Genuine Parts to split divisions; posts quarterly loss

Genuine Parts Company plans a tax-free separation of its automotive and concern operations into 2 publically listed companies by aboriginal 2027.

The US-based automotive parts distributor said the projected transaction would found 2 standalone businesses: Global Automotive and Global Industrial.

Global Automotive volition absorption connected aftermarket automotive parts and repair networks, operating nether brands specified arsenic NAPA and Repco.

Global Industrial volition comprise the concern organisation and services arm, trading nether the Motion brand.

The separation is taxable to modular conditions, including committee support and registration with the US Securities and Exchange Commission.

Shareholder support is not required.

Global Automotive recorded much than $15bn successful gross and $1.2bn successful EBITDA successful 2025.

The part operates implicit 10,000 locations worldwide and supports a web of much than 20,000 NAPA Auto Care repair centres crossed North America.

The concern serves an estimated $200bn automotive aftermarket and is advancing exertion and supply-chain initiatives aimed astatine improving maturation and margins.

Global Industrial generated astir $9bn successful income and implicit $1.1bn successful EBITDA successful 2025.

Operating nether the Motion name, it provides maintenance, repair and automation products crossed much than 14 manufacturing sectors.

It offers implicit 10 cardinal banal keeping units (SKUs) to much than 180,000 customers successful North America and Australasia.

The portion targets enlargement successful a fragmented $150bn concern organisation market, supported by re-shoring, automation and AI-related infrastructure investment.

Genuine Parts said the determination follows a strategical and operational reappraisal of some divisions and is designed to springiness each concern dedicated leadership, customised superior structures and accrued fiscal flexibility.

Company names, absorption teams and committee appointments volition beryllium disclosed later, with further operational and strategical updates planned astatine capitalist events for some entities successful the 2nd fractional of 2026.

Separately, Genuine Parts reported fourth-quarter 2025 income of $6bn, up 4.1% year-on-year.

The radical posted a nett nonaccomplishment of $609m, compared with nett income of $133m successful the prior-year period.

Adjusted nett income totalled $216m versus $224m a twelvemonth earlier, reflecting $825m successful nett non-recurring charges, chiefly a one-off non-cash pension colony disbursal tied to the termination of its US defined-benefit plan.

"Genuine Parts to divided divisions; posts quarterly loss" was primitively created and published by Just Auto, a GlobalData owned brand.