LKQ (NASDAQ:LKQ) Issues Quarterly Earnings Results

LKQ (NASDAQ:LKQ) announced its quarterly earnings data on Thursday. The auto parts company reported $0.67 earnings per share for the quarter, missing the consensus estimate of $0.71 by ($0.04), Zacks reports. The firm had revenue of $3.41 billion for the quarter, compared to analyst estimates of $3.48 billion. LKQ had a return on equity of 11.65% and a net margin of 3.71%.LKQ’s revenue for the quarter was down 3.0% compared to the same quarter last year. During the same period in the previous year, the business posted $0.87 EPS. LKQ updated its FY 2026 guidance to 2.600-2.900 EPS.

Here are the key takeaways from LKQ’s conference call:

• Full-year guidance was reduced: adjusted diluted EPS is now expected at $2.60–$2.90, versus $2.90–$3.20 previously, while free cash flow guidance fell to $625–$775 million from $700–$850 million.
• Europe remained the primary weakness, with organic revenue down 12.6% and an estimated $140 million revenue and $50 million EBITDA impact from Germany’s ERP implementation; softer U.K. and Benelux demand added further pressure.
• North America returned to positive organic growth for the first time in nine quarters, rising 0.5% despite repairable claims declining 1%–3%. Alternative parts utilization exceeded 40%, while salvage margins, fill rates, and free cash flow improved sequentially.
• Specialty delivered resilient 4.5% organic revenue growth, although management acknowledged that gross margin, product mix, and operating efficiency need improvement; an $8 million acquisition-related credit-loss reserve was described as resolved.
• Management said Germany’s ERP recovery is underway, with revenue exceeding 85% of its normal run rate in late July and a goal of reaching full run rate by year-end. The company’s strategic review remains active, with multiple parties engaged, but no transaction update was provided.

LKQ Trading Down 0.8%

Shares of LKQ stock traded down $0.17 during trading hours on Friday, reaching $22.43. The company had a trading volume of 3,081,964 shares, compared to its average volume of 2,854,242. The company has a 50 day moving average of $25.87 and a 200 day moving average of $29.18. The company has a debt-to-equity ratio of 0.51, a current ratio of 1.54 and a quick ratio of 0.60. The firm has a market cap of $5.71 billion, a price-to-earnings ratio of 11.10 and a beta of 0.83. LKQ has a 1-year low of $21.17 and a 1-year high of $37.13.

LKQ Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Shareholders of record on Thursday, August 20th will be given a dividend of $0.30 per share. The ex-dividend date is Thursday, August 20th. This represents a $1.20 annualized dividend and a dividend yield of 5.3%. LKQ’s payout ratio is presently 59.41%.

Analyst Upgrades and Downgrades

LKQ has been the topic of several analyst reports. JPMorgan Chase & Co. lowered their price target on shares of LKQ from $37.00 to $30.00 and set an “overweight” rating on the stock in a report on Friday. Raymond James Financial set a $30.00 price target on shares of LKQ in a research report on Friday. Weiss Ratings upgraded LKQ from a “sell (d+)” rating to a “hold (c-)” rating in a research note on Monday, May 4th. Stephens decreased their price target on LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a research note on Tuesday, July 21st. Finally, Robert W. Baird set a $30.00 target price on shares of LKQ in a report on Friday. Three investment analysts have rated the stock with a Buy rating and three have given a Hold rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $33.25.

Hedge Funds Weigh In On LKQ

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Parallel Advisors LLC grew its position in shares of LKQ by 187.3% during the 4th quarter. Parallel Advisors LLC now owns 4,396 shares of the auto parts company’s stock worth $133,000 after buying an additional 2,866 shares during the period. Arkadios Wealth Advisors bought a new stake in shares of LKQ in the fourth quarter worth about $205,000. Horizon Investments LLC raised its position in shares of LKQ by 78.3% during the third quarter. Horizon Investments LLC now owns 7,417 shares of the auto parts company’s stock worth $227,000 after purchasing an additional 3,258 shares during the period. Integrated Wealth Concepts LLC bought a new position in shares of LKQ during the 1st quarter valued at about $278,000. Finally, BI Asset Management Fondsmaeglerselskab A S raised its holdings in LKQ by 170.0% during the 2nd quarter. BI Asset Management Fondsmaeglerselskab A S now owns 7,886 shares of the auto parts company’s stock worth $292,000 after buying an additional 4,965 shares during the period. Institutional investors own 95.63% of the company’s stock.

Trending Headlines about LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: LKQ maintained a quarterly dividend of $0.30 per share, equivalent to $1.20 annually and an indicated yield of approximately 5.3%. The dividend is payable September 3 to shareholders of record August 20. LKQ dividend announcement
• Positive Sentiment: Management highlighted improving trends in North America and steady demand in its Specialty business, providing some offset to the European weakness. LKQ Q2 earnings and Europe ERP disruption
• Neutral Sentiment: Institutional positioning was mixed in the latest reported quarter, with major investors including Capital World Investors and BlackRock adding shares while Morgan Stanley, Capital Research and others reduced exposure. Recent analyst price targets remain well above the current trading range, but they predate the latest earnings report and guidance cut.
• Negative Sentiment: Second-quarter adjusted EPS was $0.67, below estimates near $0.71–$0.73 and down from $0.87 a year earlier. Revenue of approximately $3.41 billion also missed expectations of roughly $3.48–$3.51 billion and declined 3% year over year. LKQ second-quarter earnings results
• Negative Sentiment: LKQ reduced its 2026 adjusted EPS outlook to $2.60–$2.90 from $2.90–$3.20, below the approximately $2.98 analyst consensus. It also lowered its organic revenue-growth forecast to negative 3% to negative 1%. LKQ reduced 2026 outlook
• Negative Sentiment: The German ERP implementation reportedly reduced quarterly revenue by about $140 million and European EBITDA by approximately $50 million. Softer demand in the U.K. and Benelux further delayed the expected European recovery, raising concerns that earnings weakness may persist.

LKQ Company Profile

LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company supplies a broad range of replacement components, including recycled original equipment manufacturer (OEM) parts, aftermarket parts, refurbished and remanufactured items. Its products support collision repair, mechanical repair and performance enhancement needs across passenger cars, heavy trucks and recreational vehicles.

Through a combination of in-house operations and strategic acquisitions, LKQ has developed a comprehensive product portfolio that extends beyond core replacement parts.