Genuine Parts Company (NYSE:GPC) on Tuesday posted fourth-quarter results that fell short of Wall Street forecasts and issued weaker-than-expected guidance for 2026, sending shares sharply lower in early trading.
The automotive and industrial components distributor saw its stock slide 7.18% in pre-market dealings following the announcement.
Adjusted earnings per share for the quarter came in at $1.55, well below the analyst consensus of $1.81.
Revenue totaled $6.0 billion, slightly under the $6.06 billion expected by analysts, though still up 4.1% from the same quarter a year ago.
Sales growth reflected a 1.7% rise in comparable sales, a 1.5% contribution from acquisitions, and a 0.9% positive impact from foreign exchange and other items.
“We continued to advance our GPC strategies in 2025 while navigating a dynamic environment, thanks to the commitment of our teammates,” said Will Stengel, Chair-Elect and Chief Executive Officer. “We stayed focused on what we can control, executing defined initiatives to deliver growth and improve productivity.”
Quarterly performance was weighed down by $160 million in one-time charges, largely tied to anticipated credit losses from a supplier that sought Chapter 11 bankruptcy protection. For the full year 2025, the company reported adjusted earnings of $7.37 per share.
For 2026, Genuine Parts projected adjusted EPS in the range of $7.50 to $8.00, below the $8.42 consensus estimate. The company expects overall sales to grow between 3% and 5.5% during the year.
Separately, Genuine Parts announced plans to split its automotive and industrial segments into two standalone publicly traded entities, a strategic move it believes will “unlock value for stakeholders.”
The board also approved a 3.2% increase in the regular quarterly dividend, extending the company’s streak of annual dividend increases to 70 consecutive years.