LKQ Investor Relations | July 30, 2026
Antioch, Tenn. | July 30, 2026
LKQ Corporation (Nasdaq: LKQ) reported second quarter 2026 results today and updated its full-year outlook. North America and Specialty delivered, while Europe was held back by a slower-than-expected recovery after an ERP implementation in Germany.
The headline numbers
| Metric | Q2 2026 | Q2 2025 |
|---|---|---|
| Revenue | $3,408M | $3,513M |
| Net income (continuing ops) | $134M | $185M |
| Diluted EPS | $0.52 | $0.72 |
| Adjusted net income | $170M | $218M |
| Adjusted diluted EPS | $0.67 | $0.84 |
| Segment EBITDA | $349M (10.2% of revenue) | $414M (11.8%) |
Revenue declined 3.0%. Parts and services revenue fell 3.6%, reflecting a 5.1% organic decline, a 1.0% benefit from foreign exchange, and a 0.5% net lift from acquisitions and divestitures.
What management said
Justin Jude, then President and CEO, highlighted several positives in North America: a return to positive organic growth for the first time in nine quarters, record alternative-parts utilization above 40%, insurance premiums that turned negative in May and June, and continued sequential improvement in repairable claims. Specialty also grew despite a difficult end market.
Europe, he said, fell short of expectations because of the ERP implementation in Germany. Outside of that impact, the team delivered substantial cost reductions that largely offset lower volumes in the UK and Benelux.
Segment snapshot
- North America: Revenue of $1.47 billion, organic growth of 0.5%, Segment EBITDA of $207 million (14.1% margin).
- Europe: Revenue of $1.46 billion, organic decline of 12.6%, Segment EBITDA of $109 million (7.5% margin).
- Specialty: Revenue of $488 million, organic growth of 4.5%, Segment EBITDA of $33 million (6.7% margin).
Strategic review
The Company explored a potential sale of its Specialty segment, announced in December 2025, and in January 2026 the Board began a broader review of strategic alternatives, including a sale of the Company. Specialty is being evaluated within that review, which remains active with multiple parties engaged. There is no deadline and no assurance of any outcome.
Cash flow, balance sheet and capital return
- Cash flow from operations was $111 million and free cash flow was $60 million for the quarter. For the first six months, those figures were $55 million and negative $36 million.
- Total debt was $4.0 billion at June 30, with leverage of 2.8x EBITDA.
- In Q2, LKQ repurchased 1.9 million shares for $52 million and paid $77 million in dividends. Year to date, $207 million was returned to shareholders. About $1.5 billion remains on the repurchase authorization through October 25, 2026.
- A $0.30 per share dividend was declared on July 28, payable September 3 to holders of record on August 20, 2026.
Updated 2026 outlook
CFO Rick Galloway said the revised outlook reflects a more measured pace of recovery in Europe, with continued discipline on cost management, cash generation and capital allocation. Actions in Europe are focused on restoring service levels and aligning costs with demand.
| 2026 outlook | Previous | Updated |
|---|---|---|
| Organic revenue growth, parts and services | (0.5%) to 1.5% | (3.0%) to (1.0%) |
| Diluted EPS | $2.16 to $2.46 | $1.78 to $2.08 |
| Adjusted diluted EPS | $2.90 to $3.20 | $2.60 to $2.90 |
| Operating cash flow | $900M to $1,100M | $825M to $1,025M |
| Free cash flow | $700M to $850M | $625M to $775M |
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: the full-year 2026 outlook was later withdrawn on October 23, 2026. Investor contact: Joseph P. Boutross, Vice President, Investor Relations, (312) 621-2793, [email protected].