LKQ (LKQ) Q3 2026 Earnings Report
MX:LKQ Q3 2026 EPS Results
- Actual EPS
- MXN 9.44
- Consensus EPS
- MXN 11.05
- Beat/Miss
- Missed by -MXN 1.60
- One Year Ago EPS
- MXN 15.86
MX:LKQ Q3 2026 Revenue Results
- Actual Revenue
- MXN 62.67B
- Expected Revenue
- MXN 63.44B
- Beat/Miss
- Missed by -MXN 773.81M
- YoY Revenue Growth
- -5.14%
Earnings Announcement Details
- Quarter
- Q3 2026
- Date
- 10/29/2026
- Time
- Before Open
- Conference Call
- Thursday, October 29, 2026
LKQ's next earnings date is estimated for February 25, 2027, based on past reporting schedules.
Q3 2026 Earnings Call Audio
Q3 2026 Earnings Slide Deck
Q3 2026 Earnings Call Summary
The call included meaningful strengths in North American margins, alternative-part utilization, specialty revenue growth, cash flow, liquidity, and the stated recovery of German operational metrics. However, these positives were outweighed by the consolidated revenue and earnings declines, substantial European revenue and EBITDA deterioration, customer and market-share losses, impairment charges, leadership changes, and the suspension of full-year guidance. Management acknowledged the issues and outlined corrective actions, but the overall tone was focused on stabilization and recovery from significant current challenges.
LKQ suspended its full year 2026 guidance, and its previous guidance should no longer be relied upon. Rick Galloway said there was “no catalyst” that would negate “normal seasonality from Q3 to Q4,” and he would expect “that trajectory from Q3 to Q4 and really all the businesses to continue”; Germany revenue was “around that 85%” and had “sort of stagnated,” while OTIF was “about 95%” versus “less than 80%” in Q2, with 75% of locations in “the upper 90s.”
- North America Margin ExpansionNorth America parts and services organic revenue declined 2.4%, but segment EBITDA was $203 million and EBITDA margin increased 40 basis points year over year to 14.4%. Gross margin improved to 42.3%, supported by the expanded deployment of the strategic pricing model, while SG&A was reduced despite higher freight and fuel expenses.
- Record Alternative-Part UtilizationAlternative part utilization reached a record nearly 41% in the quarter, surpassing the previous high set in Q2. Management cited decreasing auto insurance pricing and self-pay repairs approaching historical highs as factors supporting the parts offering.
- Hard Parts GrowthThe hard parts team delivered its third consecutive quarter of organic revenue growth, with low single-digit year-over-year improvement in the third quarter.
- Specialty Revenue Growth and RV PerformanceSpecialty organic revenue grew 90 basis points in the quarter. The RV and Marine division continued to grow, and RV results were notable because retail dealers had low double-digit revenue declines and industry-wide wholesale shipments were down over 16% year over year in August.
- Germany ERP Operational RecoveryGermany's on-time-in-full delivery rate improved to approximately 95%, compared with less than 80% in Q2. Two additional ERP releases were completed, and management said operational improvements were progressing, with customer sentiment improving over the prior 4 to 6 weeks.
- Strong Performance Across Most German LocationsApproximately 75% of German locations were operating in the upper 90s for on-time-in-full delivery. Management said these locations were at least meeting, and often beating, the competition.
- ERP Program's Stated Long-Term BenefitsManagement stated that the German ERP implementation is expected to support revenue increases, market-share improvements, easier electronic ordering, consolidation of two corporate headquarters, lower overall SG&A, and a logistics-without-borders capability across the pan-European business.
- Strong Quarterly Cash FlowThird-quarter operating cash flow was $411 million and free cash flow was $372 million, reflecting improved working capital management and continued strong cash conversion in North America.
- Liquidity and Debt PositionAs of September 30, total debt was $3.7 billion, total leverage was 2.8x EBITDA, and total liquidity was approximately $1.7 billion. The company prepaid its $500 million term loan originally due in January 2027 and currently has no significant borrowings due until 2028.
- Shareholder ReturnsLKQ repurchased approximately 1.2 million shares for $30 million during the quarter, paid $76 million in dividends, and returned $313 million to shareholders year to date. The share repurchase program was extended through October 2028, and the Board declared a quarterly cash dividend of $0.30 per share.
- Leadership and Operational ResponseThe Board appointed Sal Abbate as President and Chief Executive Officer effective December 15 and engaged Alvarez & Marsal to advise on European operations. Management said the actions are focused on stabilizing operations, improving customer service levels, strengthening execution, and increasing accountability.
- Continued Market Position StrengthManagement emphasized LKQ's unmatched scale, leading market positions, global distribution network, differentiated capabilities, and dedicated teams. The company remains the number-one player in the U.K. by a wide margin and continues to win new share in parts of Europe.
- North American Pricing and Tariff ManagementManagement said price was slightly favorable year over year in North America, while the volume decline was the primary headwind. The Taiwanese tariff rate moved from 25% to 15% during the quarter, and LKQ's pricing engine showed early positive signs while evaluating volume, pricing, and margin.
- Supply Chain Financing UnchangedManagement stated that the European disruption did not cause an unwinding of supply-chain financing or receivables factoring programs. The change in payables between Q2 and Q3 was attributed to timing.
MX:LKQ Earnings History
| Report Date | Fiscal Quarter | Forecast / EPS | Last Year's EPS | EPS YoY Change | Press Release |
|---|---|---|---|---|---|
| Feb 25, 2027 | 2026 (Q4) | 7.57- | 11.14 | ― | ― |
| Oct 29, 2026 | 2026 (Q3) | 11.059.44 | 15.86 | -40.48% (-6.42) | |
| Jul 30, 2026 | 2026 (Q2) | 13.3712.65 | 16.43 | -22.99% (-3.78) | |
| Apr 30, 2026 | 2026 (Q1) | 12.6512.65 | 14.92 | -15.19% (-2.27) | |
| Feb 19, 2026 | 2025 (Q4) | 12.2911.14 | 15.11 | -26.25% (-3.97) | |
| Oct 30, 2025 | 2025 (Q3) | 14.3115.86 | 16.62 | -4.55% (-0.76) | |
| Jul 24, 2025 | 2025 (Q2) | 17.4316.43 | 18.5 | -11.22% (-2.08) | |
| Apr 24, 2025 | 2025 (Q1) | 14.7114.92 | 15.48 | -3.66% (-0.57) | |
| Feb 20, 2025 | 2024 (Q4) | 14.0115.11 | 15.86 | -4.76% (-0.76) | |
| Oct 24, 2024 | 2024 (Q3) | 16.5416.62 | 16.24 | 2.33% (+0.38) |
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.