LKQ Investor Relations | October 29, 2026
Antioch, Tenn. | October 29, 2026
LKQ Corporation (Nasdaq: LKQ) reported third quarter 2026 results today, confirming the preliminary figures shared on October 23. Weakness in Europe drove the shortfall, while the Board outlined the steps it is taking in response.
The headline numbers
| Metric | Q3 2026 | Q3 2025 |
|---|---|---|
| Revenue | $3,319M | $3,499M |
| Net (loss) income, continuing ops | $(24)M | $178M |
| Diluted (loss) earnings per share | $(0.09) | $0.69 |
| Adjusted net income | $127M | $216M |
| Adjusted diluted EPS | $0.50 | $0.84 |
| Segment EBITDA | $296M (8.9% of revenue) | $395M (11.3%) |
Revenue declined 5.1%. Parts and services revenue fell 5.6%, including a 5.4% organic decline and a 0.7% currency headwind, partly offset by a 0.6% lift from acquisitions and divestitures.
The net loss includes $111 million of pre-tax, non-cash impairment charges: $88 million of goodwill related to the Specialty reporting unit and $23 million related to the expected divestiture of operations in Romania.
What leadership said
John Mendel, Chairman of the Board, said LKQ remains a fundamentally strong enterprise with scale, leading market positions and a global distribution platform, but acknowledged that recent performance, particularly in Europe, has not met expectations. He cited the new CEO appointment, leadership changes in Europe and the engagement of Alvarez & Marsal as important steps toward better execution.
CFO Rick Galloway attributed the quarter’s weakness in Europe to operational issues tied to the ERP implementation in Germany and volume declines in the United Kingdom and Benelux. Specialty came in modestly below plan, and North America performed in line with expectations despite softer demand.
Segment snapshot
| Segment | Revenue | Organic change | Segment EBITDA margin (Q3 2026 vs. Q3 2025) |
|---|---|---|---|
| North America | $1,402M | (2.4%) | 14.4% vs. 14.0% |
| Europe | $1,453M | (9.8%) | 4.6% vs. 10.0% |
| Specialty | $465M | 0.9% | 5.5% vs. 7.3% |
Cash flow and balance sheet
- Cash flow from operations was $411 million and free cash flow was $372 million for the quarter. For the nine months, those figures were $466 million and $336 million.
- Total debt was $3.7 billion at September 30, with leverage of 2.8x EBITDA.
Returning capital to shareholders
- In Q3, LKQ repurchased 1.2 million shares for $30 million and paid $76 million in dividends. Over nine months, $313 million was returned to shareholders.
- On October 25, the Board extended the stock repurchase program by two years, through October 25, 2028. About $1.5 billion remains authorized.
- A quarterly dividend of $0.30 per share was declared on October 27, payable December 3, 2026 to stockholders of record on November 19, 2026.
Leadership and strategic review
On October 23, LKQ announced that Salvatore A. “Sal” Abbate will become President and CEO effective December 15, 2026, and withdrew its full-year 2026 guidance. In the same release the Company disclosed that the Board has suspended the strategic review, including the Specialty segment sales process, so that new leadership can conduct a comprehensive assessment of the business and evaluate the full range of paths to create value. The Board will continue to oversee strategic direction and evaluate opportunities it believes could enhance shareholder value.
Adjusted figures are non-GAAP measures; reconciliations are available in the full press release on the LKQ Investor Relations site. This post contains forward-looking statements that are subject to risks and uncertainties described in LKQ’s SEC filings. Investor contact: Joseph P. Boutross, Vice President, Investor Relations, (312) 621-2793, [email protected].