Facilities Maintenance (MRO)

Motion Sales Accelerate in 1Q as End Markets Improve

GPC’s industrial segment delivered strong 1Q growth — outpacing automotive — as the company advances plans to split its businesses into standalone public entities by early 2027.

April 22, 2026

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Genuine Parts Company’s industrial business — which does business as MRO supplies distributor Motion — posted solid growth in the first quarter of 2026, leading overall segment performance as the company continues preparations to separate its industrial and automotive businesses into standalone public entities by early 2027.

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Motion posted 1Q sales of $2.3 billion, up 5.2% year-over-year — and a sequential acceleration from 2.3% growth in 4Q25 — with comparable sales increasing 3.9%. Segment EBITDA rose 12.7% to $314 million, while margin expanded 90 basis points to 13.6%.

GPC said pricing accounted for about 300 basis points of Motion’s 5.2% 1Q sales growth.

The company cited balanced growth across large corporate accounts and small-to-mid-sized customers, with 10 of 14 end markets expanding during the quarter (9 in 4Q25). MRO-related sales grew more than 5%, supported by increased planned outage activity early in the year, while value-added solutions revenue improved sequentially and grew about 4%.

Looking ahead, GPC expects Motion’s full-year sales growth to range 3-6% (also 3-6% for comp growth), with 7-12% EBITDA growth ($1.22 billion-$1.28 billion).

“We remain cautiously optimistic about the outlook for industrial market conditions,” GPC President and CEO Will Stengel said in the company’s earnings call. “While we’re encouraged by three consecutive (ISM manufacturing) PMI readings over 50 in the first quarter and solid performance fundamentals, we balance that optimism with geopolitical realities and potential near-term uncertainty.”

Automotive

GPC’s automotive business — which does business as NAPA Auto Parts — delivered moderate growth in 1Q, with total segment sales of $2.4 billion, up 4.3% year-over-year, and comparable sales increasing 2.2%. Segment EBITDA rose 6.3% to $156 million, with margin improving 10 basis points to 6.6%.

North America automotive sales grew 3.6% in the U.S. and 4.1% in Canada, while Europe posted modest growth amid softer conditions. Australasia remained a bright spot, with continued strength across both retail and trade channels.

The company also highlighted continued momentum from its company-owned store network in the U.S., as well as contributions from recent acquisitions, including Benson, which provided a tailwind to results.

Looking ahead, GPC expects global automotive growth of 3-5% (1.5-3.5% comp growth), with EBITDA growth of 4-9% ($1.26B-$1.33B).

Overall 

At the consolidated level, GPC reported total 1Q sales of $6.3 billion, up 6.8% year-over-year. Adjusted EBITDA increased 4.8% to $496 million, while adjusted diluted EPS rose 1.1% to $1.77.

Gross margin improved 20 basis points to 37.3%, though adjusted EBITDA margin declined 20 basis points to 7.9% amid ongoing cost pressures.

The company noted that the ongoing conflict in Iran and the Strait of Hormuz did not have a material impact on its 1Q results and that its exposure to goods sourced from the Middle East is less than 0.5% of total purchases, limiting direct supply chain risk from the regional conflict.

GPC reaffirmed its full-year 2026 outlook, calling for total sales growth of 3% to 5.5% and adjusted EBITDA between $2.0 billion and $2.2 billion.

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