LKQ (LKQ) Q3 2025 earnings summary

Executive summary

• Completed the sale of the Self Service segment for $410 million, using proceeds to repay $390 million in debt and simplify the business portfolio.

• Achieved $35 million in cost savings in Q3, progressing toward a $75 million 2025 target, mainly from European transformation.

• Specialty segment posted 9.4% organic growth, its first positive quarter since Q4 2021.

• Returned $353 million to shareholders year-to-date, including $119 million in share repurchases and $234 million in dividends.

• Raised and narrowed full-year 2025 adjusted EPS guidance following the divestiture.

Financial highlights

• Q3 2025 revenue was $3.5 billion, up 1.3% year-over-year; organic parts and services revenue declined 1.2%.

• Diluted EPS was $0.69, down 2.8% year-over-year; adjusted diluted EPS was $0.84, down 2.3%.

• Free cash flow for Q3 2025 was $387 million; $573 million for the nine months ended September 30, 2025.

• Segment EBITDA for Q3 2025 was $395 million (11.3% margin), down from $420 million (12.2%) in Q3 2024.

• Returned $118 million to shareholders in Q3 2025 through $40 million in share repurchases and $78 million in dividends.

Outlook and guidance

• 2025 adjusted diluted EPS guidance: $3.00 to $3.15, with the midpoint raised by $0.07.

• Organic parts and services revenue growth expected between (3.0%) and (2.0%).

• Free cash flow guidance set at $600–$750 million, overcoming a $75 million headwind from the Self Service divestiture.

• Capital spend to be reduced by $50 million to offset headwinds.

• Operating cash flow forecast: $0.825 to $1.025 billion.