{"id":956409,"date":"2026-04-30T07:05:32","date_gmt":"2026-04-30T11:05:32","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/lkq-corporation-announces-results-for-first-quarter-2026\/"},"modified":"2026-04-30T07:05:32","modified_gmt":"2026-04-30T11:05:32","slug":"lkq-corporation-announces-results-for-first-quarter-2026","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/lkq-corporation-announces-results-for-first-quarter-2026\/","title":{"rendered":"LKQ Corporation Announces Results for First Quarter 2026"},"content":{"rendered":"
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\n Board of Directors Initiated a Comprehensive Review of Strategic Alternatives to Enhance Shareholder Value<\/em>
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\n Maintains Focus on Returning Capital to Shareholders with <\/em>
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\n $77\u00a0million<\/em>
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\n in Cash Dividends to Shareholders<\/em>
\n <\/strong>\n <\/p>\n

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\n Dividend of <\/em>
\n <\/strong>
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\n $0.30<\/em>
\n <\/strong>
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\n Per Share Approved to be Paid in Second Quarter of <\/em>
\n <\/strong>
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\n 2026<\/em>
\n <\/strong>\n <\/p>\n

ANTIOCH, Tenn., April 30, 2026 (GLOBE NEWSWIRE) — LKQ Corporation (Nasdaq: LKQ) today reported first quarter 2026 financial results.<\/p>\n

\u201cWe are operating in a challenging environment and are focused on improving our results. Our teams are taking deliberate actions to reduce costs, streamline operations while taking market share, and position ourselves for success going forward as the environment improves. In North America, our business held up well in the quarter with above market growth, and we\u2019re starting to see signs of recovery in the market.\u00a0In Europe, we saw continual improvements through the quarter, and we\u2019re continuing to work on integration. In early April, we took a large step forward with an ERP migration in a major market that is part of our overall operational improvement initiatives.\u00a0But there is more work to do. We are operating with urgency and focused on execution, improving our customer relationships, and strengthening the business to create value for our shareholders,\u201d commented Justin Jude, President and Chief Executive Officer.<\/p>\n

\n First Quarter<\/strong>
\n 2026<\/strong>
\n Financial and Operating Results<\/strong>\n <\/p>\n

Revenue for the first quarter of 2026 was $3,469 million, an increase of 4.3% compared to $3,327 million for the first quarter of 2025. Total parts and services revenue increased 3.6%, which included a 5.1% increase from foreign exchange rates year over year, a 1.6% decrease in parts and services organic revenue, and the net impact of acquisitions and divestitures, which increased revenue by 0.2%.<\/p>\n

Net income2<\/sup> was $77\u00a0million compared to $158\u00a0million for the same period of 2025. Diluted earnings per share2<\/sup> was $0.30 compared to $0.61 for the same period of 2025, a decrease of 50.8%. Net income2<\/sup> for the three months ended March\u00a031, 2026 included a $44\u00a0million (or $0.17) impairment of our equity method investment in Mekonomen.<\/p>\n

On an adjusted basis, net income1,2<\/sup> was $171\u00a0million compared to $193\u00a0million for the same period of 2025. Adjusted diluted earnings per share1,2<\/sup> was $0.67 compared to $0.74 for the same period of 2025, a decrease of 9.5%.<\/p>\n

\n Strategic Initiatives<\/strong>\n <\/p>\n

On January 26, 2026, the Company announced that the Board of Directors initiated a comprehensive review of strategic alternatives to enhance shareholder value. The Company has retained BofA Securities and Goldman Sachs & Co. LLC. as its financial advisors. The review has no deadline or definitive timetable and there can be no assurance the review will result in any transaction or other strategic outcome. The Company will provide updates on the process as appropriate.<\/strong><\/p>\n

\n Cash Flow and Balance Sheet<\/strong>\n <\/p>\n

Cash flow from operations3<\/sup> and free cash flow1,3<\/sup> were negative $56 million and negative $96 million, respectively, for the first quarter of 2026. As of March\u00a031, 2026, the balance sheet reflected total debt of $3.9\u00a0billion and total leverage, as defined in our credit facility, was 2.6x EBITDA.<\/p>\n

\n Returning Capital to Shareholders<\/strong>\n <\/p>\n

During the first quarter of 2026, the Company distributed $77\u00a0million in cash dividends. On April\u00a028, 2026, the Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on June\u00a04, 2026, to stockholders of record at the close of business on May\u00a021, 2026.<\/p>\n

\n 2026<\/strong>
\n Outlook<\/strong>\n <\/p>\n

\u201cWe are seeing improving performance trends across our global footprint, with continued strength in North America and early signs of stabilization in Europe. We are continuing to implement productivity and restructuring initiatives intended to help mitigate the impact of ongoing macroeconomic and cost pressures. Based on our performance to date, we remain focused on executing against our full year 2026 outlook,” stated Rick Galloway, Senior Vice President and Chief Financial Officer.<\/p>\n

For 2026, management reaffirmed the outlook as set forth below:<\/p>\n\n\n\n\n\n\n\n\n
\u00a0<\/td>\n2026 Previous Full Year Outlook<\/td>\n2026 Updated Full Year Outlook<\/td>\n<\/tr>\n
Organic revenue growth for parts and services<\/td>\n(0.5%) to 1.5%<\/td>\nUnchanged<\/td>\n<\/tr>\n
Diluted EPS2<\/sup><\/td>\n$2.35 to $2.65<\/td>\n$2.16 to $2.46<\/td>\n<\/tr>\n
Adjusted diluted EPS1,2<\/sup><\/td>\n$2.90 to $3.20<\/td>\nUnchanged<\/td>\n<\/tr>\n
Operating cash flow3<\/sup><\/td>\n$900 to $1,100 million<\/td>\nUnchanged<\/td>\n<\/tr>\n
Free cash flow1,3 <\/sup><\/td>\n$700 to $850 million<\/td>\nUnchanged<\/td>\n<\/tr>\n
\u00a0<\/td>\n\u00a0<\/td>\n\u00a0<\/td>\n<\/tr>\n<\/table>\n

Our outlook for the full year 2026 is based on current conditions, recent trends and our expectations. Outlook includes estimated impacts from the U.S. and retaliatory tariffs in effect as of April 1, 2026 and assumes a global effective tax rate of 26.8% and foreign currency exchange rates near recent average levels, including $1.17, $1.35 and $0.72 for the euro, pound sterling and Canadian dollar, respectively, for the balance of the year. Changes in these conditions may impact our ability to achieve the estimates. Adjusted figures exclude (to the extent applicable) the impact of restructuring and transaction related expenses; amortization expense related to acquired intangibles; excess tax benefits and deficiencies from stock-based payments; losses on debt extinguishment; impairment charges; and gains and losses related to acquisitions or divestitures (including changes in the fair value of contingent consideration liabilities).<\/p>\n

\n Non-GAAP Financial Measures<\/strong>\n <\/p>\n

This release contains (and management\u2019s presentation on the related investor conference call will refer to) non-GAAP financial measures within the meaning of Regulation G promulgated by the Securities and Exchange Commission. Included with this release are reconciliations of each non-GAAP financial measure with the most directly comparable financial measure calculated in accordance with GAAP.<\/p>\n

\n Conference Call Details<\/strong>\n <\/p>\n

LKQ will host a conference call and webcast on April\u00a030, 2026 at 8:00 a.m. Eastern Time (7:00 a.m. Central Time) with members of senior management to discuss the Company’s results. To access the conference call, please dial (800) 715-9871. International access to the call may be obtained by dialing (646) 307-1963. The conference call will require you to enter conference ID: 2118690.<\/p>\n

\n Webcast and Presentation Details<\/strong>\n <\/p>\n

The audio webcast and accompanying slide presentation can be accessed at (www.lkqcorp.com) in the Investor Relations section.<\/p>\n

A replay of the conference call will be available by telephone at (800) 770-2030 or (609) 800-9909 for international calls. The telephone replay will require you to enter conference ID: 2118690. An online replay of the audio webcast will be available on the Company’s website. Both formats of replay will be available through May 7, 2026. Please allow approximately two hours after the live presentation before attempting to access the replay.<\/p>\n

\n About LKQ Corporation<\/strong>\n <\/p>\n

LKQ Corporation (www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. LKQ offers its customers a broad range of OEM recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.<\/p>\n

\n Forward-Looking Statements<\/strong>\n <\/p>\n

Statements and information in this press release and on the related conference call, including our outlook for 2026, as well as remarks by the Chief Executive Officer and other members of management, that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the \u201csafe harbor\u201d provisions of such Act.<\/p>\n

Forward-looking statements include, but are not limited to, statements regarding our outlook, expectations, beliefs, hopes, intentions and strategies. These statements are subject to a number of risks, uncertainties, assumptions and other factors including those identified below. All forward-looking statements are based on information available to us at the time the statements are made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.<\/p>\n

You should not place undue reliance on our forward-looking statements. Actual events or results may differ materially from those expressed or implied in the forward-looking statements. The risks, uncertainties, assumptions and other factors that could cause actual events or results to differ from the events or results predicted or implied by our forward-looking statements include the factors set forth below, and other factors discussed in our filings with the SEC, including those disclosed under the captions \u201cRisk Factors\u201d and \u201cManagement\u2019s Discussion and Analysis of Financial Condition and Results of Operations\u201d in our Annual Report on Form 10-K for the year ended December\u00a031, 2025 and in our subsequent Quarterly Reports on Form 10-Q. These reports are available at the Investor Relations section on our website (www.lkqcorp.com) and on the SEC’s website (www.sec.gov).<\/p>\n

These factors include the following (not necessarily in order of importance):<\/p>\n