Global aftermarket player LKQ Corporation reported third quarter 2026 financial results that were down more than 5% year over year, resulting in a loss for the quarter primarily due to soft European results.

The results were in line with recent preliminary results and performance which precipitated a number of leadership changes in advance of Q3 reporting.

“LKQ remains a fundamentally strong enterprise, supported by its scale, leading positions across key markets, and global distribution platform,” commented John Mendel, Chairman of the Board of LKQ.

“At the same time, our recent financial and operating performance has not reflected the strength of the business or met the standards we expect, particularly in Europe. The board has been deeply engaged in addressing these challenges, and the appointment of a new CEO, leadership changes in Europe, and the engagement of Alvarez & Marsal are important steps in a broader effort to improve execution and financial performance.

“We believe LKQ has significant strengths that are not currently reflected in its operating performance, and our focus is on translating those strengths into improved performance and increased value for our shareholders.”

Third Quarter 2026 Financial and Operating Results

Revenue for the third quarter of 2026 was $3.3 billion, a decrease of 5.1% compared to $3.5 billion for the third quarter of 2025. Total parts and services revenue decreased 5.6%, which included a 5.4% decrease in parts and services organic revenue, a 0.7% decrease from foreign exchange rates year over year, and the net impact of acquisitions and divestitures, which increased revenue by 0.6%.

All figures in USD.

Net loss was $24 million, including $111 million of pre-tax non-cash impairment charges, compared to net income of $178 million for the same period of 2025. Diluted loss per share was $(0.09) compared to diluted earnings per share of $0.69 for the same period of 2025.

On an adjusted basis, net income was $127 million compared to $216 million for the same period of 2025. Adjusted diluted earnings per share was $0.50 compared to $0.84 for the same period of 2025.

“The third quarter was characterized by weakness in our Europe segment, driven by operational issues related to the ERP implementation in Germany and volume declines in the United Kingdom and Benelux. Specialty was modestly below plan. North America performed in line with expectations despite a softer demand environment,” said Rick Galloway, Chief Financial Officer of LKQ.

Cash Flow and Balance Sheet

Cash flow from operations and free cash flow were $411 million and $372 million, respectively, for the third quarter of 2026. Cash flow from operations and free cash flow were $466 million and $336 million, respectively, for the nine months ended September 30, 2026. As of September 30, 2026, the balance sheet reflected total debt of $3.7 billion and total leverage, as defined in our credit facility, was 2.8x EBITDA.

Returning Capital to Shareholders

During the third quarter of 2026, the Company invested $30 million to repurchase 1.2 million shares of its common stock and distributed $76 million in cash dividends. For the nine months ended September 30, 2026, the Company returned $313 million to its shareholders by investing $83 million to repurchase 3.1 million shares of its common stock and distributing $230 million in cash dividends. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 72 million shares of its common stock for a total of $3.0 billion through September 30, 2026. As of September 30, 2026, there was $1.5 billion remaining on the authorization.

On October 25, 2026, the Board authorized a two-year extension to its stock repurchase program, authorizing repurchases through October 25, 2028.

On October 27, 2026, the Board declared a quarterly cash dividend of $0.30 per share of common stock, payable on December 3, 2026, to stockholders of record at the close of business on November 19, 2026.

Strategic Review

Alongside the recent leadership changes, the Board has decided to suspend the strategic review, including the Specialty segment sales process. This will provide the new leadership team the opportunity to conduct a comprehensive assessment of the business and evaluate the full range of value‑creation pathways available to the company.

The board, says the company, will continue to oversee the strategic direction, protect shareholder interests, and ensure accountability. This includes evaluating opportunities that it believes could enhance shareholder value and optimize the company’s strategic positioning over the long term.

Other Events

On October 23, 2026, the company announced that the board appointed Salvatore A. “Sal” Abbate as President and Chief Executive Officer, effective December 15, 2026. Abbate brings more than three decades of experience leading large, complex distribution and industrial businesses. As CEO of Veritiv Corporation, he led a significant transformation of the company, with its share price increasing more than 13-fold during his tenure, culminating in its $2.6 billion sale to Clayton, Dubilier & Rice in 2023. Before becoming CEO, he served as Veritiv’s Chief Operating Officer and Chief Commercial Officer. Earlier in his career, Abbate held senior leadership roles at Andersen Windows & Doors, Solutia, Inc., now part of Eastman Chemical Company, and Armstrong World Industries, with responsibilities spanning sales, marketing, distribution, logistics, manufacturing, strategy and process improvement.

On October 23, 2026 the company announced that it is withdrawing its full-year 2026 guidance, which was most recently updated on July 30, 2026.

Conference Call Details

LKQ hosted a conference call and webcast on October 29, 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 requires you to enter conference ID: 778680119.

Webcast and Presentation Details

The audio webcast and accompanying slide presentation can be accessed at (www.lkqcorp.com) in the Investor Relations section.

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 “Events”. Please allow approximately two hours after the live presentation before attempting to access the replay.