Greg Malik's questions to GENUINE PARTS (GPC) leadership • Q2 2025
Question
Greg Malik from Evercore ISI sought to confirm if the full-year inflation guidance implies a 300 basis point rate in the second half and if this was the primary driver for guided margin improvement. He also asked for details on the incremental restructuring expenses.
Answer
EVP and CFO Bert Nappier agreed the implied back-half inflation was in a "fair zip code." However, he clarified that margin improvement is driven by a combination of factors, including a better top line and accelerating benefits from cost actions and acquisition synergies. He detailed that the extra $30 million in restructuring is for simplifying operations and streamlining the back office, with an annualized benefit of over $200 million expected in 2026.