LKQ|Earnings Snapshot
EPS
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $0.71 | - | - |
| Q2'26 | $0.72 | $0.67 | -6.9% |
| Q1'26 | $0.69 | $0.67 | -2.4% |
| Q4'25 | $0.78 | $0.59 | -24.7% |
| Q3'25 | $0.76 | $0.84 | +11.0% |
| Q2'25 | $0.92 | $0.87 | -5.8% |
Revenue
| Qtr | Est | Actual | +/− |
|---|---|---|---|
| Q3'26 | $3.6B | - | - |
| Q2'26 | $3.5B | $3.4B | -3.0% |
| Q1'26 | $3.4B | $3.5B | +1.3% |
| Q4'25 | $3.5B | $3.3B | -4.2% |
| Q3'25 | - | $3.5B | - |
| Q2'25 | - | $3.6B | - |
Market Data
LKQ Stock Snapshot
LKQ is currently trading at $24.90, giving LKQ Corporation a market cap of 6.29B and a P/E ratio of 13.6. Today's range spans $24.22–$24.99, with shares opening at $24.28 and moving up $0.03 (0.1%) from the prior close. DailyIQ's technical score sits at 50/100 (HOLD) with a news sentiment reading of 50/100.
Over the past year LKQ has traded between $21.17 and $37.13 - the current price is +17.6% off the 52-week low and -32.9% from the high.
Mean-reversion potential exists for LKQ - but it needs a catalyst. 50/100 (HOLD), neutral sentiment (50/100), price $24.90 (in the lower half of its 52-week range in $21.17–$37.13). (P/E: 13.6) At 6.29B in Consumer Cyclical market cap, small-cap stocks in mixed phases don't typically recover on technicals alone - they need a news event, earnings surprise, or sector catalyst to shift the momentum. Without one, the HOLD setup tends to persist longer than fundamental analysis would suggest.
The absence of strong institutional sponsorship makes LKQ's HOLD signal (50/100) more consequential than the same signal in a larger name — at 6.29B in Consumer Cyclical market cap, there are fewer natural buyers to absorb selling pressure, which means the $21.17–$37.13 range's lower bound becomes a sharper test of the thesis. Sentiment at 50/100 (neutral) and price at $24.90 (in the lower half of its 52-week range) don't yet suggest stabilization is imminent.
Company Insights: LKQ Corporation (LKQ)
LKQ Corporation is a significant distributor of aftermarket vehicle replacement parts, serving both collision and mechanical repair needs across North America and Europe. The company's business model relies on a broad product portfolio and an extensive distribution network to reach repair shops, dealerships, and consumers. This positions LKQ as a critical link in the automotive aftermarket supply chain, managing a complex inventory of components essential for vehicle maintenance and repair.
Recent financial performance indicates a degree of volatility in LKQ's operations. While the company has demonstrated an ability to exceed earnings expectations in some quarters, it has also faced misses, particularly in Q4 2025. Revenue figures have shown a mixed trend, suggesting sensitivity to market demand and operational execution. This inconsistency requires careful monitoring of sales performance and profitability trends to assess the sustainability of its financial results.
The company's stock has experienced downward pressure following its Q4 2025 earnings report and the subsequent release of below-estimate FY26 EPS guidance. This market reaction underscores investor concerns regarding near-term profitability and future growth prospects. Furthermore, ongoing discussions around a potential strategic review and sale add a layer of uncertainty to the company's future direction and ownership structure.
Aftermarket Distribution
LKQ operates a large-scale distribution network for automotive replacement parts across North America and Europe.
The company's product range covers components for both collision and mechanical repairs, serving a diverse customer base.
Its role as a key supplier in the aftermarket is crucial for vehicle maintenance and repair shops.
Earnings Volatility
LKQ's recent earnings reports show a mixed pattern of beating and missing analyst estimates.
Q4 2025 results included an Earnings Per Share (EPS) miss, despite revenue exceeding expectations.
Below-estimate FY26 EPS guidance indicates potential near-term headwinds impacting profitability.
Strategic Review
LKQ is reportedly undergoing a strategic review, which may include a potential sale of the company.
This process introduces uncertainty regarding future operational strategies and ownership.
Investor sentiment appears sensitive to developments related to this strategic evaluation.
Valuation Metrics
The company's Price-to-Earnings (P/E) ratio stands at 12.92, suggesting a potentially attractive valuation.
LKQ's 52-week trading range indicates significant price fluctuation, from a low of $28.125 to a high of $44.82.
Recent analyst target price reductions to $29.00 reflect cautious sentiment following recent performance.
Positioning LKQ
Investors considering LKQ Corporation should monitor the outcomes of its strategic review closely, as this could significantly alter the company's trajectory. Adding to positions may be warranted if a favorable sale or a clear operational turnaround plan emerges, demonstrating a path to consistent earnings growth. Conversely, reducing exposure could be prudent if the strategic review stalls or if near-term earnings performance continues to disappoint, especially given the recent downward revisions to future guidance.
What Moves LKQ Stock?
LKQ Corporation's stock performance is primarily driven by demand in the automotive aftermarket, influenced by vehicle repair trends and the company's operational execution across its global segments.
Aftermarket Demand
The core business relies on the distribution of replacement parts for vehicle repairs, both collision and mechanical. Demand is sensitive to the number of vehicles on the road, average vehicle age, and consumer spending on car maintenance.
Strong demand translates to higher sales volumes and potentially better pricing power, supporting revenue growth and profitability. Conversely, a slowdown in repair activity or a shift towards new vehicle purchases can pressure sales and stock performance.
European Operations
LKQ's significant presence in Europe, particularly through its Euro Car Parts segment, represents a substantial portion of its revenue. This segment is exposed to European economic conditions and automotive market dynamics.
Performance in Europe directly impacts LKQ's consolidated results. Favorable economic conditions and robust aftermarket demand in key European markets can boost earnings, while economic downturns or regulatory changes can create headwinds for the stock.
Earnings Performance
LKQ's stock reacts to its quarterly earnings reports, particularly how its earnings per share (EPS) and revenue compare to analyst expectations. Recent reports have shown mixed results, with some quarters beating estimates and others missing.
An EPS miss, as seen in Q4 2025, coupled with below-estimate FY26 guidance, has recently pressured the stock. Consistent beats, however, tend to drive positive price action, reflecting investor confidence in the company's ability to meet financial targets.
Key insight: LKQ's valuation hinges on the resilience of the automotive aftermarket and its ability to navigate regional economic cycles, especially in Europe. Investor focus remains on earnings beats and management's strategic direction, including any potential sale discussions.
Key Metrics for LKQ
LKQ Corporation's performance hinges on its ability to manage inventory and drive sales in the fragmented auto parts market. Key metrics reflect operational efficiency and market penetration.
Revenue Growth: Measures the increase in LKQ's sales year-over-year. Strong growth indicates healthy demand and effective market strategy; declining revenue suggests competitive pressures or economic slowdown. This is crucial for LKQ's ability to expand its market share and fund operations.
Same-Store Sales: Tracks sales performance for LKQ's established locations, excluding new openings or closures. Positive trends signal organic growth and customer loyalty; negative trends point to market saturation or declining customer traffic. This metric is vital for understanding the core health of LKQ's retail and wholesale operations.
Gross Profit Margin: Indicates the profitability of LKQ's core business after accounting for the cost of goods sold. Expanding margins suggest efficient sourcing and pricing power; contracting margins may signal rising costs or competitive pricing. This directly impacts LKQ's overall profitability and ability to invest in growth.
Inventory Turnover: Measures how efficiently LKQ is selling and replacing its inventory. A higher turnover rate generally signifies strong sales and effective inventory management; a declining rate can indicate slow-moving stock or overstocking. For LKQ, efficient inventory management is key to minimizing holding costs and ensuring product availability.
Free Cash Flow: Represents the cash LKQ generates after accounting for capital expenditures. Positive and growing free cash flow allows LKQ to reinvest in the business, pay down debt, or return capital to shareholders. This is a fundamental indicator of LKQ's financial health and operational efficiency.
LKQ Recent Earnings History
- Q4 2025
EPS: $0.59 actual vs $0.78 estimate (miss) · Revenue: $3,312M actual vs $3,459M estimate
- Q3 2025
EPS: $0.84 actual vs $0.76 estimate (beat) · Revenue: $3,499M actual
- Q2 2025
EPS: $0.87 actual vs $0.92 estimate (miss) · Revenue: $3,642M actual
- Q1 2025
EPS: $0.79 actual vs $0.78 estimate (beat) · Revenue: $3,463M actual
- Q4 2024
EPS: $0.8 actual vs $0.74 estimate (beat) · Revenue: $3,357M actual
Analyst Price Targets for LKQ
The current spread of analyst price targets and ratings for LKQ Corporation (LKQ).
Reflects the most recently tracked analyst ratings for LKQ and may lag real-time updates. Not a recommendation to buy or sell.
Risk Factors
LKQ Corporation faces risks primarily tied to the cyclical nature of auto repair demand, operational execution, and potential strategic shifts. Investors should monitor these factors as they can significantly impact revenue and profitability.
- Demand Volatility
LKQ's sales are sensitive to the number of vehicles needing repair, which can fluctuate with economic conditions and consumer spending. A recession or reduced disposable income could lead to fewer repairs, directly impacting LKQ's revenue. This risk materializes during economic downturns or periods of high inflation.
- Operational Execution
The company's extensive distribution network requires efficient operations and inventory management. Disruptions in supply chains, labor shortages, or integration issues from acquisitions could lead to increased costs and reduced service levels. This risk becomes prominent if operational efficiencies falter or unexpected supply chain shocks occur.
- Strategic Review
LKQ is undergoing a strategic review, which could lead to significant changes, including a potential sale of the company. Uncertainty surrounding the review's outcome and the potential for a sale can create stock price volatility and impact long-term strategic direction. This risk is active as long as the review is ongoing and until a definitive outcome is announced.
- Regulatory Changes
Changes in environmental regulations related to vehicle emissions or parts disposal could affect LKQ's product offerings and operational costs. New regulations might require significant investment in compliance or alter demand for certain types of replacement parts. This risk could materialize if new environmental or safety standards are introduced.
- Competition
While LKQ is a major player, competition from other aftermarket parts distributors, original equipment manufacturers (OEMs), and online retailers remains intense. Price wars or aggressive market share grabs by competitors could erode LKQ's margins. This risk is ever-present but intensifies if competitors gain pricing advantages or introduce innovative service models.
LKQ Competitive Positioning
LKQ Corporation (LKQ) is tracked alongside these names in Auto Parts on DailyIQ.
Frequently Asked Questions About LKQ
Is LKQ Corporation (LKQ) stock a good investment opportunity?
LKQ Corporation's investment appeal hinges on its position as a leading distributor of automotive replacement parts. The company's extensive network and broad product offering for collision and mechanical repairs are key strengths. Investors might consider its ability to navigate industry cycles and execute its growth strategies.
What are the main drivers of LKQ stock price?
The stock price of LKQ Corporation is primarily influenced by factors such as demand for automotive repairs, both mechanical and collision-related. Performance of its North American and European segments, supply chain efficiency, and the overall economic climate impacting consumer spending on vehicle maintenance are also significant drivers.
Does LKQ Corporation (LKQ) pay a dividend?
LKQ Corporation currently pays a quarterly dividend to its shareholders. The company's commitment to returning capital to investors, alongside its strategic investments, is a factor for income-focused investors to consider. Dividend amounts and payout ratios can fluctuate based on financial performance and capital allocation priorities.
What is LKQ's current valuation compared to its peers?
LKQ Corporation's valuation can be assessed by metrics like its P/E ratio, which stands at approximately 12.92. Comparing this to industry averages and its direct competitors in the auto parts and distribution sectors provides context for its current market standing. Investors often look at forward-looking multiples and cash flow generation to gauge if the stock is over or undervalued.
What are the key risks associated with investing in LKQ (LKQ) stock?
Risks for LKQ include potential slowdowns in the automotive aftermarket, increased competition, and operational challenges within its extensive distribution network. Fluctuations in commodity prices for recycled parts and regulatory changes could also impact profitability. Furthermore, the company's strategic review and potential sale introduce uncertainty.
How has LKQ Corporation performed in recent earnings reports?
Recent earnings reports for LKQ Corporation have shown mixed results. For Q4 2025, the company reported an EPS miss but beat revenue estimates. The prior quarter, Q3 2025, saw both EPS and revenue estimates being exceeded. This variability suggests potential volatility in sales and profitability, with recent guidance for FY26 EPS also falling below expectations.
What is the investment thesis for LKQ Corporation?
The investment thesis for LKQ Corporation centers on its dominant position in the fragmented automotive aftermarket parts distribution industry. Its scale, diversified product offering, and extensive distribution network provide a competitive advantage. Growth opportunities may arise from market consolidation, technological adoption in logistics, and continued demand for vehicle repair and maintenance.
What impact does the strategic review have on LKQ stock?
LKQ Corporation's ongoing strategic review, which may include a potential sale of the company, introduces a significant element of uncertainty for investors. This process can lead to increased stock price volatility as market participants react to potential outcomes and news flow. The ultimate decision from the review will likely shape the company's future direction and shareholder value.
How does LKQ Corporation's market share contribute to its strength?
LKQ Corporation holds a significant market share in the North American and European automotive aftermarket. This scale allows for greater purchasing power, operational efficiencies, and a broader product selection for customers. Maintaining and expanding this market leadership is crucial for its sustained competitive advantage and financial performance.
What are LKQ's growth strategies for the future?
LKQ Corporation's growth strategies typically involve organic expansion, potential acquisitions to further consolidate the market, and optimizing its supply chain and logistics. The company also focuses on leveraging technology to improve efficiency and customer service across its diverse segments. Management commentary often highlights long-term value creation as a key objective.
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