| Metric | Value ($ M) | Q1 FY26 | Q2 FY25 |
|---|---|---|---|
| Revenue | 3.4K | 1.8% | 6.4% |
| Total Income | 3.4K | 1.8% | 6.4% |
| Expenditure | 3.2K | 2.1% | 4.4% |
| PBT | 180.00 | 7.8% | 30.8% |
| Net Profit | 136.00 | 72.2% | 29.5% |
| OPM | 6.60% | 0.35pp | 1.96pp |
| NPM | 3.99% | 1.71pp | 1.31pp |
| EPS | 0.53 | 29.3% |
LKQ Corporation Announces Q2 2026 Results, Revenue Decreases 3.0%
30 Jul 2026 · 30 Jul, 5:11 pm
Summary
LKQ Corporation reported second quarter 2026 revenue of $3.4 billion, a 3.0% decrease year-over-year. Net income declined to $134 million from $185 million in the prior year, with diluted EPS falling to $0.52 from $0.72. The company noted solid execution in North America and Specialty segments, with North America achieving positive organic growth for the first time in nine quarters. However, Europe underperformed due to an ERP implementation in Germany. Management has revised the full-year 2026 outlook downwards, reflecting a more measured pace of recovery in Europe and a disciplined focus on cost management.
Key Highlights
- 1
LKQ Corporation reported second quarter 2026 revenue of $3.4 billion, a decrease of 3.0% compared to $3.5 billion for the second quarter of 2025.
- 2
Net income for the second quarter of 2026 was $134 million, down from $185 million in the same period of 2025.
- 3
Diluted earnings per share for the second quarter of 2026 was $0.52, compared to $0.72 for the same period of 2025.
- 4
Adjusted diluted earnings per share for the second quarter of 2026 was $0.67, down from $0.84 in the prior year period.
- 5
North America returned to positive organic growth for the first time in nine quarters.
- 6
Europe fell short of expectations, with results affected by the ERP implementation in Germany.
- 7
The company updated its full-year 2026 outlook, revising diluted EPS to a range of $1.78 to $2.08 from $2.16 to $2.46.
Management Comments
Justin Jude
Our second‑quarter performance reflected solid execution across our North America and Specialty segments. North America returned to positive organic growth for the first time in nine quarters, driven by record alternative-parts utilization of over 40%, moderating insurance premiums that were negative in May and June, and continued sequential improvement in repairable claims. Specialty also delivered growth despite a challenging end‑market environment and continued macro‑economic pressure on consumers. Europe fell short of expectations, with results affected by the ERP implementation in Germany. Outside of the ERP impact, the team delivered substantial cost reductions that largely offset the lower volumes we witnessed in the UK and Benelux regions. Overall, the fundamentals of our business are improving, and as market conditions continue to recover, we expect those operational gains to translate into stronger financial performance and profitability in the quarters ahead.
Rick Galloway
Second-quarter results reflected improving trends in North America and resilient demand in Specialty, offset by a slower-than-expected recovery following the ERP implementation in Germany. North America remains on track against its full-year plan, and Specialty’s revenue performance has been consistent with our expectations. Our revised outlook reflects a more measured pace of recovery in Europe, while we maintain a disciplined focus on cost management, cash generation and capital allocation. The actions underway in Europe are focused on restoring service levels, aligning the cost structure with current demand and translating operational improvement into stronger financial performance.
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