LKQ CORP SEC 10-Q Report

LKQ Corp, a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles, has released its Form 10-Q report for the third quarter. The report provides a comprehensive overview of the company's financial and operational performance, reflecting both challenges and strategic initiatives in the current economic environment.

Financial Highlights

LKQ Corp reported the following key financial metrics for the third quarter:

• Total Revenue: $3,642 million, a decrease of $69 million or 1.9% compared to the same period last year, primarily due to a decrease in parts and services revenue.
• Gross Margin: $1,412 million, representing 38.8% of total revenue, remained flat as a percentage of revenue compared to the same period last year.
• Operating Income: $312 million, representing 8.6% of total revenue, decreased slightly from 8.8% in the same period last year.
• Net Income: $193 million, increased by $7 million compared to the same period last year, reflecting a lower effective tax rate.
• Diluted EPS: $0.75, increased from $0.70 in the same period last year, benefiting from a favorable impact of discrete tax items.

Business Highlights

In terms of business performance, LKQ Corp provided the following insights:

• Revenue Segments: The company reports revenue in two main categories: parts and services, and other. Parts and services revenue includes vehicle replacement products, specialty products, and accessories. Other revenue consists of sales of scrap and precious metals, bulk sales to mechanical manufacturers, and sales of aluminum ingots and sows.
• Geographical Performance: The United States remains the largest market, followed by Germany and the United Kingdom. The company experienced a decrease in parts and services revenue across all segments, with notable declines in Europe and Wholesale - North America due to economic conditions and increased competition.
• Sales Units: The company noted a decrease in parts volumes in the Self Service segment due to reduced customer admissions and lower parts volumes in the Wholesale - North America segment due to decreased repairable claims.
• Future Outlook: The company is focusing on organic growth and highly accretive tuck-in acquisitions with significant synergies. It does not expect any large platform acquisitions. The company is also evaluating the impact of new U.S. tax legislation, which could affect its financial performance starting in 2025.

SEC Filing: LKQ CORP [ LKQ ] - 10-Q - Jul. 24, 2025