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LKQ Corporation
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$5.7B
Market Cap
12.9
P/E
1.40
PEG
7.2%
ROCE
9.5%
ROE
0.77
D/E
8.0%
OPM
-34.0%
% from 52W High
28
α RS
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🌏 Global Investor Returns
Currency-adjusted total returns for LKQ including FX impact
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📈 Price History
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About

LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. The company operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. It offers bumper covers, automotive body panels, and lights, as well as paint and paint related consumables for refinishing vehicles; mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; and lights and bumper assemblies. The company also provides scrap metal and other materials to metals recyclers; precious metals, such as catalytic converters; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, new and used car dealerships, and retail customers. The company operates in the United States, Canada, Germany, the United Kingdom, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, France, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Antioch, Tennessee.

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Manager Shares Value % of Fund Period
Steve Cohen Point72 Asset Management 528.7K $15.5M 0.02% Mar 2026

SEC Form 13F data. 45-day lag from quarter end.

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🎙 Management Tone Confident Specific ↑ Improving 4 quarters Full tone analysis in Intelligence →
📊 MIXED LKQ Q1 2026 revenue $3.5B, adj. EPS $0.67; NA recovery, Europe improving.
Revenue & Profitability
Q1 2026 revenue was $3.5 billion, up 4.3% year-over-year. Diluted GAAP EPS was $0.30, including a $0.17 impairment; adjusted EPS was $0.67 (down from $0.74 last year). North America segment EBITDA margin was 14.1% (down 130 bps YoY), Europe 7.8% (down 150 bps), and Specialty EBITDA decreased $3 million due to a $6 million non-trade credit loss. Free cash flow was negative $96 million versus negative $57 million a year ago.
Outlook
Management sees gradual recovery in North America supported by rising used car prices (up 6.2% in March), easing auto insurance premiums, and declining non-comprehensive total loss rates. Europe is improving sequentially from a soft start. Full-year 2026 guidance is reaffirmed: organic parts and services revenue -0.5% to +1.5%, adjusted EPS $2.90-$3.20, and free cash flow $700-$850 million. Management remains cautious on timing of a broader market recovery.
Growth Drivers
Key growth levers include aftermarket collision parts outperforming segment growth, APU gains, renewed MSO agreements, and Elitek calibration services. In Europe, private label expansion (target 30%) and sequential demand improvement are drivers. Specialty benefits from strong RV (nearly double-digit growth) and Marine demand. LKQ also plans to methodically expand its hard parts business in Canada.
Balance Sheet & CapEx
Not discussed beyond mention of small tuck-in acquisitions in Europe ($5 million) and an ERP migration completed in one key European market during the first week of April. The company expects the ERP to support future process standardization and cost reduction, but no specific CapEx guidance was provided.
Margins
North America gross margin was 42.4%, down YoY due to tariff pass-through and customer mix but up sequentially. Segment EBITDA margin improved 140 bps sequentially to 14.1%. Europe gross margin was 38.3% (down 50 bps) and SG&A increased 80 bps as a percent of revenue. Management expects year-over-year margin comparisons to improve in the back half as tariff cost steps-up anniversary. Cost savings and productivity initiatives are offsetting inflationary and volume pressure.
Key Risks
Risks include tariff cost pressures (Section 232, IEEPA minimal) constraining margin pass-through, geopolitical tensions tightening credit markets for the Specialty sale process, and European macro softness. An ERP migration caused temporary sales disruption in Europe. Higher credit losses ($6 million non-trade) and fuel cost volatility were also cited. Repairable claims remain down 2%-4% but improving.
Generated by AI · Q1 2026 results · Not investment advice
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✓ 📞 Earnings Call Transcripts (5 quarters) submit a missing quarter
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📞 Earnings Call Transcripts (5)
Q2 2026 Q2 2026 2026-07-30
Second quarter results showed revenue of $3.4 billion and adjusted EPS of $0.67, with North America returning to organic growth and Specialty remaining resilient. Europe faced significant ERP-related disruptions, prompting a reduced full-year outlook, but recovery actions are underway and long-term strategy remains unchanged.
Q1 2026 Q1 2026 2026-04-30
Q1 2026 saw revenue growth, margin improvement, and strong execution across segments, with North America and Specialty showing positive trends and Europe stabilizing. Guidance for the year was reaffirmed, and strategic initiatives, including ERP migration and targeted acquisitions, support long-term value creation.
Q4 2025 Q4 2025 2026-02-19
2025 saw strong free cash flow, portfolio simplification, and market share gains in North America, despite headwinds from tariffs and weak European demand. 2026 guidance is cautious, with cost-saving initiatives and restructuring expected to offset continued market challenges.
Q3 2025 Q3 2025 2025-10-30
Q3 saw strong operational execution, a raised full-year EPS guidance midpoint, and robust free cash flow. The Self Service segment was divested, proceeds used to reduce debt, and cost savings initiatives advanced, with all segments showing resilience despite macro headwinds.
Q2 2025 Q2 2025 2025-07-24
Q2 revenue declined year-over-year, with margin pressure from lower repairable claims and tariffs. Cost-cutting and leadership changes are underway, especially in Europe, while guidance for 2025 was lowered due to persistent macro and industry headwinds.
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📊 Analysis Methodology

This comprehensive investment analysis was conducted using The Finmagine™ Stock Analysis & Ranking Methodology, a proprietary framework that systematically evaluates stocks across five critical dimensions: Financial Health, Growth Prospects, Competitive Positioning, Management Quality, and Valuation.

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Financial Model
Projections are built from each company's audited annual financials (Income Statement, Balance Sheet, Cash Flow) over the last 5 fiscal years. Forward assumptions — revenue growth %, EBITDA margin, D&A (USD millions), interest expense, tax rate, and capex — are AI-generated using historical context and refreshed twice a year: after the December results season and after the September/Q4 results season.

DCF Valuation
Fair Value = Σ(FCFt / (1+WACC)t) + Terminal Value. Terminal Value uses the Gordon Growth Model: FCF5 × (1+g) / (WACC−g). Default WACC: 10% (US risk-free ~4.5%, equity risk premium ~5.5%). Default terminal growth: 3% (long-run US nominal GDP proxy).

CAGR Tracker
Expected 5-year CAGR = (DCF Fair Value / Current Price)1/5 − 1. Assumes fair value is reached in exactly 5 years — a mechanical estimate only.

Data Sources & Limitations
Financial statements sourced from public filings. Prices updated daily. Forward assumptions are AI-generated. All monetary values in USD millions. Non-US ADR companies may have currency conversion inaccuracies. Models are point-in-time and do not update intra-quarter or account for M&A, macro shocks, or extraordinary items.

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Investment Risk:
Investing in securities, including US equities and ETFs, involves inherent risks including the potential loss of principal. All investments are subject to market fluctuations, economic conditions, regulatory changes, and other factors that may affect their value. Past performance is not indicative of future results. This analysis is provided for informational and educational purposes only and should not be construed as investment advice under any circumstances.

No Investment Recommendation:
This analysis does not constitute, nor should it be interpreted as, an offer, solicitation, or recommendation to buy, sell, or hold any securities or financial products. Investors are strongly advised to conduct their own independent research and due diligence and to consult with a licensed financial advisor or an SEC-registered investment adviser before making any investment decisions, taking into account their individual financial situation, risk tolerance, and investment objectives.

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Conflict of Interest Disclosure:
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Information Sources:
The analysis is based on publicly available information including SEC filings (10-K, 10-Q), annual reports, management commentary, and publicly available financial data. Information is believed to be accurate as of the date of publication but may be subject to change without notice. Readers are encouraged to independently verify all information before acting upon it.

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