LKQ (LKQ) Investor presentation summary

Business evolution and market position

• Expanded from North American collision operations to a global alternative parts distributor with $13.8 billion in revenue as of Q1 2026.

• Holds #1 market position in top seven European markets, operating in 18 countries with 900 locations and 26,000 employees.

• Product portfolio includes aftermarket, recycled, and specialty automotive parts across North America and Europe.

• Unmatched distribution network and high fill rates drive competitive advantage in North America.

• Market leadership in all three reporting segments, supported by geographic and customer diversity.

Financial performance and segment results

• Q1 2026 revenue reached $3.47 billion, up 4.3% year-over-year, with organic parts and services revenue declining 1.6%.

• Segment EBITDA for Q1 2026 was $347 million (10.0% margin), down from $379 million (11.4%) in Q1 2025.

• Adjusted diluted EPS was $0.67, while reported diluted EPS was $0.30, reflecting an impairment charge.

• Returned $77 million to shareholders in Q1 2026 through dividends.

• Specialty segment delivered its third consecutive quarter of organic growth, with 3.4% in Q1 2026.

Strategic initiatives and capital allocation

• Focused on simplifying business operations, driving operational excellence, and investing in organic growth.

• Capital allocation from 2024 to Q1 2026: 28% to dividends, 23% to capex, 21% to share repurchases, 21% to net debt reduction, and 7% to acquisitions.

• Committed to returning at least 50% of annual free cash flow to shareholders via dividends in the short term.

• Prioritizing highly accretive tuck-in acquisitions, with no large platform deals expected.

• Initiated a formal review of strategic alternatives in January 2026 to enhance shareholder value.