LKQ earnings analysis
What we found in LKQ's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
LKQ Corporation's Q1 2026 results show a revenue of $3.47 billion, exceeding estimates but experiencing a significant diluted EPS miss at $0.30 compared to an expected $0.67. The revenue reflects a 4.3% year-over-year increase, despite an impairment charge impacting net income, indicating management is facing challenges in profitability but maintaining revenue growth. There are ongoing strategic reviews, including the exploration of a potential sale of the Specialty segment.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- Revenue Growth of 4.3% YOY
- Total revenue for Q1 2026 reached $3.47 billion, a 4.3% increase compared to $3.33 billion in Q1 2025.
- Diluted EPS Miss
- Reported diluted EPS of $0.30 significantly missed the estimate of $0.67, down from $0.65 in Q1 2025.
- Impairment Charge Impact
- Recorded a $44 million impairment charge related to equity method investment which negatively impacted net income.
- Segment Growth in Europe
- Revenue in the Europe segment grew by $98 million, or 6.5%, year-over-year.
- Organic Revenue Decline
- Organic parts and services revenue decreased by $53 million, or 1.6%.
- Segment EBITDA Variations
- Segment EBITDA for North America decreased by $14 million to $203 million due to lower volumes and increased competition.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- Significant Impairment Charges
- The company recorded a $44 million impairment on its investment in Mekonomen, highlighting valuation risks.
- Free Cash Flow Turnaround
- Free cash flow stood at -$57 million, a substantial drop indicating liquidity concerns.
- Operational Challenges in North America
- North America segment reported lower organic revenue with increased competition and weather-related disruptions impacting sales.
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $0.3
- Gross margin
- 38.4%
- Operating margin
- 6.2%
- Segment
- North America: $1,440M
- Segment
- Europe: $1,621M
- Segment
- Specialty: $409M
What they said about what is next.
Maintained organic revenue growth guidance of (0.5%) to 1.5% for 2026.
The filing reads worse than the one before it.
What came before.
- 10-Q · October 30, 2025
- LKQ reported Q3 revenue of $3,499 million (up $46 million versus $3,453 million a year ago) while diluted EPS fell to $0.70 from $0.73. Gross margin was $1,341 million (roughly 38.3%) but operating income declined to…
- 10-Q · July 24, 2025
- LKQ reported Q2 revenue of $3,642 million and diluted EPS of $0.75. Revenue was down versus the prior-year quarter (Q2 2024 revenue $3,711 million) while EPS and cash improved; working capital, debt and restructuring…
- 10-Q · October 24, 2024
- LKQ reported quarterly revenue of $3,584 million, up $16 million (+0.45%) year-over-year, while diluted EPS declined to $0.73 from $0.77 a year ago. Operating income was essentially flat at $310 million (operating…
- 10-Q · November 1, 2022
- LKQ reported Q3 2022 revenue of $3,104 million, down $193 million (-5.9%) versus Q3 2021, while diluted EPS was $0.95 (vs. $0.96 in Q3 2021). Gross margin improved slightly to $1,276 million (41.1% of revenue) and…
This is our reading of a public filing, not the filing. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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