LKQ (NASDAQ:LKQ) Announces Earnings Results

LKQ (NASDAQ:LKQ) announced its quarterly earnings results on Thursday. The auto parts company reported $0.59 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.06), Briefing.com reports. LKQ had a net margin of 4.36% and a return on equity of 12.29%. The company had revenue of $3.31 billion during the quarter, compared to the consensus estimate of $3.24 billion. During the same quarter in the prior year, the firm posted $0.80 earnings per share. The business’s revenue was up 2.7% on a year-over-year basis. LKQ updated its FY 2026 guidance to 2.900-3.200 EPS.

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

• Exceeded the 2025 free cash flow commitment by generating $847 million and completed the divestiture of the self-service segment to simplify the portfolio.
• LKQ’s board initiated a comprehensive strategic review in January 2026 to explore alternative structures aimed at unlocking shareholder value while management maintains focus on operations.
• Persistent headwinds—declining repairable claims, tariffs, and weak European demand—drove organic revenue declines (North America ~-1% Q4, Europe ~-5.2% Q4), a $52 million goodwill impairment, and weaker adjusted EPS, with conservative 2026 guidance (adj. EPS $2.90–$3.20).
• Management is pursuing cost and productivity initiatives including an approved restructuring (~$60–70 million of costs to generate >$50 million in annualized savings), SKU rationalization, and a Europe ERP integration in early Q2 2026 to improve margins.
• The Specialty segment is rebounding—7.8% organic growth in Q4 with improving margins—and the company reports robust interest in a potential sale with updates expected in H1 2026.

LKQ Trading Up 1.7%

Shares of LKQ opened at $34.10 on Friday. The company’s fifty day simple moving average is $32.44 and its 200-day simple moving average is $31.24. The company has a market cap of $8.73 billion, a P/E ratio of 14.45 and a beta of 0.91. The company has a current ratio of 1.67, a quick ratio of 0.67 and a debt-to-equity ratio of 0.55. LKQ has a twelve month low of $28.13 and a twelve month high of $44.82.

LKQ Dividend Announcement

The company also recently announced a quarterly dividend, which will be paid on Thursday, March 26th. Stockholders of record on Thursday, March 12th will be paid a $0.30 dividend. The ex-dividend date of this dividend is Thursday, March 12th. This represents a $1.20 annualized dividend and a dividend yield of 3.5%. LKQ’s dividend payout ratio is currently 50.85%.

Analyst Ratings Changes

A number of research firms recently commented on LKQ. Roth Mkm reiterated a “buy” rating and issued a $43.00 target price (down from $46.00) on shares of LKQ in a research report on Monday, November 3rd. Weiss Ratings reaffirmed a “sell (d+)” rating on shares of LKQ in a report on Monday, December 29th. Zacks Research downgraded LKQ from a “hold” rating to a “strong sell” rating in a research report on Monday, January 26th. Wall Street Zen upgraded shares of LKQ from a “hold” rating to a “buy” rating in a research report on Saturday, February 14th. Finally, Stephens initiated coverage on shares of LKQ in a research note on Tuesday, December 9th. They set an “overweight” rating and a $39.00 price target on the stock. Four analysts have rated the stock with a Buy rating, one has issued a Hold rating and two have given a Sell rating to the company. Based on data from MarketBeat, the company currently has a consensus rating of “Hold” and an average price target of $43.60.

Institutional Trading of LKQ

Institutional investors have recently added to or reduced their stakes in the company. Verity Asset Management Inc. purchased a new position in shares of LKQ during the third quarter valued at approximately $413,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. lifted its stake in shares of LKQ by 2.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,476 shares of the auto parts company’s stock worth $1,339,000 after acquiring an additional 807 shares during the last quarter. State of Tennessee Department of Treasury lifted its stake in shares of LKQ by 152.3% during the 4th quarter. State of Tennessee Department of Treasury now owns 78,360 shares of the auto parts company’s stock worth $2,574,000 after acquiring an additional 47,299 shares during the last quarter. Captrust Financial Advisors boosted its holdings in LKQ by 0.4% during the 3rd quarter. Captrust Financial Advisors now owns 84,939 shares of the auto parts company’s stock valued at $2,594,000 after acquiring an additional 377 shares during the period. Finally, Kennedy Capital Management LLC grew its position in LKQ by 41.2% in the 3rd quarter. Kennedy Capital Management LLC now owns 314,467 shares of the auto parts company’s stock valued at $9,604,000 after acquiring an additional 91,776 shares during the last quarter. Institutional investors own 95.63% of the company’s stock.

Key Stories Impacting LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Revenue beat and top‑line stability — Q4 sales of about $3.31B topped Street estimates and were up modestly year‑over‑year, signaling resilient demand in parts of the business. LKQ Corporation Q4 2025 Earnings Call Summary
• Positive Sentiment: Strong cash flow and shareholder returns — LKQ reported ~$1.1B operating cash flow and ~$847M free cash flow for the year and returned $116M to shareholders in Q4 via $40M buys and $76M dividends; management also declared a $0.30 quarterly dividend (3.6% yield), which supports income‑oriented investors. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Neutral Sentiment: Strategic review announced — the board launched a comprehensive review of strategic alternatives and portfolio streamlining; this can unlock value but creates near‑term uncertainty about structure and potential one‑time costs. LKQ Q4 deep dive: Earnings resilient despite margin pressure, strategic review launched
• Negative Sentiment: EPS missed expectations — Q4 adjusted EPS was $0.59 vs. consensus ~ $0.65, and quarterly profit declined year‑over‑year, which pressured near‑term stock sentiment. LKQ Q4 Earnings Miss Expectations, Revenues Decline Y/Y
• Negative Sentiment: Below‑consensus 2026 guidance and margin pressure — management set FY‑2026 adjusted EPS of $2.90–$3.20, below the Street consensus cited by management, and warned of margin headwinds and restructuring costs that weigh on near‑term profitability. LKQ outlines $2.90–$3.20 adjusted EPS target and strategic review amid portfolio streamlining

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.