Genuine Parts Company (0IUX.L) Q3 2024 Earnings Report

Genuine Parts Company (GPC) delivered QQ3 2024 results that showed modest top-line growth but meaningful pressure on earnings. Revenue was USD 5.970B, up 2.5% year over year and 0.13% quarter over quarter, reflecting continued demand in the US and international markets but with a challenging cost base. Gross profit reached USD 2.199B, translating to a gross margin of roughly 36.8%, while operating income was USD 362.9M and the operating margin stood at 6.08%. Net income came in at USD 226.6M and diluted earnings per share (EPS) at USD 1.62–1.63, marking a notable year-over-year decline driven by higher expenses and a higher cost structure relative to revenue growth. The company generated solid operating cash flow of USD 484.3M and free cash flow of USD 358.0M, supporting a disciplined capital allocation strategy that included USD 139.4M in dividends and USD 37.5M in share repurchases, while investing USD 126.3M in capital expenditures and USD 374.4M in net acquisitions. Net debt stood at USD 4.912B with cash and cash equivalents of USD 1.078B, underpinning a robust liquidity profile despite leveraged levels. Key efficiency and leverage metrics point to disciplined cash conversion (CCC of ~22.6 days) but a relatively high debt burden (total debt to capitalization ~0.50) and a still-elevated cost base. Looking ahead, management did not publish formal forward guidance in the materials provided, but the quarter reinforces GPC’s resilience as a diversified distributor of automotive and industrial parts. The investment thesis rests on durable cash flow generation, ongoing market penetration in mature and emerging markets, and potential margin recovery through cost discipline and mix optimization. Investors should monitor demand normalization in the automotive aftermarket, currency dynamics, and the pace of integration and synergies from acquisitions, as well as any shifts in vehicle parc and EV-related parts demand that could affect long-run growth trajectories.