Genuine Parts Co. (GPC)

Two businesses, one 98-year-old company - about to become two

Genuine Parts Company (GPC) was founded in 1928 and has traded on the NYSE since 1948. Over nearly a century it grew into one of the world's largest parts distributors, built on two core businesses:

• NAPA (Automotive) - distributing auto replacement parts to roughly 200,000 auto-care center relationships across North America, Europe and Asia-Pacific.
• Motion (Industrial) - distributing industrial parts (bearings, power transmission, MRO) to factories and industrial operations.

But the real story for GPC in 2026 isn't "two businesses in one company" - it's the split. On 17 February 2026, GPC announced it will separate into two independent public companies:

• Global Automotive - continuing the NAPA business (North America + Europe/Asia-Pacific)
• Global Industrial - continuing the Motion business (MRO/industrial distribution)

The separation is targeted to complete in Q1 2027, structured as a tax-free spin-off for shareholders. Management confirmed on the Q2 2026 earnings call that the plan remains on track, with Investor Days for both entities scheduled for December 2026.

Why split? The value-unlock logic

Motion (industrial) is growing faster and is meaningfully more profitable than NAPA - Motion's EBITDA margin is 13.1% versus roughly 8-9% for NAPA. Bundled together, the market tends to price GPC as a blend of both - a conglomerate discount. By separating, each business can be valued against its own true peer group - and Motion, as a high-growth industrial distributor, could command a materially higher standalone multiple.

Segment breakdown (Q2 2026)

Leadership

Will Stengel became GPC's CEO in 2025 (succeeding Paul Donahue) and is now also Chairman of the board. He is leading the separation plan, the restructuring program, and the NAPA repositioning.

Dividend King

GPC has paid a dividend every year since it went public in 1948, and 2026 marks the 70th consecutive year of dividend increases - one of the longest streaks of any US stock. That places GPC firmly in the elite "Dividend King" class.

Shariah status

GPC IS NOT SHARIAH-COMPLIANT (NON_COMPLIANT) per our database. With total debt of roughly $6.4 billion, the company is likely to fail standard Shariah debt-ratio screens. Muslim investors should avoid this stock or look for a Shariah-compliant alternative in a related sector.

This section is being refreshed with the latest figures. Please check back soon.

This section is being refreshed with the latest figures. Please check back soon.