EarningsQ2 2026 Earnings Report
MX:LKQ Q2 2026 EPS Results
Actual EPS$12.17
Consensus EPS$12.86
Beat/MissMissed by -$0.69
One Year Ago EPS$15.80
MX:LKQ Q2 2026 Revenue Results
Actual Revenue$61.90B
Expected Revenue$63.29B
Beat/MissMissed by -$1.39B
YoY Revenue Growth-6.43%
Earnings Announcement Details
QuarterQ2 2026
Date07/30/2026
TimeBefore Open
Conference CallThursday, July 30, 2026
MX:LKQ Upcoming Earnings
LKQ's next earnings date is estimated for October 29, 2026, based on past reporting schedules.
Q2 2026 Earnings Call Audio
MX:LKQ Q2 2026 Earnings Call
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Q2 2026 Earnings Slide Deck
Q2 2026 Earnings Call Summary
Earnings Call Sentiment|Neutral
The call presents a balanced picture: encouraging operational signs in North America (first organic growth in nine quarters), strong specialty revenue performance, rising alternative part and private label penetration, and meaningful cost/productivity actions in Europe. However, a material Europe setback driven by the ERP conversion in Germany (estimated ~$140M revenue and ~$50M EBITDA impact), continued softness in the U.K. and Benelux, reduced full-year guidance for EPS and free cash flow, and a negative H1 free cash flow result temper near-term outlook. Management has recovery plans, improved system stability, and remains focused on long-term strategic benefits from the ERP, but the scale of European disruption and guidance cuts offset many of the positive developments.Company Guidance
North America Returns to Organic Growth
North America organic revenue increased 0.5% in Q2 (first quarter of growth in nine quarters). Aftermarket collision revenue rose ~2%, Canadian hard parts grew mid-single digits, salvage gross margin exceeded expectations, and fill rates showed sequential improvement. North America segment EBITDA was $207 million with a 14.1% margin (underlying performance in the high-14% range excluding a $10 million one-time legal reserve).
Alternative Parts Utilization and Private Label Progress
Alternative part utilization (APU) exceeded 40% in the quarter, surpassing the prior record set in Q1. Private label volume penetration reached 26.6%, on track toward the multi-year objective of ~30% penetration, and private label pricing/margins showed modest improvement in Q2.
Specialty Revenue Resilience
Specialty organic revenue increased 4.5% in Q2 and revenue was essentially in line with expectations for the quarter and first half. Specialty segment EBITDA was $33 million (6.7% margin); management identified one-time noncash items (an $8 million credit reserve tied to an acquired vendor) that depressed the reported margin.
Europe Cost and Productivity Actions Delivered Savings
Management delivered more than $40 million of year-over-year improvement in the quarter through cost structure optimization, procurement savings, productivity gains and closure of underperforming locations, offsetting some volume pressure in the region on an EBITDA basis.
Cash, Liquidity and Capital Discipline
Q2 operating cash flow was $111 million and free cash flow was $60 million. Total liquidity at quarter end was $1.9 billion, net leverage 2.8x EBITDA. The company returned $129 million to shareholders via buybacks and dividends and prepaid a $500 million term loan in July, signaling active balance sheet management.
Management Accountability and Recovery Plans
Management acknowledged ERP-related disruption in Germany, implemented recovery actions, reported system stability improvements (Germany revenue run rate above ~85% of normal by late July) and set a goal to return Germany to 100% run rate by year-end; reiterated long-term strategic benefits of the ERP (common platform, productivity and margin improvement).
MX:LKQ Earnings History
The table shows recent earnings report dates and whether the forecast was beat or missed. See the change in forecast and EPS from the previous year.
Beat
Missed