Genuine Parts Company, a distributor of automotive and industrial parts, lowered the top end of its 2026 adjusted earnings forecast despite third-quarter sales growth ahead of a planned corporate split.
The company said Tuesday it now expects adjusted diluted earnings per share of $7.50 to $7.75 for 2026, compared with its previous range of $7.50 to $8. It also lowered its GAAP diluted earnings per share forecast to $5.60 to $5.85 from $5.90 to $6.40. Its sales growth forecast remained at 3% to 5.5%.
Third-quarter sales reached $6.5 billion, up 4.2% from a year earlier. Net income slipped to $224 million from $226 million. GAAP diluted earnings per share held at $1.62, while adjusted diluted earnings per share rose to $2.07 from $1.98.
North America Automotive reported 2.2% sales growth, less than Industrial’s 6.1% increase. Industrial’s segment EBITDA margin rose 60 basis points to 13.2%; the same measure in North America Automotive fell 40 basis points to 7.6%. EBITDA is earnings before interest, taxes, depreciation and amortization.
The adjusted earnings figure excludes $61 million in after-tax adjustments tied to restructuring and the planned separation. Genuine Parts recorded $64.5 million in third-quarter restructuring costs, including severance and facility changes, and $21.2 million in separation costs.
Genuine Parts continues to target the first quarter of 2027 for a split into two independent companies, GPC and Motion.
