LKQ Corporation Announces Results for Third Quarter 2026
Antioch, TENN -- LKQ Corporation (Nasdaq: LKQ) today reported third quarter 2026 financial results.
Commenting on the third quarter, John Mendel, Chairman of the Board of LKQ, said: “LKQ remains a fundamentally strong enterprise, supported by its scale, leading positions across key markets, and global distribution platform. At the same time, our recent financial and operating performance has not reflected the strength of the business or met the standards we expect, particularly in Europe. The Board has been deeply engaged in addressing these challenges, and the appointment of a new CEO, leadership changes in Europe, and the engagement of Alvarez & Marsal are important steps in a broader effort to improve execution and financial performance. We believe LKQ has significant strengths that are not currently reflected in its operating performance, and our focus is on translating those strengths into improved performance and increased value for our shareholders.”
Third Quarter 2026 Financial and Operating Results
Revenue for the third quarter of 2026 was $3.3 billion, a decrease of 5.1% compared to $3.5 billion for the third quarter of 2025. Total parts and services revenue decreased 5.6%, which included a 5.4% decrease in parts and services organic revenue, a 0.7% decrease from foreign exchange rates year over year, and the net impact of acquisitions and divestitures, which increased revenue by 0.6%.
Net loss2 was $24 million, including $111 million of pre-tax non-cash impairment charges, compared to net income of $178 million for the same period of 2025. Diluted loss per share2 was $(0.09) compared to diluted earnings per share2 of $0.69 for the same period of 2025.
On an adjusted basis, net income1,2 was $127 million compared to $216 million for the same period of 2025. Adjusted diluted earnings per share1,2 was $0.50 compared to $0.84 for the same period of 2025.
“The third quarter was characterized by weakness in our Europe segment, driven by operational issues related to the ERP implementation in Germany and volume declines in the United Kingdom and Benelux. Specialty was modestly below plan. North America performed in line with expectations despite a softer demand environment,” said Rick Galloway, Chief Financial Officer of LKQ.
Cash Flow and Balance Sheet
Cash flow from operations3 and free cash flow1,3 were $411 million and $372 million, respectively, for the third quarter of 2026. Cash flow from operations3 and free cash flow1,3 were $466 million and $336 million, respectively, for the nine months ended September 30, 2026. As of September 30, 2026, the balance sheet reflected total debt of $3.7 billion and total leverage, as defined in our credit facility, was 2.8x EBITDA.
Returning Capital to Shareholders
During the third quarter of 2026, the Company invested $30 million to repurchase 1.2 million shares of its common stock and distributed $76 million in cash dividends. For the nine months ended September 30, 2026, the Company returned $313 million to its shareholders by investing $83 million to repurchase 3.1 million shares of its common stock and distributing $230 million in cash dividends. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 72 million shares of its common stock for a total of $3.0 billion through September 30, 2026. As of September 30, 2026, there was $1.5 billion remaining on the authorization.
On October 25, 2026, the Board authorized a two-year extension to its stock repurchase program, authorizing repurchases through October 25, 2028.
On October 27, 2026, the Board declared a quarterly cash dividend of $0.30 per share of common stock, payable on December 3, 2026, to stockholders of record at the close of business on November 19, 2026.
Strategic Review
Alongside the recent leadership changes, the Board has decided to suspend the strategic review, including the Specialty segment sales process. This will provide the new leadership team the opportunity to conduct a comprehensive assessment of the business and evaluate the full range of value‑creation pathways available to the Company.
The Board will continue to oversee the strategic direction, protect shareholder interests, and ensure accountability. This includes evaluating opportunities that it believes could enhance shareholder value and optimize the Company’s strategic positioning over the long term.
Other Events
On October 23, 2026, the Company announced that the Board appointed Salvatore A. “Sal” Abbate as President and Chief Executive Officer, effective December 15, 2026. Mr. Abbate brings more than three decades of experience leading large, complex distribution and industrial businesses. As CEO of Veritiv Corporation, he led a significant transformation of the company, with its share price increasing more than 13-fold during his tenure, culminating in its $2.6 billion sale to Clayton, Dubilier & Rice in 2023. Before becoming CEO, he served as Veritiv’s Chief Operating Officer and Chief Commercial Officer. Earlier in his career, Mr. Abbate held senior leadership roles at Andersen Windows & Doors, Solutia, Inc., now part of Eastman Chemical Company, and Armstrong World Industries, with responsibilities spanning sales, marketing, distribution, logistics, manufacturing, strategy and process improvement.
On October 23, 2026 the Company announced that it is withdrawing its full-year 2026 guidance, which was most recently updated on July 30, 2026.
Non-GAAP Financial Measures
This release contains (and management’s presentation on the related investor conference call will refer to) non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included with this release are reconciliations of each non-GAAP financial measure with the most directly comparable financial measure calculated in accordance with GAAP.
(1) Non-GAAP measure. See the table accompanying this release that reconciles the actual or forecasted U.S. GAAP measure to the actual or forecasted adjusted measure, which is non-GAAP.
(2) References in this release to Net income or Net loss and Diluted earnings or loss per share, and the corresponding adjusted figures, reflect amounts from continuing operations attributable to LKQ stockholders.
(3) Cash flow from operations and free cash flow include both continuing and discontinued operations.
About LKQ Corporation
LKQ Corporation (www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. LKQ offers its customers a broad range of OEM recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.
About LKQ Europe
LKQ Europe, a subsidiary of LKQ Corporation, headquartered in Zug, Switzerland, is the leading distributor of automotive aftermarket parts for cars, vans and industrial vehicles across 18+ European countries including the following regions: Benelux-France, Central Eastern Europe, DACH, Italy, Scandinavia, and the UK & Ireland.
With around 25,000 employees and 900+ branches, it supplies over 100,000 workshops through strong logistics, digital tools and training via LKQ Academy, while expanding circular economy capabilities via REMAN, Salvage, LKQ SYNETIQ, LKQ Electriq, and ACtronics to advance sustainable, repair-first mobility.
Investor Relations Contact
Joseph P. Boutross
Vice President, Investor Relations
LKQ Corporation
T +1 312 621-2793
E jpboutross@lkqcorp.com
Media Contact Europe
LKQ Europe Communications
