| Metric | Value ($ M) | Q2 FY26 | Q3 FY25 |
|---|---|---|---|
| Revenue | 3.3K | 2.6% | 5.1% |
| Total Income | 3.3K | 2.6% | 5.1% |
| Expenditure | 3.3K | 2.6% | 1.3% |
| PBT | 5.00 | 97.2% | 97.8% |
| Net Profit | -27.00 | 119.8% | 115.0% |
| OPM | 1.60% | 5.01pp | 6.23pp |
| NPM | -0.81% | 4.80pp | 5.96pp |
| EPS | -0.10 | 118.9% | 114.3% |
LKQ Corporation Announces Preliminary Q3 2026 Results and Leadership Changes
23 Oct 2026 · 23 Oct, 5:41 pm
Summary
LKQ Corporation released preliminary results for the third quarter of 2026, reporting an expected revenue of $3.32 billion, down from $3.50 billion in the prior year, and anticipating a net loss of $16 million to $32 million, impacted by $111 million in non-cash impairment charges. The company experienced a 5.4% decline in parts and services organic revenue, with Europe showing a significant 9.8% decrease due to operational disruptions and volume declines. In response to underperformance, particularly in Europe, LKQ has appointed Salvatore A. Abbate as its new President and CEO, effective December 15, 2026, and has withdrawn its full-year 2026 guidance. Alvarez & Marsal has been engaged to assist in improving European operations.
Key Highlights
- 1
LKQ Corporation announced preliminary, unaudited results for the third quarter ended September 30, 2026, expecting revenue of $3.32 billion, a decrease from $3.50 billion in the third quarter of 2025.
- 2
The company anticipates a net loss of $16 million to $32 million for Q3 2026, including $111 million in non-cash impairment charges, compared to a net income of $178 million in Q3 2025.
- 3
Parts and services organic revenue declined by 5.4% in the third quarter, with a significant 9.8% decline in Europe.
- 4
Adjusted diluted earnings per share are expected to be between $0.47 and $0.53 for Q3 2026, down from $0.84 in the prior year's third quarter.
- 5
Salvatore A. Abbate has been appointed President and Chief Executive Officer, effective December 15, 2026, succeeding Justin Jude.
- 6
LKQ Corporation is withdrawing its full-year 2026 guidance due to the third quarter results and leadership transition.
- 7
Alvarez & Marsal has been retained to advise the Company on its European operations to improve customer service, stabilize operations, and strengthen performance.
Management Comments
John Mendel
LKQ’s performance, particularly in Europe, has fallen significantly short of the Board’s expectations, and the Board is taking decisive action to address it. We have strong conviction in LKQ’s business and its potential to create significant value for shareholders. Sal is a proven operator with a track record of driving performance in complex distribution businesses, and A&M brings deep experience in operational improvement. Together with LKQ’s talented teams, we are focused on improving execution and delivering improved results for our stakeholders. After a thorough search, the Board concluded that Sal is the right leader for LKQ at this moment. He is a disciplined operator and people-centered leader, who has transformed a complex distribution business, improved margins and created significant value for shareholders. Sal brings the operating rigor, commercial instincts and sense of urgency we need to sharpen execution across our businesses and unlock the full potential of LKQ. On behalf of the Board, I also want to thank Justin for his years of service and contributions to LKQ.
Salvatore A. Abbate
LKQ is an exceptional company, with unmatched scale, leading market positions and a deep bench of talented people. There is meaningful opportunity to improve performance, and I intend to move quickly. That starts with listening to our customers and teams, fostering a culture where our people can succeed and thrive, driving disciplined execution across every region and holding ourselves accountable for results. I’m honored to lead LKQ and look forward to working with the Board and the team to build a stronger, more profitable company.
Informational and educational content only. Not investment advice.