On this page of StockholderLetter.com we present the latest annual shareholder letter from GENUINE PARTS CO — ticker symbol GPC. Reading current and past GPC letters to shareholders can bring important insights into the investment thesis.

 •  2/27/2026 Letter Continued (Full PDF)
 •  3/3/2023 GPC Stockholder Letter
 •  3/1/2024 GPC Stockholder Letter
 •  2/28/2025 GPC Stockholder Letter
 •  More "Auto Parts" Category Stockholder Letters
 •  GPC Benford's Law Stock Score = 86

GPC Shareholder/Stockholder Letter Transcript:

2025 Annual Report

Financial History
YEAR
1928
1929
1930
1931
1932
1933
1934
1935
1936
1937
1938
1939
1940
1941
1942
1943
1944
1945
1946
1947
1948
1949
1950
1951
1952
1953
1954
1955
1956
1957
1958
1959
1960
1961
1962
1963
1964
1965
1966
1967
1968
1969
1970
1971
1972
1973
1974
1975
1976
1977
1978
1979
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
2021
2022
2023
2024
2025

NET SALES
75,129
227,978
339,732
402,463
482,525
629,751
904,580
1,035,477
1,299,185
1,520,199
1,858,252
3,180,241
3,928,342
6,109,724
6,592,707
8,205,316
10,084,893
11,355,633
19,237,291
18,531,472
20,729,280
19,845,875
24,447,042
26,244,669
28,468,962
29,731,105
30,744,504
34,073,288
41,325,377
48,140,313
56,504,293
71,581,580
75,010,726
80,533,146
90,248,450
96,651,445
120,313,692
171,545,228
175,132,785
204,893,008
245,443,798
303,455,677
340,036,395
387,138,252
450,500,768
501,189,438
572,833,282
678,353,280
846,192,692
942,958,756
1,148,632,000
1,337,468,000
1,431,713,000
1,584,642,000
1,936,524,000
2,068,231,000
2,303,594,000
2,332,544,000
2,394,072,000
2,606,246,000
2,941,963,000
3,161,198,000
3,319,394,000
3,434,642,000
3,668,814,000
4,384,294,000
4,858,415,000
5,261,904,000
5,697,592,000
5,981,224,000
6,587,576,000
7,950,822,000
8,369,857,000
8,220,668,000
8,258,927,000
8,449,300,000
9,097,267,000
9,783,050,000
10,457,942,000
10,843,195,000
11,015,263,000
10,057,512,000
11,207,589,000
12,458,877,000
13,013,868,000
14,077,843,000
15,341,647,000
15,280,044,000
15,339,713,000
16,308,801,000
18,735,073,000
19,392,305,000
16,537,433,000
18,870,510,000
22,095,973,000
23,090,610,000
23,486,569,000
24,300,141,000
INCOME BEFORE INCOME TAXES
-2,570
8,027
15,666
21,516
16,839
34,614
52,115
38,503
70,234
72,622
78,305
136,902
176,301
348,690
337,252
430,634
489,547
532,944
1,621,541
1,088,967
1,176,590
1,067,096
1,454,832
1,168,405
1,416,235
1,408,213
1,642,148
1,921,777
2,473,384
3,328,598
4,251,175
6,001,005
5,661,551
6,491,113
7,107,524
7,210,807
9,324,827
12,262,510
12,409,363
14,918,758
19,330,334
24,228,557
28,163,228
33,897,667
36,104,767
42,088,098
50,234,298
63,552,088
79,321,897
88,365,511
105,070,000
121,953,000
133,996,000
154,271,000
193,560,000
200,822,000
234,713,000
245,203,000
240,565,000
262,068,000
290,445,000
321,877,000
333,219,000
335,027,000
353,998,000
425,829,000
474,868,000
510,794,000
545,233,000
565,600,000
589,117,000
628,067,000
646,750,000
603,813,000 *
605,736,000
571,743,000
635,919,000
709,064,000
770,916,000
816,745,000
768,468,000
644,165,000
761,783,000
890,806,000
1,018,932,000
1,044,304,000
1,117,739,000
1,123,681,000
1,074,340,000
1,058,408,000 *
1,111,717,000 *
1,103,551,000 *
1,013,833,000 *
1,328,394,000 *
1,577,623,000 *
1,742,348,000 *
1,491,697,000 *
1,346,094,000 *

INCOME TAXES
599
1,158
1,857
2,787
6,160
10,159
7,140
13,187
17,647
18,185
27,320
50,505
149,020
204,234
260,084
310,082
323,302
650,060
429,045
438,498
420,175
636,275
601,386
744,330
736,190
864,331
1,020,148
1,309,667
1,752,800
2,261,582
3,165,042
2,988,000
3,481,000
3,795,000
3,850,000
4,620,000
5,890,000
6,030,000
7,272,000
10,362,000
13,240,000
14,600,000
16,966,000
18,200,000
21,280,000
25,408,000
32,650,000
40,538,000
44,918,000
53,429,000
58,808,000
64,545,000
74,471,000
92,552,000
97,188,000
115,046,000
118,962,000
119,013,000
113,776,000
109,072,000
122,389,000
126,623,000
127,350,000
134,210,000
166,961,000
186,320,000
201,626,000
215,157,000
223,203,000
233,323,000
250,445,000
261,427,000
242,289,000 *
238,236,000
218,101,000
240,367,000
271,630,000
295,511,000
310,406,000
293,051,000
244,590,000
286,272,000
325,690,000
370,891,000
359,345,000
406,453,000
418,009,000
387,100,000
362,627,000 *
275,635,000 *
270,370,000 *
248,795,000 *
331,384,000 *
390,038,000 *
425,824,000 *
351,856,000 *
319,673,000 *

NET INCOME
-2,570
7,428
14,508
19,659
14,052
28,454
41,956
31,363
57,047
54,975
60,120
109,582
125,796
199,670
133,018
170,550
179,465
209,642
971,481
659,922
738,092
646,921
818,557
567,019
671,905
672,023
777,817
901,629
1,163,717
1,575,798
1,989,593
2,835,963
2,673,551
3,010,113
3,312,524
3,360,807
4,704,827
6,372,510
6,379,363
7,491,411
8,794,941
10,778,467
13,290,852
16,535,006
17,567,931
20,341,677
24,005,057
29,981,108
37,763,166
42,243,015
50,263,000
61,715,000
67,833,000
77,543,000
100,167,000
103,634,000
119,667,000
126,241,000
121,552,000
148,292,000
181,373,000
199,488,000
206,596,000
207,677,000
219,788,000
257,813,000
288,548,000
309,168,000
330,076,000
342,397,000
355,794,000
377,622,000
385,323,000
361,524,000 *
367,500,000 *
353,642,000 *
395,552,000
437,434,000
475,405,000
506,339,000
475,417,000
399,575,000
475,511,000
565,116,000
648,041,000
684,959,000
711,286,000
705,672,000
687,240,000
695,782,000 *
836,082,000 *
833,181,000 *
765,038,000 *
997,010,000 *
1,187,585,000 *
1,316,524,000 *
1,139,841,000 *
1,026,421,000 *
*Excludes non-recurring items; Our financial history presented on this page reflects financial information as reported in the company   s annual reports
TOTAL EQUITY END OF YEAR
38,756
49,837
60,591
78,097
90,187
109,025
149,176
171,238
185,119
240,140
358,621
476,750
623,521
738,536
859,449
1,032,182
1,202,955
1,415,974
2,379,001
3,029,334
4,005,910
4,372,831
4,966,086
5,325,561
5,647,553
6,022,077
6,449,894
7,001,523
7,815,241
8,969,272
10,807,320
13,285,215
14,967,697
17,142,687
19,213,273
21,189,880
29,268,289
45,565,926
47,308,163
55,679,256
63,649,275
77,437,679
85,290,945
95,476,147
108,053,465
121,548,638
137,156,965
163,092,941
206,861,402
233,641,292
275,127,000
320,706,000
359,889,000
410,689,000
581,915,000
636,218,000
701,113,000
729,231,000
758,493,000
760,256,000
863,159,000
971,764,000
1,033,100,000
1,126,718,000
1,235,366,000
1,445,263,000
1,526,165,000
1,650,882,000
1,732,054,000
1,859,468,000
2,053,332,000
2,177,517,000
2,260,806,000
2,345,123,000
2,130,009,000
2,312,283,000
2,544,377,000
2,693,957,000
2,549,991,000
2,716,716,000
2,324,332,000
2,629,372,000
2,802,714,000
2,792,819,000
3,008,179,000
3,358,768,000
3,312,364,000
3,159,242,000
3,207,356,000
3,464,156,000
3,471,991,000
3,695,500,000
3,218,003,000
3,503,290,000
3,804,447,000
4,416,985,000
4,351,851,000
4,440,363,000

Genuine Parts Company
Established in 1928, Genuine Parts Company is a leading global service provider of automotive and industrial
replacement parts and value-added solutions. Our Automotive Parts Group operates across North America,
Europe and Australasia, while our Industrial Parts Group serves customers across North America and
Australasia. We keep the world moving with a vast network of over 10,800 locations spanning 17 countries
supported by more than 65,000 teammates.
2025 KEY METRICS
2025
NET SALES
BY SEGMENT
North America
Automotive: 39%
International
Automotive: 24%
Industrial: 37%
$24.3B
Revenue
Up 3.5% year over year
$470M
Invested Back
into the business
United States: 65%
Europe: 17%
Canada: 8%
Australasia: 10%
Mexico: <1%
37.5%, +90bps
1
Adjusted
Gross Margin
Third consecutive year
of expansion
$560M+
Returned to
Shareholders
in the form of dividends
1 A non-GAAP measure. See    Non-GAAP Financial Measures    in this report for more information and a reconciliation to GAAP
2025
NET SALES
BY REGION
$7.37
1
Adjusted
Diluted Earnings
per share
$4.12, +3.0%
2025 Dividend
per share

FEBRUARY 20, 2026
To Our Stakeholders
Across our businesses, 2025 was a year of balancing revenue
growth and investments in strategic initiatives while navigating
continued headwinds in global market conditions and shifts in
tariffs and global trade dynamics. Through it all, we remained
committed to our purpose: We Keep the World Moving. This
principle continues to guide how GPC conducts business and
shapes our strategies and investments as a trusted partner to our
customers, suppliers and communities.
As we begin 2026, we have taken a significant step forward in fulfilling
our purpose by announcing our intent to separate our Automotive and
Industrial businesses into two independent, industry-leading publicly
traded companies. This separation is expected to unlock significant
shareholder value and enhance strategic clarity, operational focus and
financial performance for both companies.
In 2025, we continued to build on our track record through disciplined
execution, improving operating performance and prudent long-term
capital stewardship, and we are incredibly proud of the effort of
our global team during a dynamic year. While 2025 was marked by
headwinds from tariffs and global trade regulation, elevated interest rates
and a cautious consumer, our mindset remained    controlling what we
can control   . Our teams adapted to working in fluid environments and
remained resilient and determined. Together, we proactively managed
the business through an inflationary cost environment, all while staying
committed to serving our customers.
Will Stengel
Chair-Elect & Chief Executive Officer
customer spending on capital projects. Motion outperformed the market
despite the headwinds. This performance was driven by proactive
strategic actions and enabled by Motion   s diverse end markets, extensive
product offering and its focus on customer service, technical expertise
and solutions-based selling.
Throughout all business cycles, Motion remains focused on providing
excellent customer service while continuously seeking ways to enhance
the customer experience. For example, as customers were having
to adapt to evolving trade policies, Motion   s technology team built a
proprietary digital tariff calculator that helps our customers understand
their specific exposure to tariffs and the solutions we can offer to help
them problem-solve. We   re also pleased to see continued progress with
returns from our digital investments as we work to create a seamless,
embedded, and personalized digital experience for our diverse customer
base. E-commerce, which mostly represents our customer digital
integrations, as well as Motion.com, continues to deliver outsized growth
driven by specific data and product enhancements that leverage GenAI.
In 2025, e-commerce sales at Motion were approximately 45% of
revenue, up over 800 basis points from the prior year.
We grew revenue in 2025 by 3.5% driven by winning new business and
delivering excellent customer service, expanded gross margin for the
third consecutive year, and invested more than $450 million primarily
across supply chain and technology. Collectively, these investments
During the year, Motion produced segment EBITDA of $1.1 billion,
reflect a deliberate effort to enhance operating productivity
andDonahue
enable
representing
12.9% of&sales,
30 basis |points
from 2024.
The Motion
Paul
| Executive
Chairman
Will up
Stengel
President
& CEO
profitable growth across our Automotive and Industrial businesses, all
team operated with discipline, navigating a sluggish demand environment
aimed at creating a better customer experience.
while offsetting pressures from cost inflation.
Our disciplined approach to capital allocation remained a defining
characteristic of GPC in 2025, anchored by our framework to reinvest
in the business, strengthen our strong balance sheet and maintain our
long-standing commitment of returning capital to shareholders. In 2025,
we returned over $560 million to shareholders in the form of dividends.
Increasing the dividend remains a hallmark of the company, as evidenced
by our Board   s recent approval to raise the dividend by 3.2% to $4.25
per share on an annualized basis. This marks the 70th consecutive year
we have increased the dividend.
As always, our global team of more than 65,000 employees drives GPC
forward and our 2025 achievements would not be possible without their
hard work and dedication.
2025 YEAR IN REVIEW
For the year, our market-leading Industrial business, Motion, generated
total sales of $8.9 billion, a 2.3% increase from 2024 despite sluggish
market conditions. The Purchasing Managers Index (PMI) registered
below 50 for ten of the twelve months, and we experienced reduced
Historically, the industrial economy experiences sustained periods of
growth following each contraction cycle, reinforcing our bullish outlook
for Motion     supported by its size and scale, competitive positioning and
strong customer value proposition. Additionally, our Motion teams are
well-equipped to capitalize on emerging opportunities, including data
centers, semiconductors, power generation and mining.
Our North America Automotive business delivered total sales of $9.5
billion, a 3.3% increase versus the prior year, driven primarily by
acquisitions and price inflation. Investments in inventory, enhanced store
execution and improved delivery times have better positioned us to serve
commercial customers, which represents approximately 80% of our
business. By focusing on what we can control, company-owned store
performance improved notably, and our team continued to drive deeper
and stronger relationships with our independent owners.
For the year, North America Automotive segment EBITDA was $672
million, representing 7.1% of sales. These results fell short of our
expectations amid challenging market conditions and persistent cost
inflation outpacing price inflation. To offset these headwinds, we took
decisive and strategic cost and restructuring actions to better align our

cost structure with market conditions, without compromising on customer
service. As we look forward, we are confident that the investments we are
making will better position us to gain share in our fragmented markets.
In 2025, we were thrilled to celebrate the 100th anniversary of NAPA, a
milestone that highlights a century of commitment to providing quality
products and exceptional service to our customers. This landmark year
gave us the opportunity to thank our business partners and reflect on
the strong relationships we have built with teammates, suppliers and
communities. As we honor this legacy, we remain focused on driving
innovation and growth to serve our customers into the future.
Our International Automotive business delivered total sales of $5.9
billion, a 5.4% increase versus the prior year. We believe our businesses
continue to outperform the market despite softer market conditions.
The rollout of the NAPA brand in Europe continues to be a competitive
differentiator, and our team is working tirelessly to win more wallet share
with key accounts. Our business in Australasia continues to grow and
take share, solidifying its position as the market leader with a strong
commitment to delivering exceptional customer service. For the year,
International Automotive segment EBITDA was $544 million, representing
9.3% of sales. Similar to our North America Automotive segment, market
conditions and cost inflation remained headwinds.
KEY MANAGEMENT CHANGES
During 2025, the company made a strategic leadership change within
our Automotive business to support our continued transformation and
ongoing initiatives to improve our operational execution. In August, Alain
Masse was promoted to President, North America Automotive, a new role
dedicated to leading the NAPA business in North America, underscoring
continued emphasis on execution and market share growth. Randy
Breaux retired as Group President, GPC North America, after 14 years
of service with the company. During his tenure, he oversaw both the
Industrial and Automotive businesses and played a key role in selecting
his successor, ensuring a smooth transition.
GOVERNANCE EXCELLENCE
The Board of Directors continued its multiyear refreshment program,
bringing new perspectives and strategically adding financial, industry
and operational expertise through the appointment of three worldclass independent directors, Matt Carey, Court Carruthers and Laurie
Schupmann. As part of this refreshment program, Robin Loudermilk and
John Holder retired in late 2025 after tremendous service to the Board.
More recently, in January 2026, GPC announced that Paul Donahue
will retire as Non-Executive Chairman at the upcoming Annual Meeting.
His retirement concludes a legacy spanning more than two decades of
service to GPC, during which he also served as Chairman and CEO. I
will serve as Chair-Elect until Paul   s retirement at the Annual Meeting.
Following his retirement, it is an honor to assume the role of Chairman
in addition to my existing responsibilities. As Chairman and CEO, I will
continue to closely partner with the Board and our global leadership
teams to execute the GPC strategic vision.
STRENGTHENING OUR COMMUNITIES
In January 2026, we proudly announced the launch of the Genuine
Parts Company (GPC) Foundation, marking a significant milestone in
strengthening our community impact. Building on the generosity and
foresight of our founder, Carlyle Fraser, the GPC Foundation serves as a
professionally managed vehicle to amplify our giving and positive impact
    especially within the metro Atlanta community. Our commitments to
our teammates and involvement in our communities are deeply ingrained
in how we operate and integral to our overall strategy. Through the GPC
Foundation, we are modernizing our philanthropic efforts to create lasting
value that reflects the core values and vision Carlyle Fraser instilled in
our company.
THE YEAR AHEAD
As it relates to the planned separation of our Automotive and Industrial
businesses, GPC has a proud history of evolving with our markets for
nearly a century. Over the past decade, we established leading global
footprints in attractive geographies, simplified our business mix and
accelerated strategic investments to advance and differentiate
our business.
Creating two focused, independent companies sharpens customer and
market alignment, increases clarity and speed, simplifies operations and
enables disciplined, business-specific investments which we believe will
unlock long-term value. The transaction is expected to be completed in
the first quarter of 2027, subject to customary approvals and conditions.
Throughout the process, we remain committed to creating a lasting,
positive impact on our teammates, customers, suppliers and the
communities we serve.
As we look beyond this important strategic announcement, we will
remain focused building on our momentum by managing what is
within our control and continue making progress on our growth and
productivity initiatives. At the core of every decision lies our commitment
to enhancing the customer experience. Supported by strong long-term
industry fundamentals and well-established leadership positions, we
balance near-term priorities with medium- and long-term investments.
This positions us to navigate the evolving macroeconomic landscape
while advancing our strategic goals. Through disciplined execution of our
initiatives, we are enabling the company to operate smarter, faster and
better, positioning us to deliver sustainable success.
In closing, we extend a sincere thank you to our teammates, customers,
suppliers, shareholders and communities for your continued support
of GPC.
Respectfully,
WILL STENGEL
Chair-Elect & Chief Executive Officer



 2/27/2026 Letter Continued (Full PDF)