Genuine Parts Company (NYSE: GPC) reported fourth-quarter earnings that fell short of analyst expectations and issued softer-than-anticipated guidance for 2026, sending shares down more than 12% intra-day on Tuesday.

The automotive and industrial parts distributor posted adjusted earnings per share of $1.55 for the quarter, well below the consensus estimate of $1.81. Revenue totaled $6.0 billion, missing the $6.06 billion forecast, although it marked a 4.1% increase compared to the same period last year.

The revenue growth was driven by a 1.7% rise in comparable sales, a 1.5% contribution from acquisitions, and a 0.9% favorable impact from foreign exchange and other factors.

Quarterly performance was affected by $160 million in non-recurring charges, largely related to anticipated credit losses stemming from a vendor's Chapter 11 bankruptcy filing. For full-year 2025, Genuine Parts generated adjusted earnings of $7.37 per share.

Looking ahead, the company projected 2026 adjusted earnings in the range of $7.50 to $8.00 per share, below the consensus estimate of $8.42. Management expects total sales growth between 3% and 5.5% in 2026.

In a separate announcement, Genuine Parts said it plans to separate its automotive and industrial operations into two independent publicly traded entities, a move it believes will unlock additional value for shareholders.