1) Strategy & Leadership
- GPC is on track for the planned separation of its automotive and industrial businesses in Q1 2027.
- Will Stengel emphasized the company's focus on creating two independent public companies, enhancing shareholder value.
- The leadership is actively evaluating M&A opportunities while prioritizing the separation process.
- The company is committed to transparency regarding the separation and its implications for stakeholders.

2) Financial & Segment Results
- Total sales for Q2 2026 reached $6.5 billion, a 6% increase YoY, driven by strong performance across all segments.
- Adjusted EPS rose to $2.15, up from $2.10 YoY.
- Segment performance highlights:
| Segment | Q2 Sales ($B) | YoY Growth (%) | EBITDA ($M) | EBITDA Margin (%) | |---------------------|----------------|----------------|-------------|-------------------| | Industrial | 2.4 | 7 | 316 | 13.1 | | North America Auto | - | 4 | 208 | 8.2 | | International Auto | - | 8 | 150 | 9.4 |
- Industrial EBITDA grew 10%, while North America Automotive EBITDA increased 6%.

3) Problems / Headwinds
- The ongoing Iran conflict is impacting costs, particularly in the automotive segment, with an estimated $16 million negative impact on EBITDA for Q2.
- Inflationary pressures continue, with healthcare, rent, and freight costs rising significantly.
- The company anticipates a $20 million-$30 million increase in operating expenses due to the Iran conflict for the remainder of the year.

4) Operational or Product Plans
- GPC is investing in modernizing its supply chain and IT systems, with two new distribution centers for NAPA expected to go live by year-end.
- The company is focusing on enhancing performance among independent owners by leveraging successful strategies from company-owned stores.
- Strategic pricing and sourcing initiatives are expected to drive gross margin improvements moving forward.

5) Guidance & Outlook / Investor Angle
- GPC reaffirms its full-year adjusted EPS guidance of $7.50-$8.00, reflecting a 5% increase at the midpoint compared to 2025.
- Total sales growth is expected in the range of 3%-5.5% for 2026, with a cautious outlook for Global Automotive due to market volatility.
- The company plans to provide more detailed insights during investor days in December.

Bottom line: GPC's solid Q2 performance, driven by strategic execution and growth across segments, positions it well for the upcoming separation. However, ongoing inflation and geopolitical tensions present challenges that could impact future performance. Shareholders should remain optimistic about the long-term value creation potential of the two independent companies.