Genuine Parts Co. Plans to Split Operations into Two Companies
Written by Emily J. Thompson, Senior Investment Analyst
Updated: 2 hours ago
0mins
Should l Buy GPC?
Source: seekingalpha
- Business Split Plan: Genuine Parts Co. is preparing to separate its automotive parts business from its industrial parts unit into two publicly traded companies, aiming to enhance operational focus and flexibility for growth and investment.
- Strategic Review Context: The company is conducting a strategic review with financial advisers and is expected to announce this move alongside its upcoming earnings report, reflecting its responsiveness to market dynamics.
- Strong Financial Performance: With a valuation exceeding $20.5 billion, Genuine Parts generated approximately $15 billion in automotive parts sales and $9 billion from industrial parts in 2025, showcasing robust performance in both sectors.
- Investor Pressure Influence: The split plan is influenced by activist investor Elliott Investment Management, which reached a cooperation agreement with the company, highlighting investor enthusiasm for corporate spinoffs designed to unlock value.
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Analyst Views on GPC
Wall Street analysts forecast GPC stock price to rise
4 Analyst Rating
3 Buy
1 Hold
0 Sell
Strong Buy
Current: 147.160
Low
146.00
Averages
148.67
High
150.00
Current: 147.160
Low
146.00
Averages
148.67
High
150.00
About GPC
Genuine Parts Company is a global service provider of automotive and industrial replacement parts and value-added solutions. The Company’s segments include Automotive Parts Group (Automotive) and Industrial Parts Group (Industrial). The Automotive segment distributes replacement parts (other than collision parts) for all makes and models of automobiles, trucks, and other vehicles in North America, Europe and Australasia. Its main automotive customers are repair and maintenance shops, and its main industrial customers are businesses operating distribution, manufacturing and production equipment. The Industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, including hydraulic and pneumatic products, material handling components and related parts and supplies. Its industrial business offers replacement parts and solutions to maintenance, repair and operation (MRO) customers and original equipment manufacturer (OEM) customers.
About the author
Emily J. Thompson
Emily J. Thompson, a Chartered Financial Analyst (CFA) with 12 years in investment research, graduated with honors from the Wharton School. Specializing in industrial and technology stocks, she provides in-depth analysis for Intellectia’s earnings and market brief reports.
Genuine Parts Misses Q4 Estimates and Lowers Guidance
- Sales Growth Analysis: Genuine Parts reported Q4 sales of $6.0 billion, reflecting a 4.1% year-over-year increase, driven by a 1.7% rise in comparable sales, a 1.5% contribution from acquisitions, and a net 0.9% favorable impact from foreign currency and other factors, indicating strong performance in North America Automotive, International Automotive, and Industrial segments.
- Gross Margin Impact: Despite the sales increase, the company's gross profit was adversely affected by $160 million in non-recurring charges primarily related to expected credit losses and amounts due from a vendor that filed for Chapter 11 bankruptcy, although adjusted gross profit margin improved by 70 basis points to 37.6% compared to the previous year.
- Future Outlook: Genuine Parts anticipates total sales growth of 3% to 5.5% for 2026, with adjusted diluted earnings per share projected between $7.50 and $8.00, which is below the consensus estimate of $7.64, reflecting a cautious outlook on future growth.
- Company Split Plan: Genuine Parts confirmed plans to separate into two independent publicly traded companies by Q1 2027, comprising an Automotive Parts Group and an Industrial Parts Group, aiming to enhance market focus and investment efficiency, which is expected to provide tax benefits for shareholders.
See More
Genuine Parts Considers Business Split
- Business Split Consideration: Genuine Parts is reportedly contemplating a split of its automotive and industrial parts businesses into two separate public companies, with an announcement expected as soon as Tuesday, which could enhance overall market value and operational flexibility.
- Financial Advisor Review: According to a report by The Wall Street Journal, the decision follows a review by financial advisors, indicating the company's proactive approach to optimizing its business structure in response to market dynamics.
- Earnings Report Date: Genuine Parts is scheduled to release its fourth-quarter and fiscal year 2025 results on Tuesday, with investors closely monitoring performance metrics to assess the potential impact of the split plan.
- Positive Market Reaction: In pre-market trading on Tuesday, Genuine Parts shares rose more than 1%, reflecting a positive market response to the split news, although retail sentiment on Stocktwits remained in the 'neutral' range.
See More
Genuine Parts Announces Quarterly Dividend Increase
- Dividend Increase: Genuine Parts declares a quarterly dividend of $1.0625 per share, representing a 3.2% increase from the previous dividend of $1.0300, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns.
- Yield Overview: The forward yield of this dividend stands at 2.89%, providing investors with a relatively attractive return, although the company's recent performance has not met market expectations.
- Record Date for Shareholders: The dividend will be payable on April 2, with a record date of March 6 and an ex-dividend date also on March 6, ensuring eligible shareholders receive this payout in a timely manner.
- Market Reaction: Despite the dividend increase, Genuine Parts' stock price fell following the latest earnings report, reflecting market concerns about the company's future profitability, particularly in light of updates regarding its business separation.
See More
S&P 500 Futures Decline in Pre-Market Session; Masimo and Enlight Renewable Energy Take the Lead
- Masimo Corp. Performance: Masimo Corp. (MASI) saw a significant increase of 34.5% in pre-market trading.
- Enlight Renewable Energy Ltd. Performance: Enlight Renewable Energy Ltd. (ENLT) experienced an 8.0% rise in pre-market trading.
- Market Context: The U.S. stock markets are set to open in two hours, indicating potential volatility.
- Investor Sentiment: The pre-market gains for both companies suggest positive investor sentiment ahead of the market opening.
See More
Genuine Parts Co. Plans to Split Operations into Two Companies
- Business Split Plan: Genuine Parts Co. is preparing to separate its automotive parts business from its industrial parts unit into two publicly traded companies, aiming to enhance operational focus and flexibility for growth and investment.
- Strategic Review Context: The company is conducting a strategic review with financial advisers and is expected to announce this move alongside its upcoming earnings report, reflecting its responsiveness to market dynamics.
- Strong Financial Performance: With a valuation exceeding $20.5 billion, Genuine Parts generated approximately $15 billion in automotive parts sales and $9 billion from industrial parts in 2025, showcasing robust performance in both sectors.
- Investor Pressure Influence: The split plan is influenced by activist investor Elliott Investment Management, which reached a cooperation agreement with the company, highlighting investor enthusiasm for corporate spinoffs designed to unlock value.
See More
Genuine Parts Q4 Earnings Miss Expectations
- Disappointing Earnings: GPC reported a Q4 non-GAAP EPS of $1.55, missing expectations by $0.27, indicating pressure on profitability that may affect investor confidence.
- Lackluster Revenue Growth: Total revenue reached $6 billion, up 4.1% year-over-year, but fell short of market expectations by $60 million, reflecting challenges from increased competition and weak demand.
- North American Auto Sales Recovery: North American automotive sales amounted to $2.3 billion, a 2.4% increase, suggesting gradual market recovery, which could lay the groundwork for future growth.
- Cautious Future Outlook: The company forecasts total sales growth of 3% to 5.5% for 2026, with North American automotive sales growth projected at 3% to 5%, indicating uncertainty in future market conditions that may impact long-term investor confidence.
See More
Genuine Parts Misses Q4 Estimates and Lowers Guidance
- Sales Growth Analysis: Genuine Parts reported Q4 sales of $6.0 billion, reflecting a 4.1% year-over-year increase, driven by a 1.7% rise in comparable sales, a 1.5% contribution from acquisitions, and a net 0.9% favorable impact from foreign currency and other factors, indicating strong performance in North America Automotive, International Automotive, and Industrial segments.
- Gross Margin Impact: Despite the sales increase, the company's gross profit was adversely affected by $160 million in non-recurring charges primarily related to expected credit losses and amounts due from a vendor that filed for Chapter 11 bankruptcy, although adjusted gross profit margin improved by 70 basis points to 37.6% compared to the previous year.
- Future Outlook: Genuine Parts anticipates total sales growth of 3% to 5.5% for 2026, with adjusted diluted earnings per share projected between $7.50 and $8.00, which is below the consensus estimate of $7.64, reflecting a cautious outlook on future growth.
- Company Split Plan: Genuine Parts confirmed plans to separate into two independent publicly traded companies by Q1 2027, comprising an Automotive Parts Group and an Industrial Parts Group, aiming to enhance market focus and investment efficiency, which is expected to provide tax benefits for shareholders.
See More
Genuine Parts Considers Business Split
- Business Split Consideration: Genuine Parts is reportedly contemplating a split of its automotive and industrial parts businesses into two separate public companies, with an announcement expected as soon as Tuesday, which could enhance overall market value and operational flexibility.
- Financial Advisor Review: According to a report by The Wall Street Journal, the decision follows a review by financial advisors, indicating the company's proactive approach to optimizing its business structure in response to market dynamics.
- Earnings Report Date: Genuine Parts is scheduled to release its fourth-quarter and fiscal year 2025 results on Tuesday, with investors closely monitoring performance metrics to assess the potential impact of the split plan.
- Positive Market Reaction: In pre-market trading on Tuesday, Genuine Parts shares rose more than 1%, reflecting a positive market response to the split news, although retail sentiment on Stocktwits remained in the 'neutral' range.
See More
Genuine Parts Announces Quarterly Dividend Increase
- Dividend Increase: Genuine Parts declares a quarterly dividend of $1.0625 per share, representing a 3.2% increase from the previous dividend of $1.0300, demonstrating the company's ongoing commitment to stable cash flow and shareholder returns.
- Yield Overview: The forward yield of this dividend stands at 2.89%, providing investors with a relatively attractive return, although the company's recent performance has not met market expectations.
- Record Date for Shareholders: The dividend will be payable on April 2, with a record date of March 6 and an ex-dividend date also on March 6, ensuring eligible shareholders receive this payout in a timely manner.
- Market Reaction: Despite the dividend increase, Genuine Parts' stock price fell following the latest earnings report, reflecting market concerns about the company's future profitability, particularly in light of updates regarding its business separation.
See More
S&P 500 Futures Decline in Pre-Market Session; Masimo and Enlight Renewable Energy Take the Lead
- Masimo Corp. Performance: Masimo Corp. (MASI) saw a significant increase of 34.5% in pre-market trading.
- Enlight Renewable Energy Ltd. Performance: Enlight Renewable Energy Ltd. (ENLT) experienced an 8.0% rise in pre-market trading.
- Market Context: The U.S. stock markets are set to open in two hours, indicating potential volatility.
- Investor Sentiment: The pre-market gains for both companies suggest positive investor sentiment ahead of the market opening.
See More
Genuine Parts Co. Plans to Split Operations into Two Companies
- Business Split Plan: Genuine Parts Co. is preparing to separate its automotive parts business from its industrial parts unit into two publicly traded companies, aiming to enhance operational focus and flexibility for growth and investment.
- Strategic Review Context: The company is conducting a strategic review with financial advisers and is expected to announce this move alongside its upcoming earnings report, reflecting its responsiveness to market dynamics.
- Strong Financial Performance: With a valuation exceeding $20.5 billion, Genuine Parts generated approximately $15 billion in automotive parts sales and $9 billion from industrial parts in 2025, showcasing robust performance in both sectors.
- Investor Pressure Influence: The split plan is influenced by activist investor Elliott Investment Management, which reached a cooperation agreement with the company, highlighting investor enthusiasm for corporate spinoffs designed to unlock value.
See More
Genuine Parts Q4 Earnings Miss Expectations
- Disappointing Earnings: GPC reported a Q4 non-GAAP EPS of $1.55, missing expectations by $0.27, indicating pressure on profitability that may affect investor confidence.
- Lackluster Revenue Growth: Total revenue reached $6 billion, up 4.1% year-over-year, but fell short of market expectations by $60 million, reflecting challenges from increased competition and weak demand.
- North American Auto Sales Recovery: North American automotive sales amounted to $2.3 billion, a 2.4% increase, suggesting gradual market recovery, which could lay the groundwork for future growth.
- Cautious Future Outlook: The company forecasts total sales growth of 3% to 5.5% for 2026, with North American automotive sales growth projected at 3% to 5%, indicating uncertainty in future market conditions that may impact long-term investor confidence.
See More
