| Metric | Value ($ M) | Q1 FY25 |
|---|---|---|
| Revenue | 3.5K | 0.2% |
| Total Income | 3.5K | 0.2% |
| Expenditure | 3.3K | 2.4% |
| PBT | 167.00 | 29.2% |
| Net Profit | 79.00 | 53.3% |
| OPM | 6.25% | 2.03pp |
| NPM | 2.28% | 2.60pp |
| EPS | — |
LKQ Corporation Announces Q1 2026 Revenue Up 4.3% to $3.47 Billion, Net Income Down 51.3%
30 Apr 2026 · 30 Apr, 5:08 pm
Summary
LKQ Corporation announced its first quarter 2026 financial results, reporting revenue of $3,469 million, an increase of 4.3% year-over-year. Despite revenue growth, net income from continuing operations declined significantly by 51.3% to $77 million, primarily impacted by a $44 million impairment charge on an equity method investment. Diluted earnings per share from continuing operations also decreased by 50.8% to $0.30. Management acknowledged a challenging environment but highlighted ongoing efforts to reduce costs, streamline operations, and improve customer relationships, while reaffirming most of its full-year 2026 outlook, including adjusted diluted EPS of $2.90 to $3.20.
Key Highlights
- 1
LKQ Corporation reported first quarter 2026 revenue of $3,469 million, an increase of 4.3% compared to $3,327 million in the first quarter of 2025.
- 2
Net income from continuing operations significantly decreased by 51.3% to $77 million for Q1 2026, down from $158 million in the prior year period.
- 3
Diluted earnings per share from continuing operations fell by 50.8% to $0.30 in the first quarter of 2026, compared to $0.61 in Q1 2025.
- 4
Adjusted diluted earnings per share, a non-GAAP measure, also saw a decline of 9.5% to $0.67 for the quarter.
- 5
The company recorded negative cash flow from operations of $56 million and negative free cash flow of $96 million for the first quarter of 2026.
- 6
The Board of Directors initiated a comprehensive review of strategic alternatives to enhance shareholder value and approved a quarterly cash dividend of $0.30 per share.
- 7
Management updated its full-year 2026 diluted EPS outlook to a range of $2.16 to $2.46, while reaffirming the outlook for adjusted diluted EPS, operating cash flow, and free cash flow.
Management Comments
Justin Jude
We are operating in a challenging environment and are focused on improving our results. Our teams are taking deliberate actions to reduce costs, streamline operations while taking market share, and position ourselves for success going forward as the environment improves. In North America, our business held up well in the quarter with above market growth, and we’re starting to see signs of recovery in the market. In Europe, we saw continual improvements through the quarter, and we’re continuing to work on integration. In early April, we took a large step forward with an ERP migration in a major market that is part of our overall operational improvement initiatives. But there is more work to do. We are operating with urgency and focused on execution, improving our customer relationships, and strengthening the business to create value for our shareholders.
Rick Galloway
We are seeing improving performance trends across our global footprint, with continued strength in North America and early signs of stabilization in Europe. We are continuing to implement productivity and restructuring initiatives intended to help mitigate the impact of ongoing macroeconomic and cost pressures. Based on our performance to date, we remain focused on executing against our full year 2026 outlook.
Informational and educational content only. Not investment advice.