LKQ Corporation reported third quarter 2025 financial results and updates outlook for 2025 following the sale of the company’s Self Service segment.

Early in October, LKQ Corporation announced it has completed its previously announced agreement to sell its Self Service segment (“Pick Your Part”) to an affiliate of Pacific Avenue Capital Partners, LLC for an enterprise value of $410 million USD, subject to customary purchase price adjustments.

For the periods presented, the company’s Self Service segment, which was sold on September 30, 2025, has been classified as discontinued operations. Unless otherwise noted, the discussion in this earnings release focuses on continuing operations and excludes discontinued operations for all periods presented.

“Our third quarter results reflect solid performance in multiple areas of the business,” said Justin Jude, President and Chief Executive Officer.

“We delivered on our commitment to simplify the business with the divestiture of Self Service, continued to gain market share in a down market in North America, bounced back with double digit margins in Europe and achieved more than 9% organic growth in our Specialty business, all while driving solid free cash flow. This quarter exemplifies the hard work from so many LKQ teammates and I couldn’t be prouder of the team. Our positive operational performance in the quarter, coupled with a one-time tax benefit, gave us the confidence to update our full-year guidance.”

On tariffs, LKQ reports about $35 million USD in pricing impacts.

“We’re seeing the ranges from like 1% to 3%. We’ve been very fortunate to pass on tariff dollar for dollar. We haven’t made any margin on it, but we’ve been able to pass that tariff on. The volume is still overall down. A little bit of it is price obviously, but we’re way outperforming the market, which is positive for us. You know, the MSOs at this time are gaining share and we’re growing with the MSOs. I do believe when the repairable claim starts to rebound or improve more, we’ll start to see more of the independents come back and get more of the volume. Right now MSOs are winning more of that share. Once again we’re winning with them.”

Third Quarter 2025 Financial and Operating Results

Revenue for the third quarter of 2025 was $3,499 million, an increase of 1.3% compared to $3,453 million for the third quarter of 2024. Total parts and services revenue increased 1.1%, which included a 2.6% increase from foreign exchange rates year over year, a 1.2% decrease in parts and services organic revenue and the net impact of acquisitions and divestitures, which decreased revenue by 0.3%. Notably, North American organic revenue on a per day basis decreased 30 basis points against the backdrop of a 6% decline in repairable claims.

All figures in USD unless others specified.

Net income was $178 million compared to $187 million for the same period of 2024. Diluted earnings per share² was $0.69 compared to $0.71 for the same period of 2024, a decrease of 2.8%.

On an adjusted basis, net income was $216 million compared to $226 million for the same period of 2024. Adjusted diluted earnings per share was $0.84 compared to $0.86 for the same period of 2024, a decrease of 2.3%.

Strategic Initiatives

• Simplify Business Portfolio and Operations: Streamlining operations by focusing on our non-discretionary businesses, divesting non-core assets, and enhancing efficiencies.
• 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: Remaining focused on maximizing shareholder value with a disciplined capital allocation strategy and further strengthening our balance sheet to maintain our competitive market position and resilient business model through all market cycles.
  

Cash Flow and Balance Sheet

Cash flow from operations and free cash flow were $440 million and $387 million, respectively, for the third quarter of 2025. Cash flow from operations and free cash flow were $733 million and $573 million, respectively, for the nine months ended September 30, 2025. As of September 30, 2025, the balance sheet reflected total debt of $4.2 billion and total leverage, as defined in our credit facility, was 2.5x EBITDA.

Returning Capital to Shareholders

During the third quarter of 2025, the Company invested approximately $40 million to repurchase 1.2 million shares of its common stock and distributed $78 million in cash dividends. For the nine months ended September 30, 2025, the Company returned approximately $353 million to its shareholders by investing approximately $119 million to repurchase 3.2 million shares of its common stock and distributing $234 million in cash dividends. Since initiating the stock repurchase program in late October 2018, the Company has repurchased approximately 67.7 million shares of its common stock for a total of $2.9 billion through September 30, 2025. An aggregate balance of $1.6 billion remains for potential additional stock repurchases through October 25, 2026. On October 28, 2025, the Board of Directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on December 4, 2025, to stockholders of record at the close of business on November 20, 2025.

2025 Outlook

“Our solid results this quarter underscore our confidence in our strategy and the momentum we are building toward sustained value creation. We are deploying capital in alignment with our disciplined capital allocation strategy and in support of our multiyear transformation plan. Following the Self Service divestiture, we have reduced our debt by more than $600 million since the end of the second quarter, further fortifying our balance sheet to navigate a challenging macro environment and reinforce a solid foundation for future growth,” stated Rick Galloway, Senior Vice President and Chief Financial Officer.

For 2025, management updated the full year outlook (as set forth below) to reflect the divestiture of Self Service:

	2025 Prior Full Year Outlook – Revised for Self Service Divestiture	2025 Updated Full Year Outlook
Organic revenue growth for parts and services	(3.5%) to (1.5%)	(3.0%) to (2.0%)
Diluted EPS	$2.32 to $2.62	$2.47 to $2.62
Adjusted diluted EPS	$2.85 to $3.15	$3.00 to $3.15
Operating cash flow	$0.80 to $1.0 billion	$0.825 to $1.025 billion
Free cash flow	$0.525 to $0.675 billion	$0.60 to $0.75 billion

Adjusted diluted earnings per share guidance issued on July 24, 2025 would have been approximately $2.85 to $3.15, with a midpoint of $3.00, when adjusting for the $0.15 impact from the Self Service divestiture. Based on our third quarter performance, the Company is now raising the midpoint of our adjusted diluted earnings per share guidance by $0.07 and narrowing the full-year 2025 range to $3.00 to $3.15.

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 conference call and webcast was on October 30, 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: 810538.

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: 158780. An online replay of the audio webcast will be available on the Company’s website. Both formats of replay will be available through November 6, 2025. Please allow approximately two hours after the live presentation before attempting to access either format of the replay.