LKQ withdraws 2026 guidance as Europe drags Q3 revenue down 5.1%. LKQ said third-quarter revenue fell 5.1% to $3.32 billion, and adjusted diluted earnings per share were 50 cents, against 84 cents a year earlier. It withdrew its 2026 guidance on Oct. 23. By Yash Upadhyaya Oct 29, 2026 Key takeaways. * LKQ Corporation (LKQ) reported third-quarter 2026 revenue of $3.3 billion, down 5.1% from a year earlier, and a net loss of $24 million, including $111 million of impairment charges. Adjusted diluted earnings per share were 50 cents, against 84 cents a year earlier. It withdrew its 2026 guidance and suspended its strategic review. LKQ Corporation (LKQ) said in an 8-K filed Oct. 29 that third-quarter 2026 revenue fell 5.1% to $3.32 billion, from $3.50 billion a year earlier. The results came with a net loss of $24 million, and the company had already withdrawn its full-year 2026 guidance on Oct. 23. LKQ is a provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles, with operations in North America, Europe and Taiwan, the company said in its release. Adjusted diluted earnings per share were 50 cents, against 84 cents a year earlier. The company's net loss from continuing operations attributable to LKQ stockholders was $24 million, against net income of $178 million. Here's how the company did: * Revenue: $3.32 billion vs. $3.50 billion a year earlier * Adjusted diluted EPS: 50 cents vs. 84 cents a year earlier * Net loss: $24 million vs. net income of $178 million a year earlier Parts and services revenue fell 5.6%. Organic parts and services revenue fell 5.4%, foreign exchange subtracted 0.7%, and acquisitions and divestitures added 0.6%. "LKQ remains a fundamentally strong enterprise, supported by its scale, leading positions across key markets, and global distribution platform," said John Mendel, Chairman of the Board of LKQ. "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." Segment results. Europe revenue was $1,451 million, against $1,615 million a year earlier. Segment EBITDA was $68 million, a 4.6% margin, against $162 million, or 10.0%. North America revenue was $1,402 million, against $1,423 million. Its Segment EBITDA was $203 million, up from $199 million. Specialty revenue was $465 million, up from $457 million. Its Segment EBITDA fell to $25 million from $34 million. "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," said Chief Financial Officer Rick Galloway of LKQ. "Specialty was modestly below plan. North America performed in line with expectations despite a softer demand environment." Costs and charges. The company recorded $111 million of pre-tax, non-cash impairment charges. Of that, $88 million was a goodwill impairment tied to the Specialty reporting unit. The other $23 million was an impairment of net assets held for sale linked to the expected divestiture of LKQ's operations in Romania, according to the filing. Restructuring and transaction related expenses were $24 million, up from $14 million a year earlier. Guidance and leadership. The company withdrew its full-year 2026 guidance, which it had last updated on July 30, 2026, according to the filing. The filing gives no replacement figures. On Oct. 23 the board appointed Salvatore A. "Sal" Abbate as President and Chief Executive Officer, effective Dec. 15. The filing said he has more than three decades of experience leading large, complex distribution and industrial businesses. The filing said he was chief executive of Veritiv Corporation, where its share price rose more than 13-fold during his tenure before its $2.6 billion sale to Clayton, Dubilier & Rice in 2023. The board also suspended the strategic review, including the Specialty segment sales process, so the new leadership team can conduct a comprehensive assessment of the business, the company said. Cash and capital returns. Operating cash flow was $411 million in the third quarter, and free cash flow was $372 million. For the nine months, operating cash flow was $466 million and free cash flow was $336 million. Total debt was $3.7 billion at Sept. 30, and total leverage, as defined in the credit facility, was 2.8x EBITDA, or earnings before interest, taxes, depreciation and amortization. In the quarter the company spent $30 million to repurchase 1.2 million shares and paid $76 million in cash dividends. About $1.5 billion remained on the buyback authorization at Sept. 30. On Oct. 25 the board extended the program through Oct. 25, 2028. On Oct. 27 the board declared a quarterly cash dividend of 30 cents per share, payable Dec. 3 to stockholders of record at the close of business on Nov. 19.

LKQ names Sal Abbate President and CEO, effective Dec. 15. LKQ Corporation has appointed Sal Abbate, the former CEO of Veritiv, as President and Chief Executive Officer effective Dec. 15, succeeding Justin Jude. An interim Office of the CEO led by John Mendel and Sue Gove runs until then. LKQ Corporation has appointed Salvatore A. "Sal" Abbate as its next President and Chief Executive Officer, the Nasdaq-listed alternative and specialty parts provider announced on Oct. 23. Abbate takes the role effective Dec. 15, 2026, and succeeds Justin Jude, who left the company on the day of the announcement. Until Abbate starts, LKQ has set up an interim Office of the Chief Executive Officer made up of John Mendel, chairman of the board, and Sue Gove, chair of the company's Audit Committee. The office will work with LKQ's leadership teams and management to oversee operations during the transition. Distribution background. LKQ said Abbate has more than three decades of experience leading large, complex distribution and industrial businesses. He most recently served as CEO of Veritiv Corporation, where the company said he led a significant transformation. LKQ said Veritiv's share price rose more than 13-fold during his tenure, which ended with the company's $2.6 billion sale to Clayton, Dubilier & Rice in 2023. Before becoming CEO, he was Veritiv's chief operating officer and chief commercial officer. Earlier in his career, Abbate held senior leadership roles at Andersen Windows & Doors, Solutia (now part of Eastman Chemical Company) and Armstrong World Industries, with responsibilities spanning sales, marketing, distribution, logistics, manufacturing, strategy and process improvement. He currently serves on the board of ArcBest. He holds a bachelor's degree in industrial engineering from the Georgia Institute of Technology and an MBA from Northwestern University's Kellogg School of Management. LKQ said his experience lines up with its priorities, pointing to his work running high-volume, multi-site distribution businesses where pricing, procurement and supply chain discipline are critical, and to portfolio transformation focused on margin improvement and cash generation. What the board and the incoming CEO said. Mendel said the board ran a search before settling on Abbate. After a thorough search, the Board concluded that Sal is the right leader for LKQ at this moment. He is a disciplined operator and people-centered leader, who has transformed a complex distribution business, improved margins and created significant value for shareholders. John Mendel, chairman of the board, LKQ Corporation Mendel also thanked Jude for his years of service and contributions to the company. Abbate said he sees room to improve performance and plans to act quickly. LKQ is an exceptional company, with unmatched scale, leading market positions and a deep bench of talented people. There is meaningful opportunity to improve performance, and I intend to move quickly. Sal Abbate, incoming president and CEO, LKQ Corporation Abbate added that his focus would start with listening to customers and teams, building a culture where employees can succeed, and driving disciplined execution across every region. About LKQ. LKQ describes itself as a leading provider of alternative and specialty parts used to repair and accessorize automobiles and other vehicles, with operations in North America, Europe and Taiwan. Its offering spans OE recycled and aftermarket parts, replacement systems, components, equipment and services for automobiles, trucks, and recreational and performance vehicles. The full announcement is available on LKQ's investor relations site.

LKQ names Salvatore Abbate CEO. Justin Jude and LKQ Europe chief Andy Hamilton depart as Alvarez & Marsal is retained to advise on European operations. LKQ Corporation (NASDAQ: LKQ) has appointed Salvatore A. "Sal" Abbate, the former chief executive officer of Veritiv Corporation, as its next president and CEO, replacing Justin Jude, who left the company Oct. 23, the same day LKQ disclosed preliminary third-quarter results that showed significant underperformance in Europe. Abbate takes over Dec. 15. Until then, an interim office of the chief executive officer made up of John Mendel, chairman of the board, and Sue Gove, chair of the board's audit committee, will oversee operations with LKQ's leadership team. Andy Hamilton also departed Oct. 23 as president and managing director of LKQ Europe, the board engaged Alvarez & Marsal (A&M) to advise on the European business and LKQ withdrew its full-year 2026 guidance. The changes put new leadership at the top of the collision repair industry's largest supplier of recycled and aftermarket replacement parts while a board review that includes a potential sale of the company remains underway. LKQ said its North America segment, which supplies collision repair facilities, performed in line with expectations in the third quarter despite softer market conditions, following a second quarter in which the segment returned to organic growth and alternative parts utilization topped 40%. "LKQ's performance, particularly in Europe, has fallen significantly short of the Board's expectations, and the Board is taking decisive action to address it," Mendel said. "Sal is a proven operator with a track record of driving performance in complex distribution businesses, and A&M brings deep experience in operational improvement." Europe drives third-quarter shortfall. LKQ expects to report third-quarter revenue of $3.32 billion, down from $3.50 billion a year earlier, with parts and services organic revenue down 5.4%. Europe's organic parts and services revenue fell 9.8%, and the segment's earnings before interest, taxes, depreciation and amortization (EBITDA) margin is expected at 4.1% to 5.1%, compared with 10.0% in the third quarter of 2025. The company attributed the European results to operational disruptions tied to its enterprise resource planning (ERP) system implementation in Germany and to volume declines in the United Kingdom and Benelux. The Specialty segment came in modestly below expectations. The German conversion was already weighing on results in July, when LKQ estimated it reduced second-quarter European revenue by approximately $140 million and EBITDA by approximately $50 million, and said Germany had recovered to above 85% of its normal revenue run rate. Europe's segment EBITDA margin was 7.5% in that quarter. A&M's initial focus will be improving customer service levels, stabilizing operations and strengthening performance and cost discipline across the region. LKQ expects a third-quarter net loss from continuing operations attributable to stockholders of $16 million to $32 million, including $111 million of non-cash impairment charges - $88 million for goodwill and $23 million for net assets held for sale - compared with net income of $178 million a year earlier. Diluted loss per share is expected at $0.06 to $0.12, including $0.42 per share of impairment charges, compared with diluted earnings of $0.69. Adjusted diluted EPS is expected at $0.47 to $0.53, down from $0.84. The withdrawn guidance was last revised July 30, when LKQ cut its adjusted diluted EPS outlook to $2.60 to $2.90 and projected organic parts and services revenue growth of negative 3.0% to negative 1.0%. The company cited the European results and Abbate's pending start as the reasons for withdrawing it. LKQ will report full third-quarter results and hold a conference call Oct. 29. Abbate brings more than three decades of experience leading distribution and industrial businesses. As CEO of Veritiv, he led a transformation during which the company's share price rose more than 13-fold, culminating in its $2.6 billion sale to Clayton, Dubilier & Rice in 2023. He previously served as Veritiv's chief operating officer and chief commercial officer and held senior roles at Andersen Windows & Doors, Solutia Inc., now part of Eastman Chemical Company, and Armstrong World Industries. Abbate serves on the board of ArcBest and holds a bachelor's degree in industrial engineering from the Georgia Institute of Technology and an MBA from Northwestern University's Kellogg School of Management. "Sal brings the operating rigor, commercial instincts and sense of urgency we need to sharpen execution across our businesses and unlock the full potential of LKQ," Mendel said. "On behalf of the Board, I also want to thank Justin for his years of service and contributions to LKQ." "There is meaningful opportunity to improve performance, and I intend to move quickly," Abbate said. "That starts with listening to our customers and teams, fostering a culture where our people can succeed and thrive, driving disciplined execution across every region and holding ourselves accountable for results." Jude, an LKQ employee since 2004 who led the Wholesale - North America segment from 2015 through 2023, succeeded Dominick Zarcone as president and CEO July 1, 2024. Hamilton, who joined LKQ through its 2011 acquisition of Euro Car Parts, was named to lead LKQ Europe effective Jan. 1, 2024. Strategic review. LKQ described the CEO appointment, the European leadership change and the A&M engagement as actions taken in connection with the board's review of strategic alternatives, announced in January, which includes a potential sale of the company. LKQ said it will provide additional updates on the process as appropriate.