v3.26.1
Segment Information
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Segment Information Segment Information
North America Automotive Segment
The following table presents a summary of our reportable North America automotive segment financial information:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Net sales$2,537,236$2,444,377$4,900,268$4,709,158
Cost of goods sold 1,547,4971,486,1923,001,8442,882,809
Gross profit 989,739958,1851,898,4241,826,349
Operating expenses 781,411761,6851,533,8911,482,854
EBITDA$208,328$196,500$364,533$343,495
Gross margin (1) 39.0 %39.2 %38.7 %38.8 %
Operating expenses as a percentage of net sales30.8 %31.2 %31.3 %31.5 %
EBITDA margin (2) 8.2 %8.0 %7.4 %7.3 %
International Automotive Segment
The following table presents a summary of our reportable international automotive segment financial information:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Net sales$1,588,112$1,467,904$3,173,628$2,868,011
Cost of goods sold 854,023789,0571,720,3501,549,264
Gross profit 734,089678,8471,453,2781,318,747
Operating expenses 584,098537,3551,158,4421,038,743
EBITDA$149,991$141,492$294,836$280,004
Gross margin (1) 46.2 %46.2 %45.8 %46.0 %
Operating expenses as a percentage of net sales36.8 %36.6 %36.5 %36.2 %
EBITDA margin (2) 9.4 %9.6 %9.3 %9.8 %
Industrial Segment
The following table presents a summary of our reportable industrial segment financial information:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Net sales$2,411,603$2,252,144$4,727,995$4,453,325
Cost of goods sold 1,659,4591,564,8153,264,7933,100,409
Gross profit 752,144687,3291,463,2021,352,916
Operating expenses 435,697399,191832,635786,067
EBITDA$316,447$288,138$630,567$566,849
Gross margin (1)31.2 %30.5 %30.9 %30.4 %
Operating expenses as a percentage of net sales18.1 %17.7 %17.6 %17.7 %
EBITDA margin (2) 13.1 %12.8 %13.3 %12.7 %
(1)Gross margin is gross profit as a percentage of net sales.
(2)EBITDA margin is earnings before interest, taxes, depreciation and amortization ("EBITDA") as a percentage of net sales.
Additional Information
The following table presents a reconciliation from EBITDA to net income:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Segment EBITDA
North America Automotive$208,328 $196,500 $364,533 $343,495 
International Automotive149,991 141,492 294,836 280,004 
Industrial316,447 288,138 630,567 566,849 
Corporate EBITDA (1)(107,813)(78,632)(227,338)(169,757)
Interest expense, net(45,800)(40,211)(89,753)(77,427)
Depreciation and amortization(134,716)(123,018)(265,744)(238,453)
Other unallocated costs(92,607)(45,712)(167,878)(114,517)
Income before income taxes293,830 338,557 539,223590,194 
Income taxes (66,272)(83,677)(123,130)(140,922)
Net Income $227,558 $254,880 $416,093 $449,272 
(1)Corporate EBITDA consists of costs related to our corporate headquarters' broad support to our business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology, cybersecurity, legal, corporate finance, internal audit, and risk management, as well as asbestos-related product liability costs and A/R Sales Agreement fees.
The following table presents a summary of the other unallocated costs:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Other unallocated costs:
Restructuring and other costs (2)$(76,438)$(45,712)$(134,170)$(100,482)
Separation costs (3)(16,169)— (33,708)— 
Acquisition and integration related costs and other (4)— — — (14,035)
Total other unallocated costs$(92,607)$(45,712)$(167,878)$(114,517)
(2)Refer to the Restructuring and Other Costs Footnote in the Notes to Condensed Consolidated Financial Statements for more information.
(3)Adjustment primarily reflects legal and professional services and executive incentive plan costs related to the planned separation of our Global Automotive and Global Industrial businesses that was announced on February 17, 2026 and is targeted for completion in the first quarter of 2027.
(4)Adjustment primarily reflects lease and other exit costs related to the integration of acquired independent automotive stores.
The following table presents a summary of our reportable segment total assets, as well as Corporate and other unallocated reconciling items:
As of June 30,
(in thousands)20262025
Assets:
North America Automotive$6,817,795 $7,149,458 
International Automotive3,994,000 4,188,295 
Industrial2,771,155 3,464,425 
Corporate (5)2,510,370 656,717 
Goodwill and other intangible assets4,964,973 4,972,172 
Total assets$21,058,293 $20,431,067 
Net property, plant and equipment:
United States$1,257,461 $1,199,197 
Europe413,861 417,116
Canada217,796 199,785
Australasia262,412 236,388
Mexico1,259 963
Total net property, plant and equipment$2,152,789 $2,053,449 
(5)Corporate is a reconciling category that includes our corporate offices, substantially all financing activities and any other items that are not allocated to the business segments.
The following table presents a summary of select financial information by reportable segment, as well as Corporate and other unallocated reconciling items:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
Depreciation and amortization:
North America Automotive$41,166 $29,108 $81,716 $61,389 
International Automotive33,025 28,503 63,598 56,325 
Industrial11,224 9,828 22,296 19,492 
Corporate10,240 17,788 19,273 26,585 
Intangible asset amortization39,061 37,791 78,861 74,662 
Total depreciation and amortization$134,716 $123,018 $265,744 $238,453 
Capital expenditures:
North America Automotive$39,923 $34,699 $52,726 $66,485 
International Automotive28,998 32,214 73,030 65,562 
Industrial8,376 4,070 20,448 19,236
Corporate30,542 58,001 59,187 97,541
Total capital expenditures$107,839 $128,984 $205,391 $248,824 
Net sales:
United States$4,185,683 $3,991,977 $8,199,885 $7,845,755 
Europe1,075,576 1,013,110 2,167,550 1,985,975 
Canada589,295 547,322 1,089,867 1,010,796 
Australasia654,141 586,697 1,282,624 1,139,051 
Mexico32,256 25,319 61,965 48,917 
Total net sales$6,536,951 $6,164,425 $12,801,891 $12,030,494 
Net sales are disaggregated by geographical region for each of our reportable segments, as we deem this presentation best depicts how the nature, amount, timing and uncertainty of net sales and cash flows are affected by economic factors. The following table presents disaggregated geographical net sales from contracts with customers by reportable segment:
Three Months Ended June 30,Six Months Ended June 30,
(in thousands)2026202520262025
North America:
Automotive$2,537,236 $2,444,377 $4,900,268 $4,709,158 
Industrial2,269,998 2,120,241 4,451,449 4,196,310 
Total North America $4,807,234 $4,564,618 $9,351,717 $8,905,468 
Australasia:
Automotive$512,536 $454,794 $1,006,078 $882,036 
Industrial141,605 131,903 276,546 257,015 
Total Australasia$654,141 $586,697 $1,282,624 $1,139,051 
Europe – Automotive$1,075,576 $1,013,110 $2,167,550 $1,985,975 
Total net sales$6,536,951 $6,164,425 $12,801,891 $12,030,494