Financial Analysis

"Acquisitions For each acquisition, we allocate the purchase price to the assets acquired and the liabilities assumed based on their fair values as of their respective acquisition dates. The results of operations for acquired businesses are included in our consolidated statements of income beginning on their respective acquisition dates. 2025 We acquired various businesses for approximately $430 million, which includes certain non-cash consideration and is net of cash acquired, during the year ended December 31, 2025. We recognized approximately $110 million, $60 million, and $70 million of revenue for the year ended December 31, 2025 for our North America Automotive, International Automotive, and Industrial acquisitions, respectively. We recognized approximately $240 million of goodwill and other intangible assets associated with these acquisitions. Other intangible assets acquired of $100 million consisted of customer relationships with a weighted average amortization life of 20 years. The estimated goodwill recognized as part of the acquisitions is generally not tax deductible.The fair values of the assets acquired and liabilities assumed are preliminary and may be subject to additional adjustments during the measurement period. We did not recognize any significant measurement period adjustments related to finalizing acquisition accounting during the year ended December 31, 2025. 2024 We acquired various businesses for approximately $1.2 billion, which includes certain non …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Legal Matters We are subject to various claims and lawsuits, principally in the United States, and regulatory proceedings worldwide. The liabilities recognized on these claims and other matters are based on the best available information and assumptions that we believe are reasonable. While litigation of any type contains an element of uncertainty, we believe that our insurance coverage and our defense, and ultimate resolution of pending and reasonably anticipated claims will not have a material adverse effect on our business, results of operations or financial condition. Asbestos-Related Product Liability and Insurance Receivable We maintain a liability for probable and estimable claims and settlements associated with our distribution and sales of asbestos-containing brake and friction products sold primarily before 1991. These claims and settlements are unrelated to our ongoing operations, revenue generating activities, and business strategy. We regularly conduct a comprehensive legal review of our asbestos liability. We review recent and historical claims data, including, (i) the number of pending claims filed, (ii) the nature and mix of those claims (e.g., disease type, plaintiff type, geography), (iii) the costs to resolve pending claims, and (iv) trends in filing rates and in costs to resolve claims (collectively, the Claims Data). We also consider the known latency periods for common asbestos diseases when projecting future filing trends a …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt The following table summarizes our debt outstanding as of December 31, 2025 and December 31, 2024: (in thousands) December 31, 2025 December 31, 2024 Unsecured revolving line of credit, $2,000,000,000, SOFR plus 1.25% variable,weighted average rate 5.01% as of December 31, 2025 $ 600,000 $ Commercial paper, net of discounts, weighted average rate of 4.39% at December 31, 2025 342,791 Unsecured term notes: January 6, 2022, Senior Unsecured Notes, $500,000, 1.75% fixed, due February 1, 2025 500,000 June 30, 2019, Series B Senior Unsecured Notes, A$155,000, 3.43% fixed, due June 30, 2026 103,788 96,426 November 30, 2016, Series H Senior Unsecured Notes, $250,000, 3.24% fixed, due November 30, 2026 250,000 250,000 October 30, 2017, Series K Senior Unsecured Notes, 250,000, 1.81% fixed, due October 30, 2027 293,700 260,150 October 30, 2017, Series I Senior Unsecured Notes, $120,000, 3.70% fixed, due October 30, 2027 120,000 120,000 November 1, 2023 Senior Unsecured Notes, $425,000, 6.50% fixed, due November 1, 2028 425,000 425,000 May 31, 2019, Series A Senior Unsecured Notes, 50,000, 1.55% fixed, due May 31, 2029 58,740 52,030 August 7, 2024, Senior Unsecured Notes, $750,000, 4.95% fixed, due August 15, 2029 750,000 750,000 October 30, 2017, Series L Senior Unsecured Notes, 125,000, 2.02% fixed, due October 30, 2029 146,850 130,075 October 27, 2020, Senior Unsecured Notes, $500,000, 1.88% fixed, due November 1, 2030 500,000 500,000 May 31, 2019, Series B Senior Unsecured No …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Share-Based Compensation Share-based compensation costs of $47 million, $44 million, and $57 million, were recorded for the years ended December 31, 2025, 2024, and 2023, respectively. The total income tax benefits recognized in the consolidated statements of income for share-based compensation arrangements were approximately $13 million, $12 million, and $15 million for 2025, 2024, and 2023, respectively. At December 31, 2025, total compensation cost related to nonvested awards not yet recognized was approximately $84 million. There have been no modifications to valuation methodologies or methods during the years ended December 31, 2025, 2024, or 2023. As of December 31, 2025, there were 6 million shares of common stock available for issuance pursuant to future equity-based compensation awards. A summary of our restricted stock units activity and related information is as follows: Nonvested Share Awards (RSUs) Shares (1) Weighted Average Grant Date Fair Value Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (1) Nonvested at beginning of year 881 $ 152.71 Granted 715 $ 121.91 Vested (418) $ 140.19 Forfeited (89) $ 138.15 Nonvested at end of year 1,089 $ 136.98 1.8 $ 133,877 (1) In thousands A summary of our stock appreciation rights activity and related information is as follows: Stock Appreciation Rights (SARs) Shares (1) Weighted Average Exercise Price Weighted Average Remaining Contractual Life (Years) Aggregate Intrinsic Value (1) Outstanding …

DisclosureOfCompensationRelatedCostsShareBasedPaymentsTextBlock · excerpt; the full note is in the filing

Goodwill and Other Intangible Assets The changes in the carrying amount of goodwill during the years ended December 31, 2025 and 2024 by reportable segment, as well as other identifiable intangible assets, are summarized as follows: Goodwill (in thousands) North America Automotive International Automotive Industrial Total Other Intangible Assets, Net Balance as of January 1, 2024 $ 363,159 $ 1,354,274 $ 1,017,248 $ 2,734,681 $ 1,792,913 Additions 98,638 152,726 32,775 284,139 218,286 Amortization (142,994) Foreign currency translation (6,679) (98,248) (16,624) (121,550) (69,174) Balance as of December 31, 2024 455,119 1,408,752 1,033,399 2,897,270 1,799,031 Additions 36,980 48,753 46,939 132,671 105,185 Amortization (152,431) Foreign currency translation 4,797 144,116 9,961 158,874 103,929 Balance as of December 31, 2025 $ 496,896 $ 1,601,621 $ 1,090,299 $ 3,188,815 $ 1,855,714 We completed our annual goodwill impairment testing as of October 1, 2025. We assess the value of our goodwill under either a quantitative or qualitative assessment for our reporting units. To complete a qualitative assessment, we evaluate historical revenue and operating profit growth trends, market conditions and other factors to determine whether it is more likely than not that the reporting unit's goodwill is impaired. We complete quantitative assessments for reporting units that fail our qualitative assessments, or otherwise on a periodic basis. To complete a quantitative assessment, we calculate …

GoodwillAndIntangibleAssetsDisclosureTextBlock · excerpt; the full note is in the filing

Income Taxes Significant components of our deferred tax assets and liabilities are as follows: (in thousands) 2025 2024 Deferred tax assets related to: Expenses not yet deducted for tax purposes $ 416,375 $ 344,858 Operating lease liabilities 467,765 622,732 Pension liability not yet deducted for tax purposes 201,971 Employee and retiree benefits 58,591 Net operating loss 95,273 59,154 1,038,004 1,228,715 Deferred tax liabilities related to: Employee and retiree benefits 257,640 Inventory 68,930 67,437 Operating lease assets 489,096 635,041 Other intangible assets 513,773 495,227 Property, plant and equipment 129,986 135,073 Other 177,344 52,330 1,379,129 1,642,748 Net deferred tax liability before valuation allowance (341,125) (414,033) Valuation allowance (28,092) (25,758) Total net deferred tax liability $ (369,217) $ (439,791) We currently have approximately $504 million in gross net operating losses, of which approximately $279 million will carry forward indefinitely. The remaining net operating losses of approximately $225 million will begin to expire in 2026. The components of income before income taxes are as follows: (in thousands) 2025 2024 2023 United States $ (248,918) $ 761,230 $ 1,164,914 Foreign 301,086 414,738 577,434 Income before income taxes $ 52,168 $ 1,175,968 $ 1,742,348 The components of income tax expense are as follows: (in thousands) 2025 2024 2023 Current: Federal $ 81,244 $ 129,542 $ 201,929 State 36,534 41,344 51,244 Foreign 125,396 123,048 130,53 …

IncomeTaxDisclosureTextBlock · excerpt; the full note is in the filing

Leased Properties We primarily lease real estate for retail stores, branches, distribution centers, office space and land. We also lease equipment (primarily vehicles). Most real estate leases include one or more options to renew, with renewal terms that generally can extend the lease term from one to 20 years or more. The exercise of lease renewal options is at our discretion. We evaluate renewal options at lease inception and on an ongoing basis, and we include renewal options that we are reasonably certain to exercise in the expected lease terms when classifying leases and measuring lease liabilities. We elected a policy of not recording leases on the consolidated balance sheets when the leases have a term of 12 months or less and we are not reasonably certain to elect an option to purchase the leased asset. Lease agreements generally do not require material variable lease payments, residual value guarantees or restrictive covenants. The table below presents the locations of the operating lease assets and liabilities on the consolidated balance sheets: (in thousands) Balance Sheet Line Item December 31, 2025 December 31, 2024 Operating lease assets Operating lease assets $ 2,084,487 $ 1,769,720 Operating lease liabilities: Current operating lease liabilities Other current liabilities $ 394,536 $ 343,276 Noncurrent operating lease liabilities Operating lease liabilities 1,739,478 1,458,391 Total operating lease liabilities $ 2,134,014 $ 1,801,667 The depreciable lives of op …

LesseeOperatingLeasesTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (ASU) to the FASB Accounting Standards Codification (ASC). We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to not be applicable or are expected to have an immaterial impact on our Consolidated Financial Statements. Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This standard requires disclosure in the notes to the financial statements, at each interim and annual reporting period, of specified information about certain costs and expenses including purchases of inventory, employee compensation, dep reciation and intangible asset amortization included in each relevant expense caption. Also required is a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated. ASU 2024-03 is effective for fiscal years beginning after December 15, 2026, and for interim periods within fiscal years beginning after December 15, 2027, as clarified by ASU 2025-01, Income StatementReporting Comprehensive IncomeExpense Disaggregation Di …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Employee Benefit Plans On April 29, 2024, our Board of Directors approved the termination of our U.S. qualified defined benefit plan (U.S. pension plan), effective September 30, 2024. On December 19, 2025, we settled all future obligations under our U.S. pension plan through the transfer of the remaining benefit obligations to a third-party insurance company under a group annuity contract. Prior to this settlement, in October 2025, certain participants elected to receive lump-sum payments to settle their pension obligations. These settlements were funded directly by assets of the U.S. pension plan and required no additional cash or asset contributions from GPC. As a result of the settlements, we recognized a one-time, non-cash, pre-tax pension settlement charge of $742 million ($541 million, net of tax). This charge primarily reflects the recognition of all unamortized net actuarial losses in accumulated other comprehensive loss. As a result of the pension settlement, GPC had no pension obligations related to this plan as of December 31, 2025. The remaining surplus plan assets following the U.S. pension plan settlement will be used to fund certain contributions associated with our U.S. defined contribution plan (Qualified Replacement Plan) as well as any remaining U.S. pension plan expenses. Surplus plan assets not used for these contributions or expenses would be subject to an excise tax up to 50% upon withdrawal from the plan. As of December 19, 2025, our $446 million of su …

PensionAndOtherPostretirementBenefitsDisclosureTextBlock · excerpt; the full note is in the filing

Restructuring and Other Costs In February 2024, we approved and initiated a global restructuring initiative designed to better align our assets and further improve the efficiency of the business. This initiative included an announced voluntary retirement offer in the U.S. in 2024, along with a rationalization and optimization of certain distribution centers, stores and other facilities. The initiative was approved and funded by our corporate office and therefore these costs are not allocated to our segments. We incurred $254 million and $221 million in restructuring and other costs for the year ended December 31, 2025 and December 31, 2024, respectively. The table below summarizes the activity related to the global restructuring initiative. (in thousands) Severance and other employee costs Other restructuring costs (1) Total Liability as of January 1, 2024 $ $ $ Restructuring and other costs 90,851 122,669 213,520 Cash payments (69,739) (100,433) (170,172) Non-cash charges 3,198 (21,311) (18,113) Translation (480) 1 (479) Liability as of December 31, 2024 $ 23,830 $ 926 $ 24,756 Restructuring and other costs 54,543 199,418 253,961 Cash payments (61,995) (173,809) (235,804) Non-cash charges (25,867) (25,867) Translation 1,610 41 1,651 Liability as of December 31, 2025 $ 17,988 $ 709 $ 18,697 (1) Amount reflects professional fees, accelerated rent, facility closure costs, moving expenses and asset impairment costs that are attributable to our restructuring. The 2024 amount excl …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Segment Information We are a global service provider of automotive and industrial replacement parts and value-added solutions, and our operating segments are organized based on the type of product sold and geography. Certain of our operating segments are aggregated into our reportable segments since they have similar economic characteristics, products and services, type and class of customers, and distribution methods. Effective December 31, 2025, we revised the aggregation of our operating segments to present three reportable segments: North America Automotive Parts Group (""North America Automotive""), International Automotive Parts Group (""International Automotive"") and Industrial Parts Group (""Industrial""). Our North America Automotive and International Automotive segments distribute replacement parts for substantially all makes and models of automobiles, trucks, and other vehicles. Our Industrial segment distributes a wide variety of industrial bearings, mechanical and fluid power transmission equipment, hydraulic and pneumatic products, material handling components and other related parts and supplies. We believe this expanded segmentation will provide our investors with additional information to better understand our performance. Prior-period segment information has been recast to conform to the current period presentation. Inter-segment sales are not significant. Approximately $301 million, $415 million and $577 million of income before income taxes were generate …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing

"Summary of Significant Accounting Policies Business Genuine Parts Company is a distributor of automotive replacement parts and industrial parts and materials. We serve a diverse customer base through a network of more than 10,800 locations throughout North America, Europe, and Australasia. We present three reportable segments: North America Automotive Parts Group (""North America Automotive""), International Automotive Parts Group (""International Automotive"") and Industrial Parts Group (""Industrial""). Refer to the Segment Information footnote for more information. On February 17, 2026, we announced our intention to separate the Company into two independent, publicly traded companies: Global Automotive and Global Industrial. ""Global Automotive, would include our North America Automotive and International Automotive segments, and Global Industrial would include our Industrial Segment. The transaction is intended to qualify as a tax-free transaction for U.S. federal income tax purposes for the Companys shareholders. The separation is targeted for completion in the first quarter of 2027, subject to certain customary and regulatory conditions. There can be no assurance that any separation transaction will ultimately occur or, if one does occur, of its terms or timing. Our consolidated financial statements and related footnotes do not reflect the proposed separation. Principles of Consolidation The consolidated financial statements include all of our accounts. The net income …

SignificantAccountingPoliciesTextBlock · excerpt; the full note is in the filing

Subsequent Events A/R Sales Agreement On January 2, 2026, GPC amended its A/R Sales Agreement to increase the facility capacity from $1 billion to $1.25 billion and extended the agreement's maturity through January 8, 2027. Proposed Separation of Automotive and Industrial Businesses On February 17, 2026, we announced our intention to separate the Company into two independent, publicly traded companies: Global Automotive and Global Industrial. The separation is targeted for completion in the first quarter of 2027, subject to certain customary and regulatory conditions. Refer to the Summary of Significant Accounting Policies footnote for more information.

SubsequentEventsTextBlock

AcquisitionsWe acquired several businesses for approximately $46million and $211million, which includes certain non-cash consideration and is net of cash acquired, during the six months ended June 30, 2026 and June30, 2025, respectively. For each acquisition, we allocate the purchase price to the assets acquired and the liabilities assumed based on their fair values as of their respective acquisition dates. We recorded approximately $26million of goodwill and other intangible assets associated with the acquisitions during the six months ended June 30, 2026. Other intangible assets acquired of $10million during the six months ended June 30, 2026 consisted of customer relationships with weighted average amortization lives of 20 years. The results of operations for acquired businesses are included in our Condensed Consolidated Statements of Income beginning on their respective acquisition dates. …

BusinessCombinationDisclosureTextBlock · excerpt; the full note is in the filing

Commitments and Contingencies Legal Matters We are subject to various claims and lawsuits, principally in the United States, and regulatory proceedings worldwide. The liabilities recognized on these claims and other matters are based on the best available information and assumptions that we believe are reasonable. While litigation of any type contains an element of uncertainty, we believe that our insurance coverage and our defense, and ultimate resolution of pending and reasonably anticipated claims will not have a material adverse effect on our business, results of operations or financial condition. Asbestos-Related Product Liability and Insurance Receivable We maintain a liability for probable and estimable claims and settlements associated with our distribution and sales of asbestos-containing brake and friction products sold primarily before 1991. These claims and settlements are unrelated to our ongoing operations, revenue generating activities, and business strategy. We regularly conduct a comprehensive legal review of our asbestos liability. We review recent and historical claims data, including, (i) the number of pending claims filed, (ii) the nature and mix of those claims (e.g., disease type, plaintiff type, geography), (iii) the costs to resolve pending claims, and (iv) trends in filing rates and in costs to resolve claims (collectively, the Claims Data). We also consider the known latency periods for common asbestos diseases when projecting future filing trends a …

CommitmentsAndContingenciesDisclosureTextBlock · excerpt; the full note is in the filing

"Debt Unsecured Revolving Credit Facility On October 30, 2020, we entered into a $1.5 billion Syndicated Facility Agreement (as amended, the ""Unsecured Revolving Credit Facility""). On March 20, 2025, we amended the Unsecured Revolving Credit Facility to expand the borrowing capacity from $1.5 billion to $2.0 billion and extend the maturity date to March 20, 2030. We had $70 million outstanding borrowings under the Unsecured Revolving Credit Facility as of June 30, 2026 and $600 million outstanding as of December 31, 2025. Term Loan A Facilities On April 28, 2026, we amended our Unsecured Revolving Credit Facility to establish an initial Term Loan A Facility in an aggregate principal amount of $500 million and a Delayed Draw Term Loan Facility in an aggregate principal amount of $500 million (together, the Term Loan A Facilities). The Term Loan A Facilities mature on October 28, 2027. On the closing date, the $500 million Term Loan A Facility was fully drawn and remained fully drawn as of June 30, 2026. As of June 30, 2026, the $500 million Delayed Draw Term Loan Facility remained undrawn and available. Commercial Paper Program On November 29, 2023, we established a commercial paper program that allows us to issue unsecured commercial paper notes up to $1.5 billion outstanding. We amended our commercial paper program on March 27, 2025 to expand the maximum borrowing capacity from $1.5 billion to $2.0 billion. The maturities of the commercial paper notes vary but may not exce …

DebtDisclosureTextBlock · excerpt; the full note is in the filing

Recent Accounting Pronouncements Changes to U.S. GAAP are established by the Financial Accounting Standards Board (FASB) in the form of Accounting Standards Updates (ASU) to the FASB Accounting Standards Codification (ASC). We consider the applicability and impact of all ASUs and any not listed below were assessed and determined to not be applicable or are expected to have an immaterial impact on our Condensed Consolidated Financial Statements. Income StatementReporting Comprehensive IncomeExpense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses In November 2024, the FASB issued ASU 2024-03, Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40): Disaggregation of Income Statement Expenses. This standard requires disclosure in the notes to financial statements, at each interim and annual reporting period, of specified information about certain costs and expenses including purchases of inventory, employee compensation, depreciation and intangible asset amortization included in each relevant expense caption. Also required is a qualitative description of the amounts remaining in relevant expense captions that are not separately disaggregated. This guidance is effective for all public entities for fiscal years beginning after December 15, 2026, and interim periods beginning after December 15, 2027, and early adoption is permitted. This guidance should be applied either prospectively to fina …

NewAccountingPronouncementsPolicyPolicyTextBlock · excerpt; the full note is in the filing

Restructuring and Other Costs In February 2024, we approved and initiated a global restructuring initiative designed to better align our assets and further improve the efficiency of the business. The initiative was approved and funded by our corporate office and therefore these costs are not allocated to our segments. We incurred $129 million and $100 million in restructuring and other costs for the six months ended June 30, 2026 and June 30, 2025, respectively. The tables below summarize the activity related to the global restructuring initiative. (in thousands) Severance and other employee costs Other restructuring costs (1) Total Liability as of January 1, 2026 $ 17,988 $ 709 $ 18,697 Restructuring and other costs 23,525 105,357 128,882 Cash payments (23,798) (92,540) (116,338) Non-cash charges (13,020) (13,020) Translation (237) (11) (248) Liability as of June 30, 2026 $ 17,478 $ 495 $ 17,973 (1) Amount includes professional fees, accelerated rent, facility closure costs, moving expenses and asset impairment costs. Amount excludes a $5 million non-cash charge reflected in cost of goods sold for inventory liquidated rather than moved during facility consolidation in connection with the restructuring. (in thousands) Severance and other employee costs Other restructuring costs (1) Total Liability as of January 1, 2025 $ 23,830 $ 926 $ 24,756 Restructuring and other costs 36,600 63,882 100,482 Cash payments (31,249) (57,268) (88,517) Non-cash charges (5,778) (5,778) Translati …

RestructuringAndRelatedActivitiesDisclosureTextBlock · excerpt; the full note is in the filing

"Segment Information North America Automotive Segment The following table presents a summary of our reportable North America automotive segment financial information: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Net sales $ 2,537,236 $ 2,444,377 $ 4,900,268 $ 4,709,158 Cost of goods sold 1,547,497 1,486,192 3,001,844 2,882,809 Gross profit 989,739 958,185 1,898,424 1,826,349 Operating expenses 781,411 761,685 1,533,891 1,482,854 EBITDA $ 208,328 $ 196,500 $ 364,533 $ 343,495 Gross margin (1) 39.0 % 39.2 % 38.7 % 38.8 % Operating expenses as a percentage of net sales 30.8 % 31.2 % 31.3 % 31.5 % EBITDA margin (2) 8.2 % 8.0 % 7.4 % 7.3 % International Automotive Segment The following table presents a summary of our reportable international automotive segment financial information: Three Months Ended June 30, Six Months Ended June 30, (in thousands) 2026 2025 2026 2025 Net sales $ 1,588,112 $ 1,467,904 $ 3,173,628 $ 2,868,011 Cost of goods sold 854,023 789,057 1,720,350 1,549,264 Gross profit 734,089 678,847 1,453,278 1,318,747 Operating expenses 584,098 537,355 1,158,442 1,038,743 EBITDA $ 149,991 $ 141,492 $ 294,836 $ 280,004 Gross margin (1) 46.2 % 46.2 % 45.8 % 46.0 % Operating expenses as a percentage of net sales 36.8 % 36.6 % 36.5 % 36.2 % EBITDA margin (2) 9.4 % 9.6 % 9.3 % 9.8 % Industrial Segment The following table presents a summary of our reportable industrial segment financial information: Three Months Ended June 30, Six M …

SegmentReportingDisclosureTextBlock · excerpt; the full note is in the filing