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LKQ (LKQ) investor relations material
LKQ Q4 2025 earnings summary
Complete event summary combining all related documents: earnings call transcript, report, and slide presentation.Executive summary
Achieved $1.1 billion in operating cash flow and $847 million in free cash flow for 2025, exceeding targets despite sector headwinds and soft demand in North America and Europe.
Returned $469 million to shareholders in 2025 through $159 million in share repurchases and $310 million in dividends.
Completed the divestiture of the Self-Service segment and initiated a process to explore the sale of the Specialty segment as part of a strategic transformation.
Initiated a comprehensive strategic review to explore alternative structures and enhance shareholder value, including potential divestitures and restructuring.
Maintained focus on operational execution, cost discipline, and restructuring to support margins and cash flow.
Financial highlights
Q4 2025 revenue was $3.3 billion, up 2.7% year-over-year; full year 2025 revenue was $13.7 billion, down 1.3%.
Q4 2025 diluted EPS was $0.29, including a $52 million goodwill impairment; adjusted EPS was $0.59 (down 24.4%).
Full-year 2025 diluted EPS was $2.31 (down 8.7%); adjusted EPS was $3.01 (down 11.2%), at the lower end of guidance.
Segment EBITDA for 2025 was $1.51 billion (11.1% of revenue), down from $1.69 billion (12.2%) in 2024.
Operating cash flow for 2025 was $1.1 billion; free cash flow was $847 million.
Outlook and guidance
2026 guidance assumes conservative market recovery, with organic parts and services revenue growth between -0.5% and +1.5%.
Adjusted diluted EPS expected in the range of $2.90–$3.20; GAAP diluted EPS guidance: $2.35–$2.65.
Free cash flow expected between $700 million and $850 million; operating cash flow $900–$1,100 million.
EBITDA margins expected to be slightly down in 2026 due to annualized tariff impacts.
Guidance includes estimated impacts from tariffs and foreign exchange, with no meaningful market recovery assumed until sustained improvements are observed.
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