LKQ (NASDAQ:LKQ) Announces Earnings Results

LKQ (NASDAQ:LKQ) announced its quarterly earnings results on Thursday. The auto parts company reported $0.59 EPS for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.06), Briefing.com reports. LKQ had a net margin of 4.99% and a return on equity of 13.45%. The firm had revenue of $3.31 billion for the quarter, compared to analyst estimates of $3.24 billion. During the same period in the previous year, the business posted $0.80 earnings per share. The business’s revenue for the quarter was up 2.7% compared to the same quarter last year. LKQ updated its FY 2026 guidance to 2.900-3.200 EPS.

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

• Exceeded the 2025 free cash flow commitment by generating $847 million and completed the divestiture of the self-service segment to simplify the portfolio.
• LKQ’s board initiated a comprehensive strategic review in January 2026 to explore alternative structures aimed at unlocking shareholder value while management maintains focus on operations.
• Persistent headwinds—declining repairable claims, tariffs, and weak European demand—drove organic revenue declines (North America ~-1% Q4, Europe ~-5.2% Q4), a $52 million goodwill impairment, and weaker adjusted EPS, with conservative 2026 guidance (adj. EPS $2.90–$3.20).
• Management is pursuing cost and productivity initiatives including an approved restructuring (~$60–70 million of costs to generate >$50 million in annualized savings), SKU rationalization, and a Europe ERP integration in early Q2 2026 to improve margins.
• The Specialty segment is rebounding—7.8% organic growth in Q4 with improving margins—and the company reports robust interest in a potential sale with updates expected in H1 2026.

LKQ Trading Up 1.3%

LKQ stock traded up $0.43 during mid-day trading on Thursday, reaching $33.65. The company’s stock had a trading volume of 1,000,762 shares, compared to its average volume of 2,700,884. LKQ has a 12 month low of $28.13 and a 12 month high of $44.82. The company has a current ratio of 1.60, a quick ratio of 0.67 and a debt-to-equity ratio of 0.55. The business’s 50 day moving average price is $32.32 and its 200 day moving average price is $31.19. The company has a market cap of $8.61 billion, a price-to-earnings ratio of 12.45 and a beta of 0.91.

Institutional Inflows and Outflows

Several institutional investors and hedge funds have recently bought and sold shares of the stock. State of Tennessee Department of Treasury grew its holdings in LKQ by 152.3% in the fourth quarter. State of Tennessee Department of Treasury now owns 78,360 shares of the auto parts company’s stock worth $2,574,000 after purchasing an additional 47,299 shares during the period. Captrust Financial Advisors increased its position in LKQ by 20.7% in the 4th quarter. Captrust Financial Advisors now owns 102,544 shares of the auto parts company’s stock valued at $3,097,000 after buying an additional 17,605 shares in the last quarter. Kennedy Capital Management LLC increased its position in LKQ by 41.2% in the 3rd quarter. Kennedy Capital Management LLC now owns 314,467 shares of the auto parts company’s stock valued at $9,604,000 after buying an additional 91,776 shares in the last quarter. Empowered Funds LLC acquired a new position in LKQ during the 1st quarter worth approximately $1,162,000. Finally, MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. boosted its holdings in LKQ by 2.6% in the first quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,476 shares of the auto parts company’s stock worth $1,339,000 after acquiring an additional 807 shares in the last quarter. 95.63% of the stock is owned by institutional investors.

Wall Street Analysts Forecast Growth

LKQ has been the topic of a number of research reports. Barclays began coverage on shares of LKQ in a report on Tuesday, November 11th. They set an “equal weight” rating and a $33.00 target price on the stock. Wall Street Zen upgraded LKQ from a “hold” rating to a “buy” rating in a report on Saturday, February 14th. Zacks Research downgraded LKQ from a “hold” rating to a “strong sell” rating in a report on Monday, January 26th. Weiss Ratings reiterated a “sell (d+)” rating on shares of LKQ in a research report on Monday, December 29th. Finally, Stephens began coverage on LKQ in a research note on Tuesday, December 9th. They issued an “overweight” rating and a $39.00 price target for the company. Five investment analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the stock. Based on data from MarketBeat, LKQ presently has a consensus rating of “Hold” and a consensus price target of $44.33.

Key Stories Impacting LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Board launches strategic-review of alternatives (could unlock value or lead to a sale/take‑private transaction), which investors often view as a potential catalyst for a higher takeover or breakup premium. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: Strong cash generation and shareholder returns: operating cash flow of $1.1B, free cash flow $847M, and $116M returned to shareholders in Q4 (repurchases + dividends) — supports valuation and buyback/dividend thesis. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: Insiders and some institutions are buying: recent insider purchases and large additions from firms like BlackRock and other reported buys signal confidence and provide demand support under the shares. LKQ ($LKQ) Releases Q4 2025 Earnings
• Neutral Sentiment: Revenue modestly beat estimates and grew 2.7% year-over-year, showing stability in top-line activity but limited upside from growth alone. LKQ (LKQ) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
• Negative Sentiment: EPS missed consensus: reported $0.59 vs. ~$0.65 estimate and down from $0.80 a year ago — the earnings shortfall is the primary near-term negative driver. LKQ (LKQ) Lags Q4 Earnings Estimates
• Negative Sentiment: FY2026 EPS guidance of $2.90–$3.20 is slightly below consensus (~$3.21), creating downward pressure on forward multiples and near‑term sentiment. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Negative Sentiment: Some large institutional trimming (reported reductions by firms like UBS and Vanguard in recent quarters) is a headwind for the stock despite other buyers. LKQ ($LKQ) Releases Q4 2025 Earnings

About LKQ

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.