LKQ (LKQ) Company Report

Q4 revenues of $3.3 billion, up 2.7% YoY; diluted EPS of $0.29 (includes $52 million goodwill impairment, ~$0.20/sh), and adjusted EPS of $0.59 vs. $0.78 prior-year.
2025 full-year diluted EPS of $2.31, adjusted EPS $3.01 (lower end of guidance); free cash flow of $847 million, and $469 million returned to shareholders (55% of FCF).
Segment EBITDA margins in Q4: North America 12.7% (–380 bps); Europe organic revenue down 5.2% (Q4) and 3.9% (FY), EBITDA margin 8.3% (–180 bps); Specialty organic growth 7.8% (Q4) and 2.7% (FY) with 4.5% EBITDA margin (+40 bps).
2026 guidance: organic parts & services revenue growth –0.5% to +1.5% (slightly positive North America, slightly negative Europe, mid-single-digit Specialty); adjusted EPS of $2.90–$3.20, underpinned by productivity and cost actions amid conservative volume assumptions.

Feb 19, 2026, 1:00 PM

Transcript

LKQ reports Q4 2025 results

LKQ

Earnings

Guidance Update

Share Buyback

Q4 2025 total revenue was $3,312 million (+2.7% YoY); adjusted EPS was $0.59 (–24.4% YoY).
Organic parts & services revenue declined 1.7% in Q4, with Specialty up 7.8% and Europe down 4.8%.
In 2025, operating cash flow totaled $1,063 million and free cash flow was $847 million; the company returned $469 million to shareholders (~55% of FCF), including $159 million in buybacks and $310 million in dividends.
Ended 2025 with a 2.4x leverage ratio after reducing debt by over $500 million in Q4; available liquidity stood at $2,204 million.
2026 outlook: organic revenue growth of –0.5% to 1.5%, adjusted EPS of $2.90–3.20, and free cash flow of $700–850 million.

Feb 19, 2026, 1:00 PM

Presentation

LKQ reports Q4 and full-year 2025 results

LKQ

Earnings

Guidance Update

Demand Weakening

LKQ delivered $825 million in free cash flow in 2025, completed the divestiture of its Self-Service segment, and reduced total debt by over $500 million to $3.7 billion (2.4× leverage) while returning $469 million (55% of FCF) to shareholders.
Organic revenue in North America fell 1% per-day in Q4 and 1.9% for the full year, driven by a 4–6% decline in repairable claims; Europe remains challenged but cost initiatives aim for near double-digit EBITDA in 2026.
The board initiated a comprehensive strategic review in late January 2026 to explore alternative structures for unlocking shareholder value, running alongside operational execution.
For 2026, LKQ guides organic parts & services revenue growth of -0.5% to +1.5% (slightly positive in North America, slightly negative in Europe, mid-single-digit growth in Specialty) and adjusted EPS of $2.90–$3.20, assuming no market recovery until volumes stabilize.

Feb 19, 2026, 1:00 PM

Transcript

LKQ reports Q4 2025 results

LKQ

Earnings

Guidance Update

$3.3 billion revenue (+2.7% y/y); adjusted EPS of $0.59 vs $0.78 prior-year; Q4 free cash flow of $274 million, bringing FY free cash flow to $847 million, above the $825 million target.
Organic parts and services revenue down 1% per-day in North America in Q4 (–1.9% FY) amid weak repairable claims; Europe segment EBITDA margin of 8.3%, down 180 bps y/y.
Completed divestiture of the self-service segment and returned $469 million (55% of FCF) to shareholders in 2025 via share repurchases and dividends.
In January 2026, the board initiated a comprehensive strategic review to explore alternative structures to unlock shareholder value.
2026 guidance: organic revenue growth of –0.5% to +1.5%; adjusted EPS of $2.90–$3.20; slight margin decline as existing tariffs annualize.

Feb 19, 2026, 1:00 PM

Transcript

LKQ Corp announces Q4 2025 results

LKQ

Earnings

Guidance Update

Share Buyback

Revenue for Q4 2025 was $3.312 billion, up 2.7% year-over-year; diluted EPS was $0.29 (GAAP) and $0.59 (adjusted) compared to $0.58 and $0.78 in Q4 2024.
Generated $1.063 billion of operating cash flow and $847 million of free cash flow in FY 2025.
Returned $116 million of capital to shareholders in Q4 2025—$40 million in share repurchases and $76 million in dividends—and $469 million for the full year.
The Board has initiated a comprehensive strategic review to enhance shareholder value, with no set timetable for a decision.
Provided 2026 guidance calling for organic revenue growth of –0.5% to 1.5%, diluted EPS of $2.35–$2.65 and adjusted EPS of $2.90–$3.20.

Feb 19, 2026, 12:33 PM

8-K

LKQ reports Q4 and full year 2025 results

LKQ

Earnings

Share Buyback

Guidance Update

Q4 2025 revenue was $3.3 billion, up 2.7% year-over-year; full-year revenue was $13.7 billion, down 1.3% versus 2024.
Q4 net income was $75 million (diluted EPS $0.29) versus $151 million ($0.58 EPS) in Q4 2024; FY 2025 net income was $596 million (diluted EPS $2.31) versus $666 million ($2.53 EPS) in FY 2024.
Operating cash flow for FY 2025 was $1.1 billion and free cash flow was $847 million; the company returned $116 million to shareholders in Q4 and $469 million for the full year through dividends and share repurchases.
The board has initiated a comprehensive review of strategic alternatives to enhance shareholder value, and provided 2026 guidance of $2.35–$2.65 diluted EPS (adjusted $2.90–$3.20).

Feb 19, 2026, 12:00 PM

Press Release

LKQ initiates formal strategic review to unlock value

LKQ

M&A

LKQ’s board has launched a formal review of strategic alternatives to identify the best path forward and unlock value not reflected in its current valuation.
The review follows earlier exploration of options for its Specialty segment and could include a potential sale of the company.
LKQ’s shares saw a modest dip after the announcement, indicating investor reaction to the strategic review.

Feb 2, 2026, 7:00 AM

WSJ

LKQ initiates strategic review to maximize shareholder value

LKQ

M&A

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.

Jan 26, 2026, 1:59 PM

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.

Jan 26, 2026, 1:55 PM

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