Long operating as subsidiaries of Genuine Parts Company, NAPA Auto Parts and Motion are set to become standalone public companies next year.

GPC announced Feb. 17 that it plans to separate its automotive and industrial parts units into two independent, publicly-traded companies. Automotive has operated as NAPA essentially since GPC’s inception in 1928, while industrial parts has operated as Motion since it was acquired in 1976.

News of the split — expected to complete in the first quarter of 2027 — follows a company-wide operational review that GPC started around September of last year when Elliott Investment Management became one of the company’s largest shareholders upon a more than $1 billion investment alongside GPC appointing two new board members at that time. The Vanguard Group remains the largest investor with a stake reportedly around 12%.

On Jan. 20, GPC announced a Non-Executive Chairman succession that will take effect at the company’s annual meeting of shareholders (was held on April 28 in 2025).

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The separation announcement came alongside GPC’s 2025 fourth quarter and full year financial results, headlined by annual sales of $24.3 billion that increased 3.5% while net profit shrunk to $66 million from the $904 million of a year earlier — largely driven by a considerable pension settlement. The company’s 4Q25 sales and profit trailed analysts’ consensus expectations.

For context, GPC’s revenue a decade ago was $15 billion.

No executive changes were noted in conjunction with the planned split.

Today, GPC has nearly 11,000 locations across 17 countries, backed by over 65,000 employees. Automotive comprises 63% of total revenue (about 62% of which is in North America), and industrial is 37%. The company’s 2025 adjusted gross margin of 37.5% improved 90 basis points and adjusted EBITDA of $2.0 billion improved 0.5% as margin slipped 20 bps.

GPC’s 2025 net profit of $66 million was a fraction of the $904 million of a year earlier, largely due to unallocated costs that quadrupled.

J.P. Morgan and Guggenheim Securities are serving as GPC’s financial advisors for the separation, and the firm of King & Spalding LLP is legal counsel.

Separation Rationale

GPC said the planned separation of its global automotive and industrial parts units is expected to create two scaled market leaders better positioned to execute their respective strategies, each having dedicated operating platforms, management teams and enhanced financial flexibility.

“Creating two focused, independent companies sharpens customer and market alignment, increases clarity and speed, simplifies operations and enables disciplined, business-specific investments to unlock long-term value,” Chairman-Elect and CEO Will Stengel said in a news release.

Automotive

GPC touts its automotive unit as as the largest network of automotive parts and auto repair centers across North America, Europe and Australasia. Operating primarily as NAPA, GPC said automotive will be a more focused platform that’s able to better capitalize on local customer needs and market trends, with market share opportunities with the commercial “do-it-for-me” customer.

Global automotive had more than $15 billion in 2025 sales and $1.2 billion in EBITDA. It has more than 10,000 global locations.

• North America Automotive 2025 sales of $9.52 billion increased 3.3% annually (comp sales +0.6%), while EBITDA of $672 million fell 6.1% and EBITDA margin of 7.1% fell 70 bps. 4Q25 sales of $2.3 billion increased 2.4% year-over-year (comp sales +1.7%) and EBITDA of $129 million fell 14.0% as margin of 5.5% fell 110 bps. 
• International Automotive 2025 sales of $5.86 billion increased 5.4% annually (comp +0.2%), while EBITDA of $544 million fell 4.2% as margin of 9.3% slide 90 bps. 4Q25 sales of $1.5 billion increased 6.4% year-over-year (comp -0.9%) and EBITDA of $129 million fell 4.3% as margin of 8.7% fell 100 bps.

Industrial

GPC’s global industrial unit’s 2025 sales of $8.92 billion increased 2.3% annually (comp +1.5%), while EBITDA of $1.1 billion increased 4.0% as margin of 12.9% improved 30 bps. 4Q25 sales of $2.2 billion increased 4.6% year-over-year (comp +3.4%) and EBItDA of $295 million increased 8.7% as margin of 13.4% improved 50 bps.

• Industrial saw 2025 growth in 7 of its 14 end markets — up from just four in 2024
• MRO sales grew 3% annually
• eCommerce represented approximately 45% of sales — up more than 800 bps annually

2026 Outlook

In issuing its first financial guidance for 2026, GPC expects annual sales growth of 3-5.5%, with comp sales growth of 2-4.5%; adjusted gross margin growth of 40-60 bps; adjusted EBITDA of $2.0 billion to $2.2 billion; and adjusted EBITDA growth of 2-9%.

• North American Automotive: 3-5% sales growth (comp +1.5-3.5%), EBITDA of $700-730M and EBITDA growth of 5-9%
• International Automotive: 3-6% sales growth (comp +1.5-3.5%), EBITDA of $560-600M and EBITDA growth of 4-10%
• Industrial: 3-6% sales growth (comp +3-6%), EBITDA of $1.22-1.28B and EBITDA growth of 7-12%

GPC expects $450 million to $500 million of capital expenditures during 2025 after $470 million in 2025. It also expects $300-350 million in M&A capital deployment after $318 million in 2025.