LKQ (LKQ) Company Report

On January 26, 2026, LKQ’s Board launched a comprehensive review of strategic alternatives, including a potential sale of the company, to unlock shareholder value.
The Company confirmed there is no set timetable for the review and that it may not result in any transaction or strategic outcome.
LKQ continues a separate process to explore the potential sale of its Specialty segment.
The Board has engaged BofA Securities as financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel for the review.

5 days ago

8-K

LKQ initiates strategic review to maximize shareholder value

LKQ

M&A

LKQ’s Board of Directors has launched a comprehensive review of strategic alternatives, including a potential sale of the company, to unlock shareholder value.
The company is separately continuing its process to explore the sale of its Specialty segment.
There is no deadline or definitive timetable for the review, nor any assurance it will result in a transaction.
LKQ has engaged BofA Securities as financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel for the review.

5 days ago

Press Release

LKQ Corp amends credit agreement

LKQ

Debt Issuance

On December 18, 2025, LKQ filed an 8-K attaching an Amended Credit Agreement dated January 5, 2023, among LKQ, its subsidiary borrowers, various lenders and agents (including Wells Fargo Bank, N.A. as Administrative Agent and Bank of America, N.A. as Syndication Agent).
The amendment refines core definitions (e.g., Benchmark Transition Event, “Change in Law”), classifies loan types (Multicurrency Tranche, Dollar Tranche, Revolving, Term and Swingline Loans) and updates rate mechanics (Term SOFR, Eurocurrency, Daily Simple RFR).
It details commitment and borrowing mechanics, including swingline loans, letters of credit, prepayment provisions, fee structures, interest calculations and tax allocations.
The agreement reinforces LKQ’s financing framework by codifying affirmative and negative covenants, financial reporting obligations, events of default and guarantor designations to maintain liquidity and compliance.

Dec 18, 2025, 2:01 PM

8-K

LKQ initiates sale process for Specialty segment

LKQ

M&A

LKQ Corporation commenced a process to explore the potential sale of its Specialty segment, a distributor of automotive, RV and marine parts in North America.
The move aligns with LKQ’s strategy to simplify its portfolio and focus on core segments, following the recent sale of its Self-Service segment.
LKQ has engaged Bank of America as financial advisor and Wachtell, Lipton, Rosen & Katz as legal counsel for the process.
There is no deadline or definitive timetable for completion, and no assurance the process will result in a sale.
Proceeds from any transaction would support LKQ’s capital allocation framework, including maintaining a strong balance sheet and returning value through share repurchases.

Dec 4, 2025, 12:12 PM

8-K

LKQ outlines growth trajectory at 49th Annual Automotive Symposium

LKQ

Revenue Acceleration/Inflection

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.