LKQ (NASDAQ:LKQ) Issues Earnings Results

LKQ (NASDAQ:LKQ) released its quarterly earnings results on Thursday. The auto parts company reported $0.67 earnings per share for the quarter, missing the consensus estimate of $0.71 by ($0.04), Zacks reports. The firm had revenue of $3.41 billion for the quarter, compared to the consensus estimate of $3.48 billion. LKQ had a net margin of 3.71% and a return on equity of 11.65%. LKQ’s quarterly revenue was down 3.0% compared to the same quarter last year. During the same period in the previous year, the company earned $0.87 earnings per share. LKQ updated its FY 2026 guidance to 2.600-2.900 EPS.

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

• Full-year guidance was reduced: adjusted diluted EPS is now expected at $2.60–$2.90, versus $2.90–$3.20 previously, while free cash flow guidance fell to $625–$775 million from $700–$850 million.
• Europe remained the primary weakness, with organic revenue down 12.6% and an estimated $140 million revenue and $50 million EBITDA impact from Germany’s ERP implementation; softer U.K. and Benelux demand added further pressure.
• North America returned to positive organic growth for the first time in nine quarters, rising 0.5% despite repairable claims declining 1%–3%. Alternative parts utilization exceeded 40%, while salvage margins, fill rates, and free cash flow improved sequentially.
• Specialty delivered resilient 4.5% organic revenue growth, although management acknowledged that gross margin, product mix, and operating efficiency need improvement; an $8 million acquisition-related credit-loss reserve was described as resolved.
• Management said Germany’s ERP recovery is underway, with revenue exceeding 85% of its normal run rate in late July and a goal of reaching full run rate by year-end. The company’s strategic review remains active, with multiple parties engaged, but no transaction update was provided.

LKQ Stock Performance

NASDAQ LKQ traded down $3.79 on Thursday, reaching $22.60. 9,797,520 shares of the stock were exchanged, compared to its average volume of 2,444,665. The company has a current ratio of 1.54, a quick ratio of 0.60 and a debt-to-equity ratio of 0.51. LKQ has a one year low of $21.17 and a one year high of $37.13. The firm has a market capitalization of $5.76 billion, a PE ratio of 11.19 and a beta of 0.83. The company’s 50-day simple moving average is $25.87 and its two-hundred day simple moving average is $29.18.

LKQ Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, September 3rd. Investors of record on Thursday, August 20th will be issued a $0.30 dividend. This represents a $1.20 annualized dividend and a yield of 5.3%. The ex-dividend date of this dividend is Thursday, August 20th. LKQ’s dividend payout ratio is currently 59.41%.

Institutional Inflows and Outflows

Several hedge funds have recently bought and sold shares of LKQ. State of Tennessee Department of Treasury raised its holdings in LKQ by 152.3% during the fourth quarter. State of Tennessee Department of Treasury now owns 78,360 shares of the auto parts company’s stock valued at $2,574,000 after acquiring an additional 47,299 shares during the period. Captrust Financial Advisors lifted its holdings in shares of LKQ by 20.7% in the fourth quarter. Captrust Financial Advisors now owns 102,544 shares of the auto parts company’s stock worth $3,097,000 after buying an additional 17,605 shares in the last quarter. Arkadios Wealth Advisors bought a new position in shares of LKQ during the fourth quarter worth $205,000. Parallel Advisors LLC boosted its position in shares of LKQ by 187.3% during the fourth quarter. Parallel Advisors LLC now owns 4,396 shares of the auto parts company’s stock worth $133,000 after acquiring an additional 2,866 shares during the last quarter. Finally, Verity Asset Management Inc. purchased a new position in LKQ during the third quarter valued at $413,000. Institutional investors own 95.63% of the company’s stock.

Key Headlines Impacting LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: LKQ declared a quarterly dividend of $0.30 per share, payable September 3 to shareholders of record August 20. The annualized dividend is $1.20 per share, representing an indicated yield of approximately 5.3%. LKQ dividend announcement
• Positive Sentiment: Management cited improving trends in North America and steady demand in its Specialty business, providing some offset to continued weakness in Europe. LKQ Europe weakness and outlook article
• Neutral Sentiment: LKQ reported second-quarter revenue of approximately $3.41 billion, down 3.0% year over year. The company’s net margin was 3.71% and return on equity was 11.65%. LKQ second-quarter 2026 results
• Negative Sentiment: Adjusted earnings were $0.67 per share, below analyst expectations of roughly $0.71 to $0.73 and down from $0.87 a year earlier. Revenue also missed estimates near $3.48 billion, increasing concerns about weaker operating performance. LKQ Q2 earnings and revenue report
• Negative Sentiment: LKQ reduced its 2026 adjusted EPS outlook to $2.60-$2.90 from $2.90-$3.20, below the approximately $2.98 consensus estimate. It also expects organic revenue growth between negative 3.0% and negative 1.0%. LKQ lowers earnings outlook
• Negative Sentiment: Europe was the primary reason for the guidance cut. LKQ said Germany’s ERP implementation disrupted approximately $140 million of quarterly revenue and $50 million of European EBITDA, while conditions remained soft in the U.K. and Benelux. Investors are concerned that the European recovery will take longer than expected. LKQ shares and European weakness analysis

Analyst Ratings Changes

A number of research firms recently commented on LKQ. Zacks Research upgraded LKQ from a “strong sell” rating to a “hold” rating in a research report on Friday, May 1st. Barclays dropped their target price on LKQ from $33.00 to $30.00 and set an “equal weight” rating on the stock in a research report on Tuesday, July 21st. Weiss Ratings raised shares of LKQ from a “sell (d+)” rating to a “hold (c-)” rating in a research report on Monday, May 4th. Finally, Stephens lowered their price objective on shares of LKQ from $39.00 to $36.50 and set an “overweight” rating on the stock in a research note on Tuesday, July 21st. Three research analysts have rated the stock with a Buy rating and three have assigned a Hold rating to the company’s stock. Based on data from MarketBeat.com, LKQ has a consensus rating of “Moderate Buy” and a consensus price target of $36.62.

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.