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FOR IMMEDIATE RELEASE
Genuine Parts Company Reports Third Quarter 2026 Results
Narrows 2026 Outlook for Adjusted EPS to $7.50 to $7.75 from $7.50 to $8.00
ATLANTA -- Genuine Parts Company (NYSE: GPC), a leading global service provider of automotive and industrial replacement parts and value-added solutions, announced today its results for the third quarter ended September 30, 2026.
“Our third quarter performance demonstrates the strength of our market leading businesses and our teams’ continued focus on serving customers and executing our strategic priorities,” said Will Stengel, Chairman and Chief Executive Officer. “We also achieved important milestones in our separation process and remain on track to launch GPC and Motion as two independent, leading companies in the first quarter of 2027.”
Third Quarter 2026 Results
Sales were $6.5 billion, a 4.2% increase compared to $6.3 billion in the same period of the prior year. The improvement is attributable to a 2.9% increase in comparable sales, a 0.9% benefit from acquisitions and a net 0.4% favorable impact of foreign currency and other.
Net income was $224 million, or $1.62 per diluted earnings per share. This compares to net income of $226 million, or $1.62 per diluted share in the prior year period.
Adjusted net income was $286 million, or $2.07 per diluted earnings per share. Adjusted net income excludes $61 million of after-tax adjustments, or $0.45 per diluted share, which relates to costs associated with the company's global restructuring initiative and the planned separation of the company's Automotive and Industrial businesses. This compares to adjusted net income of $276 million, or $1.98 per diluted share in the prior year period. Refer to the reconciliation of GAAP net income to adjusted net income and GAAP diluted net income per common share to adjusted diluted net income per common share for more information.
Third Quarter 2026 Segment Highlights
North America Automotive Parts Group ("North America Automotive")
North America Automotive sales were $2.5 billion, up 2.2% from the same period in 2025. The improvement is primarily attributable to a 1.7% increase in comparable sales and a 1.1% benefit from acquisitions. This was partially offset by a 0.6% unfavorable impact of foreign currency and other. Segment EBITDA of $194 million decreased 2.9%, with segment EBITDA margin of 7.6%, down 40 basis points from the same period of the prior year.
International Automotive Parts Group ("International Automotive")
International Automotive sales were $1.6 billion, up 4.5% from the same period in 2025. The improvement is primarily attributable to a 1.7% benefit from acquisitions, a 1.7% favorable impact of foreign currency and a 1.1% increase in comparable sales. Segment EBITDA of $141 million increased 4.7%, with segment EBITDA margin of 9.0%, flat versus the same period of the prior year.
Industrial Parts Group ("Industrial")
Industrial sales were $2.4 billion, up 6.1% from the same period in 2025. The improvement is primarily attributable to a 5.5% increase in comparable sales, a 0.5% favorable impact of foreign currency and a 0.1% benefit from acquisitions. Segment EBITDA of $317 million increased 11.2%, with segment EBITDA margin of 13.2%, up 60 basis points from the same period of the prior year.
Year to Date 2026 Results
Sales for the nine months ended September 30, 2026 were $19.3 billion, up 5.6% from the same period in 2025. Net income for the nine months was $641 million, or $4.64 per diluted share. This compares to net income of $675 million, or $4.85 per diluted share in the prior year period. Adjusted net income was $827 million in the first nine months of 2026, compared to adjusted net income of $810 million in the prior year period. Adjusted diluted earnings per share were $5.99 compared to $5.82 in the prior year period.
Balance Sheet, Cash Flow and Capital Allocation
The company generated cash flow from operations of $817 million for the first nine months of 2026. Net cash used in investing activities was $361 million, including $314 million for capital expenditures and $69 million for acquisitions. Net cash used in financing activities was $139 million, including net proceeds of debt (including net commercial paper) of $338 million, partially offset by $434 million for quarterly dividends paid to shareholders. Free cash flow was $502 million for the first nine months of 2026. Refer to the reconciliation of GAAP net cash provided by operating activities to free cash flow for more information.
As of September 30, 2026, total liquidity was $2.4 billion, consisting of $763 million in cash, and $1.6 billion of available capacity under the company's $2.0 billion Revolving Credit Agreement. This reflects $389 million outstanding under our commercial paper program.
2026 Outlook
The company is narrowing the range for adjusted diluted earnings per share outlook from its previous full-year 2026 outlook provided in its earnings releases on February 17, 2026, April 21, 2026 and July 21, 2026. The company considered its recent business trends and financial results, current growth plans, strategic initiatives, global economic outlook, geopolitical conflicts and the potential impact on results in updating its outlook, which is outlined in the table below. The updated GAAP earnings-per-share outlook includes expected costs associated with the company's restructuring initiatives, and includes costs related to the planned separation that have been incurred year-to-date.
| For the Year Ending December 31, 2026 |
|---|
| Previous Outlook | Updated Outlook |
|---|
| Total sales growth | 3% to 5.5% | 3% to 5.5% |
| North America Automotive sales growth | 2.5% to 4.5% | 2.5% to 4.5% |
| International Automotive sales growth | 5% to 8% | 5% to 8% |
| Industrial sales growth | 3% to 6% | 3% to 6% |
| Diluted earnings per share | $5.90 to $6.40 | $5.60 to $5.85 |
| Adjusted diluted earnings per share | $7.50 to $8.00 | $7.50 to $7.75 |
| Effective tax rate | Approx. 24% | Approx. 24% |
| Net cash provided by operating activities | $1.0 billion to $1.2 billion | $1.0 billion to $1.2 billion |
| Free cash flow | $550 million to $700 million | $550 million to $700 million |
Non-GAAP Information
This release contains certain financial information not derived in accordance with United States (“U.S.”) generally accepted accounting principles (“GAAP”). These items include adjusted net income, adjusted diluted net income per common share, adjusted selling, administrative, and other expenses, and free cash flow. The company believes that the presentation of adjusted net income, adjusted diluted net income per common share, adjusted selling, administrative and other expenses and free cash flow, when considered together with the corresponding GAAP financial measures and the reconciliations to those measures, provides meaningful supplemental information to both management and investors that is indicative of the company's core operations. The company considers these metrics useful to investors because they provide greater transparency into management’s view and assessment of the company’s ongoing operating performance by removing items management believes are not representative of the company's continuing operations and may distort the company's longer-term operating trends. The company believes these measures are useful and enhance the comparability of the results from period to period and with the company's competitors, as well as show ongoing results from operations distinct from items that are infrequent or not associated with the company’s core operations. The company does not, nor does it suggest investors should, consider such non-GAAP financial measures as superior to, in isolation from, or as a substitute for, GAAP financial information. The company has included a reconciliation of this additional information to the most comparable GAAP measure following the financial statements below. The company does not provide a forward-looking outlook for certain financial measures on a GAAP basis because the company is unable to predict certain items contained in the GAAP measures without unreasonable efforts. These items may include separation costs, acquisition-related costs, litigation charges or settlements, impairment charges, restructuring costs and certain other unusual adjustments.
Comparable Sales
Comparable sales is a key metric that refers to period-over-period comparisons of the company's net sales excluding the impact of acquisitions, foreign currency and other. The company's calculation of comparable sales is computed using total business days for the period and is inclusive of sales from company-owned stores and sales into independent stores. The company considers this metric useful to investors because it provides greater transparency into management’s view and assessment of the company’s core ongoing operations. This is a metric that is widely used by analysts, investors and competitors; however the company's calculation of the metric may not be comparable to similar measures disclosed by other companies, because not all companies and analysts calculate this metric in the same manner.
Conference Call
Genuine Parts Company will hold a conference call today at 8:30 a.m. Eastern Time to discuss the results of the quarter. A supplemental earnings deck will also be available for reference. Interested parties may listen to the call and view the supplemental earnings deck on the company's investor relations website. The call is also available by dialing 800-836-8184. A replay of the call will be available on the company's website or toll-free at 888-660-6345, conference ID 26206#, two hours after the completion of the call.
About 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. Learn more at genpt.com.
Forward-Looking Statements
Forward-looking statements notice
Some statements in this release, as well as in other materials the company files with the Securities and Exchange Commission ("SEC"), release to the public, or make available on the company's website, constitute forward-looking statements that are subject to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements in the future tense and all statements accompanied by words such as “expect,” “likely,” “outlook,” “forecast,” “preliminary,” “would,” “could,” “should,” “position,” “will,” “project,” “intend,” “plan,” “on track,” “anticipate,” “to come,” “may,” “possible,” “assume,” or similar expressions are intended to identify such forward-looking statements. These forward-looking statements include the company's view of business and economic trends for the remainder of the year and the company's expectations regarding its ability to capitalize on these business and economic trends; the company's full-year 2026 outlook and the company's ability to successfully execute on its strategic priorities, including the company’s anticipated separation of Global Automotive and Global Industrial into two independent, publicly traded companies. Senior officers may also make verbal statements to analysts, investors, the media and others that are forward-looking.
Forward-looking statements notice
The company cautions you that all forward-looking statements involve risks and uncertainties, and while the company believes its expectations for the future are reasonable in view of currently available information, you are cautioned not to place undue reliance on the company's forward-looking statements. Actual results or events may differ materially from those indicated as a result of various important factors. Such factors may include, among other things, changes in general economic conditions, including persistent inflation (including the direct and indirect impact of tariffs and retaliatory tariffs) or deflation, geopolitical uncertainty and unrest (including from the conflict involving the United States and Iran) and declining consumer confidence; the company’s ability to successfully implement the separation of Global Automotive and Global Industrial and achieve the anticipated benefits of such transaction; volatility in oil prices; significant costs, such as elevated fuel and freight expenses; the company's ability to maintain compliance with its debt covenants; its ability to successfully integrate acquired businesses into its operations and to realize the anticipated synergies and benefits; its ability to successfully implement its business initiatives in its three business segments; slowing demand for its products; the ability to maintain favorable supplier arrangements and relationships; changes in national and international legislation or government regulations or policies, including changes to global trade regulations, environmental and social policy, infrastructure programs and privacy legislation and related uncertainties, and their impact on the company, its suppliers and customers; changes in tax policies; volatile exchange rates; the company's ability to successfully attract and retain employees in the current labor market; uncertain credit markets and other macroeconomic conditions; competitive product, service and pricing pressures; failure or weakness in the company's disclosure controls and procedures and internal controls over financial reporting; the uncertainties and costs of litigation; public health emergencies, including the effects on the financial health of the company's business partners and customers, on supply chains and its suppliers, on vehicle miles driven as well as other metrics that affect the company's business, and on access to capital and liquidity provided by the financial and capital markets; disruptions caused by a failure or breach of the company's information systems; the success of its global restructuring efforts and the annualized cost savings arising therefrom, as well as other risks and uncertainties discussed in the company's Annual Report on Form 10-K and from time to time in its subsequent filings with the SEC.
Forward-looking statements speak only as of the date they are made, and the company undertakes no duty to update any forward-looking statements except as required by law. You are advised, however, to review any further disclosures the company makes on related subjects in subsequent Forms 10-K, 10-Q, 8-K and other reports filed with the SEC.
CONDENSED CONSOLIDATED STATEMENTS OF INCOME
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| (in thousands, except per share data) | | 2026 | | 2025 | | 2026 | | 2025 |
| Net sales | $6,521,308 | | $6,260,232 | | $19,323,199 | | $18,290,726 | |
| Cost of goods sold | 4,037,033 | | 3,918,830 | | 12,029,253 | | 11,451,252 | |
| Gross profit | 2,484,275 | | 2,341,402 | | 7,293,946 | | 6,839,474 | |
| Operating expenses: | | | | |
| Selling, administrative and other expenses | 1,944,518 | | 1,805,928 | | 5,718,856 | | 5,286,802 | |
| Depreciation and amortization | 137,490 | | 127,475 | | 403,234 | | 365,928 | |
| Provision for doubtful accounts | 9,238 | | 6,871 | | 27,339 | | 20,351 | |
| Restructuring and other costs | 64,545 | | 66,835 | | 193,426 | | 167,317 | |
| Total operating expenses | 2,155,791 | | 2,007,109 | | 6,342,855 | | 5,840,398 | |
| Non-operating expense (income): | | | | |
| Interest expense, net | 45,970 | | 40,342 | | 135,723 | | 117,769 | |
| Other | 3,866 | | 2,258 | | (2,503) | | (580) | |
| Total non-operating expense | 49,836 | | 42,600 | | 133,220 | | 117,189 | |
| Income before income taxes | 278,648 | | 291,693 | | 817,871 | | 881,887 | |
| Income taxes | 54,201 | | 65,522 | | 177,331 | | 206,444 | |
| Net income | $224,447 | | $226,171 | | $640,540 | | $675,443 | |
| Dividends declared per common share | $1.0625 | | $1.03 | | $3.1875 | | $3.09 | |
| Basic earnings per share | $1.63 | | $1.63 | | $4.65 | | $4.86 | |
| Diluted earnings per share | $1.62 | | $1.62 | | $4.64 | | $4.85 | |
| Weighted average common shares outstanding | | 137,862 | | 139,099 | | 137,753 | | 138,959 |
| Dilutive effect of stock options and non-vested restricted stock awards | | 469 | | 307 | | 351 | | 298 |
| Weighted average common shares outstanding - assuming dilution | | 138,331 | | 139,406 | | 138,104 | | 139,257 |
SEGMENT INFORMATION
The following table presents net sales by segment and a reconciliation from segment EBITDA to net income:
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 |
| Net sales: | | | | |
| North America Automotive | $2,540,319 | | $2,484,591 | | $7,440,587 | | $7,193,749 | |
| International Automotive | 1,572,392 | | 1,505,197 | | 4,746,020 | | 4,373,208 | |
| Industrial | 2,408,597 | | 2,270,444 | | 7,136,592 | | 6,723,769 | |
| Segment EBITDA: | | | | |
| North America Automotive | 193,860 | | 199,626 | | 558,393 | | 543,121 | |
| International Automotive | 141,394 | | 135,078 | | 436,230 | | 415,082 | |
| Industrial | 316,927 | | 285,015 | | 947,494 | | 851,865 | |
| Corporate EBITDA (1) | (103,521) | | (93,374) | | (330,859) | | (263,131) | |
| Interest expense, net | (45,970) | | (40,342) | | (135,723) | | (117,769) | |
| Depreciation and amortization | (137,490) | | (127,475) | | (403,234) | | (365,928) | |
| Other unallocated costs | (86,552) | | (66,835) | | (254,430) | | (181,352) | |
| Income before income taxes | | 278,648 | | 291,693 | | 817,871 | | 881,887 |
| Income taxes | (54,201) | | (65,522) | | (177,331) | | (206,444) | |
| Net income | $224,447 | | $226,171 | | $640,540 | | $675,443 | |
(1)Corporate EBITDA consists of costs related to the company's Corporate headquarters' broad support to the company's business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology, cybersecurity, legal, corporate finance, internal audit, and risk management, as well as product liability costs and A/R Sales Agreement fees.
The following table presents a summary of the other unallocated costs:
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 |
| Other unallocated costs: | | | | |
| Restructuring and other costs (2) | $(64,545) | | $(66,835) | | $(193,426) | | $(167,317) | |
| Separation costs (3) | (21,204) | | - | | (54,912) | | - | |
| Acquisition and integration related costs and other (4) | (803) | | - | | (6,092) | | (14,035) | |
| Total other unallocated costs | $(86,552) | | $(66,835) | | $(254,430) | | $(181,352) | |
(2)Amount reflects costs related to our global restructuring initiative which includes employee severance and other termination benefits, and the rationalization and optimization of certain distribution centers, stores and other facilities.
(3)Amount primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of the company's Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027.
(4)Amount primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.
CONDENSED CONSOLIDATED BALANCE SHEETS
| (in thousands, except share and per share data) | September 30, 2026 | December 31, 2025 |
| Assets | | |
| Current assets: | | |
| Cash and cash equivalents | $763,151 | $477,179 |
| Trade accounts receivable, net | 2,619,491 | 2,370,939 |
| Merchandise inventories, net | 6,435,802 | 6,071,996 |
| Prepaid expenses and other current assets | 1,632,361 | 1,644,620 |
| Total current assets | 11,450,805 | 10,564,734 |
| Goodwill | 3,206,231 | 3,188,815 |
| Other intangible assets, net | 1,743,938 | 1,855,714 |
| Property, plant and equipment, net | 2,161,387 | 2,172,140 |
| Operating lease assets | 2,062,454 | 2,084,487 |
| Other assets | 872,340 | 929,650 |
| Total assets | $21,497,155 | $20,795,540 |
| Liabilities and equity | | |
| Current liabilities: | | |
| Trade accounts payable | $6,394,876 | $6,051,882 |
| Short-term borrowings | 388,088 | 943,540 |
| Current portion of long-term debt | 250,000 | 353,788 |
| Dividends payable | 148,074 | 143,291 |
| Other current liabilities | 2,180,515 | 2,295,204 |
| Total current liabilities | 9,361,553 | 9,787,705 |
| Long-term debt | 4,472,149 | 3,498,423 |
| Operating lease liabilities | 1,713,902 | 1,739,478 |
| Pension and other post - retirement benefit liabilities | 218,787 | 219,270 |
| Deferred tax liabilities | 368,353 | 385,948 |
| Other long-term liabilities | 703,492 | 724,353 |
| Equity: | | |
| Preferred stock, par value - $1 per share; authorized - 10,000,000 shares; none issued | - | - |
| Common stock, par value - $1 per share; authorized - 450,000,000 shares; issued and outstanding - 2026 - 137,864,682 shares; 2025 - 137,617,832 shares | 137,865 | 137,618 |
| Additional paid-in capital | 259,505 | 228,370 |
| Accumulated other comprehensive loss | (518,474) | (511,766) |
| Retained earnings | 4,770,080 | 4,568,769 |
| Total parent equity | 4,648,976 | 4,422,991 |
| Noncontrolling interests in subsidiaries | 9,943 | 17,372 |
| Total equity | 4,658,919 | 4,440,363 |
| Total liabilities and equity | $21,497,155 | $20,795,540 |
CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS
| Nine Months Ended September 30, |
|---|
| (in thousands) | | 2026 | | 2025 |
| Operating activities: | | |
| Net income | $640,540 | | $675,443 | |
| Adjustments to reconcile net income to net cash provided by (used in) operating activities: | | |
| Depreciation and amortization | 403,234 | | 365,928 | |
| Share-based compensation | 45,095 | | 37,183 | |
| Other operating activities, including changes in operating assets and liabilities | (272,222) | | (567,865) | |
| Net cash provided by operating activities | 816,647 | | 510,689 | |
| Investing activities: | | |
| Purchases of property, plant and equipment | (314,476) | | (350,443) | |
| Proceeds from sale of property, plant and equipment | 28,070 | | 21,085 | |
| Acquisitions of businesses | (69,450) | | (181,987) | |
| Proceeds from divestitures of businesses | 6,885 | | 59 | |
| Other investing activities | (12,105) | | 23,335 | |
| Net cash used in investing activities | (361,076) | | (487,951) | |
| Financing activities: | | |
| Proceeds from debt | 1,291,217 | | 44,600 | |
| Payments on debt | (997,776) | | (567,368) | |
| Net proceeds of commercial paper | 44,968 | | 886,175 | |
| Shares issued from employee incentive plans | (13,713) | | (16,316) | |
| Dividends paid | (434,446) | | (420,571) | |
| Other financing activities | (29,283) | | (20,237) | |
| Net cash used in financing activities | (139,033) | | (93,717) | |
| Effect of exchange rate changes on cash and cash equivalents | (30,566) | | 22,347 | |
| Net increase (decrease) in cash and cash equivalents | 285,972 | | (48,632) | |
| Cash and cash equivalents at beginning of period | 477,179 | | 479,991 | |
| Cash and cash equivalents at end of period | $763,151 | | $431,359 | |
RECONCILIATION OF GAAP NET INCOME TO ADJUSTED NET INCOME AND GAAP DILUTED NET INCOME PER COMMON SHARE TO ADJUSTED DILUTED NET INCOME PER COMMON SHARE
The table below represents a reconciliation from GAAP net income to adjusted net income:
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 |
| GAAP net income | $224,447 | | $226,171 | | $640,540 | | $675,443 | |
| Adjustments: | | | | |
| Restructuring and other costs (1) | 64,545 | | 66,835 | | 193,426 | | 167,317 | |
| Separation costs (2) | 21,204 | | - | | 54,912 | | - | |
| Acquisition and integration related costs and other (3) | 803 | | - | | 6,092 | | 14,035 | |
| Total adjustments | 86,552 | | 66,835 | | 254,430 | | 181,352 | |
| Tax impact of adjustments (4) | (25,053) | | (17,411) | | (68,239) | | (46,340) | |
| Adjusted net income | $285,946 | | $275,595 | | $826,731 | | $810,455 | |
The table below represents amounts per common share assuming dilution:
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| (in thousands, except per share data) | | 2026 | | 2025 | | 2026 | | 2025 |
| GAAP diluted net income per common share | $1.62 | | $1.62 | | $4.64 | | $4.85 | |
| Adjustments: | | | | |
| Restructuring and other costs (1) | 0.47 | | 0.48 | | 1.40 | | 1.20 | |
| Separation costs (2) | 0.15 | | - | | 0.40 | | - | |
| Acquisition and integration related costs and other (3) | 0.01 | | - | | 0.04 | | 0.10 | |
| Total adjustments | 0.63 | | 0.48 | | 1.84 | | 1.30 | |
| Tax impact of adjustments (4) | (0.18) | | (0.12) | | (0.49) | | (0.33) | |
| Adjusted diluted net income per common share | $2.07 | | $1.98 | | $5.99 | | $5.82 | |
| Weighted average common shares outstanding - assuming dilution | 138,331 | | 139,406 | | 138,104 | | 139,257 | |
(1)Amount reflects costs related to our global restructuring initiative which includes employee severance and other termination benefits, and the rationalization and optimization of certain distribution centers, stores and other facilities.
(2)Amount primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of our Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027.
(3)Amount primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.
(4)We determine the tax effect of non-GAAP adjustments by considering the tax laws and statutory income tax rates applicable in the tax jurisdictions of the underlying non-GAAP adjustments, including any related valuation allowances. For the three and nine months ended September 30, 2026, we applied the statutory income tax rates to the taxable portion of all of our adjustments, which resulted in a tax impact of $25 million and $68 million, respectively.
The table below clarifies where the items that have been adjusted above to improve comparability of the financial information from period to period are presented in the condensed consolidated statements of income.
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 |
| Line item: | | | | |
| Cost of goods sold | $803 | | $ - | | $6,092 | | $ - | |
| Selling, administrative and other expenses | 21,204 | | - | | 54,912 | | 14,035 | |
| Restructuring and other costs | 64,545 | | 66,835 | | 193,426 | | 167,317 | |
| Total adjustments | $86,552 | | $66,835 | | $254,430 | | $181,352 | |
RECONCILIATION OF GAAP SELLING, ADMINISTRATIVE AND OTHER EXPENSES TO ADJUSTED SELLING, ADMINISTRATIVE AND OTHER EXPENSES
The table below represents a reconciliation from GAAP selling, administrative and other expenses to adjusted selling, administrative and other expenses:
| Three Months Ended September 30, | Nine Months Ended September 30, |
|---|
| (in thousands) | | 2026 | | 2025 | | 2026 | | 2025 |
| GAAP selling, administrative and other expenses | | $1,944,518 | | $1,805,928 | | $5,718,856 | | $5,286,802 |
| Adjustments: | | | | |
| Separation costs | | (21,204) | | - | | (54,912) | | - |
| Acquisition and integration related costs and other | | - | | - | | - | | (14,035) |
| Total adjustments (1) | | (21,204) | | - | | (54,912) | | (14,035) |
| Adjusted selling, administrative and other expenses | | $1,923,314 | | $1,805,928 | | $5,663,944 | | $5,272,767 |
| Net sales | | $6,521,308 | | $6,260,232 | | $19,323,199 | | $18,290,726 |
| GAAP SG&A expenses as a percentage of net sales | 29.8% | | 28.8% | | 29.6% | | 28.9% | |
| Adjusted SG&A expenses as a percentage of net sales | 29.5% | | 28.8% | | 29.3% | | 28.8% | |
(1) Refer to the explanation of adjustments included within the reconciliation of GAAP net income to adjusted net income table for further information.
CHANGE IN NET SALES SUMMARY
| Three Months Ended September 30, 2026 |
|---|
| Comparable Sales | Acquisitions | Foreign Currency | Other | GAAP Total Net Sales |
|---|
| North America Automotive | 1.7% | 1.1% | (0.3)% | (0.3)% | 2.2% |
| International Automotive | 1.1% | 1.7% | 1.7% | - % | 4.5% |
| Industrial | 5.5% | 0.1% | 0.5% | - % | 6.1% |
| Total Net Sales | 2.9% | 0.9% | 0.5% | (0.1)% | 4.2% |
| Nine Months Ended September 30, 2026 |
|---|
| Comparable Sales | Acquisitions | Foreign Currency | Other | GAAP Total Net Sales |
|---|
| North America Automotive | 2.2% | 1.3% | 0.1% | (0.2)% | 3.4% |
| International Automotive | 0.9% | 2.1% | 5.5% | - % | 8.5% |
| Industrial | 5.1% | 0.2% | 0.8% | - % | 6.1% |
| Total Net Sales | 2.9% | 1.1% | 1.7% | (0.1)% | 5.6% |
RECONCILIATION OF GAAP NET CASH PROVIDED BY OPERATING ACTIVITIES TO FREE CASH FLOW
| Nine Months Ended September 30, |
|---|
| (in thousands) | | 2026 | | 2025 |
| Net cash provided by operating activities | $816,647 | | $510,689 | |
| Purchases of property, plant and equipment | (314,476) | | (350,443) | |
| Free cash flow | $502,171 | | $160,246 | |
| For the Year Ending December 31, 2026 |
|---|
| Net cash provided by operating activities | $1.0 billion to $1.2 billion |
| Purchases of property, plant and equipment | $450 million to $500 million |
| Free cash flow | $550 million to $700 million |
Contacts
Timothy Walsh - (678) 934-5349 · Vice President - Investor Relations
Heather Ross - (678) 934-5220 · Vice President - Global Strategic Communications