LKQ (NASDAQ:LKQ) Announces Quarterly Earnings Results

LKQ (NASDAQ:LKQ) announced its quarterly earnings results on Thursday. The auto parts company reported $0.59 earnings per share for the quarter, missing analysts’ consensus estimates of $0.65 by ($0.06), Briefing.com reports. The firm had revenue of $3.31 billion for the quarter, compared to the consensus estimate of $3.24 billion. LKQ had a return on equity of 13.45% and a net margin of 4.99%.The company’s revenue for the quarter was up 2.7% compared to the same quarter last year. During the same period in the prior year, the business earned $0.80 earnings per share. LKQ updated its FY 2026 guidance to 2.900-3.200 EPS.

Here are the key takeaways from LKQ’s conference call:

• Exceeded the 2025 free cash flow commitment by generating $847 million and completed the divestiture of the self-service segment to simplify the portfolio.
• LKQ’s board initiated a comprehensive strategic review in January 2026 to explore alternative structures aimed at unlocking shareholder value while management maintains focus on operations.
• Persistent headwinds—declining repairable claims, tariffs, and weak European demand—drove organic revenue declines (North America ~-1% Q4, Europe ~-5.2% Q4), a $52 million goodwill impairment, and weaker adjusted EPS, with conservative 2026 guidance (adj. EPS $2.90–$3.20).
• Management is pursuing cost and productivity initiatives including an approved restructuring (~$60–70 million of costs to generate >$50 million in annualized savings), SKU rationalization, and a Europe ERP integration in early Q2 2026 to improve margins.
• The Specialty segment is rebounding—7.8% organic growth in Q4 with improving margins—and the company reports robust interest in a potential sale with updates expected in H1 2026.

LKQ Price Performance

Shares of LKQ stock traded up $0.53 on Thursday, hitting $33.75. 1,199,955 shares of the company’s stock were exchanged, compared to its average volume of 2,708,363. The stock has a market cap of $8.64 billion, a P/E ratio of 12.52 and a beta of 0.91. The company has a debt-to-equity ratio of 0.55, a current ratio of 1.60 and a quick ratio of 0.67. The company has a 50 day moving average of $32.32 and a 200 day moving average of $31.19. LKQ has a 12 month low of $28.13 and a 12 month high of $44.82.

Wall Street Analysts Forecast Growth

Several equities analysts recently issued reports on LKQ shares. Zacks Research lowered LKQ from a “hold” rating to a “strong sell” rating in a research report on Monday, January 26th. Stephens initiated coverage on LKQ in a research note on Tuesday, December 9th. They issued an “overweight” rating and a $39.00 price target for the company. Weiss Ratings reiterated a “sell (d+)” rating on shares of LKQ in a research note on Monday, December 29th. Barclays assumed coverage on shares of LKQ in a research report on Tuesday, November 11th. They issued an “equal weight” rating and a $33.00 price objective on the stock. Finally, Roth Mkm restated a “buy” rating and issued a $43.00 price target (down from $46.00) on shares of LKQ in a research note on Monday, November 3rd. Five equities research analysts have rated the stock with a Buy rating, one has given a Hold rating and two have given a Sell rating to the company. According to data from MarketBeat.com, the stock has an average rating of “Hold” and an average price target of $44.33.

Trending Headlines about LKQ

Here are the key news stories impacting LKQ this week:

• Positive Sentiment: Board launches strategic-review of alternatives (could unlock value or lead to a sale/take‑private transaction), which investors often view as a potential catalyst for a higher takeover or breakup premium. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: Strong cash generation and shareholder returns: operating cash flow of $1.1B, free cash flow $847M, and $116M returned to shareholders in Q4 (repurchases + dividends) — supports valuation and buyback/dividend thesis. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Positive Sentiment: Insiders and some institutions are buying: recent insider purchases and large additions from firms like BlackRock and other reported buys signal confidence and provide demand support under the shares. LKQ ($LKQ) Releases Q4 2025 Earnings
• Neutral Sentiment: Revenue modestly beat estimates and grew 2.7% year-over-year, showing stability in top-line activity but limited upside from growth alone. LKQ (LKQ) Q4 Earnings: How Key Metrics Compare to Wall Street Estimates
• Negative Sentiment: EPS missed consensus: reported $0.59 vs. ~$0.65 estimate and down from $0.80 a year ago — the earnings shortfall is the primary near-term negative driver. LKQ (LKQ) Lags Q4 Earnings Estimates
• Negative Sentiment: FY2026 EPS guidance of $2.90–$3.20 is slightly below consensus (~$3.21), creating downward pressure on forward multiples and near‑term sentiment. LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025
• Negative Sentiment: Some large institutional trimming (reported reductions by firms like UBS and Vanguard in recent quarters) is a headwind for the stock despite other buyers. LKQ ($LKQ) Releases Q4 2025 Earnings

Institutional Trading of LKQ

A number of hedge funds have recently added to or reduced their stakes in the stock. Integrated Wealth Concepts LLC bought a new stake in LKQ during the 1st quarter worth $278,000. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. raised its stake in LKQ by 2.6% during the 1st quarter. MIRAE ASSET GLOBAL ETFS HOLDINGS Ltd. now owns 31,476 shares of the auto parts company’s stock worth $1,339,000 after buying an additional 807 shares during the period. Empowered Funds LLC acquired a new position in shares of LKQ during the first quarter valued at about $1,162,000. BI Asset Management Fondsmaeglerselskab A S raised its stake in shares of LKQ by 170.0% in the second quarter. BI Asset Management Fondsmaeglerselskab A S now owns 7,886 shares of the auto parts company’s stock worth $292,000 after purchasing an additional 4,965 shares during the last quarter. Finally, Kennedy Capital Management LLC lifted its stake in LKQ by 41.2% during the 3rd quarter. Kennedy Capital Management LLC now owns 314,467 shares of the auto parts company’s stock valued at $9,604,000 after acquiring an additional 91,776 shares in the last quarter. Institutional investors and hedge funds own 95.63% of the company’s stock.

About LKQ

LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. The company supplies a broad range of replacement components, including recycled original equipment manufacturer (OEM) parts, aftermarket parts, refurbished and remanufactured items. Its products support collision repair, mechanical repair and performance enhancement needs across passenger cars, heavy trucks and recreational vehicles.

Through a combination of in-house operations and strategic acquisitions, LKQ has developed a comprehensive product portfolio that extends beyond core replacement parts.