LKQ Investor Relations | October 30, 2025

Antioch, Tenn. | October 30, 2025

LKQ Corporation (Nasdaq: LKQ) reported third quarter 2025 results today and updated its 2025 outlook following the sale of its Self Service segment. That sale closed on September 30, 2025, and Self Service is now reported as discontinued operations, so the figures below reflect continuing operations unless noted.

The headline numbers

Revenue rose 1.3%. Parts and services revenue increased 1.1%, which included a 2.6% lift from foreign exchange, a 1.2% decrease in organic revenue and a 0.3% net reduction from acquisitions and divestitures. In North America, organic revenue per day declined just 30 basis points against a backdrop of a 6% decline in repairable claims.

What management said

“Our third quarter results reflect solid performance in multiple areas of the business,” said Justin Jude, President and CEO. He cited the Self Service divestiture delivered on the commitment to simplify the business, continued market share gains in a down North American market, a return to double-digit margins in Europe, and more than 9% organic growth in Specialty, all alongside solid free cash flow. The positive operating performance, together with a one-time tax benefit, gave the Company confidence to update full-year guidance.

Segment snapshot

Strategic initiatives

• Simplify business portfolio and operations: Focus on non-discretionary businesses, divest non-core assets and improve efficiency.
• Expand the lean operating model globally: Scale lean across regions for productivity, execution and faster decisions.
• Invest and grow organically: Invest in core businesses for above-market growth and share gains.
• Disciplined capital allocation: Maximize shareholder value and further strengthen the balance sheet to stay resilient through all market cycles.

Cash flow and balance sheet

• Cash flow from operations was $440 million and free cash flow was $387 million for the quarter. For the nine months, those figures were $733 million and $573 million.
• Total debt was $4.2 billion at September 30, with leverage of 2.5x EBITDA. Following the Self Service sale, debt has been reduced by more than $600 million since the end of Q2.

Returning capital to shareholders

• In Q3, LKQ repurchased 1.2 million shares for about $40 million and paid $78 million in dividends, returning $118 million. Over nine months, about $353 million was returned.
• About $1.6 billion remains on the repurchase authorization through October 25, 2026.
• A $0.30 per share dividend was declared on October 28, payable December 4, 2025 to holders of record on November 20.

Updated 2025 outlook

CFO Rick Galloway said the quarter underscores confidence in the strategy and momentum toward sustained value creation, with capital deployed in line with the disciplined allocation strategy and multiyear transformation plan. Management updated the outlook to reflect the Self Service divestiture. Adjusted EPS guidance issued on July 24 would have been approximately $2.85 to $3.15 (a $3.00 midpoint) after adjusting for the $0.15 impact of the divestiture; the Company has now raised that midpoint by $0.07 and narrowed the range.

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].