LKQ Corporation Announces Results for Second Quarter 2025
Progressing with Simplifying the Portfolio to Enhance Return on Invested Capital
Reaffirms Commitment to Executing on Three-Year Plan to Drive Shareholder Value
Updates Outlook for Full Year 2025; Capital Allocation Strategy Unchanged
ANTIOCH, Tenn., July 24, 2025 -- LKQ Corporation (Nasdaq: LKQ) today reported second quarter 2025 financial results and provided updated outlook for 2025.
Second Quarter 2025 Financial and Operating Results
Revenue for the second quarter of 2025 was $3.6 billion, a decrease of 1.9% compared to $3.7 billion for the second quarter of 2024. Parts and services organic revenue decreased 3.4% (2.7% decrease on a per day basis), the net impact of acquisitions and divestitures decreased revenue by 1.0%, and foreign exchange rates increased revenue by 2.3% year over year, for a total parts and services revenue decrease of 2.1%.
Net income2 was $192 million compared to $185 million for the same period of 2024. Diluted earnings per share2 was $0.75 compared to $0.70 for the same period of 2024, an increase of 7.1%.
On an adjusted basis, net income1,2 was $225 million compared to $261 million for the same period of 2024. Adjusted diluted earnings per share1,2 was $0.87 compared to $0.98 for the same period of 2024, a decrease of 11.2%.
The Company's focus on cost reduction measures has resulted in more than $125 million in costs taken out over the past 12 months with an additional $75 million targeted for 2025.
North American organic revenue outperformed the market even as repairable claims across the entire industry declined 9%. In Europe, the Company has replaced more than 25% of the leadership team and continues to focus on reducing costs, rationalizing SKU's and enhancing revenue opportunities, including entering into a strategic partnership to expand our salvage business.
Strategic Initiatives
Simplify Business Portfolio and Operations: Streamlining operations by focusing on our non-discretionary businesses, divesting non-core assets, and enhancing efficiencies, in collaboration with qualified advisors to ensure comprehensive evaluation and execution of strategic decisions.
Expand Lean Operating Model Globally: Continuing to scale lean operating model across all regions to drive productivity, improve execution, and accelerate decision-making.
Invest and Grow Organically: Investing in our core businesses to achieve above market growth and drive market share gains.
Pursue Disciplined Capital Allocation Strategy: Capital allocation remains focused on maximizing shareholder value.
Commenting on the quarter, Justin Jude, President and Chief Executive Officer, said:
“We are executing on our three-year plan outlined at our September 2024 Investor Day and are confident in our strategy. We have no doubt we have the size, scale and an unmatched distribution network that are the best in the industry. Our results this quarter reflect a Company that is in transformation. We will move faster and harder to simplify our business and reduce costs. As we sharpen our focus on people, process and performance, we will be well positioned to capitalize as the cycle in our sector turns. We are committed to delivering better results for our customers, employees and partners and importantly, creating more value for shareholders.”
Cash Flow and Balance Sheet
Cash flow from operations and free cash flow1 were $296 million and $243 million, respectively, for the second quarter of 2025. Cash flow from operations and free cash flow1 were $293 million and $186 million, respectively, for the six months ended June 30, 2025. As of June 30, 2025, the balance sheet reflected total debt of $4.5 billion and total leverage, as defined in our credit facility, was 2.6x EBITDA.
Returning Capital to Shareholders
During the second quarter of 2025, the Company invested approximately $39 million to repurchase 1.0 million shares of its common stock and distributed $78 million in cash dividends. For the six months ended June 30, 2025, the Company returned approximately $235 million to its shareholders by investing approximately $79 million to repurchase 2.0 million shares of its common stock and distributing $156 million in cash dividends. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 66.5 million shares of its common stock for a total of $2.9 billion through June 30, 2025. An aggregate balance of $1.6 billion remains for potential additional stock repurchases through October 25, 2026. On July 22, 2025, the Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on August 28, 2025, to stockholders of record at the close of business on August 14, 2025.
2025 Outlook
“As we look ahead, we are focused on executing on our strategic initiatives to deliver improved financial results. We will continue to follow a disciplined capital allocation strategy that returns capital to shareholders. Our strategy includes driving efficiencies and simplifying our business and portfolio as we look at ROIC as a constant measure. We are navigating through the cyclical issues in our marketplace and will have a stronger Company that is well-positioned when the market turns,” stated Rick Galloway, Senior Vice President and Chief Financial Officer.
Based on a confluence of macroeconomic factors in both North America and Europe, coupled with the results this quarter, LKQ is lowering its full year outlook. In North America, the Company is not seeing a recovery in the repairable claims and tariff uncertainty continues. In Europe, general economic softness and geopolitical unrest are drivers of an uncertain environment.
For 2025, management updated the outlook as set forth below:
| 2025 Previous Full Year Outlook | 2025 Updated Full Year Outlook |
Organic revenue growth for parts and services | 0% to 2% | (3.5%) to (1.5%) |
Diluted EPS2 | $2.91 to $3.21 | $2.47 to $2.77 |
Adjusted diluted EPS1,2 | $3.40 to $3.70 | $3.00 to $3.30 |
Operating cash flow | $1.075 to $1.275 billion | $0.875 to $1.075 billion |
Free cash flow1 | $0.75 to $0.90 billion | $0.60 to $0.75 billion |
(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 and Diluted earnings per share, and the corresponding adjusted figures, reflect amounts from continuing operations attributable to LKQ stockholders.
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.
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 (www.lkqcorp.com), headquartered in Zug, Switzerland, is the leading distributor of automotive aftermarket parts for cars, commercial vans, and industrial vehicles in Europe. It currently employs approximately 26,500 people with a network of more than 900 branches and approximately $6.4 billion in revenue in 2024. The organization supplies more than 100,000 workshops in over 18 European countries in the following regions: Benelux-France, Central Eastern Europe, DACH, Italy, Scandinavia and UK & Ireland.
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
