LKQ reported a weaker third quarter, with revenue and adjusted earnings both down from a year earlier and a net loss that included a large non-cash impairment charge. Separately, the company’s board has paused its strategic review—including a process to sell the Specialty segment—so new leadership can assess the business and consider options for creating value.
Third-quarter results
- Revenue was $3.3 billion, down 5.1% from $3.5 billion a year earlier. Parts and services revenue fell 5.6%; the company cited a 5.4% decline in organic revenue, a 0.7% drag from foreign exchange and a 0.6% net benefit from acquisitions and divestitures.
- LKQ recorded a net loss of $24 million, or 9 cents a share, compared with net income of $178 million, or 69 cents a share, in the third quarter of 2025. The latest quarter included $111 million in pre-tax, non-cash impairment charges.
- Adjusted net income was $127 million, down from $216 million a year earlier. Adjusted earnings per share fell to 50 cents from 84 cents.
- The company attributed European weakness to operational problems tied to the ERP system implementation in Germany and lower volumes in the United Kingdom and Benelux. Specialty was modestly below plan.
Strategic review paused
- The board suspended the previously announced strategic review, including the Specialty sale process. The pause is intended to give the new leadership team time to conduct a broad assessment of the company and evaluate the available ways to create value.
- The board cited the appointment of a new CEO, leadership changes in Europe and the engagement of Alvarez & Marsal as steps in a broader effort to improve execution and financial performance. The announcement did not provide further details on those changes.
- The suspension puts the Specialty sale process on hold; it does not amount to an announcement that the business will or will not be sold.
What changes for investors
LKQ’s latest results show declines in both reported revenue and adjusted earnings, while the impairment charge contributed to a reported net loss. The strategic review’s pause means the company is deferring a decision on Specialty while its new leadership assesses the business and other potential value-creation options.