LKQ Investor Relations | April 24, 2025
Antioch, Tenn. | April 24, 2025
LKQ Corporation (Nasdaq: LKQ) reported first quarter 2025 results today. Revenue declined on lower demand and currency, but reported earnings per share rose and the Company kept its full-year outlook unchanged.
The headline numbers
| Metric | Q1 2025 | Q1 2024 |
|---|---|---|
| Revenue | $3,463M | $3,703M |
| Net income | $169M | $158M |
| Diluted EPS | $0.65 | $0.59 |
| Adjusted net income | $204M | $220M |
| Adjusted diluted EPS | $0.79 | $0.82 |
| Segment EBITDA | $404M (11.7% of revenue) | $430M (11.6%) |
Revenue fell 6.5%. Parts and services organic revenue declined 4.3% (3.1% per day), with acquisitions and divestitures reducing revenue by 0.9% and foreign exchange by 1.6%.
What management said
Justin Jude, President and CEO, said the Company was pleased with the quarter and driven to sustain momentum behind its operational excellence initiatives. Even with lower demand, the focus on optimizing the cost structure showed up in year-over-year EBITDA margin growth. He also announced a dedicated tariff task force, with leaders from across the global enterprise, to prepare for and navigate opportunities or disruptions from the changing tariff landscape.
Segment snapshot
| Segment | Revenue | Organic change | Segment EBITDA margin |
|---|---|---|---|
| Wholesale – North America | $1,412M | (5.4%) | 15.7% |
| Europe | $1,522M | (2.8%) | 9.3% |
| Specialty | $394M | (6.4%) | 5.4% |
| Self Service | $136M | (5.4%) | 14.6% |
Cash flow and balance sheet
- Cash flow from operations was negative $3 million and free cash flow was negative $57 million for the quarter.
- Total debt was $4.4 billion at March 31, with leverage of 2.5x EBITDA.
Returning capital to shareholders
- LKQ repurchased about $40 million of stock (1.0 million shares) and paid $78 million in dividends, returning $118 million in the quarter.
- About $1.7 billion remains on the repurchase authorization through October 25, 2026.
- A $0.30 per share dividend was declared on April 22, payable May 29, 2025 to holders of record on May 15.
2025 outlook
CFO Rick Galloway called it a solid quarter in line with expectations and said the February guidance is unchanged. He noted the outlook does not include potential positive or negative effects from tariffs, and that LKQ will update guidance when the tariff situation is clearer. He pointed to a strong balance sheet, robust free cash flow and ample liquidity as the means to manage headwinds and move quickly on opportunities.
| 2025 full-year outlook (unchanged) | Range |
|---|---|
| Organic revenue growth, parts and services | 0% to 2% |
| Diluted EPS | $2.91 to $3.21 |
| Adjusted diluted EPS | $3.40 to $3.70 |
| Operating cash flow | $1.075B to $1.275B |
| Free cash flow | $0.75B to $0.90B |
The outlook assumes a 27.0% effective tax rate, scrap and precious metals prices near the first-quarter average, and exchange rates of $1.08 (euro), $1.28 (pound) and $0.70 (Canadian dollar) for the rest of the year. It excludes any impact from U.S. tariffs announced in 2025 or retaliatory tariffs.
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 lowered on July 24, 2025. Investor contact: Joseph P. Boutross, Vice President, Investor Relations, (312) 621-2793, [email protected].