LKQ Corporation reported second quarter 2025 financial results and provided updated outlook for 2025.

LKQ has global holdings across many sectors of the aftermarket with particular involvement in the collision parts supply sector. In Canada, in addtion to its LKQ identified business activities, its most notable holding is aftermarket distributor Uni-Select Inc., which it acquired in August 2023.

Revenue for the second quarter of 2025 was $3.6 billion, a decrease of 1.9% compared to $3.7 billion for the second quarter of 2024. Parts and services organic revenue decreased 3.4% (2.7% decrease on a per day basis), the net impact of acquisitions and divestitures decreased revenue by 1.0%, and foreign exchange rates increased revenue by 2.3% year over year, for a total parts and services revenue decrease of 2.1%.

All figures in USD.

Net income was $192 million compared to $185 million for the same period of 2024. Diluted earnings per share was $0.75 compared to $0.70 for the same period of 2024, an increase of 7.1%.

On an adjusted basis, net income was $225 million compared to $261 million for the same period of 2024. Adjusted diluted earnings per share was $0.87 compared to $0.98 for the same period of 2024, a decrease of 11.2%.

The company says its focus on cost reduction measures has resulted in more than $125 million in costs taken out over the past 12 months with an additional $75 million targeted for 2025.

North American organic revenue outperformed the market even as repairable claims across the entire industry declined 9%. In Europe, the company has replaced more than 25% of the leadership team and continues to focus on reducing costs, rationalizing SKU’s and enhancing revenue opportunities, including entering into a strategic partnership to expand our salvage business.

Commenting on the quarter, Justin Jude, President and Chief Executive Officer, said, “We are executing on our three-year plan outlined at our September 2024 Investor Day and are confident in our strategy. We have no doubt we have the size, scale and an unmatched distribution network that are the best in the industry.

“Our results this quarter reflect a company that is in transformation. We will move faster and harder to simplify our business and reduce costs. As we sharpen our focus on people, process and performance, we will be well positioned to capitalize as the cycle in our sector turns. We are committed to delivering better results for our customers, employees and partners and importantly, creating more value for shareholders.”

Strategic Initiatives

• Simplify Business Portfolio and Operations: Streamlining operations by focusing on our non-discretionary businesses, divesting non-core assets, and enhancing efficiencies, in collaboration with qualified advisors to ensure comprehensive evaluation and execution of strategic decisions.
• Expand Lean Operating Model Globally: Continuing to scale lean operating model across all regions to drive productivity, improve execution, and accelerate decision-making.
• Invest and Grow Organically: Investing in our core businesses to achieve above market growth and drive market share gains.
• Pursue Disciplined Capital Allocation Strategy: Capital allocation remains focused on maximizing shareholder value.

Cash Flow and Balance Sheet

Cash flow from operations and free cash flow¹ were $296 million and $243 million, respectively, for the second quarter of 2025. Cash flow from operations and free cash flow¹ were $293 million and $186 million, respectively, for the six months ended June 30, 2025. As of June 30, 2025, the balance sheet reflected total debt of $4.5 billion and total leverage, as defined in our credit facility, was 2.6x EBITDA.

Returning Capital to Shareholders

During the second quarter of 2025, the Company invested approximately $39 million to repurchase 1.0 million shares of its common stock and distributed $78 million in cash dividends. For the six months ended June 30, 2025, the Company returned approximately $235 million to its shareholders by investing approximately $79 million to repurchase 2.0 million shares of its common stock and distributing $156 million in cash dividends. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 66.5 million shares of its common stock for a total of $2.9 billion through June 30, 2025. An aggregate balance of $1.6 billion remains for potential additional stock repurchases through October 25, 2026. On July 22, 2025, the Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on August 28, 2025, to stockholders of record at the close of business on August 14, 2025.

2025 Outlook

“As we look ahead, we are focused on executing on our strategic initiatives to deliver improved financial results. We will continue to follow a disciplined capital allocation strategy that returns capital to shareholders. Our strategy includes driving efficiencies and simplifying our business and portfolio as we look at ROIC as a constant measure. We are navigating through the cyclical issues in our marketplace and will have a stronger Company that is well-positioned when the market turns,” stated Rick Galloway, Senior Vice President and Chief Financial Officer.

Based on a confluence of macroeconomic factors in both North America and Europe, coupled with the results this quarter, LKQ is lowering its full year outlook. In North America, the Company is not seeing a recovery in the repairable claims and tariff uncertainty continues. In Europe, general economic softness and geopolitical unrest are drivers of an uncertain environment.

For 2025, management updated the outlook as set forth below:

	2025 Previous Full Year Outlook	2025 Updated Full Year Outlook
Organic revenue growth for parts and services	0% to 2%	(3.5%) to (1.5%)
Diluted EPS2	$2.91 to $3.21	$2.47 to $2.77
Adjusted diluted EPS1,2	$3.40 to $3.70	$3.00 to $3.30
Operating cash flow	$1.075 to $1.275 billion	$0.875 to $1.075 billion
Free cash flow1	$0.75 to $0.90 billion	$0.60 to $0.75 billion

Conference Call Details

LKQ hosted a conference call and webcast on July 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 investor conference call, please dial (833) 470-1428. International access to the call may be obtained by dialing (404) 975-4839. The investor conference call will require you to enter conference ID: 409932.

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 will be available by telephone at (866) 813-9403 or (929) 458-6194 for international calls. The telephone replay will require you to enter conference ID: 696574. An online replay of the audio webcast will be available on the Company’s website. Both formats of replay will be available through July 31, 2025. Please allow approximately two hours after the live presentation before attempting to access the replay.

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.