LKQ Investor Relations | April 30, 2026
Antioch, Tenn. | April 30, 2026
LKQ Corporation (Nasdaq: LKQ) reported its first quarter 2026 results today, with revenue up 4.3% year over year and a Board-led review of strategic alternatives now in progress.
The headline numbers
| Metric | Q1 2026 | Q1 2025 |
|---|---|---|
| Revenue | $3,469M | $3,327M |
| Net income (continuing ops) | $77M | $158M |
| Diluted EPS | $0.30 | $0.61 |
| Adjusted net income | $171M | $193M |
| Adjusted diluted EPS | $0.67 | $0.74 |
| Segment EBITDA | $347M (10.0% of revenue) | $379M (11.4%) |
Revenue growth of 4.3% was driven largely by currency. Parts and services revenue rose 3.6%, which included a 5.1% lift from foreign exchange and a 1.6% decline in organic revenue.
Reported net income and EPS include a $44 million (or $0.17 per share) impairment of the Company’s equity method investment in Mekonomen.
What management said
Justin Jude, then President and CEO, described a challenging environment and a focus on execution: teams were cutting costs and streamlining operations while still taking market share. He pointed to North America holding up well with above-market growth and early signs of market recovery, continued improvement in Europe through the quarter, and an ERP migration in a major market in early April. “There is more work to do,” he said.
Segment snapshot
- North America: Revenue of $1.44 billion, with Segment EBITDA of $203 million (14.1% margin).
- Europe: Revenue of $1.62 billion, with Segment EBITDA of $126 million (7.8% margin). Organic parts and services revenue declined 4.0%.
- Specialty: Revenue of $409 million, with organic growth of 3.4% and Segment EBITDA of $18 million (4.4% margin).
Strategic review
On January 26, 2026, the Board initiated a comprehensive review of strategic alternatives to enhance shareholder value. BofA Securities and Goldman Sachs & Co. LLC are advising the Company. The review has no set deadline, and there is no assurance it will lead to a transaction or other outcome.
Cash flow, balance sheet and capital return
- Cash flow from operations was negative $56 million and free cash flow was negative $96 million for the quarter.
- Total debt was $3.9 billion at March 31, with leverage of 2.6x EBITDA.
- The Company paid $77 million in cash dividends. On April 28, the Board declared a $0.30 per share quarterly dividend, payable June 4, 2026 to stockholders of record on May 21, 2026.
2026 outlook
Rick Galloway, Senior Vice President and CFO, noted improving performance trends globally, continued North American strength and early signs of stabilization in Europe.
| 2026 outlook | Status |
|---|---|
| Organic revenue growth, parts and services | (0.5%) to 1.5% (unchanged) |
| Diluted EPS | $2.16 to $2.46 (previously $2.35 to $2.65) |
| Adjusted diluted EPS | $2.90 to $3.20 (unchanged) |
| Operating cash flow | $900M to $1,100M (unchanged) |
| Free cash flow | $700M to $850M (unchanged) |
The outlook reflects tariffs in effect as of April 1, 2026, a 26.8% global effective tax rate, and exchange rates of $1.17 (euro), $1.35 (pound) and $0.72 (Canadian dollar).
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].