LKQ Corporation is a global distributor specializing in vehicle products, including replacement parts, components, and systems for vehicle repair and maintenance, as well as specialty aftermarket products and accessories that enhance vehicle performance, functionality, and appearance . The company operates through four main segments: Wholesale - North America, Europe, Specialty, and Self Service . LKQ Corporation sells vehicle products such as replacement parts and specialty products, and offers services including warranties, self-service yard fees, and diagnostic and repair services .
- Europe - Offers alternative vehicle replacement and maintenance products across various European countries.
- Wholesale - North America - Provides alternative vehicle collision replacement products, paint, and related products, and alternative vehicle mechanical replacement products in the United States and Canada.
- Specialty - Distributes specialty vehicle aftermarket equipment and accessories in the U.S. and Canada.
- Self Service - Operates retail facilities across the U.S. that sell recycled automotive products from end-of-life vehicles.
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| Name | Position | External Roles | Short Bio | |
|---|---|---|---|---|
Justin L. Jude ExecutiveBoard | President and CEO | Board Member of MEKO AB | Justin L. Jude has been with LKQ since February 2004, becoming President and CEO in July 2024. He has extensive experience in the automotive industry and strategic leadership. | |
Andy Hamilton Executive | Senior Vice President and President and Managing Director of LKQ Europe | None | Andy Hamilton joined LKQ in 2011 and has held various leadership roles, currently overseeing LKQ Europe since January 2024. | |
Dominick Zarcone Executive | President and CEO | Board Member at Generac Power Systems, Inc. | Dominick Zarcone has been with LKQ since March 2015, serving as President and CEO since May 2017. He has led significant growth and strategic initiatives, including acquisitions and sustainability efforts. | |
Genevieve L. Dombrowski Executive | Senior Vice President of Human Resources | None | Genevieve L. Dombrowski has been with LKQ since March 2021, bringing extensive HR leadership experience from Republic Services and Aramark. | |
Matthew J. McKay Executive | Senior Vice President, General Counsel, and Corporate Secretary | None | Matthew J. McKay has been with LKQ since December 2007, serving in various legal and HR roles before his current position. | |
Michael S. Clark Executive | Senior Vice President, Policy and Administration | None | Michael S. Clark joined LKQ in May 2008 and transitioned to his current role in May 2024. He previously served as Vice President - Finance and Controller. | |
Rick Galloway Executive | Senior Vice President and CFO | None | Rick Galloway joined LKQ in July 2019 and became CFO in September 2022. He has played a key role in financial performance and strategic acquisitions. | |
Walter P. Hanley Executive | Senior Vice President - Development | None | Walter P. Hanley has been with LKQ since December 2002, focusing on development and strategic growth initiatives [N/A]. | |
Andrew Clarke Board | Board Member | Board Member at Element Fleet Management | Andrew Clarke joined LKQ's Board in July 2024, bringing over 20 years of experience in transportation and logistics. | |
Guhan Subramanian Board | Chairman of the Board of Directors | Harvard University (Professor) | Guhan Subramanian has been Chairman since May 2022, bringing expertise in corporate law and governance from his academic roles at Harvard. | |
James S. Metcalf Board | Board Member | Board Member at Ferguson Enterprises Inc. and Gibraltar Industries, Inc. | James S. Metcalf joined LKQ's Board in December 2024, with extensive leadership experience as a public company CEO and board member. | |
John W. Mendel Board | Board Member | Board Member at TrueCar, Inc. | John W. Mendel has been a director since approximately 2019, providing insights from his extensive automotive industry experience. | |
Meg Ann Divitto Board | Board Member | Principal of Divitto Design Group, Co-Founder of The Mobility Collaboration Corp. | Meg Ann Divitto has been a director since approximately 2018, contributing expertise in automotive technology and governance. | |
Michael Powell Board | Board Member | None | Michael Powell joined LKQ's Board in February 2025, bringing experience from his career at Progressive Corporation. | |
Patrick Berard Board | Board Member | Board Member at thyssenkrupp AG | Patrick Berard joined LKQ's Board, leveraging his experience in distribution and corporate governance. | |
Sue Gove Board | Board Member | Board Member at IAA, Inc. and AutoZone Inc. | Sue Gove joined LKQ's Board in February 2025, with a background in retail consulting and leadership roles at Bed Bath & Beyond and other companies. | |
Xavier Urbain Board | Board Member | Chairman of the Board of Caldic B.V. | Xavier Urbain joined LKQ's Board in 2020, offering expertise in supply chain management and logistics. |
- Given the continued softness in organic revenue in North America and Specialty, and with top-line headwinds expected to linger into 2025 , can you elaborate on the specific strategies you have in place to mitigate these declines and how confident are you that these initiatives will offset the revenue pressures?
- You mentioned that the SKU rationalization in Europe is only 50% complete and won't be finished until early 2025, with benefits starting to show in the back half of 2025 ; considering the current economic slowdown in the U.K. and Germany , what measures are you taking to expedite this process to improve profitability sooner?
- With the recent sale of your Poland and Bosnia operations and indications of other potential divestitures , are there additional underperforming businesses in your portfolio, and how do these divestitures align with your long-term strategic vision for Europe?
- The hurricanes Helene and Milton forced significant closures of your locations in the Southeast and Florida, impacting revenue ; how have these disruptions affected your Q3 results, and what is your outlook for recovery in these regions amidst potential future climate-related challenges?
- In Europe, you cited increased competition and economic slowdowns in key markets like the U.K., Germany, and Benelux ; how are you positioning LKQ to navigate these headwinds, and what are your expectations for market share and profitability in these regions going forward?
Research analysts who have asked questions during LKQ earnings calls.
Bret Jordan
Jefferies
4 questions for LKQ
Craig Kennison
Robert W. Baird & Co. Incorporated
4 questions for LKQ
Gary Prestopino
Barrington Research
4 questions for LKQ
Jash Patwa
JPMorgan Chase & Co.
4 questions for LKQ
Scott Stember
ROTH MKM
4 questions for LKQ
Brian Butler
Stifel, Nicolaus & Company, Incorporated
2 questions for LKQ
Notable M&A activity and strategic investments in the past 3 years.
| Company | Year | Details |
|---|---|---|
Wholesale - North America (6 businesses) | 2024 | The six acquisitions completed during the nine months ended September 30, 2024 were not material to the company's financial position or results of operations, and no further deal-specific details were disclosed. |
Europe segment (2 businesses) | 2024 | Completed during the three months ended March 31, 2024, these two acquisitions were considered immaterial to LKQ’s financial metrics, with no details provided on deal value, structure, or key assets. |
Wholesale - North America (5 businesses) | 2024 | These five acquisitions, recorded as part of the Wholesale - North America segment as of June 30 and September 30, 2024, were not material to the financial results and included no specific disclosed terms or strategic assets. |
Europe segment (1 business) | 2024 | The one business acquisition in the Europe segment was completed as part of the periods ended March 31, June 30, and September 30, 2024, noted as not material to financial position or operations, without additional details provided. |
Wholesale - North America (1 business) | 2024 | Completed during the three months ended March 31, 2024, this acquisition in the Wholesale - North America segment was not material to LKQ’s financial performance and offered limited information on the transaction’s structure or strategic rationale. |
Uni-Select Inc. | 2023 | LKQ acquired Uni-Select Inc. for C$48.00 per share (totaling approximately C$2.8 billion) on August 1, 2023, to enhance its North American paint distribution and Canadian mechanical parts operations, with financing arranged through a CAD 700 million term loan and a required divestiture of GSF Car Parts. |
Wholesale - North America (1 business) | 2023 | As part of broader acquisitions during the nine months ended September 30, 2023, this single business acquisition contributed to increased inventory purchases and was included in an overall acquisition fair value of $135 million, though specific details remain limited. |
Europe segment (4 businesses) | 2023 | These four acquisitions, forming part of a group of six acquired during the nine months ended September 30, 2023, had a combined acquisition fair value of $135 million and contributed $42 million in revenue, but individual strategic or asset-related details were not provided. |
Specialty segment (1 business) | 2023 | The Specialty segment acquisition contributed $35 million in revenue and resulted in $61 million of recorded goodwill, with the transaction driving a 7.2% revenue increase over the three months ended September 30, 2023, though detailed terms and structure were not separately disclosed. |
SeaWide Marine Distribution | 2021 | Acquired in October 2021, SeaWide Marine Distribution—a nationwide distributor of electrical and electronic marine products—strengthened LKQ’s emerging marine market presence by integrating its operations into LKQ’s distribution network, achieving facility consolidation and cost savings. |
Independent car parts wholesaler in the Netherlands | 2022 | Completed in the first week of October 2022, this acquisition expanded LKQ’s footprint in the European automotive aftermarket, although the specific name and detailed transaction terms were not disclosed. |
Recent press releases and 8-K filings for LKQ.
- 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.
- 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%).
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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 .