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Jun 30, 2021
LKQ Q2 2021 Earnings Report
LKQ's Q2 2021 results reflected strength in total revenue, segment margins, and free cash flow, marking record EPS and Segment EBITDA.
Key Takeaways
LKQ Corporation reported a strong second quarter in 2021, with revenue reaching $3.4 billion, a 30.8% increase year-over-year. Diluted EPS was $1.01, up 159.0%, and adjusted diluted EPS was $1.13, up 113.2%. The company also saw record segment EBITDA margins in North America and Specialty, and a double-digit margin in Europe.
Second quarter 2021 revenue was $3.4 billion, up 30.8% year-over-year.
Diluted EPS was $1.01 (up 159.0%); adjusted diluted EPS was $1.13 (up 113.2%).
Second quarter operating cash flow was $411 million; free cash flow was $365 million.
The stock repurchase program was expanded by $1 billion, raising aggregate authorization to $2 billion.
LKQ
LKQ
LKQ Revenue by Segment
LKQ Revenue by Geographic Location
Revenue by Segment
Parts and services Revenue
CapyFin.comRevenue by Geographic Location
Wholesale North America Revenue
CapyFin.comEurope Revenue
CapyFin.comSpecialty Revenue
CapyFin.com Forward Guidance
Based on the strong performance in the second quarter and the expected sustainability of the operational excellence initiatives, the company is raising the full year outlook for profitability and free cash flow. While inflationary pressures will continue to be a headwind in the second half of the year, the company is cautiously optimistic that they have the ability to mitigate these pressures.
Positive Outlook
- Diluted EPS attributable to LKQ stockholders in the range of $3.23 to $3.43
- Adjusted diluted EPS attributable to LKQ stockholders in the range of $3.55 to $3.75
- Free cash flow in the range of $0.95 billion to $1.05 billion
- Full year 2021 Segment EBITDA margin targets for Europe provided at the September 10, 2020 investor day updated to a range of 9.5% to 10.3%
- The company expects the sustainability of the operational excellence initiatives
Challenges Ahead
- Inflationary pressures will continue to be a headwind in the second half of the year
- The outlook assumes current U.S. federal tax legislation remains unchanged
- Exchange rates for the Canadian dollar, euro, and pound sterling hold near recent levels
- The price of scrap and precious metals trend lower in the second half of the year
- The outlook is based on management’s current expectations regarding the recovery from the coronavirus outbreak.