LKQ (LKQ) Company Report

Through acquisitions and organic expansion, LKQ’s revenue grew from $328 million in 2003 to $12.8 billion in 2022, reaching $13.6 billion TTM as of Q3 2025.
The company has evolved into a globally diversified alternative parts distributor, operating ~$6 billion in Wholesale North America and over $6 billion in Europe.
LKQ’s network delivers a 75% fill rate, significantly outperforming competitors at 25%, highlighting its distribution advantage.
Key strategic priorities include organic revenue growth, operational excellence, disciplined capital allocation to high-ROIC projects, and returning excess free cash flow to shareholders.

Nov 4, 2025, 4:30 PM

Presentation

LKQ reports Q3 2025 results

LKQ

Earnings

Dividends

Share Buyback

LKQ delivered Q3 2025 revenue of $3.499 billion, a 1.3% year-over-year increase, with organic parts and services revenue down 1.2%.
Segment EBITDA was $395 million, a 6.0% decline YoY, and diluted EPS was $0.69 (adjusted EPS $0.84), down 2.8% and 2.3%, respectively.
YTD through Q3, operating cash flow totaled $733 million and free cash flow was $573 million; the company returned $353 million to shareholders (62% of FCF), including $119 million in buybacks and $234 million in dividends; in Q3 alone, repurchases were $40 million and dividends $78 million.
Completed the sale of its Self Service segment on September 30, used proceeds to repay $390 million of debt, and maintains $1.6 billion remaining authorization for share repurchases through October 2026.
Specialty segment achieved 9.4% organic growth—the first positive quarter since Q4 2021—and full-year 2025 adjusted EPS outlook is $3.00 to $3.15, with organic P&S revenue growth expected at (3.0%) to (2.0%).

Oct 30, 2025, 12:00 PM

Presentation

LKQ reports Q3 2025 results

LKQ

Earnings

Guidance Update

Share Buyback

Revenue of $3.5 billion (+1.3% YoY); GAAP diluted EPS of $0.69 and adjusted diluted EPS of $0.84 (vs. $0.86 prior year).
Full-year 2025 guidance narrowed to adjusted diluted EPS of $3.00–$3.15, raising the midpoint to $3.07 on a like-for-like basis; organic parts & service revenue now expected at –200 to –300 bps and free cash flow of $600–$750 million.
Divested Self Service segment for $410 million to Pacific Avenue Capital Partners; proceeds used to repay $390 million of debt and the unit is reported as discontinued operations.
Segment performance: Wholesale North America EBITDA margin of 14.0% (–180 bps YoY), Europe margin 10.0% (–20 bps YoY, +60 bps sequential), and Specialty delivered 9.4% organic revenue growth—first positive quarter in 14 quarters.
Strong cash generation and capital allocation: Q3 free cash flow of $387 million (YTD $573 million); returned $118 million to shareholders (repurchased $40 million of shares, paid $78 million dividend); leverage at 2.5× EBITDA post-Q3, further reduced on October 1.

Oct 30, 2025, 12:00 PM

Transcript

LKQ reports Q3 2025 results

LKQ

Earnings

Guidance Update

M&A

Completed sale of the self-service segment for $410 million, with proceeds used to repay $390 million of revolver borrowings, ending Q3 with $4.2 billion total debt and a 2.5× leverage ratio.
Q3 revenue of $3.5 billion (+1.3% YoY) and adjusted diluted EPS of $0.84, generating $387 million in free cash flow (YTD $573 million).
Q3 segment EBITDA margins: 14.0% in Wholesale North America (–180 bps YoY), 10.0% in Europe (+60 bps sequential), and 7.3% in Specialty.
Narrowed full-year 2025 adjusted EPS guidance to $3.00–$3.15 (midpoint $3.07) and returned $118 million to shareholders via $40 million in share repurchases and $78 million in dividends YTD.

Oct 30, 2025, 12:00 PM

Transcript

LKQ reports Q3 2025 results

LKQ

Earnings

Guidance Update

Share Buyback

Q3 total revenues of $3.5 billion (+1.3% YoY) and adjusted diluted EPS of $0.84, versus $0.86 in Q3 2024; GAAP diluted EPS was $0.69.
Completed sale of Self Service segment for $410 million, reclassified as discontinued operations; proceeds used to pay down debt and strengthen the balance sheet.
Narrowed full-year 2025 adjusted EPS guidance to $3.00–3.15, raising the midpoint to $3.07 on a like-for-like basis after the Self Service divestiture.
Generated $387 million of free cash flow in Q3 (YTD $573 million) and returned $118 million to shareholders via $40 million in share repurchases and $78 million in dividends.
Repaid $262 million of debt during Q3 and an additional $390 million on October 1, ending with a leverage ratio of 2.5× EBITDA, supporting investment-grade ratings.

Oct 30, 2025, 12:00 PM

Transcript

LKQ announces Q3 2025 earnings results

LKQ

Earnings

Guidance Update

Share Buyback

LKQ reported Q3 revenue of $3,499 million, up 1.3% year-over-year.
Net income from continuing operations was $178 million with diluted EPS of $0.69 and adjusted diluted EPS of $0.84.
Returned $118 million to shareholders, including $40 million of share repurchases and $78 million in dividends.
Updated full-year 2025 outlook, raising the midpoint of adjusted EPS guidance to $3.00–$3.15, following the Self Service divestiture.

Oct 30, 2025, 11:41 AM

8-K

LKQ completes sale of Self Service segment

LKQ

M&A

LKQ sold its Self Service (“Pick Your Part”) segment to an affiliate of Pacific Avenue Capital Partners for an enterprise value of $410 million, subject to customary purchase price adjustments.
The transaction closed on October 1, 2025, and the segment will be reported as discontinued operations beginning in Q3 2025 earnings.
Sale proceeds will be used to strengthen the balance sheet through debt repayment within the company’s disciplined capital allocation framework.
Jefferies LLC served as financial advisor and Wachtell, Lipton, Rosen & Katz acted as legal advisor to LKQ on the transaction.

Oct 1, 2025, 3:09 PM

8-K

LKQ completes sale of Self Service segment

LKQ

M&A

LKQ finalized the sale of its Self Service segment (“Pick Your Part”) to an affiliate of Pacific Avenue Capital Partners for an enterprise value of $410 million.
The proceeds will be used for debt repayment and balance sheet strengthening under its disciplined capital allocation strategy.
The Self Service segment will be reported as discontinued operations in all current and prior comparable periods beginning with the Q3 2025 earnings release on October 30, 2025.

Oct 1, 2025, 2:36 PM

Press Release

LKQ reports Q2 2025 earnings

LKQ

Earnings

Guidance Update

Demand Weakening

LKQ reported Q2 revenues of $3.6 B, GAAP diluted EPS of $0.75, and adjusted EPS of $0.87, down $0.11 YoY; free cash flow was $243 M (YTD $186 M), and it returned $117 M to shareholders via $39 M buybacks and $78 M dividends.
North America organic revenue declined 2.2% per day and Europe by 3.8% per day, with aftermarket collision parts showing slight growth in NA; minimal recovery in repairable claims is now expected in H2 2025.
Margin pressures drove North America segment EBITDA margin to 15.8% (down 150 bps) and Europe to 9.4% (down 120 bps, 50 bps excluding a prior-year benefit), due to competitive and macro headwinds.
The full-year outlook was lowered to organic parts & services revenue of -1.5% to -3.5%, adjusted EPS of $3.00–$3.30, and free cash flow of $600 M–$750 M, reflecting tariff impacts and delayed repairable-claim recovery.

Jul 24, 2025, 10:40 PM

LKQ Corp Q1 2025 Earnings Results and Strategic & Financial Update

LKQ

Earnings

Dividends

Share Buyback

Guidance Update

Strategic Initiatives

Reported Q1 2025 earnings with adjusted EPS of $0.79 and diluted EPS of $0.65 (a 10.2% YoY increase) .
Achieved Segment EBITDA of $404 million with stable margins; North America delivered a 15.7% EBITDA margin while Europe improved by 60 bps to 9.3% .
Revenue reached $3.5 billion in Q1 2025, reflecting a 6.5% decline compared to Q1 2024 .
Delivered strong shareholder returns with $78 million in dividends and a $40 million share repurchase; declared a $0.30 per share dividend for Q2 2025 .
Established a global tariff task force to address supply chain exposure—especially from Taiwan—by leveraging supplier cost-sharing and passing price increases to customers .
Provided full-year FY 2025 guidance: adjusted diluted EPS of $3.40 to $3.70 and operating cash flow between $1.075 and $1.275 billion .

Apr 24, 2025, 12:01 PM

Transcript Presentation 8-K

Earnings Transcripts

Quarterly earnings call transcripts for LKQ.