LKQ Corporation reported first quarter 2025 financial results that showed results down year over year, but in line with its expectations. It also raised the unknowns flowing from tariff uncertainty.
“We are pleased with our first-quarter performance and are driven to sustain this momentum as we advance our operational excellence initiatives and generate long-term value despite market uncertainties. By embracing these initiatives, even with lower demand, the team’s unwavering focus on optimizing the company’s cost structure is reflected in our year-over-year EBITDA percentage growth” stated Justin Jude, President and Chief Executive Officer.
“We have formed a dedicated tariff task force comprised of leaders from across our global enterprise to proactively prepare for and navigate the potential opportunities or disruptions that could be caused by the ever-changing tariff landscape.”
LKQ has holdings globally and operating unit brands include LKQ, Bumper to Bumper, Keystone Automotive Operations, Keystone Automotive Industries, ATK High Performance Engines and a host of related operations globally.
Highlights
- Revenue of $3.5 billion
- Organic revenue for parts and services decreased 4.3%; a decrease of 3.1% on a per day basis
- Diluted EPS of $0.65; adjusted diluted EPS of $0.79
- Returned $118 million to our stockholders; repurchased $40 million of LKQ shares and paid $78 million in dividends
- Dividend of $0.30 per share approved to be paid in the second quarter of 2025
First Quarter 2025 Financial Results
Revenue for the first quarter of 2025 was $3.5 billion, a decrease of 6.5% compared to $3.7 billion for the first quarter of 2024. Parts and services organic revenue decreased 4.3% (3.1% decrease on a per day basis), the net impact of acquisitions and divestitures decreased revenue by 0.9%, and foreign exchange rates decreased revenue by 1.6% year over year, for a total parts and services revenue decrease of 6.8%.
All figures in USD.
Net income2 was $169 million compared to $158 million for the same period of 2024. Diluted earnings per share2 was $0.65 compared to $0.59 for the same period of 2024, an increase of 10.2%.
On an adjusted basis, net income1,2 was $204 million compared to $220 million for the same period of 2024, a decrease of 7.3%. Adjusted diluted earnings per share1,2 was $0.79 compared to $0.82 for the same period of 2024, a decrease of 3.7%.
Cash Flow and Balance Sheet
Cash flow from operations and free cash flow1 were negative $3 million and negative $57 million, respectively, for the first quarter of 2025. As of March 31, 2025, the balance sheet reflected total debt of $4.4 billion and total leverage, as defined in our credit facility, was 2.5x EBITDA.
Stock Repurchase and Dividend Programs
During the first quarter of 2025, the Company invested approximately $40 million to repurchase 1.0 million shares of its common stock and distributed $78 million in cash dividends. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 65.5 million shares of its common stock for a total of $2.8 billion through March 31, 2025. An aggregate balance of $1.7 billion remains for potential additional stock repurchases through October 25, 2026. On April 22, 2025, the Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on May 29, 2025, to stockholders of record at the close of business on May 15, 2025.
2025 Outlook
“The Company delivered a solid first quarter, in line with our expectations, and we left our prior full year 2025 guidance unchanged. This outlook does not include potential positive or negative effects from tariffs, which are unknown at this time. We will update our guidance as necessary in future quarters when there is greater clarity regarding the tariff situation. Our strong balance sheet, robust free cash flow, and ample liquidity should allow us to manage headwinds and move quickly as opportunities emerge,” stated Rick Galloway, Senior Vice President and Chief Financial Officer.
For 2025, the full year outlook issued on February 20, 2025 remains unchanged as set forth below:
| 2025 Full Year Outlook | |
| Organic revenue growth for parts and services | 0% to 2% |
| Diluted EPS2 | $2.91 to $3.21 |
| Adjusted diluted EPS1,2 | $3.40 to $3.70 |
| Operating cash flow | $1.075 to $1.275 billion |
| Free cash flow1 | $0.75 to $0.90 billion |
Our outlook for the full year 2025 is based on current conditions, recent trends and our expectations, and assumes a global effective tax rate of 27.0% and the prices of scrap and precious metals hold near the first quarter average. We have applied foreign currency exchange rates near March average levels, including $1.08, $1.28 and $0.70 for the euro, pound sterling and Canadian dollar, respectively, for the balance of the year. Our outlook excludes any potential impacts from the U.S. tariffs announced in 2025 or any potential retaliatory tariffs given the inherent uncertainty in the ongoing trade negotiations. 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).
Non-GAAP Financial Measures
This release contains (and management’s 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.
Conference Call Details
LKQ will host a conference call and webcast on April 24, 2025 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) 470-1428. International access to the call may be obtained by dialing (404) 975-4839. The conference call will require you to enter conference ID: 101078.
Webcast and Presentation Details
The audio webcast and accompanying slide presentation can be accessed at (www.lkqcorp.com) in the Investor Relations section.
A replay of the conference call is available by telephone at (866) 813-9403 or (929) 458-6194 for international calls. The telephone replay will require you to enter conference ID: 672057. An online replay of the audio webcast will be available on the Company’s website. Please allow approximately two hours after the live presentation before attempting to access the replay.
MARK YOUR CALENDAR:
July 24, 2025 8:00 AM ET
Second Quarter 2025 Earnings Conference Call
About LKQ Corporation
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.
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