v3.26.3
Segment Information
 9 Months Ended
Sep. 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 September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Net sales$2,540,319$2,484,591$7,440,587$7,193,749
Cost of goods sold 1,546,8601,511,4674,548,7044,394,276
Gross profit 993,459973,1242,891,8832,799,473
Operating expenses 799,599773,4982,333,4902,256,352
EBITDA$193,860$199,626$558,393$543,121
Gross margin (1) 39.1 %39.2 %38.9 %38.9 %
Operating expenses as a percentage of net sales31.5 %31.1 %31.4 %31.4 %
EBITDA margin (2) 7.6 %8.0 %7.5 %7.5 %
International Automotive Segment
The following table presents a summary of our reportable international automotive segment financial information:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Net sales$1,572,392$1,505,197$4,746,020$4,373,208
Cost of goods sold 839,041823,9392,559,3912,373,203
Gross profit 733,351681,2582,186,6292,000,005
Operating expenses 591,957546,1801,750,3991,584,923
EBITDA$141,394$135,078$436,230$415,082
Gross margin (1) 46.6 %45.3 %46.1 %45.7 %
Operating expenses as a percentage of net sales37.6 %36.3 %36.9 %36.2 %
EBITDA margin (2) 9.0 %9.0 %9.2 %9.5 %
Industrial Segment
The following table presents a summary of our reportable industrial segment financial information:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Net sales$2,408,597$2,270,444$7,136,592$6,723,769
Cost of goods sold 1,650,3371,583,4514,915,1304,683,860
Gross profit 758,260686,9932,221,4622,039,909
Operating expenses 441,333401,9781,273,9681,188,044
EBITDA$316,927$285,015$947,494$851,865
Gross margin (1)31.5 %30.3 %31.1 %30.3 %
Operating expenses as a percentage of net sales18.3 %17.7 %17.9 %17.7 %
EBITDA margin (2) 13.2 %12.6 %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 September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Segment EBITDA
North America Automotive$193,860 $199,626 $558,393 $543,121 
International Automotive141,394 135,078 436,230 415,082 
Industrial316,927 285,015 947,494 851,865 
Corporate EBITDA (1)(103,521)(93,374)(330,859)(263,131)
Interest expense, net(45,970)(40,342)(135,723)(117,769)
Depreciation and amortization(137,490)(127,475)(403,234)(365,928)
Other unallocated costs(86,552)(66,835)(254,430)(181,352)
Income before income taxes278,648 291,693 817,871881,887
Income taxes (54,201)(65,522)(177,331)(206,444)
Net Income $224,447 $226,171 $640,540 $675,443 
(1)Corporate EBITDA consists of costs related to our corporate headquarters' broad support to our business units and other costs that are managed centrally and not allocated to business segments. These include personnel and other costs for company-wide functions such as executive leadership, human resources, technology, cybersecurity, legal, corporate finance, internal audit, and risk management, as well as asbestos-related product liability costs and A/R Sales Agreement fees.
The following table presents a summary of the other unallocated costs:
Three Months Ended September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Other unallocated costs:
Restructuring and other costs (2)$(64,545)$(66,835)$(193,426)$(167,317)
Separation costs (3)(21,204)— (54,912)— 
Acquisition and integration related costs and other (4)(803)— (6,092)(14,035)
Total other unallocated costs$(86,552)$(66,835)$(254,430)$(181,352)
(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 September 30,
(in thousands)20262025
Assets:
North America Automotive$7,043,417 $6,558,099 
International Automotive4,088,804 3,943,045 
Industrial2,932,910 2,618,383 
Corporate (5)2,481,855 2,592,092 
Goodwill and other intangible assets4,950,169 4,983,249 
Total assets$21,497,155 $20,694,868 
Net property, plant and equipment:
United States$1,284,222 $1,219,552 
Europe406,995 416,685
Canada211,210 206,304
Australasia257,777 247,870
Mexico1,183 1,052
Total net property, plant and equipment$2,161,387 $2,091,463 
(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 September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
Depreciation and amortization:
North America Automotive$40,932 $39,873 $122,648 $101,262 
International Automotive36,366 31,070 99,964 87,395 
Industrial11,290 11,477 33,586 30,969 
Corporate9,643 6,128 28,916 32,713 
Intangible asset amortization39,259 38,927 118,120 113,589 
Total depreciation and amortization$137,490 $127,475 $403,234 $365,928 
Capital expenditures:
North America Automotive$42,228 $27,208 $94,954 $93,691 
International Automotive26,877 48,819 99,907 114,381 
Industrial6,500 12,712 26,948 31,948
Corporate33,480 12,882 92,667 110,423
Total capital expenditures$109,085 $101,621 $314,476 $350,443 
Net sales:
United States$4,222,485 $4,070,051 $12,422,370 $11,915,806 
Europe1,040,294 1,020,560 3,207,844 3,006,535 
Canada547,097 519,592 1,636,964 1,530,388 
Australasia680,565 623,343 1,963,189 1,762,394 
Mexico30,867 26,686 92,832 75,603 
Total net sales$6,521,308 $6,260,232 $19,323,199 $18,290,726 
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 September 30,Nine Months Ended September 30,
(in thousands)2026202520262025
North America:
Automotive$2,540,319 $2,484,591 $7,440,587 $7,193,749 
Industrial2,260,130 2,131,738 6,711,579 6,328,048 
Total North America $4,800,449 $4,616,329 $14,152,166 $13,521,797 
Australasia:
Automotive$532,098 $484,637 $1,538,176 $1,366,673 
Industrial148,467 138,706 425,013 395,721 
Total Australasia$680,565 $623,343 $1,963,189 $1,762,394 
Europe – Automotive$1,040,294 $1,020,560 $3,207,844 $3,006,535 
Total net sales$6,521,308 $6,260,232 $19,323,199 $18,290,726