Genuine Parts Company 2025 Annual Report: Key Highlights and Investor Impacts

Proposed Separation of Automotive and Industrial Businesses

Genuine Parts Company (GPC) has announced a major strategic decision that may significantly impact shareholders and the future direction of the business. On February 17, 2026, GPC disclosed its intention to separate into two independent, publicly traded companies:

• Global Automotive: Consisting of the North America Automotive Parts Group and International Automotive Parts Group.
• Global Industrial: Comprising the Industrial Parts Group.

This proposed separation follows a comprehensive strategic and operational review by the Board of Directors and management. The separation aims to unlock value for shareholders by allowing each entity to focus on its core strengths and strategic priorities.

Important for shareholders: There is no guarantee that the separation will be completed as planned, or that it will achieve the intended financial, strategic, and operational benefits. Shareholders should closely monitor further announcements as this development is highly price-sensitive and could materially affect the share value.

Revised Segment Reporting Structure

Effective December 31, 2025, GPC has reorganized its reporting structure to present three reportable segments:

• North America Automotive Parts Group
• International Automotive Parts Group
• Industrial Parts Group

This change reflects the company’s evolving business model and aligns with the proposed separation. Investors should note that historical segment data may not be directly comparable going forward, and should review the updated segment data in the financial statements.

Financial Highlights and Shareholder Information

• Market Capitalization: As of June 30, 2025, the market value of common stock held by non-affiliates was approximately \$16.9 billion, based on the NYSE closing price.
• Shares Outstanding: 137,622,108 shares of common stock were outstanding as of February 17, 2026.
• Reporting Status: GPC is a well-known seasoned issuer and a large accelerated filer, with full compliance on all SEC reporting and interactive data file requirements.
• ICFR Attestation: The company’s internal control over financial reporting is attested by its independent registered public accounting firm, indicating robust governance.

Competitive Position and Strategic Initiatives

GPC emphasizes its strong brands, global footprint, robust supply chain, distribution capabilities, and advanced technology solutions as key competitive advantages. The company’s financial strategy is focused on:

• Growing revenue above market rates
• Improving operating margins
• Maintaining a healthy balance sheet
• Generating strong cash flow
• Effective capital allocation

The company operates in highly competitive and fragmented industries and anticipates continued consolidation in the automotive aftermarket sector. GPC warns that further consolidation among competitors could pose challenges, such as intensified pricing pressure and the need for advanced technology investment.

Commitment to Sustainability and Human Capital Management

GPC is committed to sustainable business practices and reducing its environmental footprint. The company integrates environmental, social, and governance (ESG) initiatives into its strategy, overseen by the Board’s Nominating and ESG Committee. Highlights include:

• Focus on workplace inclusivity, safety, and community engagement
• Ongoing environmental stewardship initiatives and efficiency improvements
• Comprehensive disclosure available in the 2025 Sustainability Report and Human Rights Policy

Risks and Forward-Looking Statements

GPC’s annual report includes detailed risk factors, including:

• Execution Risk: The separation of automotive and industrial businesses may not be completed on time or deliver expected benefits.
• Market Risks: Demand for products is sensitive to economic cycles, international trade policy, foreign currency fluctuations, and competitive dynamics.
• Operational Risks: Information system failures, security breaches, and supply chain disruptions could materially impact operations.
• Industry Consolidation: Ongoing consolidation in the automotive aftermarket could intensify competition.

Investors are cautioned that forward-looking statements are subject to risks and uncertainties, and actual results may differ materially from projections.

Access to Further Information

GPC provides comprehensive disclosures and regular updates via its Investor Relations website, including SEC filings, press releases, and sustainability reports. The 2026 proxy statement will be available at proxydocs.com/gpc.

Conclusion

Key takeaway for investors: The proposed separation of GPC into two independent, publicly traded companies represents a major potential value-unlocking event, but also introduces execution risk and uncertainty. Investors should closely monitor further developments, as these actions could significantly affect GPC’s business profile, financial structure, and share value.

Disclaimer: This article is for informational purposes only and does not constitute investment advice. Investors should review the full Genuine Parts Company annual report and consult with their financial advisor before making any investment decisions. The information is based on the company’s 2025 Form 10-K and subsequent public disclosures, and may be subject to change.

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