Genuine Parts Cuts 2026 Profit Outlook Despite Higher Quarterly Sales

Genuine Parts Company cut its 2026 profit outlook on Oct. 20 despite higher third-quarter sales and adjusted earnings, as the parts distributor moves toward a planned business separation.

The revised range for adjusted diluted earnings per share is $7.50 to $7.75, compared with $7.50 to $8.00 previously. Genuine Parts also lowered its forecast for diluted earnings per share under standard accounting rules, or GAAP, to $5.60 to $5.85 from $5.90 to $6.40.

Sales rose 4.2% from a year earlier to $6.52 billion in the quarter ended Sept. 30. Adjusted diluted earnings increased to $2.07 per share from $1.98. Net income slipped to $224 million from $226 million.

The company maintained its 2026 sales growth forecast of 3% to 5.5%. In North American automotive, segment EBITDA margin declined to 7.6% from 8.0%. Its industrial business recorded higher sales, while its segment EBITDA margin rose by 60 basis points to 13.2%.

Genuine Parts targets completion of the separation of its automotive and industrial businesses in the first quarter of 2027.