LKQ (NASDAQ:LKQ) Announces Earnings Results

LKQ (NASDAQ:LKQ) posted its earnings results on Thursday. The auto parts company reported $0.67 earnings per share (EPS) for the quarter, missing the consensus estimate of $0.71 by ($0.04), Zacks reports. LKQ had a net margin of 3.71% and a return on equity of 11.65%. The company had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.48 billion. During the same quarter in the prior year, the company posted $0.87 EPS. LKQ’s revenue was down 3.0% on a year-over-year basis. LKQ updated its FY 2026 guidance to 2.600-2.900 EPS.

Here are the key takeaways from LKQ’s conference call:

• Full-year guidance was reduced: adjusted diluted EPS is now expected at $2.60–$2.90, versus $2.90–$3.20 previously, while free cash flow guidance fell to $625–$775 million from $700–$850 million.
• Europe remained the primary weakness, with organic revenue down 12.6% and an estimated $140 million revenue and $50 million EBITDA impact from Germany’s ERP implementation; softer U.K. and Benelux demand added further pressure.
• North America returned to positive organic growth for the first time in nine quarters, rising 0.5% despite repairable claims declining 1%–3%. Alternative parts utilization exceeded 40%, while salvage margins, fill rates, and free cash flow improved sequentially.
• Specialty delivered resilient 4.5% organic revenue growth, although management acknowledged that gross margin, product mix, and operating efficiency need improvement; an $8 million acquisition-related credit-loss reserve was described as resolved.
• Management said Germany’s ERP recovery is underway, with revenue exceeding 85% of its normal run rate in late July and a goal of reaching full run rate by year-end. The company’s strategic review remains active, with multiple parties engaged, but no transaction update was provided.

LKQ Stock Performance

Shares of NASDAQ:LKQ traded down $3.79 during midday trading on Thursday, hitting $22.60. The company had a trading volume of 9,797,520 shares, compared to its average volume of 2,444,665. LKQ has a 12-month low of $21.17 and a 12-month high of $37.13. The company has a fifty day moving average of $25.87 and a two-hundred day moving average of $29.18. The company has a market cap of $5.76 billion, a price-to-earnings ratio of 11.19 and a beta of 0.83. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.54 and a quick ratio of 0.60.

LKQ Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Thursday, September 3rd. Stockholders of record on Thursday, August 20th will be paid a $0.30 dividend. This represents a $1.20 annualized dividend and a dividend yield of 5.3%. The ex-dividend date is Thursday, August 20th. LKQ’s dividend payout ratio is 59.41%.

Analyst Upgrades and Downgrades

Several brokerages recently issued reports on LKQ. Zacks Research upgraded shares of LKQ from a “strong sell” rating to a “hold” rating in a report on Friday, May 1st. Stephens lowered their price target on LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a report on Tuesday, July 21st. Weiss Ratings upgraded LKQ from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, May 4th. Finally, Barclays cut their price objective on LKQ from $33.00 to $30.00 and set an “equal weight” rating for the company in a report on Tuesday, July 21st. Three equities research analysts have rated the stock with a Buy rating and three have issued a Hold rating to the company. According to data from MarketBeat, the company currently has an average rating of “Moderate Buy” and a consensus price target of $36.62.

Key Stories Impacting LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: LKQ declared a quarterly dividend of $0.30 per share, payable September 3 to shareholders of record August 20. The annualized dividend is $1.20 per share, representing an indicated yield of approximately 5.3%. LKQ dividend announcement
• Positive Sentiment: Management cited improving trends in North America and steady demand in its Specialty business, providing some offset to continued weakness in Europe. LKQ Europe weakness and outlook article
• Neutral Sentiment: LKQ reported second-quarter revenue of approximately $3.41 billion, down 3.0% year over year. The company’s net margin was 3.71% and return on equity was 11.65%. LKQ second-quarter 2026 results
• Negative Sentiment: Adjusted earnings were $0.67 per share, below analyst expectations of roughly $0.71 to $0.73 and down from $0.87 a year earlier. Revenue also missed estimates near $3.48 billion, increasing concerns about weaker operating performance. LKQ Q2 earnings and revenue report
• Negative Sentiment: LKQ reduced its 2026 adjusted EPS outlook to $2.60-$2.90 from $2.90-$3.20, below the approximately $2.98 consensus estimate. It also expects organic revenue growth between negative 3.0% and negative 1.0%. LKQ lowers earnings outlook
• Negative Sentiment: Europe was the primary reason for the guidance cut. LKQ said Germany’s ERP implementation disrupted approximately $140 million of quarterly revenue and $50 million of European EBITDA, while conditions remained soft in the U.K. and Benelux. Investors are concerned that the European recovery will take longer than expected. LKQ shares and European weakness analysis

Institutional Trading of LKQ

Several hedge funds have recently bought and sold shares of LKQ. Captrust Financial Advisors raised its stake in shares of LKQ by 0.4% in the third quarter. Captrust Financial Advisors now owns 84,939 shares of the auto parts company’s stock worth $2,594,000 after buying an additional 377 shares during the period. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. grew its stake in shares of LKQ by 2.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,476 shares of the auto parts company’s stock valued at $1,339,000 after acquiring an additional 807 shares during the period. Parallel Advisors LLC increased its holdings in LKQ by 187.3% in the 4th quarter. Parallel Advisors LLC now owns 4,396 shares of the auto parts company’s stock worth $133,000 after acquiring an additional 2,866 shares in the last quarter. Horizon Investments LLC increased its holdings in LKQ by 78.3% in the 3rd quarter. Horizon Investments LLC now owns 7,417 shares of the auto parts company’s stock worth $227,000 after acquiring an additional 3,258 shares in the last quarter. Finally, BI Asset Management Fondsmaeglerselskab A S raised its stake in LKQ by 170.0% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 7,886 shares of the auto parts company’s stock worth $292,000 after acquiring an additional 4,965 shares during the period. Institutional investors own 95.63% of the company’s stock.

LKQ Company Profile

LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company supplies a broad range of replacement components, including recycled original equipment manufacturer (OEM) parts, aftermarket parts, refurbished and remanufactured items. Its products support collision repair, mechanical repair and performance enhancement needs across passenger cars, heavy trucks and recreational vehicles.

Through a combination of in-house operations and strategic acquisitions, LKQ has developed a comprehensive product portfolio that extends beyond core replacement parts.