LKQ (LKQ) Q4 2024 earnings summary

Executive summary

• Returned $678M to shareholders in 2024, representing over 80% of free cash flow, surpassing the 50% commitment.

• Navigated challenging 2024 market dynamics, surpassing internal expectations despite financial setbacks.

• Europe segment achieved record Q4 and full-year EBITDA results, with double-digit margins for the third consecutive quarter.

• Integrated FinishMaster, expanded mega yard footprint, and made key leadership changes in Europe.

• Specialty named 2024 Channel Partner of the Year by Specialty Equipment Market Association.

Financial highlights

• 2024 revenue was $14.4B, up 3.5% from 2023; Q4 revenue was $3.4B, down 4.1% year-over-year.

• Returned $678M to shareholders: $360M in share repurchases and $318M in dividends.

• Full-year diluted EPS was $2.62, down 25.4% year-over-year; adjusted diluted EPS was $3.48, down 9.1%.

• Q4 adjusted diluted EPS was $0.80, a 4.8% decrease year-over-year.

• Generated $810M in free cash flow for the year; operating cash flow was $1.1B.

Outlook and guidance

• 2025 organic parts and services revenue growth expected between 0% and 2%.

• Adjusted diluted EPS guidance for 2025 is $3.40 to $3.70; GAAP diluted EPS: $2.91–$3.21.

• Free cash flow expected between $750M–$900M; operating cash flow forecast: $1.075B–$1.275B.

• North America revenue expected to be flat per day; Europe expected to perform slightly better.

• Guidance assumes stable commodity prices and FX rates near Q4 2024 averages.