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Jun 30, 2023
LKQ Q2 2023 Earnings Report
Reported strong operational performance despite headwinds, with Wholesale - North America and Europe segments driving revenue growth and margins. The Uni-Select Inc. acquisition is on track.
Key Takeaways
LKQ Corporation reported a 3.2% increase in revenue to $3.4 billion for Q2 2023. Diluted EPS was $1.05, while adjusted diluted EPS was $1.09. The company generated $480 million in operating cash flow and $414 million in free cash flow.
Revenue increased by 3.2% to $3.4 billion.
Parts and services organic revenue increased by 4.8% (5.4% on a per day basis).
Diluted EPS was $1.05; adjusted diluted EPS was $1.09.
Operating cash flow was $480 million and free cash flow was $414 million.
LKQ
LKQ
LKQ Revenue by Segment
LKQ Revenue by Geographic Location
Revenue by Segment
Parts and services Revenue
CapyFin.comSelf Service Revenue
CapyFin.comRevenue by Geographic Location
Wholesale North America Revenue
CapyFin.comEurope Revenue
CapyFin.comSpecialty Revenue
CapyFin.com Forward Guidance
LKQ updated its full year 2023 outlook, with organic revenue growth for parts and services expected to be 6.0% to 7.5%, diluted EPS between $3.65 and $3.85, adjusted diluted EPS between $3.90 and $4.10, operating cash flow approximately $1.275 billion, and free cash flow approximately $975 million.
Positive Outlook
- Organic revenue growth for parts and services is expected to be 6.0% to 7.5%.
- Adjusted diluted EPS is projected to be between $3.90 and $4.10.
- Operating cash flow is anticipated to be approximately $1.275 billion.
- Free cash flow is expected to be approximately $975 million.
- Free cash flow conversion of Adjusted EBITDA is projected to be 55% to 60%.
Challenges Ahead
- Continued effects from falling commodity prices.
- Higher interest expense.
- Diluted EPS is projected to be between $3.65 and $3.85, lower than the previous outlook.
- The outlook assumes prices of scrap and precious metals hold near the June average.
- The outlook assumes no further deterioration due to the Ukraine/Russia conflict.
Revenue & Expenses
Visualization of income flow from segment revenue to net income