Genuine Parts Company's stock plummeted 9.38% in pre-market trading on Tuesday, following the release of disappointing fourth-quarter financial results and a significant corporate announcement.

The sharp decline was driven by multiple factors. The company reported adjusted earnings per share of $1.55 for Q4 2025, missing analyst estimates of $1.82, while sales of $6.009 billion came in slightly below expectations of $6.063 billion. Furthermore, Genuine Parts posted a substantial net loss of $609.5 million, with gross profit impacted by $160 million in non-recurring charges related to a vendor bankruptcy.

Adding to investor concerns, the company issued downbeat guidance for 2026, forecasting adjusted EPS in the range of $7.50 to $8.00, well below the consensus estimate of $8.43. Simultaneously, Genuine Parts announced plans to separate its automotive and industrial businesses into two independent, publicly traded companies, with the tax-free transaction expected to be completed in the first quarter of 2027, creating uncertainty about the future structure of the divided entities.