Genuine Parts Company Q4 FY2025 earnings call

Will Stengel announced the intent to separate into two independent publicly traded companies: Global Automotive and Global Industrial. 2025 had total GPC sales of $24.3 billion, up over $800 million or 3.5%. Gross margin expanded for the third consecutive year. Industrial business grew in excess of the market despite a sluggish industrial and manufacturing economy. Automotive segments had various performance details across North America and International

Industrial: Total sales for the year were $8.9 billion, an increase of $200 million, or up approximately 2% versus the prior year, with comparable sales up 1.5%. North America Automotive: Total sales for the year increased approximately 3%, with comparable sales growth up approximately 0.5%. Segment EBITDA was $672 million, which was 7.1% of sales. International Automotive: Total sales during the year increased approximately 5% with comparable sales up slightly. Segment EBITDA for the year was $544 million, which was 9.3% of sales

Expects diluted earnings per share in range of $6.10 to $6.60, adjusted diluted EPS in range of $7.50 to $8.00. Total GPC sales growth expected in range of 3% to 5.5%. North America Automotive sales growth 3% to 5% with comparable sales growth 1.5% to 3.5%. International Automotive sales growth 3% to 6% with comparable sales growth 1.5% to 3.5%. Industrial segment sales growth 3% to 6% with comparable sales growth 3% to 6%. Gross margin expected 40 to 60 basis points of expansion

Market conditions in Europe could deteriorate further, sales to independent owners in U.S. NAPA business could be lower than expected, persistent cost inflation including in salaries, healthcare, rent, etc.

Q: Scot Ciccarelli asked about margin pressures on North American auto business and earnings contribution from company-owned vs independents.

A: Bert Nappier discussed margin pressures and Will Stengel talked about company-owned store improvements.

Q: Greg Melich asked about inflation trend and separation's impact on dividends.

A: Bert Nappier and Will Stengel responded on inflation and capital allocation.

Q: Bret Jordan asked about European regional performance dispersion and CapEx/D&A split.

A: Will Stengel and Bert Nappier provided details.

Q: Chris Horvers asked about new reporting framework and CapEx/D&A split.

A: Will Stengel and Bert Nappier answered.

Q: Michael Lasser asked about North American auto business market share and guidance.

A: Bert Nappier and Will Stengel responded.

Q: Chris Dankert asked about restructuring benefit mix and year shape.

A: Bert Nappier answered.

Q: Kate McShane asked about growth in failure, maintenance, and discretionary categories.

A: Will Stengel responded