LKQ Corporation (NASDAQ:LKQ) shares edged higher Thursday after the company topped revenue expectations despite an adjusted profit miss. Investors also weighed a new restructuring plan and a 2026 outlook that came in below consensus estimates.
• What’s the outlook for LKQ shares?
The company reported fourth-quarter adjusted earnings per share of 59 cents, missing the analyst consensus estimate of 65 cents.
Quarterly sales of $3.312 billion (+2.7% year over year) outpaced the Street view of $3.253 billion.
Total parts and services revenue increased 2.2%, which included a 3.7% increase from foreign exchange rates year-over-year.
On an adjusted basis, net income for the fourth quarter was $150 million compared to $202 million a year ago.
The company exited the quarter with cash and equivalents worth $319 million.
Restructuring Plan
The company approved a restructuring plan to align costs with key markets and improve long-term performance. It expects roughly $60 million to $70 million in restructuring charges.
Management sees over $50 million in annualized savings, with most gains starting in 2026.
As of Dec. 31, 2025, the balance sheet reflected total debt of $3.7 billion.
Dividend
On Feb. 17, the firm declared a quarterly cash dividend of 30 cents per share of common stock, payable on March 26, 2026.
Outlook
The firm sees FY2026 adjusted EPS of $2.90 to $3.20, below the $3.29 analyst estimate.
It expects FY2026 GAAP EPS of $2.35 to $2.65, below the $3.01 analyst estimate.
LKQ Price Action: LKQ Corporation shares are trading higher by 0.44% to $33.37 at publication on Thursday.
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