LKQ Corporation
- Open
- 25.33
- Day high
- 25.45
- Day low
- 24.93
- Prev close
- 25.53
- Volume
- 4.6M
- Mkt cap
- $6.4B
- P/E (TTM)
- 13.9
- EPS (TTM)
- $1.80
- P/B
- 1.0
- P/S
- 0.5
- Yield
- 4.78%
- Per share
- $1.20
LKQ Corporation (LKQ) is a Consumer Cyclical company listed on NASDAQ. The stock is down 21% over the past year. Drillr has 1 published research article covering LKQ.
LKQ Corporation (LKQ) financials & analyst ratings
Fundamentals (TTM)
Analyst consensus · 3 analysts
Source: exchange market data + company filings. Figures are trailing-twelve-month or as most recently reported. For informational purposes only — not investment advice.
LKQ earnings date, history & EPS estimates
| Report date | EPS est | EPS actual | Surprise | Revenue | Rev. surprise |
|---|---|---|---|---|---|
| Jul 30, 2026 | $0.71 | $0.67 | -5.5% | $3.4B | -2.3% |
| Apr 30, 2026 | $0.67 | $0.67 | -0.1% | $3.5B | +2.2% |
| Feb 19, 2026 | $0.65 | $0.59 | -9.2% | $3.3B | -3.5% |
| Oct 30, 2025 | $0.74 | $0.84 | +13.5% | $3.5B | +7.7% |
| Jul 24, 2025 | $0.93 | $0.87 | -6.5% | $3.6B | +0.6% |
| Apr 24, 2025 | $0.78 | $0.79 | +1.4% | $3.5B | -3.2% |
| Feb 20, 2025 | $0.76 | $0.80 | +5.3% | $3.4B | -8.0% |
| Oct 24, 2024 | $0.89 | $0.88 | -1.1% | $3.6B | +4.6% |
| Jul 25, 2024 | $1.03 | $0.98 | -4.9% | $3.7B | -4.0% |
| Feb 22, 2024 | $0.76 | $0.84 | +10.5% | $3.5B | +0.3% |
| Oct 26, 2023 | $0.96 | $0.86 | -10.4% | $3.6B | +2.8% |
| Jul 27, 2023 | $1.09 | $1.09 | +0.1% | $3.4B | -0.0% |
LKQ insider trading activity (SEC Form 4)
| Date | Insider | Type | Shares | Price |
|---|---|---|---|---|
| Jul 15, 2026 | Galloway Rickofficer: SVP and CFO | Tax | 314 | $25.19 |
| Jul 15, 2026 | Cunningham Todd Gofficer: VP, Finance and Controller | Tax | 443 | $25.19 |
| Jul 15, 2026 | Meyne John Rofficer: President of Wholesale - NA | Tax | 313 | $25.19 |
| Jul 15, 2026 | Hamilton Andrew Cofficer: President of LKQ Europe | Tax | 83 | $25.19 |
| May 8, 2026 | Powell Michael Scottdirector | Grant | 5,705 | — |
| May 8, 2026 | Urbain Xavierdirector | Grant | 5,705 | — |
| May 8, 2026 | CLARKE ANDREW Cdirector | Grant | 2,744 | $28.93 |
| May 8, 2026 | GOVE SUEdirector | Grant | 5,705 | — |
| May 8, 2026 | CLARKE ANDREW Cdirector | Grant | 5,705 | — |
| May 8, 2026 | Mendel John Wdirector | Grant | 12,101 | — |
| May 8, 2026 | METCALF JAMES Sdirector | Grant | 5,705 | — |
| May 8, 2026 | Urbain Xavierdirector | Tax | 1,253 | $28.93 |
| May 8, 2026 | Berard Patrickdirector | Tax | 1,253 | $28.93 |
| May 8, 2026 | Divitto Megdirector | Grant | 5,705 | — |
| Mar 4, 2026 | Meyne John Rofficer: President of Wholesale - NA | Tax | 2,485 | $32.50 |
Source: LKQ SEC Form 4 filings, latest Jul 15, 2026. For informational purposes only — not investment advice.
See the full LKQ insider & 13F page →LKQ Corporation company profile
Overview
LKQ Corporation (NASDAQ:LKQ) is a leading distributor of automotive replacement parts, components, and systems founded in 1998 and headquartered in Chicago, Illinois. The company went public in 2003 and has grown through strategic acquisitions to become one of the largest players in the automotive aftermarket industry. LKQ operates across North America, Europe, and specialty markets, serving collision repair shops, mechanical repair facilities, dealerships, and retail customers with both recycled and aftermarket automotive parts.
Business
LKQ Corporation operates in the automotive aftermarket industry, which involves the distribution of replacement parts used to repair and maintain vehicles after they leave the original manufacturer. The company's core business revolves around providing cost-effective alternatives to original equipment manufacturer (OEM) parts through recycled salvage parts and aftermarket manufactured components. The automotive aftermarket industry serves as a critical link between parts suppliers and repair facilities. When vehicles are damaged in accidents or require maintenance, repair shops need replacement parts quickly and affordably. LKQ fills this need by sourcing parts from salvage yards (where damaged vehicles are dismantled for usable components), aftermarket manufacturers (who produce non-OEM replacement parts), and through remanufacturing processes. LKQ's business is organized into four main segments: 1. **North America segment** (approximately 60-65% of revenue): Distributes collision parts like bumper covers, body panels, and lights, as well as mechanical components including engines, transmissions, and brake systems. This segment also includes self-service salvage yards where customers can remove parts themselves. 2. **Europe segment** (approximately 25-30% of revenue): Operates similar to North America but focuses heavily on aftermarket parts distribution across the UK, Germany, Belgium, Netherlands, and other European countries. This segment emphasizes private-label parts and has been undergoing significant operational streamlining. 3. **Specialty segment** (approximately 8-12% of revenue): Distributes recreational vehicle parts, truck accessories, towing equipment, and specialty automotive products. This segment has faced challenges due to softness in the RV market. 4. **Self-Service segment**: Operates salvage yards where customers can remove parts themselves, generating revenue through both part sales and scrap metal recycling. The company's product portfolio includes everything from basic maintenance items like brake pads and filters to complex components like remanufactured engines and transmissions. LKQ also distributes automotive glass, paints and refinish products, and increasingly focuses on advanced driver assistance system (ADAS) calibration services as vehicles become more technologically sophisticated.
Revenue model
LKQ generates revenue primarily through **product sales** to a diverse customer base including collision repair shops, mechanical repair facilities, new and used car dealerships, and retail customers. The company operates on a traditional distribution model, purchasing parts from various sources and selling them at marked-up prices. The company's revenue streams include: **Product sales** from recycled salvage parts (sourced from damaged vehicles), aftermarket manufactured parts (non-OEM replacements), and remanufactured components. **Service fees** from ADAS calibration, diagnostics, and other technical services. **Scrap metal sales** from non-reusable vehicle materials. LKQ's customers are primarily businesses rather than individual consumers. Collision repair shops represent a significant portion of revenue, as they need body panels, lights, and structural components to repair accident-damaged vehicles. Mechanical repair shops purchase engines, transmissions, brake components, and maintenance items. Dealerships buy parts for their service departments and used car reconditioning operations. Several factors influence LKQ's margins and profitability. **Positive margin drivers** include: the growing acceptance of alternative parts by insurance companies (which reduces claim costs), an aging vehicle fleet that requires more frequent repairs, the company's scale advantages in procurement and logistics, and increasing private-label penetration which offers higher margins. **Negative margin pressures** come from: declining repairable claims as insurance companies increasingly declare vehicles total losses due to rising repair costs and declining used car values, competitive pricing pressure in the fragmented aftermarket industry, fluctuating scrap metal prices affecting salvage operations, and potential tariffs on imported parts. Economic downturns also reduce driving activity and delay discretionary vehicle repairs, while the gradual adoption of electric vehicles may eventually reduce demand for traditional mechanical components, though this transition is expected to occur over many years.
Competitive moat
LKQ's competitive moat is **moderate** and primarily based on scale, logistics infrastructure, and supplier relationships rather than proprietary technology or brand loyalty. The company's **strongest defensive characteristics** include its extensive distribution network with strategically located facilities that enable rapid parts delivery, established relationships with thousands of collision and repair shops built over decades, and significant scale advantages in procurement that allow better pricing from suppliers and aftermarket manufacturers. The company benefits from **high switching costs** for customers who rely on LKQ's inventory management, credit terms, and logistics capabilities. Repair shops value reliable parts availability and quick delivery, as vehicle downtime directly impacts their business. LKQ's investment in technology systems for inventory management, cataloging, and order processing creates some operational stickiness. However, LKQ's moat faces **several vulnerabilities**. The automotive parts distribution industry remains highly fragmented with numerous regional competitors, and **barriers to entry are relatively low** for focused market segments. Large competitors like Genuine Parts Company and AutoZone have similar scale advantages, while smaller regional distributors can compete effectively in local markets through relationships and specialized service. The company's **salvage operations** provide some unique advantages, as LKQ can source parts at lower costs than purely aftermarket distributors, but this advantage is limited by the availability of suitable salvage vehicles and the labor-intensive nature of parts removal and processing. **Potential disruption** could come from several sources: direct-to-consumer parts sales through e-commerce platforms, manufacturers establishing their own distribution networks, or significant changes in vehicle technology that reduce demand for traditional parts. The gradual shift toward electric vehicles represents a long-term challenge, though LKQ is adapting by investing in EV battery recycling and remanufacturing capabilities. Overall, LKQ's moat is **sufficient to maintain market position** but not deep enough to prevent gradual market share erosion or margin compression during challenging periods.
Risks & safety
**Overall Assessment**: LKQ maintains adequate financial stability with reasonable debt levels and consistent cash generation, though current market conditions present near-term challenges. **Debt and Solvency**: - Total debt of $4.2 billion represents 2.3x EBITDA, manageable for the industry - Current ratio of 1.52 indicates adequate short-term liquidity - Investment-grade credit rating from major agencies - Debt-to-equity ratio of 0.95 is elevated but not concerning given cash flow generation **Cash Flow and Operations**: - Free cash flow of $810 million in 2024 demonstrates strong cash generation capability - Operating cash flow can turn negative in individual quarters due to working capital timing - Company targets $750-900 million free cash flow for 2025 **Valuation Metrics**: - Trading at 16.3x P/E ratio, reasonable for current earnings - EV/EBITDA of 10.5x appears fair given industry cyclical challenges - Price-to-book ratio of 1.79x reflects modest premium to book value - Graham number suggests stock may be reasonably valued around current levels **Other Considerations**: - Declining organic revenue growth presents earnings risk - Exposure to cyclical automotive repair market - Active share repurchase program ($1 billion authorization) supports shareholder returns - Dividend yield provides some downside protection
Recent development
Over the past several years, LKQ has undergone significant strategic transformation focused on **operational simplification and portfolio optimization**. The company completed major acquisitions including Uni-Select in 2023 and FinishMaster, substantially expanding its North American footprint and paint/refinish capabilities. **Operational Excellence Initiatives** have been central to LKQ's recent strategy. The company implemented $60 million in permanent cost reductions in North America and launched comprehensive **SKU rationalization programs** in Europe, reducing product offerings from 750,000 to a targeted 600,000 SKUs by 2027. This streamlining effort aims to improve inventory efficiency and focus on higher-margin products. **Infrastructure Investments** include expanding mega-yard operations with new facilities in Florida, Illinois, and Washington. These larger-scale salvage operations improve processing efficiency and parts availability. The company has also invested heavily in **technology upgrades**, including in-cab monitoring equipment for fleet management and enhanced inventory management systems. **Portfolio Simplification** has involved divesting non-core operations, with LKQ selling five businesses primarily in Europe and exiting markets like Poland and Bosnia. This strategic focus allows management to concentrate resources on higher-return markets and operations. **Private Label Strategy** represents a key growth initiative, with LKQ increasing private-label penetration from historical levels to 22% currently, targeting 30% by 2030. Private-label parts typically offer higher margins and strengthen customer relationships. **Emerging Technology Adaptation** includes investments in **ADAS calibration services** and **EV battery recycling/remanufacturing** capabilities. The company has partnered with Korea Zinc for battery recycling technology and is positioning for the gradual automotive electrification transition. **Capital Allocation Strategy** has shifted toward aggressive share repurchases, with $1 billion in new authorization, while maintaining dividend payments. This reflects management's confidence in cash generation capabilities and focus on shareholder returns during a challenging growth environment.
LKQ company profile · for informational purposes only — not investment advice.
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