LKQ Investor Relations | July 24, 2025
Antioch, Tenn. | July 24, 2025
LKQ Corporation (Nasdaq: LKQ) reported second quarter 2025 results today. The Company said it is progressing with simplifying its portfolio to enhance return on invested capital and reaffirmed its commitment to the three-year plan, while updating its full-year outlook downward.
The headline numbers
| Metric | Q2 2025 | Q2 2024 |
|---|---|---|
| Revenue | $3,642M | $3,711M |
| Net income | $192M | $185M |
| Diluted EPS | $0.75 | $0.70 |
| Adjusted net income | $225M | $261M |
| Adjusted diluted EPS | $0.87 | $0.98 |
| Segment EBITDA | $430M (11.8% of revenue) | $484M (13.0%) |
Revenue declined 1.9%. Parts and services organic revenue fell 3.4% (2.7% per day), acquisitions and divestitures reduced revenue by 1.0%, and foreign exchange added 2.3%.
What management said
“We are executing on our three-year plan outlined at our September 2024 Investor Day and are confident in our strategy,” said Justin Jude, President and CEO. “Our results this quarter reflect a Company that is in transformation,” he added, saying LKQ will move faster and harder to simplify the business and reduce costs, with a sharpened focus on people, process and performance so it is positioned to capitalize when the cycle turns.
Progress on cost and operations
- LKQ has taken out more than $125 million in costs over the past 12 months, with another $75 million targeted for 2025.
- North American organic revenue outperformed the market even as industry-wide repairable claims declined 9%.
- In Europe, more than 25% of the leadership team has been replaced, and the focus is on lowering costs, rationalizing SKUs and growing revenue, including a strategic partnership to expand the salvage business.
Strategic initiatives
- Simplify business portfolio and operations: Focus on non-discretionary businesses, divest non-core assets and improve efficiency, working with qualified advisors.
- Expand the lean operating model globally: Scale lean across all regions to improve productivity, execution and decision speed.
- Invest and grow organically: Invest in core businesses to drive above-market growth and share gains.
- Disciplined capital allocation: Keep capital allocation focused on maximizing shareholder value.
Segment snapshot
| Segment | Revenue | Organic change | Segment EBITDA margin |
|---|---|---|---|
| Wholesale – North America | $1,442M | (2.6%) | 15.8% |
| Europe | $1,607M | (4.9%) | 9.4% |
| Specialty | $465M | (0.3%) | 8.5% |
| Self Service | $129M | (6.9%) | 10.0% |
Cash flow, balance sheet and capital return
- Cash flow from operations was $296 million and free cash flow was $243 million for the quarter. For the first six months, those figures were $293 million and $186 million.
- Total debt was $4.5 billion at June 30, with leverage of 2.6x EBITDA.
- In Q2, LKQ repurchased 1.0 million shares for about $39 million and paid $78 million in dividends. Year to date, about $235 million has been returned to shareholders.
- About $1.6 billion remains on the repurchase authorization through October 25, 2026.
- A $0.30 per share dividend was declared on July 22, payable August 28, 2025 to holders of record on August 14.
Updated 2025 outlook
CFO Rick Galloway said the Company will keep executing on its strategic initiatives while following a disciplined capital allocation strategy and using ROIC as a constant measure. The lower outlook reflects a confluence of macro factors: in North America, repairable claims are not recovering and tariff uncertainty continues; in Europe, general economic softness and geopolitical unrest are creating an uncertain environment.
| 2025 outlook | Previous | Updated |
|---|---|---|
| Organic revenue growth, parts and services | 0% to 2% | (3.5%) to (1.5%) |
| Diluted EPS | $2.91 to $3.21 | $2.47 to $2.77 |
| Adjusted diluted EPS | $3.40 to $3.70 | $3.00 to $3.30 |
| Operating cash flow | $1.075B to $1.275B | $0.875B to $1.075B |
| Free cash flow | $0.75B to $0.90B | $0.60B to $0.75B |
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. Note: this outlook was later updated on October 30, 2025 following the sale of the Self Service segment. Investor contact: Joseph P. Boutross, Vice President, Investor Relations, (312) 621-2793, [email protected].