LKQ Corporation (LKQ)

LKQ Corporation said on 23 October 2026 that its third-quarter revenue is expected to be $3.32 billion, compared with $3.50 billion a year earlier 1.

The company expects a net loss of $16 million to $32 million for the quarter, including $111 million of non-cash impairment charges, against net income of $178 million a year earlier 1.

The release says the weakness came mainly from Europe, where operational disruptions tied to a new computer system in Germany, plus volume declines in the United Kingdom and Benelux, cut results 1.

On the same day the board named Salvatore Abbate chief executive from 15 December 2026, replacing Justin Jude, who left at once 23.

LKQ also withdrew its full-year 2026 guidance, hired Alvarez & Marsal to advise on European operations, and set 29 October 2026 for its full third-quarter report 1.

In the second quarter Europe's parts and services revenue fell $154 million, or 9.6 percent, and the filing blames lower volumes after an ERP (company-wide planning software) rollout in Germany 5.

The board's review of strategic alternatives, which the annual report says includes a potential sale of the company, remains open 14.

LKQ describes itself as a global distributor of replacement parts used to repair vehicles and of specialty accessories that change how vehicles perform or look 4.

It grew in Europe through purchases such as Euro Car Parts, which LKQ acquired in 2011 4.

It bought into Mekonomen in 2016 and owns 26.6 percent of it as an equity method investment 4.

Revenue slipped to $13,651 million in 2025 from $13,823 million in 2024 4.

The annual report says organic sales, which leave out deals and currency, fell $362 million, or 2.7 percent, while exchange rates added $231 million, or 1.7 percent 4.

In Europe, organic revenue fell $274 million, or 4.3 percent, on heightened competition and difficult economic conditions 4.

In 2024 LKQ began a global restructuring that exited markets, selling operations in Slovenia and Bosnia and certain operations in Poland to Mekonomen 4.

The plan was substantially completed in 2025 at a total cost of $139 million 4.

On 30 September 2025 it completed the sale of its Self Service segment to an affiliate of Pacific Avenue Capital Partners 4.

In 2025 it began exploring a sale of its Specialty segment and wrote down $52 million of goodwill, the price paid for past purchases, in that segment 4.

Net income fell from $938 million in 2023 to $693 million in 2024 and $608 million in 2025 4.

Justin Jude became chief executive in July 2024, having joined LKQ in February 2004 4.

On 26 January 2026 the board said it had started a review of strategic alternatives, including a potential sale of the company 4.

North America

The segment sells aftermarket, salvage and reconditioned collision parts and hard parts to repair shops and dealers in the U.S. and Canada, through businesses such as Keystone and Bumper to Bumper 4.

Its parts and services revenue was $5,329 million in 2025, down 2.5 percent, and segment EBITDA, a profit measure before interest, taxes and depreciation, was $814 million 4.

The filing ties the decline to lower volumes in its paint, body and equipment business from fewer repairable claims and more competition 4.

In the second quarter of 2026 the segment's parts and services revenue rose 0.5 percent to $1,371 million 5.

Insurers do not buy the parts, but they often influence which kind a shop uses because they pay repair costs above the deductible 4.

LKQ names aftermarket suppliers, recyclers, parts remanufacturers, car makers and internet suppliers as competitors 4.

Europe

Europe sells mostly aftermarket hard parts, such as brake pads, clutches and filters, in about 20 countries through brands such as LKQ Euro Car Parts, LKQ Rhiag Group and LKQ Stahlgruber 4.

Its parts and services revenue was $6,287 million in 2025, down 1.5 percent, and segment EBITDA was $584 million 4.

Its largest distribution centers are in Tamworth, England, Sulzbach-Rosenberg, Germany, and Berkel en Rodenrijs, the Netherlands 4.

In the second quarter, the segment's organic revenue fell $201 million, or 12.6 percent, mainly on lower volumes after the ERP rollout in Germany 5.

For the third quarter LKQ expects Europe's organic parts and services revenue to fall 9.8 percent and its segment EBITDA margin to be 4.1 to 5.1 percent, against 10.0 percent a year earlier 1.

Specialty

Specialty sells accessories in seven categories, among them recreational vehicles, truck and off-road, towing, marine and wheels, under brands such as TrailFX, Fabtech, Fab Fours and Warn 4.

Its parts and services revenue was $1,690 million in 2025, up 2.1 percent, and segment EBITDA was $111 million 4.

The 10-Q says the segment is being evaluated within the broader strategic review, after LKQ began exploring its sale 5.

On 12 May 2026 LKQ bought RSI, a maker of stainless steel truck cap systems, for $66 million 5.

People, sites and tariffs

LKQ employed about 44,000 people at the end of 2025: about 17,000 in North America, 25,000 in Europe and 2,000 in Asia 4.

It ran about 1,400 facilities, most leased, with about 400 in the U.S., and its North American headquarters is in Antioch, Tennessee 4.

Justin Jude and the head of LKQ Europe, Andy Hamilton, have left, and an interim Office of the Chief Executive Officer of the chairman John Mendel and Sue Gove now leads 12.

The company says tariffs can affect it because it imports many products into the U.S., and it has used pricing to recoup tariff costs 45.

The umbrella, in words

In North America the main brands are Keystone and Bumper to Bumper, with Elitek Vehicle Services and Green Bean Battery selling vehicle services 4.

In Europe they are LKQ Euro Car Parts, LKQ Rhiag Group and LKQ Stahlgruber, with private labels Optimal, ERA and MPM Oils 4.

LKQ owns 26.6 percent of Mekonomen as an equity method investment, and it booked a $44 million impairment charge on it in the first quarter of 2026 45.

The 10-K counted 29 record holders of the common stock on 13 February 2026 4.

Salvatore Abbate is due to become chief executive on 15 December 2026, and he said he intends to move quickly 23.

Until then the interim Office of the Chief Executive Officer, John Mendel and Sue Gove, oversees operations, and chief financial officer Rick Galloway is the principal executive officer for SEC rules 2.

LKQ will report full third-quarter results and hold a call on 29 October 2026 1.

Alvarez & Marsal will first focus on customer service levels, stabilizing operations and strengthening performance and cost discipline in Europe, the company said 1.

The company withdrew its 2026 guidance and said it will provide more updates on the strategic alternatives process as appropriate 1.

Abbate's offer letter sets a base salary of $1,340,000 and a sign-on stock grant valued at $12,000,000, and LKQ plans to file the letter with its 10-Q for the quarter ending 30 September 2026 2.

The annual report said LKQ expected about $65 million of cost over the next 12 months on transformation actions, including its common ERP platform 4.