LKQ Corporation ( (LKQ) ) has released its Q3 earnings. Here is a breakdown of the information LKQ Corporation presented to its investors.
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LKQ Corporation is a prominent provider of alternative and specialty parts for vehicle repair and customization, operating across North America, Europe, and Taiwan. The company offers a wide range of OEM recycled and aftermarket parts, replacement systems, and services for automobiles, trucks, and recreational vehicles.
In the third quarter of 2025, LKQ Corporation reported a revenue increase of 1.3% to $3,499 million compared to the same period in 2024. The company successfully completed the sale of its Self Service segment, which has been classified as discontinued operations. This strategic move allowed LKQ to return $118 million to shareholders through share repurchases and cash dividends.
Key financial highlights include a slight decline in net income to $178 million, down from $187 million in the previous year, with diluted earnings per share decreasing to $0.69. However, the company achieved a robust free cash flow of $387 million for the quarter. LKQ’s Specialty business showed strong performance with over 9% organic growth, and the company maintained double-digit margins in Europe.
Looking forward, LKQ has updated its full-year 2025 outlook, raising the midpoint of its adjusted diluted earnings per share guidance to between $3.00 and $3.15. The company remains focused on its strategic initiatives, including simplifying its business portfolio, expanding its lean operating model globally, and pursuing disciplined capital allocation to maximize shareholder value.
Overall, LKQ Corporation is positioned to navigate the challenging macroeconomic environment with a fortified balance sheet and a clear strategy for sustained growth and value creation.