Genuine Parts Company · NYSE:GPC
Genuine Parts — Q4 2024 Earnings Presentation
23 slides from Genuine Parts's earnings presentation, Feb 18, 2025
Slide 1: Fourth Quarter & Full-Year 2024 Earnings Presentation
Fourth Quarter & Full-Year 2024 Earnings Presentation February 18, 2025
Slide 2: Safe Harbor Statement
Safe Harbor Statement FORWARD-LOOKING STATEMENTS: Some statements in this presentation, as well as in other materials we file with the Securities and Exchange Commission (SEC), release to the public, or make available on our website, constitute forward-looking statements that are subject to the safe
Slide 3: GPC Snapshot (as of 12/31/2024)
GPC Snapshot (as of 12/31/2024) Global Footprint Key Statistics 2024 Revenue by Region Founded 1928 Headquarters Atlanta, GA Countries Served 17 Locations ~10,790 • Distribution Centers ~190 • Branches/Service Centers ~755 16% Europe • Retail (Owned/Independent) ~9,845 74% Employees 63,000+ North Am
Slide 4: Key Messages
Key Messages We want to thank our global GPC teammates for their hard work and dedication to serving our customers We stayed focused on what we could control: advance our strategic initiatives to strengthen the business and effectively manage our operations against a backdrop of challenging macr
Slide 5: FY'24 Performance: GPC Executive Summary
FY’24 Performance: GPC Executive Summary GPC Global Sales Adj Gross Margin1 Adj EBITDA1 Adj EBITDA Margin Adj Diluted EPS1 $23.5B 36.6% $2.0B 8.5% $8.16 Increase of 1.7% Improved 70 bps Decreased 7% Decreased 80 bps Decreased 13% Industrial Global Sales Global Comps2 Segment EBITDA1 Segment EBITDA M
Slide 6: Q4'24 Performance: GPC Executive Summary
Q4’24 Performance: GPC Executive Summary Sales Adj Gross Margin1 Adj EBITDA1 Adj EBITDA Margin1 Adj Diluted EPS1 $5.8B 36.9% $434M 7.5% $1.61 Increase of 3.3% Improved 50 bps Decreased 17% Decreased 180 bps Decreased 29% At December 31 Cash From Operations Working Capital2 Capital Ample Liquidity Fi
Slide 7: Q4'24 Performance: Industrial
Q4’24 Performance: Industrial Global Sales1 Global Comps1,2 Segment EBITDA3 Segment EBITDA Margin $2.1B -1.7% $271M 12.9% Decreased 1.2% Decreased 4% Decreased 40 bps 2024 Accomplishments: Corporate account customer base, which represents ~45% Market Total Sales4 of the business, experienced low-s
Slide 8: Q4'24 Performance: Automotive
Q4’24 Performance: Automotive Global Sales1 Global Comps1,2 Segment EBITDA3 Segment EBITDA Margin $3.7B +0.2% $285M 7.8% Increase of 6.1% Decreased 6% Decreased 100 bps Market Total Sales4 Comp Sales2,4 2024 Accomplishments: Completed the acquisition of more than 500 stores in the U.S.1 +7.4% 0.0%
Slide 9: Strategic Investment Priorities
Strategic Investment Priorities Talent & Sales Supply Emerging Culture Effectiveness Chain Technology Develop high-potential Utilize data and analytics to Modernize operations to Lead in emerging talent and infuse capabilities understand our customer increase productivity and technologies and levera
Slide 10: GPC Capital Allocation: FY'24 and FY'25 Outlook
GPC Capital Allocation: FY’24 and FY’25 Outlook 2024 Capital Deployment Key Priorities Strategic Investments $567M FY’24 Capital Expenditures 24% 24% • Estimated $400M – $450M FY’2025 Capital Expenditures M&A 6% $2.4B $1.1B FY’24 Capital Deployed • Estimated $300M – $350M FY’25 M&A Capital Outla
Slide 11: GPC 2025 Outlook: Executive Summary
GPC 2025 Outlook: Executive Summary1 Total Sales Growth 2% to 4% • Automotive 2% to 4% • Industrial 2% to 4% Diluted EPS $6.95 to $7.45 Adj Diluted EPS2 $7.75 to $8.25 Adj EPS Growth2 (5%) to 1% Cash from Operations $1.2B to $1.4B Free Cash Flow2 $800M to $1.0B • Capex $400M - $450M OTHER ASSUMPTION
Slide 12: GPC 2025 Outlook: Adjusted EPS Guidance Bridge
GPC 2025 Outlook: Adjusted EPS Guidance Bridge ($ per share) 52 , .$8.16 $8.25 83 00 $7.75 0 2024 Actual Pension FX D&A, Gross Margin Initiatives, 2025 Adjusted Adjusted EPS Income Interest Costs Improvement Cost Actions, EPS Guidance Restructuring FY’25 Outlook: $7.75 – $8.25 Adjusted Earnings Per
Slide 13: GPC 2025 Outlook: U.S. Business Days
GPC 2025 Outlook: U.S. Business Days U.S. Business Days* Q1 Q2 Q3 Q4 FY 2025 63 64 64 63 254 2024 64 64 64 63 255 Difference -1 0 0 0 -1 *Our calculation of comparable sales is computed using total business days for the period, not calendar days. We believe a business day approach is a better repres
Slide 14: Appendix
Appendix 14
Slide 15: Consolidated Net Sales and Diluted EPS Bridge
Consolidated Net Sales and Diluted EPS Bridge Appendix A Net Sales ($M) Adj Diluted Earnings Per Share1 $2.26 $2.26 $5,770 $178 $34 $5,586 $1.61 ($0.65) ($28) $0.96 ($0.65) Q4'23 Core Sales Acquisitions FX & Other Q4'24 Q4'23 Adjustments Q4'23 EPS Core Q4'24 Adjustments Q4'24 GAAP EPS Operations Adj
Slide 16: Other Information
Other Information Appendix B Comparable Sales: Comparable sales or “comp sales” is a key metric that refers to period-over-period comparisons of our net sales excluding the impact of acquisitions, foreign currency and other. Our calculation of comparable sales is computed using total business days f
Slide 17: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Appendix C Segment Profit to Segment EBITDA & Adj EBITDA 2024 2024 2023 (in thousands) Full-Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Automotive: Segment Profit $ 1,076,995 $ 272,936 $ 313,975 $ 262,195 $ 227,889 $ 264,420 $ 329,347 $ 322,004 $ 259,109 Depreciation 2
Slide 18: Reconciliation of Non-GAAP Financial Measures
Reconciliation of Non-GAAP Financial Measures Appendix C Adj EBITDA 2024 2024 2023 (in thousands) Full-Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GAAP net income $ 904,076 $ 248,894 $ 295,544 $ 226,582 $ 133,056 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Depreciation and amortization 407,978 90,610 99,202 106,036 11
Slide 19: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix C Adj Net Income 2024 2024 2023 (in thousands) Full-Year Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 GAAP net income $ 904,076 $ 248,894 $ 295,544 $ 226,582 $ 133,056 $ 303,957 $ 344,494 $ 351,198 $ 316,875 Adjustments: Restructuring and other costs (1) 221
Slide 20: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix C Adj Gross Profit Three Months Ended December 31, QTD Change (in thousands) 2024 2023 $ Change % Change GAAP gross profit $ 2,070,216 $ 2,033,287 $ 36,929 1.8% Adjustments: Inventory rebranding strategic initiative (3) 61,596 — 61,596 1
Slide 21: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix C Adj Operating and Non-Operating Expenses Three Months Ended December 31, QTD Change (in thousands) 2024 2023 $ Change % Change GAAP operating and non-operating expenses $ 1,903,225 $ 1,614,494 $ 288,731 17.9% Adjustments: Restructuring
Slide 22: Reconciliation of Non-GAAP Financial Measures (Cont.)
Reconciliation of Non-GAAP Financial Measures (Cont.) Appendix C Free Cash Flow (in thousands) Twelve Months Ended December 31, 2024 Net cash provided by operating activities $1,251,251 Purchases of property, plant and equipment (567,339) Free cash flow $683,912 Outlook Year Ending December 31, 2025
Slide 23: Explanation of Adjustments
Explanation of Adjustments Appendix D (1) Restructuring and other costs: Adjustment reflects costs related to our global restructuring initiative which includes a voluntary retirement offer in the U.S. and rationalization and optimization of certain distribution centers, stores and other facilities,
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