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LKQ Corp. lowers earnings outlook following Q2 performance. While the company's North American operations are showing positive growth, European revenue fell nearly 10 percent year over year. Published July 30, 2026 Antioch, Tennessee-based LKQ Corp. has reported its second-quarter financial results, which include a 3 percent decline in year-over-year revenue from $3.51 billion to $3.41 billion and a 28 percent reduction in net income from $185 million to $134 million. The company says total parts and services revenue decreased 3.6 percent, which included a 5.1 percent decrease in parts and services organic revenue, a 1 percent increase from foreign exchange rates year over year and the net impact of acquisitions and divestitures, which increased revenue by 0.5 percent. The aftermarket and recycled parts provider's diluted earnings per share (EPS) dropped to 52 cents from 72 cents a year ago, while its adjusted EPS were 67 cents, down from 84 cents. While North America showed improvement, returning to positive organic growth for the first time in nine quarters and revenue increased about 0.5 percent year over year, LKQ continues to have problems in Europe, where revenue fell 9.6 percent year over year. The company says its Specialty revenue increased 5 percent year over year despite what LKQ President and CEO Justin Jude describes as macroeconomic pressure on consumers. This business segment distributes and markets specialty vehicle aftermarket products and accessories in North America. "Our second-quarter performance reflected solid execution across our North America and Specialty segments," says President and CEO Justin Jude. He adds that record alternative-parts use of more than 40 percent, moderating insurance premiums that were negative in May and June and continued sequential improvement in repairable claims contributed to LKQ's performance in North America. "Europe fell short of expectations, with results affected by the ERP [enterprise resource planning] implementation in Germany," Jude says. "Outside of the ERP impact, the team delivered substantial cost reductions that largely offset the lower volumes we witnessed in the U.K. and Benelux regions." He adds, "Overall, the fundamentals of our business are improving, and as market conditions continue to recover, we expect those operational gains to translate into stronger financial performance and profitability in the quarters ahead." The company's second-quarter performance has led it to lower its earnings outlook for the year: | Metric | Previous Outlook | Updated Outlook | | Organic revenue growth | -0.5% to +1.5% | -3% to -1% | | Diluted EPS | $2.16-$2.46 | $1.78-$2.08 | | Adjusted EPS | $2.90-$3.20 | $2.60-$2.90 | | Operating cash flow | $900M-$1.1B | $825M-$1.025B | | Free cash flow | $700M-$850M | $625M-$775M | "North America remains on track against its full-year plan, and Specialty's revenue performance has been consistent with our expectations," adds Rick Galloway, senior vice president and chief financial officer. "Our revised outlook reflects a more measured pace of recovery in Europe, while we maintain a disciplined focus on cost management, cash generation and capital allocation. The actions underway in Europe are focused on restoring service levels, aligning the cost structure with current demand and translating operational improvement into stronger financial performance." Strategic initiatives. In December 2025, LKQ said it had started a process to explore a potential sale of its Specialty segment, and in January of this year, the company announced that its board had initiated a comprehensive review of strategic alternatives, including a sale of the company, to enhance shareholder value. LKQ says its Specialty segment is being evaluated as part of the broader strategic review process initiated in January. The strategic review process remains active, and LKQ says it continues to engage with multiple parties. The review has no deadline or definitive timetable nor is there assurance the review will result in any transaction or other strategic outcome. Sponsored Content Optimal productivity, heavy construction, safety features and operator comfort come together in the SENNEBOGEN 360 G-series telescopic wheel loader, designed for work across the waste and recycling industry. Telescopic wheel loaders manufactured by SENNEBOGEN have a growing presence at transfer stations, material recovery facilities (MRFs), construction and demolition (C&D) recycling plants and metal recycling facilities across North America. Cash flow and balance sheet. Cash flow from operations and free cash flow were $111 million and $60 million, respectively, for the second quarter, and $55 million and negative $36 million for the six months ended June 30. As of June 30, LKQ says its balance sheet reflected total debt of $4 billion and total leverage, as defined in its credit facility, was 2.8x earnings before interest, taxes, depreciation and amortization. Returning capital to shareholders. During the second quarter of 2026, LKQ invested $52 million to repurchase 1.9 million shares of its common stock and distributed $77 million in cash dividends. For the six months ended June 30, it returned $207 million to its shareholders by investing $53 million to repurchase 1.9 million shares of its common stock and distributing $154 million in cash dividends. Since initiating the stock repurchase program in late October 2018, LKQ has repurchased approximately 71 million shares of its common stock for a total of $3 billion through June 30. An aggregate balance of $1.5 billion remains for potential additional stock repurchases through Oct. 25. In late July, the board declared a quarterly cash dividend of 30 cents per share of common stock, payable Sept. 3, to stockholders of record at the close of business Aug. 20. Get curated news on YOUR industry. Enter your email to receive our newsletters.

LKQ Bodyshop delivers practical skills with Apprentice+. By Alan Feldberg - 23/07/2026 LKQ Bodyshop has unveiled Apprentice+, an IMI-certified training programme developed to provide hands-on experience to young learners. Designed to complement existing apprenticeships, Apprentice+ offers practical experience across the full repair journey to better prepare apprentices for the workshop. Held at the LKQ Academy in Tamworth in partnership with 3M, U-POL, DeVilbiss, Laser-PowerTec, and Mirka, Apprentice+ consists of six practical pathways. * Health and safety * Panel repair * Paint * Mechanical, electrical and trim * Quality control * Profitability and sustainability Participants will complete assessments at the end of each pathway to demonstrate their learning, while four additional e-learning modules cover hybrid and electric vehicle awareness, workshop safety, hand-arm vibration awareness, and Control of Substances Hazardous to Health (COSHH). Future talent. Jodie Mullard, director of customer strategy at LKQ, said: "The industry has been clear that apprentices need more opportunities to put their learning into practice and develop the broad skills required in a modern bodyshop. We developed Apprentice+ to respond directly to this demand. "The programme offers exceptional value for bodyshops looking to invest in their future talent, combining practical training, assessment and peer learning, with selected tools and equipment provided by leading sector suppliers to support apprentices after the programme. "The skills gap is a challenge for the whole sector, and no single business can solve it alone. Our role is to connect apprentices with the people and organisations that can nurture their talent and help build a strong pipeline of capable professionals." Skills. Lee Smedley, technical training and development manager at LKQ, added: "Apprentice+ has been informed by my experience mentoring LKQ's apprentices, as well as conversations with bodyshops and apprentices who have trained at LKQ Academy. "The programme is designed to give them an experience that we regularly hear they value: the chance to make mistakes and build skills in a supportive environment. It will expose participants to the full repair journey and help them understand how different bodyshop disciplines work together and allow them to learn from everyone around them. "By assessing apprentices at the end of each pathway, we can also help them recognise how far they've progressed, and then also where there's room for that little bit of further development." LKQ will welcome the first two cohorts of eight apprentices in September, with further intakes expected at the start of 2027.

LKQ Euro Car Parts introduces cost-effective oe-quality remanufactured range. * June 17, 2026 LKQ Euro Car Parts has launched the ERA Reman range of alternators and starter motors in the UK, giving independent workshops and fleets a new OE-level remanufactured option to better enable sustainable, affordable mobility for their customers. Built on more than 30 years' remanufacturing expertise, ERA Reman products are produced in state-of-the-art facilities in Europe. Each unit is remanufactured to OE specification, using OE parts where applicable - and in some cases improving OE - before undergoing rigorous testing to ensure dependable performance for workshops. Every ERA Reman unit therefore comes with a three-year warranty and a core return policy, helping to keep valuable cores in the remanufacturing loop. The range offers OE-level performance at a reasonable price point, giving workshops a high-quality and attractive alternative to new components. Sustainability has been considered at all levels. ERA Reman uses recyclable brown box packaging, reduced printing ink and minimal plastic, while still ensuring the eco package provides secure shipping. The launch comes at a time when data shows that 55% of UK workshops already fit remanufactured or used parts, but for most, these represent less than a quarter of total installations, according to LKQ's 2025 UK Voice of the Customer research. This highlights significant scope for growth in high-quality reman solutions. The range adds 1,400 SKUs to LKQ Euro Car Parts' more than 100,000-part catalogue, providing broad coverage and helping technicians source the right part quickly through its 250+ branch network. ERA Reman sits under the Emotive house of brands, for which LKQ is the number one distributor in Europe and the sole UK distributor. The launch forms part of LKQ's broader investment in remanufactured and recycled parts, including its recent joint venture with UK salvage specialist LKQ SYNETIQ to strengthen the supply of sustainable components across repair networks. Matt Robinson, B2B Director at LKQ Euro Car Parts said: "Technicians need rotating electric components they can trust - because if a newly-fitted alternator or starter motor fails, it can be costly in terms of both profit and reputation. "We're also seeing growing awareness in the sector for the role that remanufacturing plays in future proofing repairs. More garages are actively choosing remanufacturing solutions that offer reliable performance, while also helping to reduce waste and dependence on new materials. They understand that doing the job properly today can also support the long-term sustainability of the industry. We're proud to be meeting this demand, all the while offering a range that's competitive in terms of price and quality." June 17, 2026