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Sep 30, 2021
LKQ Q3 2021 Earnings Report
LKQ's Q3 2021 results reflected continued strength with record third quarter EPS and Segment EBITDA margin.
Key Takeaways
LKQ Corporation reported strong Q3 2021 results, with revenue up 8.2% year-over-year to $3.3 billion. The company achieved record third quarter EPS and Segment EBITDA margin, driven by operating excellence initiatives. The full year 2021 financial outlook was raised, and an inaugural quarterly dividend of $0.25 per share was announced.
Third quarter 2021 revenue increased by 8.2% year-over-year to $3.3 billion.
Diluted EPS was $0.96, up 50.0%, and adjusted diluted EPS was $1.02, up 36.0%.
Operating cash flow for the third quarter was $429 million, with free cash flow of $384 million.
Net leverage decreased to 1.1x EBITDA.
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
LKQ raised its full year 2021 outlook, reflecting confidence in the company's strategy and business strength. The company also announced its inaugural quarterly dividend, underscoring its commitment to deliver long-term value to stockholders.
Positive Outlook
- Diluted EPS attributable to LKQ stockholders in the range of $3.48 to $3.58
- Adjusted diluted EPS attributable to LKQ stockholders in the range of $3.78 to $3.88
- Free cash flow in the range of $1.15 billion to $1.30 billion
- Full year 2021 Segment EBITDA margin targets for Europe updated to a range of 9.8% to 10.3%
- The announcement of inaugural quarterly dividend reflects our confidence in our strategy and strength of our business and underscores our commitment to deliver long-term value to stockholders while continuing to allow for the repurchase of shares.
Challenges Ahead
- Outlook based on current conditions and recent trends
- 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 hold near recent levels
- Outlook is also based on management’s current expectations regarding the recovery from the coronavirus outbreak