Motion Industries, the Industrial Parts Group for Genuine Parts Company (NYSE: GPC), reported decreased sales in the first quarter of 2025. Sales were $2.2 billion, down 0.4% from the same period in 2024.
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Will Stengel, president and CEO, emphasized that managing margins and maintaining profitability in that division was a positive sign given the economic backdrop. “Our industrial business performed largely as expected, especially considering macro pressures in manufacturing and some softness in customer demand,” he said. “We’re staying close to our customers and focusing on service execution while continuing to integrate our recent acquisitions in this space.”
Stengel also pointed to early signs of improving demand, particularly in capital-related projects that had been depressed over the past few years. “The performance was in line or slightly better than what we had planned internally, and we were encouraged by seeing the activity with customers on some of these capital-related projects,” he noted.
Executive chair Paul Donahue echoed those sentiments, adding that the Motion team’s disciplined operations helped sustain earnings. “While sales were down slightly, the business maintained its profitability thanks to disciplined operating practices. That speaks to the resilience of this segment,” Donahue said.
Analysts at Jefferies described the quarter as mixed, noting the continued strength of the industrial segment. “While industrial sales were modestly down, the stability in margins and commentary around improving capex-related demand is encouraging,” the firm wrote in a research note. Jefferies added that the reaffirmation of full-year guidance suggests Genuine Parts remains confident in a second-half recovery, particularly in industrial markets where customer engagement is picking up.
Genuine Parts Co. reported a mixed financial performance for the first quarter of 2025, as modest overall revenue growth was offset by declines in net income. GPS reported overall sales for the first quarter were $5.9 billion, up 1.4%. Profit was $194 million, down from $249 million in the prior year period. Global automotive sales were $3.7 billion, up 2.5%.
The company attributed growth primarily to acquisitions, which contributed approximately 3% to revenue, partially offset by slight declines in organic sales and unfavorable foreign currency effects.
“We had a solid start to 2025, despite the tariffs and trade dynamics that are impacting the operating landscape,” said Stengel. “We remain focused on what we can control—excellent customer service and our strategic initiatives to improve the business.”
Stengel described the quarter as a “solid start to 2025,” despite headwinds tied to tariffs and softness in customer demand. “We remain focused on what we can control—excellent customer service and our strategic initiatives to improve the business,” he said.
Despite ongoing macroeconomic pressures and the uncertainty of global trade policy, the company’s industrial segment remained steady, prompting executives to reaffirm full-year guidance and express cautious optimism about recovery in key customer markets. The company reiterated its full-year 2025 outlook, projecting total revenue growth between 2% and 4%. Both its automotive and industrial segments are expected to grow within that same range.
Genuine Parts also addressed the impact of evolving trade policy, including newly announced U.S. tariffs. The company stated that its current forecasts do not include any potential financial effects from the new trade measures, citing the unpredictability of reciprocal tariffs and the ongoing nature of global negotiations. “As a global business, we are always monitoring trade policy developments,” Stengel said. “While tariffs remain a risk, we’re managing our sourcing strategies and supplier relationships carefully to maintain availability and cost stability for our customers.”
Looking ahead, Stengel said the industrial platform the company has built provides diversification and strategic flexibility. “We’ve built an industrial platform that gives us flexibility—across geographies, sectors, and product lines. That’s going to serve us well as we move through the year,” he said.
Genuine Parts operates in 17 countries and serves customers across automotive and industrial markets and remains one of the largest global distributors of replacement parts, supplies, and value-added services.
