Genuine Parts Sees Q1 Growth From Acquisitions, But Tariffs And Lower Sales Weigh On Results

Genuine Parts Co GPC reported fiscal first-quarter results on Tuesday.

The company reported quarterly revenue growth of 1.4% year-on-year to $5.87 billion, beating the analyst consensus estimate of $5.83 billion.

The increase was driven by a 3.0% benefit from acquisitions, partially offset by a 0.8% decrease in comparable sales and a 0.8% net unfavorable impact of foreign currency and other factors.

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The first quarter included one fewer selling day in the U.S. compared to the same period the previous year, which negatively impacted sales growth and comparable sales growth by approximately 1.1%.

Automotive Parts Group sales grew 2.5% Y/Y. Segment EBITDA of $286 million decreased 10.7%, with segment EBITDA margin of 7.8%, down 110 basis points from the same period of the prior year.

Sales for the Industrial Parts Group declined 0.4%. Segment EBITDA of $279 million was in line with the prior-year period, with a segment EBITDA margin of 12.7%, up 10 basis points year-over-year.

Adjusted EPS of $1.75 beat the consensus estimate of $1.68.

Gross profit increased 4.8% Y/Y to $2.17 billion. Selling, administrative and other expenses were $1.71 billion, an 8.6% rise Y/Y.

Cash and equivalents totaled $420.4 million as of March 31, 2025. Net cash used from operating activities for the quarter totaled $(40.8) million.

CEO Will Stengel noted a solid start to 2025 despite the tariffs and trade dynamics. He said the company remained focused on what it could control, including excellent customer service and its strategic initiatives to improve the business.

FY25 Outlook: Genuine Parts reiterated revenue growth of $23.96 billion-$24.43 billion (up by 2%-4%) versus the analyst consensus of $24.03 billion. The company reaffirmed adjusted EPS of $7.75 – $8.25 versus the consensus of $7.88.

The company reiterated a free cash flow of $800 million to $1.0 billion and an operating cash flow of $1.2 billion to $1.4 billion.

Price Action: GPC stock closed lower by 2.00% at $111.82 at Monday.

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