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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.
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Q4 2025 earnings summary19 Feb, 2026

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.

What drives confidence in LKQ's true value?
Europe: key drivers for 2026 EBITDA margin recovery?
North America: When will green shoots impact guidance?
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Frequently asked questions

LKQ Corporation provides replacement parts, components, and systems used in the repair and maintenance of vehicles. The company distributes replacement parts through a network of warehouses across North America, Europe, and the Asia-Pacific region. It primarily serves collision repair shops; body shops; independent garages; automotive dealerships; and vehicle owners who need to replace original equipment parts with aftermarket parts. LKQ Corporation was incorporated in 1998 and is headquartered in Chicago, Illinois.

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