Focus Remains on Q1‘27 Business Split as Mgmt Dismisses Recent M&A Rumors

Research evidence excerpt

Focus Remains on Q1‘27 Business Split as Mgmt Dismisses Recent M&A Rumors

USA | Automotive Aftermarket

Genuine Parts Company EquityJulyResearch21, 2026

TARGET | ESTIMATE CHANGEFocus Remains on Q1'27 Business Split as

RATING HOLDMgmt Dismisses Recent M&A Rumors

PRICE $122.40^

Q2 adj EPS of $2.15 topped our est $1.97 & cons $2.08 driven by steady

Motion recovery (comps +6.1%) while US company owned NAPA stores (+4%) PRICE TARGET | % TO PT $130.00 ($128.00) | +6%

helped offset slower independent growth (+1.5% sell-in) despite +2.5% pricing 52W HIGH-LOW $151.57 - $90.78

tailwind. Mgmt mostly reaffirmed '26 guide while also dismissing recent FLOAT (%) | ADV MM (USD) 99.1% | 250.24

ORLY M&A rumors as we remain focused on expected Q1'27 business split MARKET CAP $16.9B

and implications for US auto investment in stores/distribution, dividend & TICKER GPC ^Prior trading day's closing price unless otherwise

management moving forward. noted.

Q1'27 business separation on-track while mgmt dismisses recent rumors of ORLY M&A. Mgmt FY (Dec) CHANGE TO JEFe JEF vs CONS

addressed a 7/2 Bloomberg report speculating that ORLY was looking to acquire GPC's auto 2026 2027 2026 2027

business by "taking the opportunity to officially confirm that we are not currently in discussions REV <1% NM NM NM

with any competitor".

EPS <1% -1% +1% NM

Steady company owned comps & DIFM strength help offset slower independent trends. NA auto

comps were +2.6%, w/ US NAPA up ~3% on ~2.5% pricing tailwinds driven by co. owned stores +4% 2026 ($) Q1A Q2A Q3 Q4 FY

while independents were +1.5%. DIFM sales were +4% supported by major accounts & strength EPS 1.77 2.15 2.05 1.84 7.81

in non-discretionary categories while DIY was -3%. April & May sales were +L-MSD%, which mgmt PREV 1.97 2.08 1.93 7.75