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LKQ Q4 Earnings Miss Expectations, Revenues Decline Y/Y
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Key Takeaways
LKQ Q4 EPS of 59 cents missed estimates and fell from 80 cents a year ago, despite a revenue beat.
LKQ revenues dipped to $3.31B, with parts and services organic sales down 1.7% year over year.
LKQ guides 2026 EPS of $2.90-$3.20 and sees organic revenues between down 0.5% and up 1.5%.
LKQ Corporation (LKQ - Free Report) delivered fourth-quarter 2025 adjusted earnings of 59 cents per share, which missed the Zacks Consensus Estimate of 65 cents and declined from 80 cents reported in the year-ago period. The aftermarket auto parts distributor registered quarterly revenues of $3.31 billion, which beat the Zacks Consensus Estimate of $3.26 billion. The top line, however, fell from the year-ago level of $3.36 billion. Parts and Services organic revenues decreased 1.7% year over year.
LKQ has completed the divestiture of its Self Service segment and now reports across three segments.
In the reported quarter, revenues from the North American segment totaled $1,374 million, which increased from $1,366 million in the corresponding period of 2024, but lagged our estimate of $1,393 million. The segment’s EBITDA was $174 million, which was below our forecast of $206.2 million, as well as the $226 million generated in the fourth quarter of 2024.
Revenues from the European segment were $1.56 billion, which rose from $1.51 billion in the year-ago quarter and topped our estimate of $1.50 billion. The segment’s EBITDA came in at $130 million, which was down from the year-ago level of $152 million and missed our forecast of $132.8 million.
Revenues from the Specialty segment came in at $377 million, which increased from $349 million in the year-ago quarter and topped our projection of $361.9 million. The segment’s EBITDA was $17 million, rising from the year-ago figure of $14 million.
Financial Position & Dividend
LKQ had cash and cash equivalents of $319 million as of Dec. 31, 2025, up from $234 million recorded as of Dec. 31, 2024. The long-term obligations (excluding the current portion) amounted to $3.63 billion as of Dec. 31, 2025, down from $4.12 billion recorded as of Dec. 31, 2024. As of Dec. 31, 2025, LKQ’s balance sheet reflected a total debt of $4.2 billion.
In 2025, cash flow from operating activities and FCF were $1.06 billion and $847 million, respectively.
During the fourth quarter of 2025, the company repurchased 1.3 million shares worth $40 million. Since initiating the stock buyback program in late October 2018, it has repurchased around 69 million shares for a total of $2.9 billion through Dec. 31, 2025.
On Feb. 19, LKQ announced a quarterly cash dividend of 30 cents per share. The dividend will be paid out on March 26, 2026, to stockholders of record at the close of business on March 12, 2026.
2026 Guidance
LKQ anticipates parts and services organic revenues to be down 0.5% to up 1.5% year over year compared with the 2.7% decline in 2025. It expects adjusted EPS in the range of $2.90-$3.20 compared with $3.01 in 2025. The company envisions operating cash flow in the range of $900-$1,100 million compared with $1.06 million in 2025. It expects free cash flow in the range of $700-$850 million compared with $847 million in 2025.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 85 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. EPS estimates for fiscal 2026 and 2027 have improved $1.01 and 48 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.3% and 39.5%, respectively. EPS estimates for 2026 have improved 5 cents in the past 30 days. EPS estimates for 2027 have improved a penny in the past seven days.
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LKQ Q4 Earnings Miss Expectations, Revenues Decline Y/Y
Key Takeaways
LKQ Corporation (LKQ - Free Report) delivered fourth-quarter 2025 adjusted earnings of 59 cents per share, which missed the Zacks Consensus Estimate of 65 cents and declined from 80 cents reported in the year-ago period. The aftermarket auto parts distributor registered quarterly revenues of $3.31 billion, which beat the Zacks Consensus Estimate of $3.26 billion. The top line, however, fell from the year-ago level of $3.36 billion. Parts and Services organic revenues decreased 1.7% year over year.
LKQ Corporation Price, Consensus and EPS Surprise
LKQ Corporation price-consensus-eps-surprise-chart | LKQ Corporation Quote
Segment Highlights
LKQ has completed the divestiture of its Self Service segment and now reports across three segments.
In the reported quarter, revenues from the North American segment totaled $1,374 million, which increased from $1,366 million in the corresponding period of 2024, but lagged our estimate of $1,393 million. The segment’s EBITDA was $174 million, which was below our forecast of $206.2 million, as well as the $226 million generated in the fourth quarter of 2024.
Revenues from the European segment were $1.56 billion, which rose from $1.51 billion in the year-ago quarter and topped our estimate of $1.50 billion. The segment’s EBITDA came in at $130 million, which was down from the year-ago level of $152 million and missed our forecast of $132.8 million.
Revenues from the Specialty segment came in at $377 million, which increased from $349 million in the year-ago quarter and topped our projection of $361.9 million. The segment’s EBITDA was $17 million, rising from the year-ago figure of $14 million.
Financial Position & Dividend
LKQ had cash and cash equivalents of $319 million as of Dec. 31, 2025, up from $234 million recorded as of Dec. 31, 2024. The long-term obligations (excluding the current portion) amounted to $3.63 billion as of Dec. 31, 2025, down from $4.12 billion recorded as of Dec. 31, 2024. As of Dec. 31, 2025, LKQ’s balance sheet reflected a total debt of $4.2 billion.
In 2025, cash flow from operating activities and FCF were $1.06 billion and $847 million, respectively.
During the fourth quarter of 2025, the company repurchased 1.3 million shares worth $40 million. Since initiating the stock buyback program in late October 2018, it has repurchased around 69 million shares for a total of $2.9 billion through Dec. 31, 2025.
On Feb. 19, LKQ announced a quarterly cash dividend of 30 cents per share. The dividend will be paid out on March 26, 2026, to stockholders of record at the close of business on March 12, 2026.
2026 Guidance
LKQ anticipates parts and services organic revenues to be down 0.5% to up 1.5% year over year compared with the 2.7% decline in 2025. It expects adjusted EPS in the range of $2.90-$3.20 compared with $3.01 in 2025. The company envisions operating cash flow in the range of $900-$1,100 million compared with $1.06 million in 2025. It expects free cash flow in the range of $700-$850 million compared with $847 million in 2025.
LKQ’s Zacks Rank & Key Picks
LKQ carries a Zacks Rank #4 (Sell) at present.
Some better-ranked stocks in the auto space are Modine Manufacturing Company (MOD - Free Report) , Strattec Security Corporation (STRT - Free Report) and Ford Motor Company (F - Free Report) , each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MOD’s fiscal 2026 sales and earnings implies year-over-year growth of 21.2% and 18.8%, respectively. The EPS estimate for fiscal 2026 and 2027 has improved 18 cents and 85 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for STRT’s fiscal 2026 sales and earnings implies year-over-year growth of 2.1% and 16.2%, respectively. EPS estimates for fiscal 2026 and 2027 have improved $1.01 and 48 cents, respectively, in the past 30 days.
The Zacks Consensus Estimate for F’s 2026 sales and earnings implies year-over-year growth of 0.3% and 39.5%, respectively. EPS estimates for 2026 have improved 5 cents in the past 30 days. EPS estimates for 2027 have improved a penny in the past seven days.