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

There were 137,624,545 shares of common stock outstanding as of April 17, 2026.


Table of Contents

PART I		Page

Item 1.	Financial Statements	2
	Condensed Consolidated Balance Sheets	2
	Condensed Consolidated Statements of Income	3
	Condensed Consolidated Statements of Comprehensive Income	3
	Condensed Consolidated Statements of Equity	5
	Condensed Consolidated Statements of Cash Flows	6
	Notes to Condensed Consolidated Financial Statements	7
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	19
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	27
Item 4.	Controls and Procedures	27

PART II

Item 1.	Legal Proceedings	28
Item 1A.	Risk Factors	28
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	28
Item 5.	Other Information	28
Item 6.	Exhibits	29
	Signatures	30

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PART I – FINANCIAL INFORMATION

Item 1. Financial Statements

GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED BALANCE SHEETS

(UNAUDITED)


(in thousands, except share and per share data)	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	500,023	$	477,179
Trade accounts receivable, less allowance for doubtful accounts (2026 – $80,950; 2025 – $85,537)	2,533,850		2,370,939
Merchandise inventories, net	6,127,233		6,071,996
Prepaid expenses and other current assets	1,723,404		1,644,620
Total current assets	10,884,510		10,564,734
Goodwill	3,181,594		3,188,815
Other intangible assets, less accumulated amortization	1,806,123		1,855,714
Property, plant and equipment, less accumulated depreciation (2026 – $2,200,146; 2025 – $2,137,108)	2,142,689		2,172,140
Operating lease assets	2,069,896		2,084,487
Other assets	891,765		929,650
Total assets	$	20,976,577	$	20,795,540

Liabilities and equity
Current liabilities:
Trade accounts payable	$	6,177,867	$	6,051,882
Short-term borrowings	1,160,797		943,540
Current portion of long-term debt	356,222		353,788
Dividends payable	147,820		143,291
Other current liabilities	2,113,831		2,295,204
Total current liabilities	9,956,537		9,787,705
Long-term debt	3,478,884		3,498,423
Operating lease liabilities	1,717,913		1,739,478
Pension and other post–retirement benefit liabilities	219,504		219,270
Deferred tax liabilities	374,234		385,948
Other long-term liabilities	737,288		724,353
Equity:
Preferred stock, par value – $1 per share; authorized – 10,000,000 shares; none issued	—		—
Common stock, par value – $1 per share; authorized – 450,000,000 shares; issued and outstanding – 2026 – 137,624,545 shares; 2025 – 137,617,832 shares	137,625		137,618
Additional paid-in capital	240,228		228,370
Accumulated other comprehensive loss	(513,465)		(511,766)
Retained earnings	4,611,029		4,568,769
Total parent equity	4,475,417		4,422,991
Noncontrolling interests in subsidiaries	16,800		17,372
Total equity	4,492,217		4,440,363
Total liabilities and equity	$	20,976,577	$	20,795,540

See accompanying Notes to Condensed Consolidated Financial Statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF INCOME

(UNAUDITED)


	Three Months Ended March 31,
(in thousands, except per share data)	2026		2025
Net sales	$	6,264,940	$	5,866,069
Cost of goods sold	3,925,976		3,692,385
Gross profit	2,338,964		2,173,684
Operating expenses:
Selling, administrative and other expenses	1,856,830		1,709,679
Depreciation and amortization	131,028		115,435
Provision for doubtful accounts	7,103		5,855
Restructuring and other costs	57,732		54,770
Total operating expenses	2,052,693		1,885,739
Non-operating expenses (income):
Interest expense, net	43,953		37,216
Other	(3,075)		(908)
Total non-operating expenses	40,878		36,308
Income before income taxes	245,393		251,637
Income taxes	56,858		57,245
Net income	$	188,535	$	194,392
Basic earnings per share	$	1.37	$	1.40
Diluted earnings per share	$	1.37	$	1.40

See accompanying Notes to Condensed Consolidated Financial Statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(UNAUDITED)


	Three Months Ended March 31,
(in thousands)	2026		2025
Net income	$	188,535	$	194,392
Other comprehensive income (loss), net of income taxes:
Foreign currency translation adjustments, net of income taxes in 2026 — $15,027; 2025 — $16,766	678		49,329
Pension and postretirement benefit adjustments, net of income taxes in 2026 — $60; 2025 — $1,327	(2,377)		3,684
Other comprehensive income (loss), net of income taxes	(1,699)		53,013
Comprehensive income	$	186,836	$	247,405

See accompanying Notes to Condensed Consolidated Financial Statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF EQUITY

(UNAUDITED)


	Three Months Ended March 31, 2026
(in thousands, except share and per share data)	Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Parent Equity		Non-controlling Interests in Subsidiaries		Total Equity
January 1, 2026	137,617,832	$	137,618	$	228,370	$	(511,766)	$	4,568,769	$	4,422,991	$	17,372	$	4,440,363
Net income	—	—		—		—		188,535		188,535		—		188,535
Other comprehensive loss, net of tax	—	—		—		(1,699)		—		(1,699)		—		(1,699)
Cash dividend declared, $1.0625 per share	—	—		—		—		(146,275)		(146,275)		—		(146,275)
Shares issued from employee incentive plans	6,713	7		(310)		—		—		(303)		—		(303)
Share-based compensation	—	—		12,168		—		—		12,168		—		12,168
Noncontrolling interest activities	—	—		—		—		—		—		(572)		(572)
March 31, 2026	137,624,545	$	137,625	$	240,228	$	(513,465)	$	4,611,029	$	4,475,417	$	16,800	$	4,492,217


	Three Months Ended March 31, 2025
(in thousands, except share and per share data)	Common Stock Shares	Common Stock Amount		Additional Paid-In Capital		Accumulated Other Comprehensive Loss		Retained Earnings		Total Parent Equity		Non-controlling Interests in Subsidiaries		Total Equity
January 1, 2025	138,779,664	$	138,780	$	196,532	$	(1,261,743)	$	5,263,838	$	4,337,407	$	14,444	$	4,351,851
Net income	—	—		—		—		194,392		194,392		—		194,392
Other comprehensive income, net of tax	—	—		—		53,013		—		53,013		—		53,013
Cash dividend declared, $1.0300 per share	—	—		—		—		(142,951)		(142,951)		—		(142,951)
Shares issued from employee incentive plans	9,315	9		(511)		—		—		(502)		—		(502)
Share-based compensation	—	—		8,574		—		—		8,574		—		8,574
Noncontrolling interest activities	—	—		—		—		—		—		186		186
March 31, 2025	138,788,979	$	138,789	$	204,595	$	(1,208,730)	$	5,315,279	$	4,449,933	$	14,630	$	4,464,563

See accompanying Notes to Condensed Consolidated Financial Statements.

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GENUINE PARTS COMPANY AND SUBSIDIARIES

CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS

(UNAUDITED)


	Three Months Ended March 31,
(in thousands)	2026		2025
Operating activities:
Net income	$	188,535	$	194,392
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	131,028		115,435
Share-based compensation	12,168		8,574
Excess tax benefits from share-based compensation	(46)		(182)
Other operating activities, including changes in operating assets and liabilities	(267,769)		(359,046)
Net cash provided by (used in) operating activities	63,916		(40,827)
Investing activities:
Purchases of property, plant and equipment	(97,552)		(119,840)
Proceeds from sale of property, plant and equipment	14,592		15,814
Acquisitions of businesses	(13,797)		(74,127)
Proceeds from divestitures of businesses	6,282		—
Other investing activities	(2,435)		23,335
Net cash used in investing activities	(92,910)		(154,818)
Financing activities:
Proceeds from debt	254,755		20,011
Payments on debt	(300,258)		(522,352)
Net proceeds of commercial paper	263,541		772,108
Shares issued from employee incentive plans	(304)		(502)
Dividends paid	(141,746)		(134,355)
Other financing activities	(19,275)		(6,168)
Net cash provided by financing activities	56,713		128,742
Effect of exchange rate changes on cash and cash equivalents	(4,875)		7,359
Net increase (decrease) in cash and cash equivalents	22,844		(59,544)
Cash and cash equivalents at beginning of period	477,179		479,991
Cash and cash equivalents at end of period	$	500,023	$	420,447

See accompanying Notes to Condensed Consolidated Financial Statements.

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NOTES TO CONDENSED CONSOLIDATED FINANCIAL STATEMENTS

1.General

Basis of Presentation

The accompanying unaudited Condensed Consolidated Financial Statements have been prepared in accordance with the instructions to Form 10-Q and therefore do not include all information and footnotes required by accounting principles generally accepted in the U.S. (“U.S. GAAP”) for complete financial statements. Except as disclosed herein, there have been no material changes in the information disclosed in the Notes to the Consolidated Financial Statements included in the Annual Report on Form 10-K of Genuine Parts Company (the “Company,” “we,” “our,” “us,” or “its”) for the year ended December 31, 2025. Accordingly, the unaudited Condensed Consolidated Financial Statements and related disclosures herein should be read in conjunction with our 2025 Annual Report on Form 10-K.

On February 17, 2026, we announced our intention to separate the Company into two independent, publicly traded companies: Global Automotive and Global Industrial. Global Automotive would include our North America Automotive and International Automotive segments, and Global Industrial would include our Industrial segment. The transaction is intended to qualify as a tax-free transaction for U.S. federal income tax purposes for the Company’s shareholders. The separation is targeted for completion in the first quarter of 2027, subject to certain customary and regulatory conditions. There can be no assurance that any separation transaction will ultimately occur or, if one does occur, of its terms or timing. Our Condensed Consolidated Financial Statements and related footnotes do not reflect the proposed separation.

The preparation of interim financial statements requires management to make estimates and assumptions that affect the amounts reported in the unaudited Condensed Consolidated Financial Statements. Specifically, we make estimates and assumptions in our unaudited Condensed Consolidated Financial Statements for inventory adjustments, the accrual of bad debts, credit losses on guaranteed loans, customer sales returns, volume incentives earned, and the asbestos-related product liability, among others. Inventory adjustments (including adjustments for a majority of inventories that are valued under the last-in, first-out (“LIFO”) method) are accrued on an interim basis and adjusted in the fourth quarter based on the annual book to physical inventory adjustment and LIFO valuation. Reserves for bad debts, credit losses on guaranteed loans and customer sales returns are estimated and accrued on an interim basis based on a consideration of historical experience, current conditions, and reasonable and supportable forecasts. Volume incentives are estimated based upon cumulative and projected purchasing levels.

Certain prior year amounts are reclassified to conform to the current year presentation. These reclassifications had no impact on our previously reported total assets, total liabilities, results of operations, comprehensive income or net cash flows from operating, financing or investing activities.

In the opinion of management, all adjustments necessary for a fair presentation of our financial results for the interim periods have been made. These adjustments are of a normal recurring nature. The results of operations for the three months ended March 31, 2026 are not necessarily indicative of results for the year ended December 31, 2026. We have evaluated subsequent events through the date the unaudited Condensed Consolidated Financial Statements covered by this quarterly report were issued.

Recent Accounting Pronouncements

Changes to U.S. GAAP are established by the Financial Accounting Standards Board (“FASB”) in the form of Accounting Standards Updates (“ASU”) to the FASB Accounting Standards Codification (“ASC”). We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to not be applicable or are expected to have an immaterial impact on our Condensed Consolidated Financial Statements.

Income Statement—Reporting Comprehensive Income—Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses

In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This standard requires disclosure in the notes to financial statements, at each interim and annual reporting period, of specified information about certain costs and expenses including purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption. Also required is a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated. This guidance is effective for all public entities for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, and early adoption is permitted. This guidance should be applied either prospectively to financial statements issued after the effective date of this update or retrospectively to all prior

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periods presented in the financial statements. We are currently evaluating the impact of adopting this standard on our financial statements and disclosures.

Intangibles—Goodwill and Other—Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software

In September 2025, the FASB issued ASU 2025-06, Intangibles - Goodwill and Other- Internal-Use Software (Subtopic 350-40): Targeted Improvements to the Accounting for Internal-Use Software. This update provides revised guidance aimed at refining the accounting for costs related to internal-use software. The update removes the concept of distinct project phases and requires that capitalization of software costs begins once (1) management authorizes and commits to funding a computer software project, and (2) it is likely the project will be completed, and the software will be used to perform the function as intended. When assessing whether completion is probable, entities must carefully consider any substantial uncertainties in development. In addition, the guidance specifies that the property, plant, and equipment disclosure requirements apply to capitalized software costs. The new standard will take effect in the first quarter of 2028, though early adoption is permitted at the start of any annual reporting period. Entities may adopt the guidance using prospective application, retrospective application, or a modified transition approach. We are currently evaluating the impact of adopting this standard on our financial statements and disclosures.

Interim Reporting (Topic 270)

In December 2025, the FASB issued ASU 2025-11, Interim Reporting (Topic 270). This update enhances the clarity and organization of interim reporting and the applicability of Topic 270. It also clarifies the required form and content of interim financial statements, including requiring entities to disclose events since the end of the last annual reporting period that have a material impact on the entity. The standard is effective for interim reporting periods within annual periods beginning after December 15, 2027, with early adoption permitted. Entities may apply the update either prospectively or retrospectively. We are currently evaluating the impact of adopting this standard on our financial statements and disclosures.

Prepaid Expenses and Other Current Assets

The following table provides a detail of prepaid expenses and other current assets reported within the Condensed Consolidated Balance Sheets as of:


(in thousands)	March 31, 2026		December 31, 2025
Prepaid expenses	$	241,851	$	150,014
Consideration receivable from vendors	844,408		907,321
Other current assets	637,145		587,285
Total prepaid expenses and other current assets	$	1,723,404	$	1,644,620

Derivatives and Hedging

We are exposed to various risks arising from business operations and market conditions, including fluctuations in certain foreign currencies. We use derivative and non-derivative instruments as risk management tools to mitigate the potential impact of foreign exchange rate risks. The objective of using these tools is to reduce fluctuations in our earnings and cash flows associated with changes in these rates. Derivative instruments are recognized in the Condensed Consolidated Balance Sheets at fair value and are designated as Level 2 in the fair value hierarchy. They are valued using inputs other than quoted prices, such as foreign exchange rates and yield curves.

The following table summarizes the classification and carrying amounts of the derivative instruments and the foreign currency denominated debt, a non-derivative financial instrument, that are designated and qualify as part of hedging relationships (in thousands):


		March 31, 2026				December 31, 2025
Instrument	Balance Sheet Location	Notional		Balance		Notional		Balance
Net investment hedges:
Forward contracts	Prepaid expenses and other current assets	$	791,831	$	15,387	$	245,960	$	7,146
Forward contracts	Other current liabilities	$	1,087,525	$	25,696	$	1,633,396	$	66,516
Foreign currency debt	Long-term debt	€	475,000	$	544,445	€	475,000	$	558,030

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The tables below presents pre-tax gains and losses related to net investment hedges:


	Gain (Loss) Recognized in AOCL before Reclassifications				Gain Recognized in Interest Expense for Excluded Components
(in thousands)	2026		2025		2026		2025
Three Months Ended March 31,
Net investment hedges:
Forward contracts	$	43,122	$	(43,081)	$	5,939	$	5,759
Foreign currency debt	13,585		(20,188)		—		—
Total	$	56,707	$	(63,269)	$	5,939	$	5,759

Fair Value of Financial Instruments

As of March 31, 2026 and December 31, 2025, the fair value of our senior unsecured notes was approximately $3.7 billion and $3.8 billion, respectively, which are designated as Level 2 in the fair value hierarchy. Our valuation technique is based primarily on prices and other relevant information generated by observable transactions involving identical or comparable assets or liabilities.

Following the December 2025 settlement of our U.S. pension plan, we hold a short-term bond fund that is designated to fund future contributions to our U.S. defined contribution plan. The bond fund is classified as a noncurrent available-for-sale ("AFS") debt security within other assets in the Condensed Consolidated Balance Sheets. As of March 31, 2026 and December 31, 2025, the fair value of the AFS debt security was $244 million and $243 million, respectively. The difference between fair value and amortized cost at each date is immaterial.

Guarantees

We guarantee the borrowings of certain independently controlled automotive parts stores and businesses (“independents”). While such borrowings of the independents are outstanding, we are required to maintain compliance with certain covenants. As of March 31, 2026, we were in compliance with all such covenants.

As of March 31, 2026, the total borrowings of the independents subject to guarantee by us were approximately $519 million. These loans generally mature over periods from one to six years. We regularly monitor the performance of these loans and the ongoing operating results, financial condition and ratings from credit rating agencies of the independents that participate in the guarantee programs. In the event that we are required to make payments in connection with these guarantees, we would obtain and liquidate certain collateral pledged by the independents (e.g., accounts receivable and inventory) to recover all or a substantial portion of the amounts paid under the guarantees. We recognize a liability equal to current expected credit losses over the lives of the loans in the guaranteed loan portfolio, based on a consideration of historical experience, current conditions, the nature and expected value of any collateral, and reasonable and supportable forecasts. To date, we have not had significant losses in connection with guarantees of independents’ borrowings and the current expected credit loss reserve is not material. As of March 31, 2026, there are no material guaranteed loans for which the borrower is experiencing financial difficulty and recovery is expected to be provided substantially through the operation or sale of the collateral.

As of March 31, 2026, we have recognized $32 million of certain assets and liabilities for the guarantees related to the independents’ borrowings. These assets and liabilities are included in other assets and other long-term liabilities in the Condensed Consolidated Balance Sheets. The liabilities relate to our noncontingent obligation to stand ready to perform under the guarantee programs and they are distinct from our current expected credit loss reserve.

Supply Chain Finance Programs

Several global financial institutions offer voluntary supply chain finance (“SCF”) programs which enable our suppliers (generally those that grant extended terms), at their sole discretion, to sell their receivables from us to these financial institutions on a non-recourse basis at a rate that takes advantage of our credit rating and may be beneficial to them. We and our suppliers agree on commercial terms for the goods and services we procure, including prices, quantities and payment terms, regardless of whether the supplier elects to participate in the SCF program. Our current payment terms with the majority of our suppliers range from 30 to 360 days. The suppliers sell goods or services, as applicable, to us and they issue the associated invoices to us based on the agreed-upon contractual terms. Then, if they are participating in the SCF program, our suppliers, at their sole discretion, determine which invoices, if any, they want to sell to the financial institutions. In turn, we direct payment to the

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financial institutions, rather than the suppliers, for the invoices sold to the financial institutions. No guarantees are provided by us or any of our subsidiaries on third-party performance under the SCF program; however, we guarantee the payment by our subsidiaries to the financial institutions participating in the SCF program for the applicable invoices. We have no economic interest in a supplier’s decision to participate in the SCF program, and we have no direct financial relationship with the financial institutions, as it relates to the SCF program. Accordingly, amounts due to our suppliers that elected to participate in the SCF program are included in the line item accounts payable in our Condensed Consolidated Balance Sheets.

All activity related to amounts due to suppliers that elected to participate in the SCF program is reflected in cash flows from operating activities in our Condensed Consolidated Statement of Cash Flows. As of March 31, 2026 and December 31, 2025, the outstanding payment obligations to the financial institutions were $3.2 billion and $3.1 billion, respectively. The amount settled through the SCF program was $1.0 billion and $1.1 billion for the three months ended March 31, 2026 and March 31, 2025, respectively.


(in thousands)	March 31, 2026
Obligations outstanding at the beginning of the period	$	3,142,713
Invoices confirmed during the year	1,028,046
Confirmed invoices paid during the year	(993,415)
Confirmed obligations outstanding at the end of the period	$	3,177,344

Earnings Per Share

We calculate basic earnings per share by dividing net income by the weighted average number of common shares outstanding. Certain outstanding stock awards are not included in the diluted earnings per share calculation because their inclusion would have been anti-dilutive. Antidilutive common stock equivalents excluded from the diluted earnings per share calculation are not material.

The following table summarizes basic and diluted shares outstanding:


	Three Months Ended March 31,
(in thousands, except per share data)	2026		2025
Net income	$	188,535	$	194,392

Weighted average common shares outstanding	137,622		138,783
Dilutive effect of stock awards	408		417
Weighted average common shares outstanding – assuming dilution	138,030		139,200
Basic earnings per share	$	1.37	$	1.40
Diluted earnings per share	$	1.37	$	1.40

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2. Segment Information

North America Automotive Segment

The following table presents a summary of our reportable North America automotive segment financial information:


	Three Months Ended March 31,
(in thousands)	2026			2025
Net sales	$	2,363,032		$	2,264,781
Cost of goods sold	1,454,347			1,396,617
Gross profit	908,685			868,164
Operating expenses	752,480			721,169
EBITDA	$	156,205		$	146,995

Gross margin (1)	38.5		%	38.3		%
Operating expenses as a percentage of net sales	31.8		%	31.8		%
EBITDA margin (2)	6.6		%	6.5		%

International Automotive Segment

The following table presents a summary of our reportable international automotive segment financial information:


	Three Months Ended March 31,
(in thousands)	2026			2025
Net sales	$	1,585,516		$	1,400,107
Cost of goods sold	866,327			760,207
Gross profit	719,189			639,900
Operating expenses	574,344			501,388
EBITDA	$	144,845		$	138,512

Gross margin (1)	45.4		%	45.7		%
Operating expenses as a percentage of net sales	36.2		%	35.8		%
EBITDA margin (2)	9.1		%	9.9		%

Industrial Segment

The following table presents a summary of our reportable industrial segment financial information:


	Three Months Ended March 31,
(in thousands)	2026			2025
Net sales	$	2,316,392		$	2,201,181
Cost of goods sold	1,605,334			1,535,594
Gross profit	711,058			665,587
Operating expenses	396,938			386,876
EBITDA	$	314,120		$	278,711

Gross margin (1)	30.7		%	30.2		%
Operating expenses as a percentage of net sales	17.1		%	17.6		%
EBITDA margin (2)	13.6		%	12.7		%

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(1)Gross margin is gross profit as a percentage of net sales.

(2)EBITDA margin is earnings before interest, taxes, depreciation and amortization ("EBITDA") as a percentage of net sales.

Additional Information

The following table presents a reconciliation from EBITDA to net income:


	Three Months Ended March 31,
(in thousands)	2026		2025
Segment EBITDA
North America Automotive	$	156,205	$	146,995
International Automotive	144,845		138,512
Industrial	314,120		278,711
Corporate EBITDA (1)	(119,525)		(91,125)
Interest expense, net	(43,953)		(37,216)
Depreciation and amortization	(131,028)		(115,435)
Other unallocated costs	(75,271)		(68,805)
Income before income taxes	245,393		251,637
Income taxes	(56,858)		(57,245)
Net Income	$	188,535	$	194,392

(1)Corporate EBITDA consists of costs related to our corporate headquarters' broad support to our business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology, cybersecurity, legal, corporate finance, internal audit, and risk management, as well as asbestos-related product liability costs and A/R Sales Agreement fees.

The following table presents a summary of the other unallocated costs:


	Three Months Ended March 31,
(in thousands)	2026		2025
Other unallocated costs:
Restructuring and other costs (2)	$	(57,732)	$	(54,770)
Separation costs (3)	(17,539)		—
Acquisition and integration related costs and other (4)	—		(14,035)
Total other unallocated costs	$	(75,271)	$	(68,805)

(2)Refer to the Restructuring and Other Costs Footnote in the Notes to Condensed Consolidated Financial Statements for more information.

(3)Adjustment primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of our Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027.

(4)Adjustment primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.

Tab l e of Contents

The following table presents a summary of our reportable segment total assets, as well as Corporate and other unallocated reconciling items:


	Three Months Ended March 31,
(in thousands)	2026		2025
Assets:
North America Automotive	$	6,654,273	$	6,846,904
International Automotive	3,968,127		4,082,999
Industrial	2,810,722		3,133,547
Corporate (5)	2,555,738		927,640
Goodwill and other intangible assets	4,987,717		4,826,115
Total assets	$	20,976,577	$	19,817,205
Long-lived assets:
United States	$	1,248,077	$	1,182,474
Europe	410,707		388,071
Canada	225,332		190,168
Australasia	257,393		225,278
Mexico	1,180		816
Total long-lived assets	$	2,142,689	$	1,986,807

(5)Corporate is a reconciling category that includes our corporate offices, substantially all financing activities and any other items that are not allocated to the business segments.

The following table presents a summary of select financial information by reportable segment, as well as Corporate and other unallocated reconciling items:


	Three Months Ended March 31,
(in thousands)	2026		2025
Depreciation and amortization:
North America Automotive	$	40,550	$	32,281
International Automotive	30,573		27,822
Industrial	11,072		9,664
Corporate	9,033		8,797
Intangible asset amortization	39,800		36,871
Total depreciation and amortization	$	131,028	$	115,435

Capital expenditures:
North America Automotive	$	12,803	$	31,786
International Automotive	44,032		33,348
Industrial	12,072		15,166
Corporate	28,645		39,540
Total capital expenditures	$	97,552	$	119,840

Net sales:
United States	$	4,014,203	$	3,853,778
Europe	1,091,974		972,865
Canada	500,572		463,474
Australasia	628,483		552,354
Mexico	29,708		23,598
Total net sales	$	6,264,940	$	5,866,069

SEC Form 10-Q filed by Genuine Parts Company