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LKQ Q1 Earnings Match Estimates, Revenues Beat on Stronger Sales Mix
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Key Takeaways
LKQ Q1 EPS met estimates while revenues beat expectations, staying flat year over year.
LKQ North America saw pricing gains offset by lower claims, but margins fell on costs and mix.
LKQ reaffirmed 2026 outlook, guiding modest revenue growth and up to $3.20 EPS.
LKQ Corporation (LKQ - Free Report) posted first-quarter 2026 adjusted earnings of 67 cents per share, matching the Zacks Consensus Estimate and declining 15.2% from the year-ago quarter. Quarterly revenues came in at $3.47 billion, beating the consensus mark of $3.42 billion by 1.46% and remaining flat year over year. Parts and Services organic revenues decreased 1.6% year over year.
LKQ Shows North America Resilience on Claims Pressure
LKQ’s North American segment generated $1,440 million of revenues in the first quarter, up from $1,412 million a year ago, as actions on pricing and mix helped offset softer underlying volumes. The repairable claims were down about 2% to 4% versus the prior year, a dynamic that weighed on demand in some product lines.
Profitability in the segment also faced tariff and mix headwinds. North America's gross margin was 42.4% versus 44.4% a year ago, due to lower vendor rebates, an unfavorable customer mix, and cost inflation, partially offset by pricing initiatives and stronger other revenues. The segment’s EBITDA was $203 million, down from $217 million generated in the first quarter of 2025.
LKQ Corp Sees Europe Improve Late in Quarter
LKQ’s European segment reported revenues of $1.62 billion compared with $1.52 billion in the year-ago period, with foreign exchange acting as a key contributor. Organic parts-and-services revenues declined 4% in Europe, reflecting near-term economic pressure and intensified competition in certain markets.
Margins remained under pressure as pricing competitiveness and input costs flowed through. Europe's gross margin was 38.3% versus 38.8% a year ago, while SG&A rose to $500 million from $459 million. The segment’s EBITDA came in at $126 million, which was down from the year-ago level of $141 million.
LKQ Delivers Specialty Growth but SG&A Weighs
LKQ’s Specialty segment continued to post organic growth, with revenues rising to $409 million from $394 million in the prior-year quarter. Volume growth in marine and RV product lines was the key driver behind the 3.4% organic increase.
Despite the higher revenues, profitability moved lower. Segment EBITDA declined to $18 million from $21 million a year ago, as SG&A increased to $84 million from $76 million. The company attributed the higher cost base primarily to a $6 million increase in credit loss reserves on non-trade receivables.
LKQ’s Cash Flow Reflects Seasonality and Working Capital
LKQ had cash and cash equivalents of $335 million as of March 31, 2026, up from $319 million recorded as of Dec. 31, 2025. The long-term obligations (excluding the current portion) amounted to $1.14 billion as of March 31, 2026, down from $1.16 billion recorded as of Dec. 31, 2025.
LKQ reported an operating cash flow of negative $56 million in the quarter and a free cash flow of negative $96 million. The first-quarter cash usage was primarily attributable to typical seasonality, with receivables building from year-end as volumes increased through the quarter.
Capital returns remained a steady feature of the quarter’s financial profile. LKQ paid $77 million in dividends during the period and reported year-to-date capital spending of $40 million, underscoring an ongoing focus on disciplined capital deployment while operating in a still-challenging demand environment. On April 28, 2026, the company announced a quarterly cash dividend of 30 cents per share, payable on June 4, 2026, to shareholders on record as of the close of business on May 21, 2026.
LKQ Reaffirms 2026 Outlook as Strategic Review Continues
LKQ reaffirmed its full-year 2026 outlook, calling for organic parts-and-services revenue growth between a 0.5% decline and a 1.5% increase. The company maintained adjusted diluted earnings guidance of $2.90 to $3.20, alongside operating cash flow of $900 million to $1.1 billion and free cash flow of $700 million to $850 million.
On the balance sheet, LKQ ended the quarter with total debt of $3.9 billion and leverage of 2.6x EBITDA.
Mobileye Global Inc. (MBLY - Free Report) reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation (GNTX - Free Report) reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. (PCAR - Free Report) reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.
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LKQ Q1 Earnings Match Estimates, Revenues Beat on Stronger Sales Mix
Key Takeaways
LKQ Corporation (LKQ - Free Report) posted first-quarter 2026 adjusted earnings of 67 cents per share, matching the Zacks Consensus Estimate and declining 15.2% from the year-ago quarter. Quarterly revenues came in at $3.47 billion, beating the consensus mark of $3.42 billion by 1.46% and remaining flat year over year. Parts and Services organic revenues decreased 1.6% year over year.
LKQ Corporation Price, Consensus and EPS Surprise
LKQ Corporation price-consensus-eps-surprise-chart | LKQ Corporation Quote
LKQ Shows North America Resilience on Claims Pressure
LKQ’s North American segment generated $1,440 million of revenues in the first quarter, up from $1,412 million a year ago, as actions on pricing and mix helped offset softer underlying volumes. The repairable claims were down about 2% to 4% versus the prior year, a dynamic that weighed on demand in some product lines.
Profitability in the segment also faced tariff and mix headwinds. North America's gross margin was 42.4% versus 44.4% a year ago, due to lower vendor rebates, an unfavorable customer mix, and cost inflation, partially offset by pricing initiatives and stronger other revenues. The segment’s EBITDA was $203 million, down from $217 million generated in the first quarter of 2025.
LKQ Corp Sees Europe Improve Late in Quarter
LKQ’s European segment reported revenues of $1.62 billion compared with $1.52 billion in the year-ago period, with foreign exchange acting as a key contributor. Organic parts-and-services revenues declined 4% in Europe, reflecting near-term economic pressure and intensified competition in certain markets.
Margins remained under pressure as pricing competitiveness and input costs flowed through. Europe's gross margin was 38.3% versus 38.8% a year ago, while SG&A rose to $500 million from $459 million. The segment’s EBITDA came in at $126 million, which was down from the year-ago level of $141 million.
LKQ Delivers Specialty Growth but SG&A Weighs
LKQ’s Specialty segment continued to post organic growth, with revenues rising to $409 million from $394 million in the prior-year quarter. Volume growth in marine and RV product lines was the key driver behind the 3.4% organic increase.
Despite the higher revenues, profitability moved lower. Segment EBITDA declined to $18 million from $21 million a year ago, as SG&A increased to $84 million from $76 million. The company attributed the higher cost base primarily to a $6 million increase in credit loss reserves on non-trade receivables.
LKQ’s Cash Flow Reflects Seasonality and Working Capital
LKQ had cash and cash equivalents of $335 million as of March 31, 2026, up from $319 million recorded as of Dec. 31, 2025. The long-term obligations (excluding the current portion) amounted to $1.14 billion as of March 31, 2026, down from $1.16 billion recorded as of Dec. 31, 2025.
LKQ reported an operating cash flow of negative $56 million in the quarter and a free cash flow of negative $96 million. The first-quarter cash usage was primarily attributable to typical seasonality, with receivables building from year-end as volumes increased through the quarter.
Capital returns remained a steady feature of the quarter’s financial profile. LKQ paid $77 million in dividends during the period and reported year-to-date capital spending of $40 million, underscoring an ongoing focus on disciplined capital deployment while operating in a still-challenging demand environment. On April 28, 2026, the company announced a quarterly cash dividend of 30 cents per share, payable on June 4, 2026, to shareholders on record as of the close of business on May 21, 2026.
LKQ Reaffirms 2026 Outlook as Strategic Review Continues
LKQ reaffirmed its full-year 2026 outlook, calling for organic parts-and-services revenue growth between a 0.5% decline and a 1.5% increase. The company maintained adjusted diluted earnings guidance of $2.90 to $3.20, alongside operating cash flow of $900 million to $1.1 billion and free cash flow of $700 million to $850 million.
On the balance sheet, LKQ ended the quarter with total debt of $3.9 billion and leverage of 2.6x EBITDA.
LKQ currently has a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Key Releases From Auto Space
Mobileye Global Inc. (MBLY - Free Report) reported first-quarter 2026 results on April 23. It posted earnings of 12 cents per share, beating the Zacks Consensus Estimate of 8 cents by 58.52%. The bottom line rose 50% year over year, driven by higher shipments of EyeQ system-on-chip. The company posted revenues of $558 million, which beat the Zacks Consensus Estimate of $520 million by 7.36% and increased 27.4% year over year.
Operating cash flow was $75 million, reflecting the company’s ability to convert its ADAS scale into cash generation.
Mobileye also approved a share buyback program of up to $250 million. By the end of the first quarter, MBLY had $1.21 billion in cash, after spending $591 million (net of cash received) on the Mentee Robotics acquisition.
Gentex Corporation (GNTX - Free Report) reported first-quarter 2026 results on April 24. It posted adjusted earnings of 48 cents per share, which beat the Zacks Consensus Estimate of 44 cents by 8.28%. The figure increased 11.6% from 43 cents a year ago. Net sales came in at $675 million, topping the consensus mark of $647 million by 4.36%. Revenues rose 17.1% from $577 million in the year-ago quarter, aided by contributions from VOXX and a richer mix of advanced features.
Liquidity improved during the quarter. As of March 31, 2026, GNTX’s cash and cash equivalents were $164.8 million compared with $145.6 million as of Dec. 31, 2025. Short-term investments increased to $10.3 million from $5.4 million.
PACCAR Inc. (PCAR - Free Report) reported first-quarter 2026 results on April 28. It reported earnings of $1.15 per share, beating the Zacks Consensus Estimate of $1.13 by 1.8%. The bottom line decreased 21.2% from $1.46 in the year-ago quarter. Consolidated revenues (including trucks and financial services) were $6.78 billion, down from $7.44 billion in the corresponding quarter of 2025. The decline reflected lower industry volumes.
On the balance sheet, cash and marketable securities were $8.60 billion as of March 31, 2026, compared with $9.25 billion as of Dec. 31, 2025, while stockholders’ equity increased to $19.76 billion from $19.26 billion over the same span.