Strategic Separation Announced
Company announced intent to separate into two independent public companies (Global Automotive and Global Industrial), targeting completion in 2027; separation intended to unlock value, enable business-specific investments, and maintain investment-grade targets for both businesses.
Full-Year Sales Growth
Total GPC sales of $24.3 billion, up over $800 million or 3.5% versus 2024.
Gross Margin Expansion
Gross margin expanded for the third consecutive year; fourth quarter adjusted gross margin was 37.6%, up 70 basis points year-over-year.
Restructuring Savings Above Target
Global restructuring and cost actions yielded approximately $175 million of benefit in 2025, exceeding the $110M–$135M target and contributing ~$0.95 per share of benefit.
Industrial (Motion) Strength and Digital Momentum
Industrial sales were $8.9 billion, up ~$200 million (~2%) with comparable sales up ~1.5%; core MRO business up over 3% for the year; e-commerce penetration increased by over 800 basis points year-over-year; January PMI >50 (first since Feb 2025).
Asia Pacific & Canada Outperformance
International Automotive: Asia Pacific delivered ~10% total sales growth (comps ~5%) and Repco grew ~20% vs 2024; Canada posted nearly 5% sales growth in local currency with comps ~3%.
Quarterly Sales and Margin Momentum
Fourth quarter consolidated sales increased 4.1% (comparable sales improvement +170 bps; acquisitions +150 bps; FX +130 bps); adjusted EBITDA margin in Q4 was 7.6%, up 10 basis points year-over-year.
2026 Financial Outlook Shows Modest Improvement
2026 guidance: adjusted diluted EPS $7.50–$8.00 (midpoint +~5% vs 2025 adjusted EPS $7.37); total sales growth guidance 3%–5.5%; consolidated adjusted EBITDA $2.0B–$2.2B (up 2%–9%).