LKQ Corporation Announces Preliminary Third Quarter 2026 Results and Leadership and Operational Actions
LKQ CORP (LKQ) filed an SEC Form 8-K — Results of Operations and Financial Condition. Exhibit 99.1 LKQ Corporation Announces Preliminary Third Quarter 2026 Results and Leadership and Operational Actions Salvatore A. Abbate appointed President and Chief Executive Officer Third quarter results reflect significant underperformance in Europe Alvarez & Marsal retained
How this was made
The 30-second read
Why it matters
The preliminary loss and guidance withdrawal suggest short‑term downside, but the appointment of a new CEO may offer a longer‑term catalyst.
Market read
First‑report 8‑K reveals weak European results and guidance withdrawal, likely prompting a sell‑off in LKQ and related auto parts stocks.
What to watch
North America performance remained in line; potential upside if Europe issues are resolved quickly.
LKQ Corporation Announces Preliminary Third Quarter 2026 Results and Leadership and Operational Actions
Preliminary revenue was lower than the third quarter of 2025, the Company expects a net loss and sharply lower adjusted diluted EPS, Europe organic revenue declined and its segment EBITDA margin was substantially below the prior-year quarter. LKQ also withdrew full-year 2026 guidance and announced leadership and operational actions.
Key metrics
shortened, hover for the filing’s print| Metric | Value | q/q | y/y |
|---|---|---|---|
| RevenueGAAP | $3.32B | – | – |
| Parts and services organic revenueother | decline of 5.4% | – | decline of 5.4% |
| Net (loss) incomeGAAP | $ (35) to $ (19) | – | – |
| Net (loss) income attributable to LKQ stockholdersGAAP | (34) to (18) | – | – |
| Net (loss) income from continuing operations attributable to LKQ stockholdersGAAP | (32) to (16) | – | – |
| Diluted (loss) earnings per share: ReportedGAAP | $ (0.12) to $ (0.06) | – | – |
| Adjusted net incomenon-GAAP | $ 119 to $ 135 | – | – |
| Adjusted diluted (loss) earnings per sharenon-GAAP | $ 0.47 to $ 0.53 | – | – |
| Weighted average diluted common shares o/sGAAP | 252.9 | – | – |
| Impairment of goodwillGAAP | 88 | – | – |
| Impairment of net assets held for saleGAAP | 23 | – | – |
| Amortization of acquired intangiblesGAAP | 34 | – | – |
| Restructuring and transaction related expensesGAAP | 24 | – | – |
| Direct impacts of Ukraine/Russia conflictGAAP | 4 | – | – |
| Excess tax deficiency from stock-based paymentsGAAP | 1 | – | – |
| Tax effect of adjustmentsGAAP | (23) | – | – |
| Europe parts and services organic revenueother | decline of 9.8% | – | decline of 9.8% |
| Europe segment EBITDA marginnon-GAAP | 4.1% to 5.1% | – | – |
Full-year 2026 outlook
- NoteLKQ is withdrawing its full-year 2026 guidance.
What drove it
- The third quarter results primarily reflect underperformance in the Europe segment.
- Europe experienced operational disruptions associated with the ERP implementation in Germany.
- Europe also faced volume declines in the United Kingdom and Benelux.
- North America performed in line with the Company’s expectations despite softer market conditions.
- Specialty was modestly below expectations, with a more limited shortfall than Europe.
Concerns
- The Company expects a net loss from continuing operations attributable to LKQ stockholders.
- The Company expects non-cash impairment charges of $111 million, including impairment of goodwill and impairment of net assets held for sale.
- Europe parts and services organic revenue declined and Europe segment EBITDA margin was below the third quarter of 2025.
- The Company withdrew full-year 2026 guidance.
- The preliminary results remain subject to closing and finalization of financial and accounting procedures and may differ materially from actual results.
What to watch
- Full third quarter results and the conference call on October 29, 2026.
- The transition to Salvatore A. Abbate as President and Chief Executive Officer, effective December 15, 2026.
- Actions by Alvarez & Marsal to improve customer service levels, stabilize European operations, and strengthen performance and cost discipline.
- Additional updates regarding the Board’s strategic alternatives process, as appropriate.
Analysis
LKQ provided preliminary, unaudited third-quarter results rather than a completed earnings release. The Company expects revenue of $3.32 billion, compared with $3.50 billion in the third quarter of 2025, alongside a parts and services organic revenue decline of 5.4%. The release identifies Europe as the principal source of the shortfall, while North America performed in line with expectations despite softer market conditions and Specialty was modestly below expectations.
Profitability is expected to deteriorate materially. Net (loss) income from continuing operations attributable to LKQ stockholders is expected to be (32) to (16), compared with 178 in the third quarter of 2025, and reported diluted (loss) earnings per share is expected to be $ (0.12) to $ (0.06), compared with $0.69. The preliminary results include $111 million of non-cash impairment charges, consisting of 88 of impairment of goodwill and 23 of impairment of net assets held for sale.
Adjusted performance also weakened. Adjusted net income is expected to be $119 to $135, compared with $216, while adjusted diluted earnings per share is expected to be $0.47 to $0.53, compared with $0.84. The reconciliation also includes 34 of amortization of acquired intangibles, 24 of restructuring and transaction related expenses, 4 of direct impacts of the Ukraine/Russia conflict, 1 of excess tax deficiency from stock-based payments, and a tax effect of adjustments of (23).
Europe is the central operational issue. Europe parts and services organic revenue declined 9.8%, and the segment EBITDA margin is expected to be 4.1% to 5.1%, compared with 10.0% in the third quarter of 2025. LKQ attributed the region’s performance to ERP implementation disruptions in Germany and volume declines in the United Kingdom and Benelux. The Board retained Alvarez & Marsal with an initial focus on customer service, operational stabilization, performance and cost discipline across the region.
The Company withdrew full-year 2026 guidance, most recently updated on July 30, 2026. Leadership actions accompany the withdrawal: Salvatore A. Abbate will become President and Chief Executive Officer effective December 15, 2026; Justin Jude departed effective today; and Andy Hamilton departed as President and Managing Director of LKQ Europe. LKQ will report full third-quarter results on October 29, 2026, but cautioned that the preliminary estimates are subject to unfinished financial and accounting procedures and may differ from the final unaudited condensed consolidated financial statements.
Management, verbatim
LKQ’s performance, particularly in Europe, has fallen significantly short of the Board’s expectations, and the Board is taking decisive action to address it.
John Mendel, Chairman of the Board
Not in the filing
stated, not guessed- Completed third-quarter financial statements
- Gross margin
- Operating income
- Operating margin
- Segment revenue for North America, Europe, Specialty or Taiwan
- Segment revenue comparisons
- Cash balance
- Debt balance
- Operating cash flow
- Free cash flow
- Share repurchases
- Dividends
- Capital expenditures
- Detailed full-year 2026 guidance figures
- Prior full-year 2026 guidance figures
- Comparison of actual results with prior guidance
- Revenue percentage change
- Net income percentage change
- Adjusted EPS percentage change
- Prior-quarter comparisons
AlphAI analysis generated from the company’s SEC earnings filing (Form 8-K Item 2.02, or Form 6-K for a foreign private issuer). Every figure was cross-checked against the filing text; consensus estimates, price targets and share-price reactions are not shown because they are not in the filing. AI-generated research, not investment advice.
Background
LKQ is a leading provider of alternative and specialty automotive parts with operations in North America, Europe, and Taiwan.
Ticker impact
LKQ disclosed preliminary Q3 2026 results showing a net loss, revenue decline in Europe, and withdrew full-year guidance.
downward pressure as investors price in weaker Europe performance and lack of guidance
The 8‑K is the first public disclosure of the loss, revenue miss, and guidance withdrawal, which are material for a mid‑cap auto parts distributor.
Market effects
European auto parts distributors may face heightened scrutiny on operational disruptions.
European markets could see broader pressure on automotive supply chain stocks.
Limited to auto parts sector; no broad macro effect.
Counterpoint
If the leadership transition stabilizes operations, the stock could rebound on a turnaround narrative.
Key entities
- ExecutiveSalvatore A. Abbate
Appointed President and CEO effective Dec 15, 2026.
- Consulting FirmAlvarez & Marsal
Retained to advise on European operations.
