Genuine Parts Company reports its 2025 third quarter financial results on Oct. 21, which showed broad improvements at its industrial parts subsidiary, Motion, leading to an improved full-year outlook.

Industrial Parts

GPC reported that 3Q sales at its industrial parts unit — which does business as Birmingham, AL-based Motion — totaled $2.27 billion, up 4.6% year-over-year. The growth was attributed to a 3.7% increase in organic sales and a 1.1% benefit from acquisitions. Segment EBITDA of $285 million improved 6.6% year-over-year and margin of 12.6% increased 30 basis points. 

Geographically, North America sales were up 5.2% year-over-year overall, while Australasia fell 1.2%.

In the Store: MDM’s U.S. MRO Market Trends Report 

“Despite the market conditions, we’re bullish on the outlook for Motion as their size and scale, competitive positioning and customer value proposition are differentiators,” GPC Chief Executive Will Stengel said in the company’s 3Q earnings call. “We see emerging industrial opportunities develop like onshoring as trade policies shift, and our Motion team is taking advantage of those opportunities as they present themselves.”

GPC’s Industrial notes:

• 3Q was the first quarter of organic sales growth in the past year
• Continued strength with core MRO customers (~80% of Motion business) with mid-single digit growth year-over-year
• Growth in seven of 14 end markets, up from five during 2Q, with strength in iron & steel, food products and fabricated metals, as well as traction in data centers. Softer demand in pulp & paper, lumber & wood and oil & gas.
• Capital-intensive projects (~20% of Motion business) up slightly
• Large dollar order backlog continues to increase, up ~20% year-to-date
• Corporate account customer renewal rate is 98%; 30+ new contract relationships won year-to-date

“The Motion team continues to operate with discipline as they both manage a sluggish demand environment and offset pressure from inflation and costs,” Stengel continued. “Motion’s organization and cost structure is set up for the eventual rebound in industrial demand, and we would expect to see good operating leverage once the market inflects.”

Motion decorated MDM’s 2025 Top Distributors Lists, ranking No. 2 for Industrial Supplies, No. 23 for Electrical, No. 2 for MRO, No. 1 Power Transmission/Bearings, No. 3 for Fluid Power, No. 2 for Hose and No. 8 for Safety.

Automotive

GPC reported that 3Q sales at its automotive parts unit — which does business as NAPA Auto Parts — totaled $3.99 billion, up 5.0% year-over-year. The growth was attributed to a 1.6% increase in organic sales; a 2.3% benefit in acquisitions; and a 1.1% favorable impact from foreign currency and other. Segment EBITDA of $335 million increased 5.9% year-over-year and margin of 8.4% ticked up 10 bps.

Geographically, U.S. sales improved 4.3% year-over-year (organic +2.2%); Canada sales increased 3.0% (+2.4% organic); Europe sales dipped 0.1% (organic -1.6%); and Australasia sales jumped 10.4% (+5.1% organic).

GPC’s Automotive notes:

• U.S. organic sales improved sequentially in both company-owned and independent stores
• Set to acquire Canada-based Benson Group — which operates 85 locations throughout Ontario and Quebec
• Europe continues to see key account customer growth despite soft market

Overall

For all of GPC, the company reported 3Q sales of $6.26 billion, up 4.9% year-over-year. Growth was attributed to a 2.3% increase in organic sales; 1.8% benefit from acquisitions; and a 0.8% favorable impact from foreign currency. Gross margin of 37.4% improved 60 bps year-over-year; adjusted EBITDA of $526 million increased 10.4% and adjusted EBITDA margin of 8.4% increased 40 bps. 3Q net profit of $226 million was virtually unchanged.

Outlook

Looking ahead, GPC upgraded its full-year revenue outlook for both Industrial and Automotive despite noting continued market sluggishness, including a considerable improvement on the low-end for Automotive.