Greg Malik's questions to Genuine Parts Co (GPC) leadership • Q2 2025
Question
Greg Malik sought to confirm if the full-year inflation guidance implied a 300 basis point rate in the second half and if this was the primary driver for expected margin improvement. He also asked for details on the incremental $30 million in restructuring expenses and the timing of the resulting $200 million in savings.
Answer
EVP and CFO Bert Napier confirmed the inflation math was in a "fair zip code" but stated that second-half margin improvement is also driven by accelerating benefits from cost actions and acquisition synergies. He explained the additional restructuring costs are for simplifying operations and streamlining the back office, with the full annualized benefit of over $200 million expected to be realized in 2026.