Genuine Parts Co. posted mixed Q2 sales results as strength in its automotive business, and continued investment in digital tools helped offset weakening demand in the industrial sector.
Atlanta-based distributor Genuine Parts reported $6.2 billion in sales for its fiscal Q2, which ended June 30. That’s a 3.4% increase from $6.0 billion a year earlier. Net income fell 14% to $255 million, down from $296 million in Q2 2024.
“Our results for the quarter were in line with our expectations and reflect the execution of our strategic initiatives and cost restructuring actions against continued challenging market conditions,” said Will Stengel, GPC president and chief operating officer, during the company’s earnings call. “As we turn to the second half of the year, we remain focused on what we can control as we proactively manage through an evolving external environment.”
GPC’s automotive division was the primary growth engine, with sales rising 5% to $3.9 billion. Acquisitions and favorable currency exchange aided. However, profits in the segment declined 7% due to inflation and increased operating costs.
Genuine Parts sales in Q2
The industrial division — which Motion Industries led — posted modest year-over-year sales growth of 0.7% to $2.3 billion. That growth was acquisition-driven, with organic demand and flat and foreign exchange weighing on results. Segment profit rose slightly, but GPC acknowledged ongoing pressure from the slowing industrial economy.
“We remain bullish on the outlook for Motion once the industrial economy returns,” said Stengel. “History shows that the industrial economy experiences sustained periods of growth following a contraction cycle.”
As demand cools in industrial markets, GPC continues to lean into digital tools to improve efficiency and customer experience. Motion’s ecommerce sales now represent 40% of the division’s total.
“Our digital investments are delivering real returns,” Stengel said. “Ecommerce now accounts for 40% of Motion sales — up more than 10% since the start of 2024 — driven by GenAI-powered enhancements to search, product recommendations, and digital integrations.”
“This level of transparency and support has been very well received,” he added. “Our capabilities at scale, access to global resources, and relationships with our strategic suppliers make a difference for our customers in moments such as these.”
For the first six months of 2025, GPC reported $12.0 billion in sales, up 2.4% from the same period last year. Net income declined 17% to $449 million.
The company spent $249 million on capital investments and $112 million on acquisitions in the first half. It ended the quarter with $458 million in cash and $2 billion in unused credit capacity.
GPC revised its full-year guidance, citing softening industrial demand and new U.S. tariffs that could further disrupt global sourcing.
“While the current impact is immaterial, we’ve updated our guidance based on revised growth expectations and the risk of further demand erosion,” said chief financial officer Bert Nappier. “The evolving tariff landscape brings with it a degree of uncertainty, and as a result, we expect to see a more moderated improvement in market conditions than we projected in February.”
Despite near-term headwinds, executives said GPC remains focused on long-term priorities, specially building out digital capabilities and expanding internationally.
“We’re building digital capabilities now that will scale with the next upturn,” Stengel said.
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