Total Revenue

6.5% decline (from $3,703M to $3,463M)

Overall revenue fell by 6.5% in Q1 2025 due to a broad-based decline across key segments, reflecting softer demand and pricing pressures that build on prior period trends where various segments experienced organic slowdowns and market headwinds. " "

Wholesale – North America

5.9% decline (from $1,500M to $1,412M)

The segment saw a 5.9% drop, driven by an organic revenue decline and negative market conditions such as increased competition and lower aftermarket volumes, echoing earlier challenges observed in previous periods. " " "

Europe

7.4% decline (from $1,644M to $1,522M)

Europe’s revenue fell by 7.4%, mainly due to reduced organic sales volumes, unfavorable foreign exchange impacts, and the residual effects of prior divestitures, indicating that ongoing economic challenges in the region have compounded past underperformance. " " "

Specialty Revenue

6.9% decline (from $423M to $394M)

Specialty revenue dropped by 6.9%, reflecting continued softness in demand for automotive and RV product lines—a trend that was evident in previous periods—further emphasizing the difficulty in offsetting declines through acquisition-related boosts. " " "

Self Service

Approximately flat (around $137M vs $136M)

Self Service remained stable, suggesting that operational initiatives and a balanced parts volume helped this segment maintain revenue levels despite broader market pressures seen in other areas. " " "

Profitability Metrics

Operating income of $287M and net income of $169M; margins of 8.3% and 4.9%

Margins compressed to 8.3% (operating) and 4.9% (net), indicating that cost pressures, lower revenue across segments, and challenges in managing expense growth have carried forward from past periods into the current quarter. " This highlights the need for focused cost control and pricing strategy adjustments moving forward.

Cash and Cash Equivalents

Declined to $227M

Liquidity has tightened, with cash falling to $227M; this change reflects cumulative effects from reduced operating cash flows, heightened financing outlays (including treasury stock purchases), and adverse foreign exchange impacts when compared to previous data points. " This reduced cash cushion may pose challenges for future strategic initiatives.

Foreign Exchange Rates

FY 2025

no prior guidance

Euro: $1.08, Pound Sterling: $1.28, Canadian Dollar: $0.70 "

no prior guidance

Global Tax Rate

FY 2025

27.0% "

27.0% "

no change

Organic Parts and Services Revenue Growth

FY 2025

0% to 2% "

0% to 2% (likely toward the lower end) "

no change

Adjusted Diluted EPS

FY 2025

$3.40 to $3.70 "

$3.40 to $3.70 "

no change

Free Cash Flow

FY 2025

$750 million to $900 million "

$750 million to $900 million "

no change

Specialty Segment EBITDA Margin

FY 2025

~7% to 8% "

around the low end of 7% to 8% "

no change

North America EBITDA Margin

FY 2025

low 16% range "

low 16% range "

no change

Europe EBITDA Margin

FY 2025

double digits "

double digits "

no change

Tariff Impacts

FY 2025

no prior guidance

excludes material impacts from tariffs "

no prior guidance

Repairable Claims Dynamics

Q2 2024 saw a temporary 7% decline driven by weather and economic factors. " " Q3 2024 reported a larger-than-expected decline (up to 9.5%) with impacts from rising insurance premiums and lower used car values. " " " Q4 2024 noted a 6% decline, with some moderation in insurance premiums and early signs of stabilization from improved used car pricing. " " " "

In Q1 2025, the North America segment experienced a decline in organic revenue due to repairable claims (and one fewer selling day), which was partly offset by targeted actions, a slight tick-up in used car pricing, and strong market share gains. " " " "

Improving sentiment: While declines persist, targeted actions, tariff benefits, and market share gains indicate a recovery effort compared to previous sharp declines.

ADAS Impact on Repairable Claims

In Q2 2024, ADAS was mentioned as reducing repairable claims by about 1% per year due to its longstanding presence since 2016, even as market complexity increased. " " Q3 and Q4 2024 did not address this topic.

Q1 2025 did not mention ADAS impact on repairable claims [No citation].

Disappeared: Previously discussed in Q2 2024, ADAS is no longer mentioned in Q1 2025 discussions.

European SKU Rationalization Strategy

Q2 2024 detailed an initiative to cut redundant SKUs by about 30% over three years, streamlining operations. " " In Q3 2024, about 50% of the project scope (425,000 SKUs) was reviewed with implementation set for the latter half of 2025. " " Q4 2024 provided updated targets (reduction of over 30,000 SKUs) and benefits in procurement and margins. " "

In Q1 2025, the project advanced further – over 60% of the product brands have been reviewed and an additional 17,000 SKUs have been removed. Targets have been refined (from about 750 million to 600 million items by 2027), with added emphasis on increasing private label penetration. " " "

Acceleration and clarity: Consistent focus with more aggressive SKU elimination targets and clearer strategic milestones in Q1 2025.

Private Label Growth

Q4 2024 highlighted private label parts representing about 20% of revenue in Europe, with an opportunity to grow to 30% (a strategy linked to SKU rationalization). " " Q2 and Q3 2024 had little to no mention on this topic.

Q1 2025 reported that private label revenue now contributes between 21% and 22%, with an updated long-term target of 30% by 2030. There was also mention of a 20 basis point improvement in penetration, underscoring its strategic importance in both European and U.S. operations. " " "

Steady growth: Continued commitment and incremental gains in private label penetration, reinforcing it as a pillar of margin improvement.

Share Repurchase Program

Q2 2024 noted active share repurchases with $125 million deployed and a strong emphasis on capital allocation. " " Q3 2024 highlighted buybacks of 3 million shares ($125 million) and an increase in the repurchase authorization by $1 billion. " Q4 2024 reported repurchasing 2 million shares for $80 million, with $1.7 billion still remaining. " "

Q1 2025 mentioned allocating $40 million for share repurchases, repurchasing 1 million shares, as part of a continued disciplined capital allocation strategy. " " "

Consistent activity with lower Q1 pace: Ongoing share repurchase initiatives continue, though the Q1 2025 activity is lower relative to later quarters, possibly due to capital reallocation or seasonality.

Tariff Mitigation and Uncertainty

Q4 2024 discussed limited exposure (with less than 5% of imports from key markets) and the potential for a transitory competitive advantage if competitors are more affected by tariffs. " " No details appeared in Q2 or Q3 2024.

In Q1 2025, a detailed global tariff task force was highlighted. The company is actively seeking vendor cost concessions, optimizing the supply chain, and leveraging tariff impacts (such as rising used car values) to benefit repairable claims. This proactive stance even includes considering private label introductions to navigate industry disruptions. " " " "

Increased proactiveness: A sharper, organized response via a global task force shows a more active stance in managing tariff uncertainty compared to Q4 2024.

European Market Economic Headwinds and Price Competition

Q2 2024 reported modest growth hindered by high inflation, strikes in Germany, and aggressive pricing by smaller competitors. " " " " Q3 2024 described continued challenges in key markets (Germany, UK, Benelux) with aggressive price competition and slow recovery, though some margin benefits were noted. " " " Q4 2024 evidenced record margins in Europe despite headwinds, aided by operational simplification. " " "

In Q1 2025, economic headwinds remain evident with consumer delays in repairs, soft consumer confidence, and macroeconomic instability across European markets. However, the company continues to mitigate these pressures through initiatives like SKU rationalization and maintaining market share. " " " "

Persistent challenges with mitigating actions: European markets remain difficult, but continuous strategic initiatives aim to offset the adverse effects of price competition and economic headwinds.

Portfolio Review and Potential Divestitures

Q2 2024 detailed divestitures in Poland (ELIT Polska) and others in Bosnia and Slovenia, part of a broader portfolio streamlining effort. " " Q3 2024 noted completed divestitures in Poland and Bosnia, with hints of an upcoming small North American transaction. " Q4 2024 reviewed five European divestitures representing $153 million in revenue. " " "

In Q1 2025, the portfolio review continued with the divestiture of two operations (a Florida self-serve yard and a Europe-based noncore leisure business), reinforcing the strategy of simplifying the portfolio. "

Ongoing simplification: The portfolio review remains a steady focus. While the divestitures in Q1 2025 are smaller in scale, they align with the long-term strategy for operational clarity.

Integration of Acquired Businesses

Q2 2024 discussed integrating FinishMaster, Uni-Select, and tuck-in acquisitions (noting short-term dilution in margins). " " In Q3 2024, efforts to consolidate operations (including closing seven more Uni-Select locations) and stabilize FinishMaster were emphasized. " " " Q4 2024 detailed the rapid completion of FinishMaster integration and leadership changes in Europe to support further consolidation. " " "

Q1 2025 emphasized accelerating integration in Europe, stressing that improved change management is mission-critical. There has been significant leadership turnover to drive operational excellence and realize the full benefits of the European integration effort. "

Accelerated focus: Integration, especially of European operations, is being prioritized with leadership changes, reinforcing the commitment to drive efficiencies post-acquisition.