Genuine Parts Co. is tying its next phase of growth — and its planned breakup — to heavier investment in digital systems, pricing tools and technology, even as large one-time charges in 2025 weighed down reported sales in its Q4 2025 earnings.
On its Q4 earnings call, executives at the Atlanta-based distributor repeatedly emphasized ecommerce growth, cloud-based systems, sales productivity tools and pricing analytics as central to performance in both its automotive and industrial businesses — particularly the Motion industrial unit that will form the core of a standalone company.
“Ecommerce had another strong growth year in 2025, with penetration as a percent of total sales up over 800 basis points,” CEO-elect Will Stengel said, referring to the Industrial segment anchored by Motion.
Genuine Parts Co. is No. 384 in the Top 2000. The database tracks and ranks North America’s largest online retailers by their annual ecommerce sales.
Genuine Parts sales in Q4 2025
Genuine Parts reported Q4 2025 sales of $6.01 billion. That’s up 4.1% from $5.77 billion a year earlier.
Industrial sales — which include Motion — totaled $2.20 billion. That was a 4.6% increase from $2.10 billion in the Q4 2024. North America automotive sales were $2.33 billion, up 2.4% from $2.27 billion. Meanwhile, international automotive sales were $1.49 billion, up 6.4% from $1.40 billion.
For the quarter, Genuine Parts posted a net loss of $609.5 million compared with net income of $133.1 million a year earlier. The loss was driven by a $742 million noncash pension settlement charge related to the termination of its U.S. defined-benefit plan, along with other nonrecurring costs.
For its fiscal full-year 2025, Genuine Parts reported sales of $24.30 billion. That was 3.5% growth from $23.49 billion in 2024.
Industrial sales for the year totaled $8.92 billion, up 2.3% from $8.72 billion in 2024.
The company reported net income of $65.9 million, down sharply from $904.1 million in 2024 due to the pension charge and other one-time items.
Depreciation and amortization rose to $538 million in 2025, up from $408 million in 2024, reflecting ongoing investments in technology and supply chain modernization.
Impact of digital transformation on Genuine Parts
Chief financial officer Bert Nappier said digital systems will consume a sizable portion of the company’s 2026 capital plan.
“As I look at the year, about 50% of the upcoming investment for 2026 will be in IT,” Nappier said.
Another 30% to 35% will go toward supply chain modernization, including distribution centers and facilities. Total capital spending in 2025 was $470 million. The company expects $450 million to $500 million in 2026.
Nappier said the company has concentrated a significant portion of IT investment in North America Automotive as the company modernizes systems and moves to cloud-based platforms.
“A disproportionate level of our IT investments are happening in the North America business,” he said.
He noted that moving to cloud-based systems shifts more costs into operating expenses.
Executives described a series of “transformation initiatives” aimed at improving pricing accuracy, sales effectiveness and operational efficiency — areas increasingly supported by data and digital tools.
“We are working really hard on sales effectiveness both at NAPA and the Industrial business,” Nappier said. “I think we will be smarter and much sharper on pricing tools and capabilities.”
Motion’s technology strategy in 2026
Although the company did not specifically reference artificial intelligence during the call, its comments point to expanded use of advanced analytics, automation and digital catalogs.
Stengel said Motion differentiates itself through “a unique omnichannel sales strategy that leverages deep, long-standing supplier and customer relationships.”
It blends field sales with digital ordering and account tools. He also said Motion grew despite weak manufacturing conditions in 2025.
“We believe our Industrial business grew in excess of the market in 2025, despite a sluggish industrial and manufacturing economy, as evidenced by PMI being below 50 for the last ten months of the year,” Stengel said.
Why Genuine Parts is splitting its business
Genuine Parts announced separately that it intends to separate its automotive and industrial businesses into two publicly traded companies. It targets completion in 2027.
“The transaction provides clarity in many important ways, with business-specific investments that are directly aligned to their respective customers and market needs,” Stengel said.
Under the plan, Motion would anchor a standalone Global Industrial company with its own balance sheet and capital allocation priorities.
“Motion will continue to pursue strategic and bolt-on M&A,” Stengel said.
Executives said the two businesses already operate independently.
“The businesses already operate independently,” Stengel said. “There are no shared customer-facing roles, there are limited shared facilities.”
For 2026, Genuine Parts expects total sales growth of 3% to 5.5%. It projects industrial sales to rise 3% to 6%, comparable sales also increasing within that range.
“Our opportunities to achieve the high end of our expectations center on improving market conditions in Europe and sustained PMI readings above 50 driving a tailwind in our Industrial business,” Nappier said. He added that “near-term market conditions remain mixed.”
As the company moves toward a 2027 separation, executives are signaling that digital systems, data tools and cloud-based infrastructure will remain at the core of both businesses — and especially of a standalone Motion competing in an increasingly technology-driven industrial distribution market.
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