Genuine Parts Company Q1 FY2026 earnings call

• Recognized and thanked 65,000 teammates. • Reviewed first quarter financial results by business segment. • Gave update on separation plan of Global Automotive and Global Industrial businesses, which is on track. • Highlighted key strategic initiatives, disciplined operation, and excellent customer service. • Mentioned performance across business segments including Industrial, North America Automotive, Canada Automotive, International Automotive, and Asia Pac Automotive. • Recognized Paul Donahue's retirement from the Board.

Industrial: Total sales $2.3 billion, increase over $100 million or ~5% vs prior year, comparable sales up ~4%, EBITDA $314 million, up ~13% and 13.6% of sales. North America Automotive: Total sales first quarter increased ~4.5%, comparable sales growth ~2%, EBITDA $156 million, up 6% and 6.6% of sales. Canada Automotive: Total sales increased ~4% in local currency vs prior year, comparable sales down ~2%. International Automotive: Total sales increased ~13% during the quarter, comparable sales slightly positive, EBITDA $145 million, up 5% and 9.1% of sales. Asia Pac Automotive: Both total sales and comparable sales increased ~4%.

• Reaffirmed 2026 outlook: diluted EPS in range of $6.10 to $6.60, adjusted diluted EPS in range of $7.50 to $8, up 5% at midpoint vs 2025. • Total GPC sales growth expected in range of 3% to 5.5%. • Expenses associated with transformation activities and cost actions in range of $225 million to $250 million with anticipated benefit of $100 million to $125 million in 2026. • Remaining elements of guidance unchanged including individual segment sales growth projections, gross margin, SG&A, corporate costs, EBITDA, cash flow, and capital allocation expectations.

• War in the Middle East impacting global supply chain flow, adding inflationary pressure to product and logistics costs, and creating incremental uncertainty for customers. • Potential near-term uncertainty from geopolitical realities. • Cost pressure from conflict in Iran impacting revenue, gross margin, and operating expenses. • Exposure to products sourced from the Middle East being less than 0.5% of total purchases but still a risk. • Volatility in oil and energy prices affecting consumer sentiment, miles driven, and industrial and manufacturing output.

Q: Greg Melich asked about pricing and impact of conflict, A: Herbert Nappier said Q2 expected to be most pronounced with net negative impact of $10 million to $20 million EBITDA, pricing environment stays in line with full year but duration of conflict matters.

Q: Bret Jordan asked about European backdrop, A: William Stengel said sequential meaningful improvement in all geographies, highlighted Germany and Iberia businesses.

Q: Christopher Horvers asked about Section 232 tariffs and freight costs, A: Herbert Nappier said managing tariffs like overall situation, passing through costs where possible, freight costs factored into pricing strategy.

Q: Scot Ciccarelli asked about North American company-owned stores vs independent biz profitability and conversations with independents, A: William Stengel said not disclosing detailed profitability but excited about work to improve company-owned stores, conversations with independents are positive.

Q: Michael Lasser asked about trade-off for GPC corporate and impact on free cash flow of stand-alone auto business, A: Herbert Nappier said using balance sheet to support independents won't change long-term cash generation, more to come on supporting independents.