LKQ reported second-quarter 2026 revenue of $3.408 billion and net income attributable to LKQ stockholders of $136 million, with adjusted diluted earnings per share of $0.67. The company said parts and services revenue declined 3.6% year‑over‑year and Segment EBITDA was $349 million for the quarter. Management updated full‑year 2026 guidance, lowering organic revenue and earnings ranges while maintaining focus on cost control and cash generation.

Financial Highlights

  • Revenue: $3,408 million for Q2 2026, down 3.0% versus Q2 2025 ($3,513 million).
  • Gross profit: $1,321 million; gross margin 38.8% for Q2 2026 (vs. $1,356 million, 38.6% in Q2 2025).
  • Operating income: $225 million for Q2 2026 (6.6% of revenue) compared with $299 million (8.5%) in Q2 2025.
  • Net income attributable to LKQ stockholders: $136 million for Q2 2026; income from continuing operations $134 million.
  • Adjusted diluted EPS (continuing operations): $0.67 for Q2 2026 (reported diluted EPS from continuing operations: $0.52).

Business Highlights

  • Segment performance: North America returned to positive organic growth for the first time in nine quarters, driven by record alternative‑parts utilization (over 40%) and improving repairable claims trends.
  • Specialty segment delivered revenue growth despite challenging end‑market conditions and consumer pressure; Specialty is being evaluated as part of the company's ongoing strategic review.
  • Europe underperformed due to an ERP implementation in Germany that disrupted operations; the region achieved substantial cost reductions partially offsetting lower volumes in the UK and Benelux.
  • Capital allocation: Q2 share repurchases of $52 million (1.9 million shares) and dividends of $77 million; aggregate repurchases since 2018 total ~71 million shares for $3.0 billion, with $1.5 billion remaining under the program through October 25, 2026.
  • Balance sheet and liquidity: Total debt $4.0 billion as of June 30, 2026; total leverage 2.8x EBITDA (per credit facility definition); operating cash flow and free cash flow for Q2 were $111 million and $60 million, respectively.

Original SEC Filing:

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