Genuine Parts (GPC) risk factors, FY2025 10-K

Genuine Parts's FY2025 10-K, filed Feb 20, 2026, lists 18 risk factors in 4 groups. Against the prior year's 17: 2 new, 1 dropped, 6 substantially reworded.

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Risk factors listed
184 groups
New this year
2vs 17 last year
Dropped
1since the prior 10-K
Substantially reworded
6of those kept
Section length
7k wordsItem 1A

What the changes say

  • A North America Automotive vendor’s Chapter 11 filing highlights new exposure to customer and vendor credit failures.
  • The proposed 2027 separation into Global Automotive and Global Industrial adds execution, regulatory-clearance, and benefits-realization risk.
  • Trade and tariff changes now explicitly threaten margins, supply chains, distribution-center investments, and Industrial facilities and automation projects.
  • IT risk now includes third-party systems, while climate requirements may conflict across countries and increase costs or management demands.

What changed since the prior 10-K

New

  • NewSTRATEGIC AND OPERATIONAL RISKS

    Our results of operations, revenue, and supply chain could be materially affected as a result of a bankruptcy, insolvency or other credit failures of a significant customer or vendor

    A major customer or vendor bankruptcy, including the cited North America Automotive vendor Chapter 11 filing, could disrupt supply, receivables, sales, and cash flow.

  • NewSTRATEGIC AND OPERATIONAL RISKS

    The proposed separation of our Automotive and Industrial businesses may not be completed on the terms or timeline currently contemplated, if at all, and there is no guarantee that the separation, if completed, will achieve the intended financial, strategic and operational benefits

    The planned tax-free separation into Global Automotive and Global Industrial could be delayed, blocked, or completed on less favorable terms without its expected benefits.

Dropped

  • DroppedSTRATEGIC AND OPERATIONAL RISKS

    readily, more successfully utilize developing technology, including data analytics, artificial intelligence, and machine

Reworded

  • 87% rewrittenMACROECONOMIC, INDUSTRY AND FINANCIAL RISKS

    Changes in legislation or government regulations or policies, particularly those relating to international trade and taxation, could have a significant impact on our results of operations

    The risk now adds weaker consumer confidence, employment effects, higher costs and lower margins, supply-chain disruption, reduced distribution-center investment returns, and delayed Industrial projects.

    Was: Changes in legislation or government regulations or policies, particularly those relating to taxation and international trade, could have a significant impact on our results of operations

  • 43% rewritten

    FORWARD-LOOKING STATEMENTS

  • 32% rewrittenMACROECONOMIC, INDUSTRY AND FINANCIAL RISKS

    Our debt levels could adversely affect our cash flow and prevent us from fulfilling our obligations

    No substantive change; the debt, cash-flow, refinancing, competitive-flexibility, and interest-rate concerns remain the same.

  • 30% rewrittenSTRATEGIC AND OPERATIONAL RISKS

    We face substantial competition in the industries in which we do business

    No substantive change; the competition risk retains the same pricing, customer, e-commerce, and revenue-impact concerns.

  • 26% rewrittenLEGAL AND REGULATORY RISKS

    We may be affected by global climate change or legal, tax, regulatory, or market responses to such change

    The discussion now emphasizes differing or conflicting requirements across countries, potentially increasing costs and management attention; U.S. federal requirements are no longer mentioned.

  • 21% rewrittenSTRATEGIC AND OPERATIONAL RISKS

    If we experience a security breach, if our internal information systems fail to function properly or if we are unsuccessful in implementing, integrating or upgrading our information systems, our business operations could be materially affected

    The risk now expressly includes third-party IT systems and operations that interact with GPC’s systems.

All 18 risk factors

Headings as the filing states them, in filing order.

Other

  1. 01FORWARD-LOOKING STATEMENTS43% rewritten
  2. 02Forward-looking statements are only as of the date they are made, and we undertake no duty to update our forward-looking statements except as required by law. You are advised, however, to review any further disclosures we make on related subjects in our subsequent Forms 10-Q, 8-K and other reports filed with the SEC

STRATEGIC AND OPERATIONAL RISKS

  1. 03Our business depends on customer demand for the products that we distribute. Demand for these products depends on many factors
  2. 04Our results of operations, revenue, and supply chain could be materially affected as a result of a bankruptcy, insolvency or other credit failures of a significant customer or vendorNew
  3. 05We face substantial competition in the industries in which we do business30% rewritten
  4. 06The impact of geopolitical conflicts may adversely affect our business and results of operations
  5. 07If we experience a security breach, if our internal information systems fail to function properly or if we are unsuccessful in implementing, integrating or upgrading our information systems, our business operations could be materially affected21% rewritten
  6. 08We recognize the growing demand for business-to-business and business-to-customer e-commerce options and solutions, and we could lose business if we fail to provide or adapt to the e-commerce options and solutions our customers wish to use
  7. 09Our dependence on key personnel and the increasing potential for union activity could adversely affect our future results and harm our business
  8. 10Our strategic transactions, initiatives and transformation plan involve risks, which could have an adverse impact on our financial condition and results of operation, and we may not realize the anticipated benefits of these transactions and initiatives
  9. 11The proposed separation of our Automotive and Industrial businesses may not be completed on the terms or timeline currently contemplated, if at all, and there is no guarantee that the separation, if completed, will achieve the intended financial, strategic and operational benefitsNew

MACROECONOMIC, INDUSTRY AND FINANCIAL RISKS

  1. 12Changes in legislation or government regulations or policies, particularly those relating to international trade and taxation, could have a significant impact on our results of operations87% rewritten
  2. 13Fluctuations in foreign currency exchange rates have adversely affected and could continue to adversely affect our operating results
  3. 14Our debt levels could adversely affect our cash flow and prevent us from fulfilling our obligations32% rewritten

LEGAL AND REGULATORY RISKS

  1. 15We may be affected by global climate change or legal, tax, regulatory, or market responses to such change26% rewritten
  2. 16Because we are involved in litigation from time to time and are subject to numerous laws and governmental regulations, we could incur substantial judgments, fines, legal fees and other costs as well as reputational harm

GENERAL RISKS

  1. 17We are subject to risks related to corporate social responsibility and reputation
  2. 18Our stock price is subject to fluctuations, and the value of your investment may decline

Other Genuine Parts 10-Ks

  • FY2024 10-K risk factors
    17 risks

    Genuine Parts Co relies heavily on automotive and industrial parts demand, vehicle mileage, and total car parc population.

    Filed Feb 21, 2025

About this page

The headings are the filing's own. The one-line readings and the overview are automated and can be wrong: read Item 1A of the 10-K for the exact wording.