• Simplified Portfolio with Successful Closing on Sale of Self Service Segment

• Returned $118 Million of Capital to Shareholders 

• $40 Million of Share Repurchases and $78 Million in Cash Dividends

• Raised Midpoint and Narrowed Range for Full Year 2025 EPS Outlook Following Sale of Self Service

Antioch, TENN., October 30, 2025 -- LKQ Corporation (Nasdaq: LKQ) today reported third quarter 2025 financial results and updates outlook for 2025 following the sale of the Company's Self Service segment. For the periods presented, the Company’s Self Service segment, which was sold on September 30, 2025, has been classified as discontinued operations. Unless otherwise noted, the discussion in this earnings release focuses on continuing operations and excludes discontinued operations for all periods presented.

Third Quarter 2025 Financial and Operating Results

Revenue for the third quarter of 2025 was $3,499 million, an increase of 1.3% compared to $3,453 million for the third quarter of 2024. Total parts and services revenue increased 1.1%, which included a 2.6% increase from foreign exchange rates year over year, a 1.2% decrease in parts and services organic revenue and the net impact of acquisitions and divestitures, which decreased revenue by 0.3%. Notably, North American organic revenue on a per day basis decreased 30 basis points against the backdrop of a 6% decline in repairable claims. 

Net income² was $178 million compared to $187 million for the same period of 2024. Diluted earnings per share² was $0.69 compared to $0.71 for the same period of 2024, a decrease of 2.8%.

On an adjusted basis, net income^1,2 was $216 million compared to $226 million for the same period of 2024. Adjusted diluted earnings per share^1,2 was $0.84 compared to $0.86 for the same period of 2024, a decrease of 2.3%. 

Commenting on the quarter, Justin Jude, President and Chief Executive Officer, said: 

“Our third quarter results reflect solid performance in multiple areas of the business. We delivered on our commitment to simplify the business with the divestiture of Self Service, continued to gain market share in a down market in North America, bounced back with double digit margins in Europe and achieved more than 9% organic growth in our Specialty business, all while driving solid free cash flow. This quarter exemplifies the hard work from so many LKQ teammates and I couldn’t be prouder of the team. Our positive operational performance in the quarter, coupled with a one-time tax benefit, gave us the confidence to update our full-year guidance.”

Strategic Initiatives

• Simplify Business Portfolio and Operations: Streamlining operations by focusing on our non-discretionary businesses, divesting non-core assets, and enhancing efficiencies.

• 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: Remaining focused on maximizing shareholder value with a disciplined capital allocation strategy and further strengthening our balance sheet to maintain our competitive market position and resilient business model through all market cycles.

Cash Flow and Balance Sheet

Cash flow from operations³ and free cash flow^1,3 were $440 million and $387 million, respectively, for the third quarter of 2025. Cash flow from operations³ and free cash flow^1.3 were $733 million and $573 million, respectively, for the nine months ended September 30, 2025. As of September 30, 2025, the balance sheet reflected total debt of $4.2 billion and total leverage, as defined in our credit facility, was 2.5x EBITDA.

Returning Capital to Shareholders

During the third quarter of 2025, the Company invested approximately $40 million to repurchase 1.2 million shares of its common stock and distributed $78 million in cash dividends. For the nine months ended September 30, 2025, the Company returned approximately $353 million to its shareholders by investing approximately $119 million to repurchase 3.2 million shares of its common stock and distributing $234 million in cash dividends. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 67.7 million shares of its common stock for a total of $2.9 billion through September 30, 2025. An aggregate balance of $1.6 billion remains for potential additional stock repurchases through October 25, 2026. On October 28, 2025, the Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on December 4, 2025, to stockholders of record at the close of business on November 20, 2025.

2025 Outlook

“Our solid results this quarter underscore our confidence in our strategy and the momentum we are building toward sustained value creation. We are deploying capital in alignment with our disciplined capital allocation strategy and in support of our multiyear transformation plan. Following the Self Service divestiture, we have reduced our debt by more than $600 million since the end of the second quarter, further fortifying our balance sheet to navigate a challenging macro environment and reinforce a solid foundation for future growth,” stated Rick Galloway, Senior Vice President and Chief Financial Officer. 

For 2025, management updated the full year outlook (as set forth below) to reflect the divestiture of Self Service: 

Adjusted diluted earnings per share guidance issued on July 24, 2025 would have been approximately $2.85 to $3.15, with a midpoint of $3.00, when adjusting for the $0.15 impact from the Self Service divestiture. Based on our third quarter performance, the Company is now raising the midpoint of our adjusted diluted earnings per share guidance by $0.07 and narrowing the full-year 2025 range to $3.00 to $3.15.

_⁽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.

⁽³⁾ Cash flow from operations and free cash flow include both continuing and discontinued operations.

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

E   lkqeurope@citypress.co.uk