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Sep 30
LKQ Q3 2025 Earnings Report
LKQ Corporation announced its financial results for the third quarter of 2025, highlighting solid performance across multiple business areas and an updated full-year EPS outlook following the sale of its Self Service segment.
Key Takeaways
LKQ Corporation delivered a solid third quarter in 2025, with revenue increasing by 1.3% to $3,499 million. The company successfully divested its Self Service segment, returned $118 million to shareholders through share repurchases and dividends, and raised the midpoint of its full-year adjusted diluted EPS guidance. Operational highlights included market share gains in North America, double-digit margins in Europe, and strong organic growth in the Specialty business.
Revenue for Q3 2025 increased by 1.3% to $3,499 million compared to the same period last year.
Diluted EPS from continuing operations was $0.69, a 2.8% decrease from $0.71 in Q3 2024.
Adjusted diluted EPS from continuing operations was $0.84, a 2.3% decrease from $0.86 in Q3 2024.
The company returned $118 million to shareholders in Q3 2025 through $40 million in share repurchases and $78 million in cash dividends.
LKQ
LKQ
LKQ Revenue by Segment
LKQ Revenue by Geographic Location
Revenue by Segment
Wholesale - North America Revenue
CapyFin.comEurope Revenue
CapyFin.comSpecialty Revenue
CapyFin.comRevenue by Geographic Location
Wholesale - North America Revenue
CapyFin.comEurope Revenue
CapyFin.comSpecialty Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
LKQ Corporation updated its full-year 2025 outlook, raising the midpoint of its adjusted diluted EPS guidance and narrowing the range, reflecting confidence in its strategy and the positive impact of the Self Service divestiture.
Positive Outlook
- Raised midpoint and narrowed range for full-year 2025 adjusted diluted EPS outlook to $3.00 to $3.15.
- Increased the midpoint of adjusted diluted EPS guidance by $0.07.
- Forecasted free cash flow for 2025 is expected to be between $600 million and $750 million.
- Operating cash flow for 2025 is projected to be between $825 million and $1,025 million.
- Reduced debt by over $600 million since the end of the second quarter, strengthening the balance sheet.
Challenges Ahead
- Organic revenue growth for parts and services is still projected to be negative, ranging from (3.0%) to (2.0%).
- Diluted EPS outlook for 2025 is $2.47 to $2.62, which is a slight adjustment from the prior outlook.
- The overall market for repairable claims saw a 6% decline, posing a challenge for North American organic revenue.
- The divestiture of the Self Service segment, while strategic, removes a revenue stream.
- The company continues to operate in a challenging macro environment.
Revenue & Expenses
Visualization of income flow from segment revenue to net income