LKQ (LKQ) Q3 2026 earnings summary

Executive summary

• Q3 revenue fell 5.1% YoY to $3.319B; Segment EBITDA declined 25.1% to $296M, with Europe’s operational underperformance the primary drag.

• Continuing-operations loss attributable to stockholders was $24M, while adjusted net income was $127M.

• North America was comparatively resilient, while Europe faced Germany ERP issues and lower UK and Benelux volumes.

Financial highlights

• Q3 revenue was $3.319B versus $3.499B; operating income was $53M versus $274M.

• Reported diluted EPS was a loss of $0.09 versus income of $0.69; adjusted diluted EPS was $0.50 versus $0.84.

• Q3 net loss was $27M versus net income of $180M; adjusted net income was $127M versus $216M.

• Nine-month revenue was $10.196B versus $10.339B; net income was $188M versus $542M, and diluted EPS was $0.74 versus $2.10.

Outlook and guidance

• FY2026 guidance was withdrawn due to recent performance, Europe challenges and leadership transition; prior guidance should no longer be relied upon.

• Alvarez & Marsal was engaged to advise on Europe, prioritizing operational stabilization, ERP-related issues, customer service, inventory, logistics and cost discipline.

• Approved restructuring and transformation actions are expected to cost ~$85M in total during 2026 and into early 2027.

• The Romania operations sale to Elit Kar OOD is expected to close in Q4 2026, subject to regulatory approval and customary closing conditions.