Genuine Parts (NYSE:GPC) used its 2026 annual shareholder meeting to highlight 2025 financial performance, discuss capital allocation priorities and board changes, and reiterate plans to separate its automotive and industrial businesses into two publicly traded companies.
Business overview and 2025 operating backdrop
Chairman and CEO Will Stengel opened the meeting by describing the company as a global service provider of automotive and industrial replacement parts and value-added solutions. Stengel said the company, founded in 1928, serves about 100,000 customers through more than 10,800 locations across 17 countries, with approximately 74% of business in North America, 16% in Europe, and 10% in Australasia.
2025 financial results and restructuring progress
Stengel outlined several key financial metrics for 2025, including sales growth, margin performance, and cash generation. He said total sales were $24.3 billion, a 3.5% increase from 2024, while adjusted gross margin increased by 90 basis points, which he attributed to pricing, sourcing, and acquisitions. He also reported adjusted EBITDA of $2.0 billion, or 8.3% of sales, and adjusted diluted earnings per share of $7.37.
Stengel said Genuine Parts made “significant progress” on global restructuring efforts, realizing approximately $175 million of cost savings. He also said the company generated $891 million in cash from operations.
Capital allocation: stepped-up investment and dividend increase
Stengel said the company’s approach to capital allocation remained anchored in reinvesting in the business, maintaining a strong balance sheet, and returning capital to shareholders. He noted that since the company’s 2023 Investor Day, Genuine Parts has “effectively doubled” its historical capital expenditures, including more than $450 million invested in 2025, primarily in supply chain and technology. He described those investments as intended to enhance productivity, modernize capabilities, and improve the customer experience.
On shareholder returns, Stengel said the company returned more than $560 million in dividends during 2025. He added that for 2026, Genuine Parts is paying an annualized dividend of $4.25 per share, representing a 3.2% increase from 2025, and marking the company’s 70th consecutive year of dividend increases.
Board refreshment and director election results
Stengel highlighted board refreshment actions, including the appointment of two independent directors, Matt Carey and Court Carruthers. He also noted that Robin Loudermilk and John Holder retired in late 2025, and that Paul Donahue would conclude his board service following the annual meeting after more than two decades.
During the formal meeting, the company reported voting results for three management proposals. According to the preliminary tabulation cited by meeting officials, shareholders elected all 11 director nominees with “over an average of 98%” of votes cast. The advisory vote on executive compensation was approved by more than 95% of votes cast, and the ratification of Ernst & Young LLP as independent auditor for fiscal 2026 was approved by approximately 96% of votes cast.
Planned separation of automotive and industrial businesses
A central topic of the meeting was the company’s previously announced intent to separate its automotive and industrial operations into two independent, publicly traded companies. Stengel said the decision followed a comprehensive strategic and operational review conducted in 2025 in partnership with advisors, evaluating business structure, growth opportunities, and capital allocation priorities. He said the company concluded the separation was “the best path forward” to unlock value, given the two businesses have “compelling but distinct growth strategies.”
Stengel said the transaction is intended to enhance focus and agility, allow tailored strategies and investment priorities, strengthen financial flexibility, and offer investors “clearer differentiated value propositions.” He described the automotive business—anchored by the NAPA brand—as a “pure-play automotive aftermarket parts and solutions provider” with a $200 billion addressable market that is “nondiscretionary by nature.” He said the automotive business is executing a transformation program aimed at above-market growth and margin expansion while optimizing working capital and increasing return on invested capital, and that as a standalone company it is targeting an investment-grade credit rating and a balanced capital allocation approach including organic investment, bolt-on acquisitions, and returns to shareholders.
For the industrial business, Stengel said Motion is a leading diversified industrial distributor serving more than 180,000 customers, and he described it as approximately twice the size of its nearest competitor. He said Motion competes in a fragmented $150 billion global market and aims to deliver profitable sales growth, operating leverage supporting “improving double-digit EBITDA margins,” strong free cash flow generation, and attractive returns on invested capital. Stengel added that Motion is also targeting an investment-grade rating and plans to continue pursuing strategic and bolt-on acquisitions.
Stengel emphasized that the automotive and industrial businesses already operate independently, with “no shared customer-facing roles” and limited shared facilities, though he said there is ongoing work to finalize separation details. He estimated incremental separation costs of $100 million to $150 million and said the separation is planned to be tax-free to GPC shareholders. Stengel said the company is targeting completion in the first quarter of 2027, subject to customary approval processes, and plans to host investor days for each business in the second half of 2026.
The meeting concluded without shareholder questions, according to Vice President of Investor Relations Timothy Walsh.
About Genuine Parts (NYSE:GPC)
Genuine Parts Company (NYSE: GPC) is a global distributor of automotive replacement parts, industrial parts and business products with a history dating back to 1928. Headquartered in Atlanta, Georgia, the company operates a broad distribution network and retail presence serving repair shops, independent retailers, industrial customers and commercial accounts. Its business model centers on stocking and delivering a wide range of parts and supplies to support aftermarket and maintenance needs across multiple end markets.
Genuine Parts conducts its operations through several well-known operating groups and subsidiaries.
