Organic Parts and Services Revenue Growth

FY 2025

0% to 2% "

negative 150 basis points to negative 350 basis points "

lowered

Adjusted Diluted EPS

FY 2025

$3.40 to $3.70 "

$3 to $3.3 "

lowered

Free Cash Flow

FY 2025

$750 million to $900 million "

$600,000,000 to $750,000,000 "

lowered

Cost Management and Margin Protection

Discussed in Q1 2025 with detailed segment analyses (e.g. North America, Europe, Specialty) " " , in Q4 2024 with restructuring and cost‐controls " " " , and in Q3 2024 with restructuring, lean initiatives and productivity measures " "

Emphasis on ongoing cost‐cutting measures (e.g. $125M removed, additional $75M targeted) and margin pressures in North America and Europe " " "

Consistent focus across periods; while cost management remains a key priority, current sentiment reflects continued pressure on margins due to market challenges.

Tariff Impact and Mitigation Strategies

Detailed in Q1 2025 with task force and supplier collaboration " " , discussed in Q4 2024 with risk quantification and supply chain differentiation " " ; not mentioned in Q3 2024

Focus on $35M headwind from tariffs, proactive price adjustments and monitoring of trade working capital challenges " " " "

Recurring attention with a proactive stance; though not mentioned in Q3 2024, the current period underlines a maintained and evolving mitigation approach amid persistent uncertainties.

European Operational Challenges and SKU Rationalization

Addressed in Q1 2025 with leadership changes and substantial SKU reviews " " " , in Q4 2024 with large-scale SKU reductions and cautious implementation " " , and in Q3 2024 with progress on reviewing product groups " " "

Ongoing cost-cutting in Europe with resolution of customer experience issues, leadership changes and progress (additional 13,000 SKUs reduced) " " "

Persistent focus; while challenges remain, current progress in SKU rationalization and leadership initiatives indicate gradual improvements and a positive outlook for European operations.

North American Repairable Claims Dynamics

Detailed in Q1 2025 with significant outperformance over declining claims " " , in Q4 2024 with a noted 6% decline and factors like insurance premiums and used car pricing " " " , and in Q3 2024 with even sharper declines and competitive pressures " " "

Repairable claims decline by 2.2% per day, with performance still outperforming market trends by 650 basis points, reflecting efforts to gain share " " "

Consistent concern; although the decline remains, the current period suggests less severe declines and improved relative performance, signaling incremental market share gains.

Private Label Growth and Margin Expansion

Discussed in Q1 2025 with a 20 basis point increase and margin improvements across segments " " " , and in Q4 2024 with clear targets and margin benefits " " ; no specific detail in Q3 2024

Emphasis on private label penetration (up 20 basis points YTD, targeting 27% by 2027) and margin enhancement initiatives, alongside cost-cutting efforts " " "

Steady drive; the focus on private label growth remains consistent with ambitious targets and supportive margin expansion strategies, reinforcing long-term profitability efforts.

Market Share Gains and Service Excellence

Highlighted in Q1 2025 by market outperformance and service initiatives " " and in Q3 2024 with steady market share despite volume declines and strong service claims " " " ; not mentioned in Q4 2024

Continued emphasis on maintaining high service levels and achieving market share gains in both North America and Europe, with evidence of renegotiated key accounts " " "

Positive and steady; service excellence drives market share gains consistently, even under challenging conditions, underscoring its large potential impact on future competitive positioning.

Integration of Acquired Businesses

Addressed in Q1 2025 with European operational integration via leadership changes " , in Q4 2024 with the FinishMaster integration and consolidation " " , and in Q3 2024 with Uni-Select integration and rationalization efforts " " "

Focus on integration and transformation in Europe highlighted through leadership and operational changes as part of a broader transformation strategy " "

Ongoing and strategic; while integration was heavily emphasized in earlier periods, current commentary shows a renewed focus on streamlining European operations, which is likely to boost future efficiencies.

Share Repurchase Strategy

Discussed in Q1 2025 with active repurchases (1M shares for $40M) and capital return plans " " , in Q4 2024 with major repurchase activities and remaining authorization " " " " , and in Q3 2024 with increased activity and expanded authorization " "

Continued repurchase activity with $117M returned (repurchasing 1M shares and distributing dividends), underscoring a balanced capital allocation focus "

Consistent and confident; all periods stress repurchases as a key capital allocation strategy, with ongoing high levels of investor returns reflecting strong shareholder confidence.

Economic Slowdown and Industry Headwinds

Covered in Q1 2025 discussing tariff impacts, repairable claims decline and macro pressures " " " , in Q4 2024 with identified inflation, commodity price and FX headwinds affecting margins " " " , and in Q3 2024 with detailed regional slowdowns and competitive dynamics " " "

Recognition of persistent macroeconomic challenges including declining claims, tariff uncertainties and competitive pressures in both North America and Europe " " "

Persistent challenge; economic and industry headwinds remain a constant presence; current period reflects continued caution but also concrete strategic responses to mitigate these pressures.

Portfolio Review and Potential Business Divestitures

Discussed in Q1 2025 with divestiture of noncore assets (Florida, European leisure business) " , in Q4 2024 with an ongoing review and five divestitures noted, primarily in Europe " , and in Q3 2024 with completed divestitures in Poland and Bosnia and further reviews ongoing " "

Reiterated commitment to portfolio simplification and potential sales to support the transformation strategy, aligning with a disciplined capital allocation approach " " "

Steadily active; the focus on portfolio review and divestitures remains integral to the simplification strategy, ensuring the business remains streamlined and aligned with core strategic objectives.

Nonrecurring Items Impact on EBITDA Margins

Addressed in Q3 2024 with impacts from prior year tax audit matters leading to a 90 basis point improvement " , and in Q4 2024 with clear delineation of nonrecurring legal settlements and severance adjustments impacting margins " " ; not explicitly noted in Q1 2025

Q2 2025 references a European margin decline of 50 basis points once adjusted for prior nonrecurring benefits "

Consistent monitoring; while nonrecurring items have historically affected EBITDA margins, the current period focuses on the underlying operating performance after normalizing these effects.