Genuine Parts Q4 Earnings: Beats Street View, Industrial Sales Slump, Dividend Boost And More

Genuine Parts Co GPC shares are trading higher in premarket on Tuesday.

The company reported fourth-quarter revenue growth of 3.3% year-on-year to $5.77 billion, beating the analyst consensus estimate of $5.71 billion.

The increase was driven by a 3.2% benefit from acquisitions, a net 0.6% favorable impact of foreign currency and other, partially offset by a 0.5% decrease in comparable sales.

Automotive Parts Group sales grew 6.1% Y/Y. Segment EBITDA of $285 million decreased 6.2%, with segment EBITDA margin of 7.8%, down 100 basis points from the same period of the prior year.

Sales for the Industrial Parts Group declined 1.2%. Segment EBITDA of $271 million decreased 4.3% with segment EBITDA margin of 12.9%, down 40 basis points year over year.

Adjusted EPS of $1.61 beat the consensus estimate of $1.55.

Gross profit increased 1.8% Y/Y to $2.1 billion. Selling, administrative and other expenses were $1.69 billion, an 11.5% rise Y/Y.

Cash and equivalents totaled $479.9 million as of December 31. Net cash generated from operating activities for the twelve months totaled $1.25 billion.

The company’s Board of Directors approved a 3% increase in its regular quarterly cash dividend for 2025 from $1.00 to $1.03 per share, which is payable April 2, 2025, to shareholders of record March 7, 2025.

Due to expanded restructuring program, the company will incur about $150 million to $180 million in 2025, which will continue to be reported as a non-recurring expense.

“While the year presented challenges due to macroeconomic conditions and softer end-market demand, we remained focused on controlling what we could—advancing our strategic initiatives to strengthen the business and effectively managing our operations,” said President and CEO Will Stengel.

Outlook: Genuine Parts sees FY25 revenue growth of 2% – 4%. The company expects FY25 adjusted EPS of $7.75 – $8.25 versus the consensus of $8.29.

The company sees FY25 free cash flow of $800 million – $1.0 billion and an operating cash flow of $1.2 billion – $1.4 billion.

Price Action: GPC shares are trading higher by 0.48% at $125.50 in premarket at the last check Tuesday.

Read Next: