Q1 2025 Genuine Parts Co Earnings Call Transcript
Key Points
- Genuine Parts Co (GPC) reported total sales of $5.9 billion for the first quarter, up 1.4% compared to the same period last year, driven by acquisitions and improvements in the industrial business.
- The company achieved a gross margin expansion of 120 basis points year-over-year, benefiting from acquisitions and strategic pricing and sourcing initiatives.
- GPC's modernized e-commerce platform, NAPA PROLink, developed with Google, has received positive feedback and is contributing to mid-single-digit growth in NAPA B2B e-sales.
- The Global Industrial segment saw sequential improvement from the fourth quarter, with positive average daily sales in all three months of the first quarter.
- GPC reaffirmed its 2025 outlook, expecting adjusted diluted earnings per share to be in the range of $7.75 to $8.25, indicating confidence in its strategic initiatives and market positioning.
- The company faced a negative impact on sales growth due to one less selling day in the quarter, which affected sales by 110 basis points.
- Global Automotive segment EBITDA decreased by 110 basis points year-over-year, reflecting ongoing pressure from softer organic sales in the US and Europe.
- Adjusted earnings per share for the first quarter were down 21% from the prior year, impacted by lower pension income, higher depreciation and interest expense, and foreign currency headwinds.
- GPC's SG&A expenses as a percentage of sales increased by 170 basis points year-over-year, driven by higher salaries, merit adjustments, and rent expenses.
- The company is navigating a complex external environment with uncertainties around tariffs, trade policies, and inflation, which could impact future performance.
Good day, ladies and gentlemen. Welcome to the Genuine Parts Company first-quarter 2025 earnings conference call. (Operator Instructions)
This call is being recorded on Tuesday, April 22, 2025. At this time, I would like to turn the conference over to Tim Walsh, Senior Director, Investor Relations. Please go ahead, sir.
Thank you, and good morning, everyone. Welcome to Genuine Parts Company's first-quarter 2025 earnings call. Joining us on the call today are Will Stengel, President and Chief Executive Officer; and Bert Nappier, Executive Vice President and Chief Financial Officer.
In addition to this morning's press release, a supplemental slide presentation can be found on the Investors page of the Genuine Parts Company website. Today's call is being webcast, and a replay will also be made available on the company's website after the call.
Following our prepared remarks, the call will be open for questions. The responses to which will reflect management's views
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