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.

 •  2/28/2025 Letter Continued (Full PDF)
 •  3/3/2023 GPC Stockholder Letter
 •  3/1/2024 GPC Stockholder Letter
 •  More "Auto Parts" Category Stockholder Letters
 •  GPC Benford's Law Stock Score = 97

GPC Shareholder/Stockholder Letter Transcript:

2024 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

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
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 *

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 *

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 *
*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

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
the U.S., Canada, Mexico, Australasia, France, the U.K., Ireland, Germany, Poland, the Netherlands,
Belgium, Spain and Portugal, while our Industrial Parts Group serves customers in the U.S., Canada,
Mexico and Australasia. We keep the world moving with a vast network of over 10,700 locations
spanning 17 countries supported by more than 63,000 teammates.
2024 KEY METRICS
United States: 65%
Automotive: 63%
Europe: 16%
NET SALES
NET SALES
Canada: 8%
BY SEGMENT
BY REGION
Australasia: 10%
Industrial: 37%
Sales
Mexico: <1%
Adjusted Diluted Earnings
Per Share (EPS)1
Billions
$22.10
$23.09 $23.49
$8.34
$18.90
$9.33
Free Cash Flow 2
Millions
$8.16
$1,861
$6.91
$16.54
$5.27
$992
$1,127
$923
$684
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
2020
2021
2022
2023
2024
1 A non-GAAP measure. See    Non-GAAP Financial Measures    in this report for more information and a reconciliation to GAAP
2 Free Cash Flow is defined as Cash from Operations minus Capex
Returned Over $700 Million
of Capital to Shareholders
2024 Dividend Per Share
$4.00, +5.3%

FEBRUARY 21, 2025
To Our Stakeholders
For nearly a century, GPC has been a trusted partner to our
customers, suppliers and communities, driven by our purpose:
We Keep the World Moving! This guiding principle continues to
shape our strategies, investments and daily operations as we
work to deliver value to all stakeholders.
We are proud of the commitment and efforts demonstrated by our global
teams throughout 2024 as they navigated a dynamic and challenging
macroeconomic environment, all while continuing to deliver exceptional
service to our customers. In 2024, despite softer-than-expected market
conditions, we remained focused on controlling what we could control:
we efficiently managed our operations, advanced our strategic initiatives
to improve the business and delivered strong cash flows. This enabled
us to continue our disciplined approach to capital allocation, thoughtfully
pursuing attractive investments for long-term value creation through
economic cycles and returning capital to shareholders through our
long-standing dividend. In 2024, we returned approximately $705
million back to our shareholders in the form of dividends and share
repurchases. And in February 2025, our Board increased our annual
dividend by 3%, to an annualized $4.12 per share. This marks the 69th
consecutive year of increasing the GPC dividend and underscores the
confidence that our Board of Directors has in the future of GPC.
Our achievements this year would not have been possible without the
dedication and hard work of our over 63,000 global teammates. To each
of you, we extend our deepest gratitude.
YEAR IN REVIEW
Paul D. Donahue | Non-Executive Chairman
William P. Stengel, II | President & CEO
For the year, Motion achieved segment EBITDA of $1.1 billion,
representing 12.6% of sales. This performance was driven by sales
While global market conditions were challenging in 2024, we
effectiveness, category management and productivity initiatives,
continued to strategically invest in our people, technology and supply
which helped offset the impact of softer market conditions.
chain to build on our existing advantages and create new capabilities.
Additionally, we continued to invest in our supply chain capabilities,
We delivered:
including the automation of existing facilities and the opening of a
    Sales of $23.5 billion, an increase of 1.7% from 2023
new Market Distribution Center that provides a faster, better and more
efficient experience for our customers. We also made great progress
    Net earnings of $904 million and adjusted net earnings of
with technology
investments
including enhanced
digital
tools and
$1.1 billion or $8.16 per share on an adjusted basis
Paul Donahue | Executive
Chairman
& Will Stengel
| President
& CEO
customer integrations to improve the customer experience.
    Working capital of ~6% of total sales, ending the year with a
Our Automotive business delivered total sales of $14.8 billion, an
Debt-to-Adjusted EBITDA ratio of 2.2x, within our stated target of
increase of 3.7% over the prior year. This growth was driven by
2.0x-2.5x
acquisitions and continued progress with our long-term initiatives.
    Ample liquidity of ~$2.0 billion, ~$1.3 billion in cash from
We made significant improvements in our U.S. Automotive business,
operations and over $680 million in free cash flow
focusing on investments in inventory, better product availability,
Our market-leading Industrial business, Motion, delivered total
enhanced store execution and improved delivery times. These efforts
sales of $8.7 billion, which was down slightly from 2023 due to
have positioned us well to serve the needs of our Do-It-For-Me (DIFM)
continued softness in industrial production activity and reduced
customers, which represent approximately 80% of our business.
customer spending on capital projects. Despite these challenges, we
Additionally, we made progress on our initiative to own more of our
believe Motion   s diverse end markets and product offering, focus on
stores in priority U.S. markets with the acquisitions of more than
customer service, technical expertise and solutions-based selling
500 stores from our independent owners and competitors. This
enabled the team to outperform the broader market.
strategic shift strengthens our ability to deliver superior service and
drive sustainable growth. In 2025, we will celebrate NAPA   s 100th
During the year, Motion delivered strong results and renewal rates
anniversary, a remarkable milestone that reflects the enduring
with its corporate account customers, which represent approximately
strength of the NAPA brand and the trust we   ve earned from our
45% of its business. As a testament to its value proposition and
customers over the years. As we look to the future, we believe the
customer focus, Motion received more supplier of the year awards
investments and decisive actions we are taking will ensure success
in 2024 than any other year. Motion also acquired four bolt-on
for NAPA for the next 100 years.
acquisitions to add to its technical and value-added solutions
capabilities. Motion remains well positioned to capitalize on the
Internationally, we believe our businesses continue to outperform the
eventual improvement in the broader industrial economy.
market despite softer market conditions. A standout achievement

was the continued success of the NAPA brand rollout in Europe,
with sales now exceeding    500 million in just five years. This rollout
has proven to be a key differentiator in the marketplace, driving
growth and enhancing our competitive position even in a challenging
environment.
For the year, Automotive segment EBITDA was $1.3 billion,
representing 8.7% of sales. This performance was negatively
impacted by weaker than expected market conditions, partially offset
by the benefits of acquisitions, along with significant progress on the
global restructuring efforts that we announced at the beginning of the
year. In addition to the long-term strategic investments we continue
to make, we are taking decisive actions near-term to ensure our
assets and costs are aligned to current market conditions. Our global
Automotive businesses continue to experience supportive industry
fundamentals, and we see significant opportunity to grow in our
highly fragmented markets.
KEY MANAGEMENT CHANGES
In April 2024, Jim Neill retired from GPC as the Executive Vice
President and Chief People Officer, after his nearly 18-year career
with GPC. In connection with Mr. Neill   s retirement, we welcomed
Jenn Hulett as our new Executive Vice President, Chief People Officer
in August 2024. She joins GPC with a wealth of HR experience, most
recently serving as Executive Vice President and Chief People Officer
for Dollar Tree, Inc. Jenn has been an excellent addition to the GPC
team and is building upon the solid foundation Jim established.
THE YEAR AHEAD
We are confident that we are investing in the right areas to
appropriately position GPC for the future, and we   re gaining traction
across numerous efforts. We are focused each day on the key aspects
of the customer experience. The long-term fundamentals of our
industries are attractive, and our businesses are well established with
leadership positions. We   re continuing to balance near-term actions
and medium- and long-term investments.
I am humbled and honored to serve as the CEO of this great company
and especially grateful for my GPC teammates and the support of
Paul and the board of directors. As we enter 2025, we remain focused
on executing our strategic initiatives and navigating the evolving
macroeconomic environment. The actions we are taking better
position us to capitalize on an upturn in market conditions to drive
value and deliver sustained success in the future.
In closing, we extend a sincere thank you to our teammates,
customers, suppliers, shareholders and communities for your
continued support of Genuine Parts Company. Together, we are
building a stronger, more resilient GPC for the future.
Respectfully,
WILLIAM P. STENGEL, II
President and Chief Executive Officer
Thank You to Our GPC Stakeholders
As I reflect on my time as CEO of this incredible company, I am
filled with pride and gratitude for all we have achieved together
as One GPC team. Over the past 20+ years, it has been an
extraordinary privilege to be part of this organization, and I am
deeply thankful for the opportunity to serve as your CEO.
When Will transitioned to the CEO role in June 2024, I was
excited to welcome him as only the sixth CEO in our company   s
remarkable 96-year history. Our culture and history of consistent
leadership has and will continue to be a competitive advantage
for our business. I have every confidence in Will, our global
leadership teams and our board of directors to continue driving
our vision to be the leading global automotive and industrial parts
distributor and solutions provider. I look forward to continuing to
work with Will and the rest of our remarkable members of the
board to drive value for our shareholders and all stakeholders.
In conjunction with our commitment to be a leader in corporate
governance, in 2024 we made progress in our multiyear program
to refresh the Board. During the year, in addition to adding
Will upon his appointment as CEO, we also welcomed Charles
   Chuck    K. Stevens III, formerly EVP and CFO of General Motors
Company, who brings unparalleled financial and automotive
expertise.
At our upcoming Annual Meeting in April 2025, Elizabeth    Besty   
Camp, Gary Fayard, John    Johnny    Johns and Wendy Needham
will be retiring from our Board. We want to express our gratitude
to each of these directors for their years of dedicated service
and valuable contributions to GPC. In connection with these four
directors    retirements, we are nominating Laurie Schupmann
to the Board. Ms. Schupmann spent nearly 40 years with PwC,
most recently serving as a Global Client Partner, and will bring
significant financial and accounting expertise to our Board.
To our shareholders     we thank you for your investment in
GPC, and to our teams around the world, thank you for your
unwavering commitment, hard work and dedication to GPC   s
success. It has been an honor to work alongside such talented
and passionate individuals, and I am truly grateful for the journey
we have shared.
With heartfelt appreciation,
PAUL D. DONAHUE
Non-Executive Chairman



 2/28/2025 Letter Continued (Full PDF)