LKQ Corporation Announces Results For Third Quarter 2026

LKQ Corporation Announces Results For Third Quarter 2026 ANTIOCH, Tenn., Oct. 29, 2026 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) today reported third quarter 2026 financial results.

Commenting on the third quarter, John Mendel, Chairman of the Board of LKQ, said: “LKQ remains a fundamentally strong enterprise, supported by its scale, leading positions across key markets, and global distribution platform. At the same time, our recent financial and operating performance has not reflected the strength of the business or met the standards we expect, particularly in Europe. The Board has been deeply engaged in addressing these challenges, and the appointment of a new CEO, leadership changes in Europe, and the engagement of Alvarez & Marsal are important steps in a broader effort to improve execution and financial performance. We believe LKQ has significant strengths that are not currently reflected in its operating performance, and our focus is on translating those strengths into improved performance and increased value for our shareholders.”

Third Quarter 2026 Financial and Operating Results

Revenue for the third quarter of 2026 was $3.3 billion, a decrease of 5.1% compared to $3.5 billion for the third quarter of 2025. Total parts and services revenue decreased 5.6%, which included a 5.4% decrease in parts and services organic revenue, a 0.7% decrease from foreign exchange rates year over year, and the net impact of acquisitions and divestitures, which increased revenue by 0.6%.

Net loss 2 was $24 million, including $111 million of pre-tax non-cash impairment charges, compared to net income of $178 million for the same period of 2025. Diluted loss per share 2 was $(0.09) compared to diluted earnings per share 2 of $0.69 for the same period of 2025.

On an adjusted basis, net income 1,2 was $127 million compared to $216 million for the same period of 2025. Adjusted diluted earnings per share 1,2 was $0.50 compared to $0.84 for the same period of 2025.

“The third quarter was characterized by weakness in our Europe segment, driven by operational issues related to the ERP implementation in Germany and volume declines in the United Kingdom and Benelux. Specialty was modestly below plan. North America performed in line with expectations despite a softer demand environment,” said Rick Galloway, Chief Financial Officer of LKQ.

Cash Flow and Balance Sheet

Cash flow from operations 3 and free cash flow 1,3 were $411 million and $372 million, respectively, for the third quarter of 2026. Cash flow from operations 3 and free cash flow 1,3 were $466 million and $336 million, respectively, for the nine months ended September 30, 2026. As of September 30, 2026, the balance sheet reflected total debt of $3.7 billion and total leverage, as defined in our credit facility, was 2.8x EBITDA.

Returning Capital to Shareholders

During the third quarter of 2026, the Company invested $30 million to repurchase 1.2 million shares of its common stock and distributed $76 million in cash dividends. For the nine months ended September 30, 2026, the Company returned $313 million to its shareholders by investing $83 million to repurchase 3.1 million shares of its common stock and distributing $230 million in cash dividends. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 72 million shares of its common stock for a total of $3.0 billion through September 30, 2026. As of September 30, 2026, there was $1.5 billion remaining on the authorization.

On October 25, 2026, the Board authorized a two-year extension to its stock repurchase program, authorizing repurchases through October 25, 2028.

On October 27, 2026, the Board declared a quarterly cash dividend of $0.30 per share of common stock, payable on December 3, 2026, to stockholders of record at the close of business on November 19, 2026.

Strategic Review

Alongside the recent leadership changes, the Board has decided to suspend the strategic review, including the Specialty segment sales process. This will provide the new leadership team the opportunity to conduct a comprehensive assessment of the business and evaluate the full range of value‑creation pathways available to the Company.

The Board will continue to oversee the strategic direction, protect shareholder interests, and ensure accountability. This includes evaluating opportunities that it believes could enhance shareholder value and optimize the Company’s strategic positioning over the long term.

Other Events

On October 23, 2026, the Company announced that the Board appointed Salvatore A. “Sal” Abbate as President and Chief Executive Officer, effective December 15, 2026. Mr. Abbate brings more than three decades of experience leading large, complex distribution and industrial businesses. As CEO of Veritiv Corporation, he led a significant transformation of the company, with its share price increasing more than 13-fold during his tenure, culminating in its $2.6 billion sale to Clayton, Dubilier & Rice in 2023. Before becoming CEO, he served as Veritiv’s Chief Operating Officer and Chief Commercial Officer. Earlier in his career, Mr. Abbate held senior leadership roles at Andersen Windows & Doors, Solutia, Inc., now part of Eastman Chemical Company, and Armstrong World Industries, with responsibilities spanning sales, marketing, distribution, logistics, manufacturing, strategy and process improvement.

On October 23, 2026 the Company announced that it is withdrawing its full-year 2026 guidance, which was most recently updated on July 30, 2026.

Non-GAAP Financial Measures

This release contains (and management’s presentation on the related investor conference call will refer to) non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included with this release are reconciliations of each non-GAAP financial measure with the most directly comparable financial measure calculated in accordance with GAAP.

Conference Call Details

LKQ will host a conference call and webcast on October 29, 2026 at 8:00 a.m. Eastern Time (7:00 a.m. Central Time) with members of senior management to discuss the Company's results. To access the conference call, please dial (833) 461-5787. International access to the call may be obtained by dialing (626) 884-3620. The conference call will require you to enter conference ID: 778680119.

Webcast and Presentation Details

The audio webcast and accompanying slide presentation can be accessed at ( www.lkqcorp.com) in the Investor Relations section.

An online replay of the audio webcast will be available on the Company's website and can be accessed through the Investor Relations section, investor.lkqcorp.com under “Events”. Please allow approximately two hours after the live presentation before attempting to access the replay.

About LKQ Corporation

LKQ Corporation ( www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. LKQ offers its customers a broad range of OEM recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.

Forward-Looking Statements

Statements and information in this press release and on the related conference call, including our outlook for 2026, as well as remarks by the Chairman of the Board and members of management, that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the “safe harbor” provisions of such Act.

Forward-looking statements include, but are not limited to, statements regarding our outlook, expectations, beliefs, hopes, intentions and strategies. These statements are subject to a number of risks, uncertainties, assumptions and other factors including those identified below. All forward-looking statements are based on information available to us at the time the statements are made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.

You should not place undue reliance on our forward-looking statements. Actual events or results may differ materially from those expressed or implied in the forward-looking statements. The risks, uncertainties, assumptions and other factors that could cause actual events or results to differ from the events or results predicted or implied by our forward-looking statements include the factors set forth below, and other factors discussed in our filings with the SEC, including those disclosed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 and in our subsequent Quarterly Reports on Form 10-Q. These reports are available at the Investor Relations section on our website (www.lkqcorp.com) and on the SEC's website (www.sec.gov).

These factors include the following (not necessarily in order of importance):

Contact:

Joseph P. Boutross - Vice President, Investor Relations

LKQ Corporation

(312) 621-2793

jpboutross@lkqcorp.com

(1) Non-GAAP measure. See the table accompanying this release that reconciles the actual or forecasted U.S. GAAP measure to the actual or forecasted adjusted measure, which is non-GAAP.

(2) References in this release to Net income or Net loss and Diluted earnings or loss per share, and the corresponding adjusted figures, reflect amounts from continuing operations attributable to LKQ stockholders.

(3) Cash flow from operations and free cash flow include both continuing and discontinued operations.

(1) Amounts presented contain results from both continuing and discontinued operations.

(2) For the periods ended September 30, 2026 and December 31, 2025, includes $10 million and $13 million of restricted cash included in Other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets, respectively.

The following unaudited tables compare certain third party revenue categories:

Revenue changes by category for the three months ended September 30, 2026 vs. 2025:

(1) We define organic revenue growth as total revenue growth from continuing operations excluding the effects of acquisitions and divestitures (i.e., revenue generated from the date of acquisition to the first anniversary of that acquisition, net of reduced revenue due to the disposal of businesses) and foreign currency movements (i.e., impact of translating revenue at different exchange rates). Organic revenue growth includes incremental sales from both existing and new (i.e., opened within the last twelve months) locations and is derived from expanding business with existing customers, securing new customers and offering additional products and services. We believe that organic revenue growth is a key performance indicator as this statistic measures our ability to serve and grow our customer base successfully.

(2) The sum of the individual revenue change components may not equal the total percentage change due to rounding.

The following unaudited tables compare certain third party revenue categories:

Revenue changes by category for the nine months ended September 30, 2026 vs. 2025:

(2) The sum of the individual revenue change components may not equal the total percentage change due to rounding.

The following unaudited table compares revenue and Segment EBITDA by reportable segment:

We have presented Segment EBITDA solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our segment profit and loss and underlying trends in our ongoing operations. We calculate Segment EBITDA as Net Income and Loss excluding net income and loss attributable to noncontrolling interest; income and loss from discontinued operations; depreciation; amortization; interest; gains and losses on debt extinguishment; income tax expense; restructuring and transaction related expenses; change in fair value of contingent consideration liabilities; other gains and losses related to acquisitions, equity method investments, or divestitures; equity in losses and earnings of unconsolidated subsidiaries; equity investment fair value adjustments; impairment charges; and direct impacts of the Ukraine/Russia conflict. Our chief operating decision maker ("CODM"), who is our Chief Executive Officer, uses Segment EBITDA as the key measure of our segment profit or loss. The CODM uses Segment EBITDA to compare profitability among our segments and evaluate business strategies. This financial measure is included in the metrics used to determine incentive compensation for our senior management. We also consider Segment EBITDA to be a useful financial measure in evaluating our operating performance, as it provides investors, securities analysts and other interested parties with supplemental information regarding the underlying trends in our ongoing operations. Segment EBITDA includes revenue and expenses that are controllable by the segment. Corporate general and administrative expenses are allocated to the segments based on usage, with shared expenses apportioned based on the segment's percentage of consolidated revenue. Refer to the table on the following page for a reconciliation of net income to Segment EBITDA.

The following unaudited table reconciles Net Income (Loss) to Segment EBITDA:

(1) Includes a $44 million other-than-temporary impairment recorded during the nine months ended September 30, 2026 related to our equity method investment in Mekonomen.

(2) Excludes amounts related to Restructuring - Depreciation Expense.

(3) Amount relates to the goodwill impairment charge related to our Specialty reporting unit recorded during the nine months ended September 30, 2026.

(4) Amount relates to the net assets held for sale impairment charge related to the expected divestiture of our operations in Romania recorded during the nine months ended September 30, 2026.

(5) Amounts primarily include inventory write-downs and property, plant, and equipment impairment charges for operations impacted by the Ukraine/Russia conflict.

Segment EBITDA should not be construed as an alternative to operating income, net income and loss or net cash provided by (used in) operating activities, as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report Segment EBITDA information calculate Segment EBITDA in the same manner as we do and, accordingly, our calculation is not necessarily comparable to similarly-named measures of other companies and may not be an appropriate measure for performance relative to other companies.

The following unaudited table reconciles Net Income (Loss) and Diluted Earnings (Loss) per Share to Adjusted Net Income and Adjusted Diluted Earnings per Share, respectively:

(1) Amount relates to the goodwill impairment charge related to our Specialty reporting unit recorded during the nine months ended September 30, 2026.

(2) Amount relates to the net assets held for sale impairment charge related to the expected divestiture of our operations in Romania recorded during the nine months ended September 30, 2026.

(3) Amounts primarily include inventory write-downs and property, plant, and equipment impairment charges for operations impacted by the Ukraine/Russia conflict.

(4) Figures are for continuing operations attributable to LKQ stockholders.

We have presented Adjusted Net Income and Adjusted Diluted Earnings per Share as we believe these measures are useful for evaluating the core operating performance of our continuing business across reporting periods and in analyzing our historical operating results. We define Adjusted Net Income and Adjusted Diluted Earnings per Share as Net Income and Loss and Diluted Earnings (Loss) per Share adjusted to eliminate the impact of net income and loss attributable to noncontrolling interest, income and loss from discontinued operations, restructuring and transaction related expenses, amortization expense related to all acquired intangible assets, gains and losses on debt extinguishment, changes in fair value of contingent consideration liabilities, other gains and losses related to acquisitions, equity method investments, or divestitures, impairment charges, direct impacts of the Ukraine/Russia conflict, excess tax benefits and deficiencies from stock-based payments and any tax effect of these adjustments. The tax effect of these adjustments is calculated using the effective tax rate for the applicable period or for certain discrete items the specific tax expense or benefit for the adjustment. Given the variability and volatility of the amount of related transactions in a particular period, management believes that these costs are not core operating expenses and should be adjusted in our calculation of Adjusted Net Income. Our adjustment of the amortization of all acquisition-related intangible assets does not exclude the amortization of other assets, which represents expense that is directly attributable to ongoing operations. Management believes that the adjustment relating to amortization of acquisition-related intangible assets supplements the GAAP information with a measure that can be used to assess the comparability of operating performance. The acquired intangible assets were recorded as part of purchase accounting and contribute to revenue generation. Amortization of intangible assets that relate to past acquisitions will recur in future periods until such intangible assets have been fully amortized. Any future acquisitions may result in the amortization of additional intangible assets. These financial measures are used by management in its decision making and overall evaluation of our operating performance and are included in the metrics used to determine incentive compensation for our senior management. Adjusted Net Income and Adjusted Diluted Earnings per Share should not be construed as alternatives to Net Income and Loss or Diluted Earnings (Loss) per Share as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report measures similar to Adjusted Net Income and Adjusted Diluted Earnings per Share calculate such measures in the same manner as we do and, accordingly, our calculations are not necessarily comparable to similarly-named measures of other companies and may not be appropriate measures for performance relative to other companies.

The following unaudited tables reconciles Net Cash Provided by Operating Activities to Free Cash Flow:

(1) For the three and nine months ended September 30, 2025, Self Service contributed approximately $20 million and $50 million, respectively, of free cash flow.

We have presented free cash flow solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful information to evaluate our liquidity. We calculate free cash flow as net cash provided by (used in) operating activities, less purchases of property, plant and equipment. We believe free cash flow provides insight into our liquidity and provides useful information to management and investors concerning our cash flow available to meet future debt service obligations and working capital requirements, make strategic acquisitions, pay dividends and repurchase stock. We believe free cash flow is used by investors, securities analysts and other interested parties in evaluating the liquidity of other companies, many of which present free cash flow when reporting their results. This financial measure is included in the metrics used to determine incentive compensation for our senior management.

Free cash flow should not be construed as an alternative to net cash provided by (used in) operating activities as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report free cash flow information calculate this metric in the same manner as we do and, accordingly, our calculations are not necessarily comparable to similarly-named measures of other companies and may not be appropriate measures for performance relative to other companies.