{"id":987083,"date":"2026-07-30T07:05:10","date_gmt":"2026-07-30T11:05:10","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/lkq-corporation-announces-results-for-second-quarter-2026\/"},"modified":"2026-07-30T07:05:10","modified_gmt":"2026-07-30T11:05:10","slug":"lkq-corporation-announces-results-for-second-quarter-2026","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/lkq-corporation-announces-results-for-second-quarter-2026\/","title":{"rendered":"LKQ Corporation Announces Results for Second Quarter 2026"},"content":{"rendered":"
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ANTIOCH, Tenn., July 30, 2026 (GLOBE NEWSWIRE) — LKQ Corporation (Nasdaq: LKQ) today reported second quarter 2026 financial results and provided an updated outlook for 2026.<\/p>\n

“Our second\u2011quarter performance reflected solid execution across our North America and Specialty segments. North America returned to positive organic growth for the first time in nine quarters, driven by record alternative-parts utilization of over 40%, moderating insurance premiums that were negative in May and June, and continued sequential improvement in repairable claims. Specialty also delivered growth despite a challenging end\u2011market environment and continued macro\u2011economic pressure on consumers. Europe fell short of expectations, with results affected by the ERP implementation in Germany. Outside of the ERP impact, the team delivered substantial cost reductions that largely offset the lower volumes we witnessed in the UK and Benelux regions. Overall, the fundamentals of our business are improving, and as market conditions continue to recover, we expect those operational gains to translate into stronger financial performance and profitability in the quarters ahead,” commented Justin Jude, President and Chief Executive Officer.<\/p>\n

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

Revenue for the second quarter of 2026 was $3.4 billion, a decrease of 3.0% compared to $3.5 billion for the second quarter of 2025. Total parts and services revenue decreased 3.6%, which included a 5.1% decrease in parts and services organic revenue, a 1.0% increase from foreign exchange rates year over year, and the net impact of acquisitions and divestitures, which increased revenue by 0.5%.<\/p>\n

Net income2<\/sup> was $134\u00a0million compared to $185\u00a0million for the same period of 2025. Diluted earnings per share2<\/sup> was $0.52 compared to $0.72 for the same period of 2025.<\/p>\n

On an adjusted basis, net income1,2<\/sup> was $170 million compared to $218 million for the same period of 2025. Adjusted diluted earnings per share1,2<\/sup> was $0.67 compared to $0.84 for the same period of 2025.<\/p>\n

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

In December 2025, the Company announced that it had commenced a process to explore a potential sale of its Specialty segment, and in January 2026, the Company announced that its Board of Directors had initiated a comprehensive review of strategic alternatives, including a sale of the Company, to enhance shareholder value. Our Specialty segment is currently being evaluated as part of the broader strategic review process initiated in January.<\/p>\n

The strategic review process remains active, and the Company continues to engage with multiple parties. 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.<\/p>\n

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

Cash flow from operations3<\/sup> and free cash flow1,3<\/sup> were $111 million and $60 million, respectively, for the second quarter of 2026. Cash flow from operations3<\/sup> and free cash flow1,3<\/sup> were $55 million and negative $36 million, respectively, for the six months ended June\u00a030, 2026. As of June\u00a030, 2026, the balance sheet reflected total debt of $4.0\u00a0billion and total leverage, as defined in our credit facility, was 2.8x EBITDA.<\/p>\n

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

During the second quarter of 2026, the Company invested $52\u00a0million to repurchase 1.9 million shares of its common stock and distributed $77\u00a0million in cash dividends. For the six months ended June\u00a030, 2026, the Company returned $207\u00a0million to its shareholders by investing $53\u00a0million to repurchase 1.9\u00a0million shares of its common stock and distributing $154\u00a0million in cash dividends. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 71\u00a0million shares of its common stock for a total of $3.0\u00a0billion through June 30, 2026. An aggregate balance of $1.5\u00a0billion remains for potential additional stock repurchases through October 25, 2026. On July\u00a028, 2026, the Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on September\u00a03, 2026, to stockholders of record at the close of business on August\u00a020, 2026.<\/p>\n

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

“Second-quarter results reflected improving trends in North America and resilient demand in Specialty, offset by a slower-than-expected recovery following the ERP implementation in Germany. North America remains on track against its full-year plan, and Specialty\u2019s revenue performance has been consistent with our expectations. Our revised outlook reflects a more measured pace of recovery in Europe, while we maintain a disciplined focus on cost management, cash generation and capital allocation. The actions underway in Europe are focused on restoring service levels, aligning the cost structure with current demand and translating operational improvement into stronger financial performance,” stated Rick Galloway, Senior Vice President and Chief Financial Officer.<\/p>\n

For 2026, management updated the outlook as set forth below:<\/p>\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>\n(3.0%) to (1.0%)<\/td>\n<\/tr>\n
Diluted EPS2<\/sup><\/td>\n$2.16 to $2.46<\/td>\n$1.78 to $2.08<\/td>\n<\/tr>\n
Adjusted diluted EPS1,2<\/sup><\/td>\n$2.90 to $3.20<\/td>\n$2.60 to $2.90<\/td>\n<\/tr>\n
Operating cash flow3<\/sup><\/td>\n$900 to $1,100 million<\/td>\n$825 to $1,025 million<\/td>\n<\/tr>\n
Free cash flow1,3 <\/sup><\/td>\n$700 to $850 million<\/td>\n$625 to $775 million<\/td>\n<\/tr>\n<\/table>\n

\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 July 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 July\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 (833) 461-5787. International access to the call may be obtained by dialing (626) 884-3620. The conference call will require you to enter conference ID: 434311175.<\/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

An online replay of the audio webcast will be available on the Company’s website and can be accessed through the Investor Relations section, investor.lkqcorp.com under \u201cEvents\u201d. 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