LKQ's Q3 Earnings Outpace Estimates, Revenues Fall Short

LKQ Corporation LKQ delivered third-quarter 2025 adjusted earnings of 84 cents per share, which exceeded the Zacks Consensus Estimate of 74 cents but declined from 88 cents reported in the year-ago period. The aftermarket auto parts distributor registered quarterly revenues of $3.5 billion, which missed the Zacks Consensus Estimate of $3.52 billion. The top line also fell from the year-ago level of $3.58 billion. Parts and Services organic revenues decreased 1.2% year over year.

LKQ carries a Zacks Rank #3 (Hold) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here. 

LKQ Corporation Price, Consensus and EPS Surprise

LKQ Corporation price-consensus-eps-surprise-chart | LKQ Corporation Quote

Segment Highlights

LKQ has completed the divestiture of its Self Service segment and now reports across three segments.

In the reported quarter, revenues from the Wholesale North American segment totaled $1,423 million, unchanged from the corresponding period of 2024 and topped our estimate of $1,381 million. The segment’s EBITDA was $199 million, which was below our forecast of $213 million, as well as $224 million generated in the third quarter of 2024.

Revenues from the European segment were $1.62 billion, compared to $1.61 billion in the year-ago quarter and topped our estimate of $1.57 billion. The segment’s EBITDA came in at $162 million, which was down from the year-ago level of $165 million but surpassed our forecast of $147 million.

Revenues from the Specialty segment came in at $457 million, increasing from $419 million in the year-ago quarter and topping our projection of $406 million. The segment’s EBITDA was $34 million, rising from the year-ago figure of $31 million and exceeding our forecast of $23.1 million.

Financial Position & Dividend

LKQ had cash and cash equivalents of $289 million as of Sept. 30, 2025, up from $234 million recorded as of Dec. 31, 2024. The long-term obligations (excluding the current portion) amounted to $3.6 billion as of Sept. 30, 2025, down from $4.12 billion recorded as of Dec. 31, 2024. As of Sept. 30, 2025, LKQ’s balance sheet reflected a total debt of $4.2 billion.

In the third quarter of 2025, cash flow from operating activities and FCF were $440 million and $387 million, respectively.  

During the third quarter of 2025, the company repurchased 1.2 million shares worth $40 million. Since initiating the stock buyback program in late October 2018, it has repurchased around 67.7 million shares for a total of $2.9 billion through Sept. 30, 2025.

On Oct. 28, LKQ announced a quarterly cash dividend of 30 cents per share. The dividend will be paid out on Dec. 4, 2025, to stockholders of record at the close of business on Nov. 20, 2025.

2025 Guidance

LKQ has revised its outlook for 2025. It now anticipates parts and services organic revenues to decline 2-3% against the previous estimate of a decline of 1.5-3.5% year over year. It now expects adjusted EPS in the range of $3-$3.15, compared with the previous estimate of $2.85-$3.15. The company now envisions operating cash flow in the range of $825-$1,025 million compared with the previous estimate of $800-$1,000 million. It expects free cash flow in the range of $525-$675 million compared with the previous estimate of $600-$750 million.

Peer Releases

Dorman Products DORM came out with quarterly earnings of $2.62 per share, beating the Zacks Consensus Estimate of $2.31 per share. This compares to earnings of $1.96 per share a year ago. Over the last four quarters, the company surpassed consensus EPS estimates four times. Dorman posted revenues of $543.74 million for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 0.63%. This compares to year-ago revenues of $503.77 million.The company topped consensus revenue estimates four times over the last four quarters.

Genuine Parts Company GPC came out with quarterly earnings of $1.98 per share, missing the Zacks Consensus Estimate of $2.02 per share. This compares to earnings of $1.88 per share a year ago. Over the last four quarters, the company surpassed consensus EPS estimates three times and missed on the other. Genuine Parts posted revenues of $6.26 billion for the quarter ended September 2025, surpassing the Zacks Consensus Estimate by 2.03%. This compares to year-ago revenues of $5.97 billion. The company topped consensus revenue estimates four times over the last four quarters.

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This article originally published on Zacks Investment Research (zacks.com).

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