Key facts
- Genuine Parts lowered its 2026 profit forecast to $5.90-$6.40 per share.
- Full-year adjusted profit forecast remains $7.50-$8 per share.
- Second-quarter adjusted profit was $2.15 per share, beating estimates.
- Quarterly revenue rose 6% to $6.54 billion, exceeding expectations.
- The company plans to separate its automotive and industrial businesses by Q1 2027.
Genuine Parts, an auto parts distributor, has reduced its full-year profit forecast due to persistent inflation and a weakening consumer spending environment. The company cited geopolitical tensions in the Middle East as a contributing factor to rising fuel prices and reduced consumer spending.
Despite the lowered outlook for 2026 profit per share, which is now projected to be between $5.90 and $6.40, down from $6.10 to $6.60, Genuine Parts reaffirmed its adjusted profit forecast for the full year at $7.50 to $8 per share. Sales growth expectations for the full year remain unchanged at 3% to 5.5%.
In the second quarter, the company reported adjusted profit of $2.15 per share, surpassing the average analyst estimate of $2.08 per share. Quarterly revenue increased by 6% to $6.54 billion, exceeding the consensus estimate of $6.43 billion. Sales for the Genuine Parts North America Automotive business grew by 3.8% to $2.5 billion, while International Automotive business sales rose by 8.2% to $1.6 billion.
Genuine Parts is proceeding with its plan to separate its automotive and industrial businesses into two independent companies, a move supported by activist investor Elliott Investment Management. The separation is anticipated to be completed in the first quarter of 2027, with the expectation that distinct entities will achieve higher valuations.