Genuine Parts Company reported second-quarter 2026 results showing higher sales across its automotive and industrial businesses, but lower GAAP earnings as restructuring, separation-related expenses and external cost pressures weighed on profit. The company also reiterated a major corporate action announced earlier in the year: its plan to separate into two independent, publicly traded companies, one housing the Automotive Parts Group, or “Global Automotive,” and the other housing the Industrial Parts Group, or “Global Industrial.” The separation was announced on February 17, 2026, and is targeted for completion in the first quarter of 2027, subject to customary and regulatory conditions. For the quarter ended June 30, 2026, Genuine Parts generated net sales of $6.54 billion, up 6.0% from $6.16 billion a year earlier. Comparable sales rose 3.4%, while acquisitions contributed 1.2% and foreign currency and other items added 1.4%. Gross profit increased 6.3% to $2.47 billion, and gross margin edged up to 37.8% from 37.7%. However, operating expenses rose faster than sales, including selling, administrative and other expenses of $1.92 billion, depreciation and amortization of $134.7 million, provision for doubtful accounts of $11.0 million, and restructuring and other costs of $71.1 million. Net income for the second quarter fell 10.7% to $227.6 million from $254.9 million in the prior-year quarter. Diluted earnings per share declined to $1.65 from $1.83. On an adjusted basis, diluted EPS increased 2.4% to $2.15 from $2.10, reflecting management’s view that underlying results improved after excluding restructuring and separation-related costs. Interest expense also increased, rising 13.9% to $45.8 million for the quarter. For the first six months of 2026, net sales were $12.80 billion, up 6.4% from $12.03 billion in the first half of 2025. Comparable sales increased 2.9%, acquisitions added 1.2%, and foreign currency and other items contributed 2.3%. First-half net income declined 7.4% to $416.1 million, while diluted EPS decreased to $3.01 from $3.23. Adjusted diluted EPS rose to $3.92 from $3.84. Segment performance was broadly positive on revenue and EBITDA. North America Automotive reported second-quarter net sales of $2.5 billion, up 3.8%, driven by 2.6% comparable sales growth and a 1.3% acquisition benefit. International Automotive sales rose 8.2% to $1.6 billion, helped by a 4.9% favorable foreign exchange impact, 2.7% from acquisitions and 0.6% comparable sales growth. Industrial sales increased 7.1% to $2.4 billion, primarily from 6.1% comparable sales growth. Segment EBITDA for the quarter was $208.3 million in North America Automotive, $150.0 million in International Automotive and $316.4 million in Industrial, while corporate EBITDA was negative $107.8 million. The company said inflation and tariff-related pricing contributed approximately 2.5 percentage points to comparable sales in both the quarter and first half. Genuine Parts also disclosed that geopolitical tensions in the Middle East, including the conflict involving the United States and Iran, negatively affected income before income taxes by about $20 million during the second quarter, primarily in the International Automotive segment, through higher fuel and supply-chain costs and weaker customer spending patterns. Tariffs remain.