LKQ Q1 Earnings Call Highlights

LKQ (NASDAQ:LKQ) opened 2026 with what absorption described arsenic “solid progress” crossed its operating segments, citing improving trends successful North America, sequential request betterment successful Europe, and continued maturation successful its Specialty business.

On the company’s first-quarter 2026 net call, President and CEO Justin L. Jude said the 4th reflected “operating subject and relentless absorption connected the things wrong our control, taking marketplace share, protecting margins, and improving productivity.” Senior Vice President and CFO Rick Galloway added that show was supported by execution successful North America and improving trends done the 4th successful Europe, though partially offset by headwinds including fuel, atrocious debt, and pricing pressure.

First-quarter results and currency travel

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Galloway reported first-quarter gross of $3.5 billion, up 4.3% year-over-year. Diluted EPS was $0.30, which included a $0.17 per stock impairment tied to LKQ’s equity method concern successful Mekonomen; that impairment was excluded from adjusted results. Adjusted diluted EPS was $0.67, down from $0.74 successful the prior-year period.

Free currency travel was antagonistic $96 cardinal versus antagonistic $57 cardinal a twelvemonth ago, which Galloway attributed to emblematic first-quarter seasonality and moving superior needs, peculiarly receivables rising from year-end arsenic volumes built done the quarter. He said the institution expects archetypal 4th to beryllium a currency usage and remaining quarters to make affirmative escaped currency flow.

North America: stabilization signals and alternate parts utilization

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In North America, Jude said integrated gross declined 0.5% connected a per-day basis, improving from a 4.1% diminution successful the year-ago archetypal 4th and a 1% diminution successful the 4th fourth of 2025. He said repairable claims were down astir 2% to 4%, which absorption described arsenic a betterment from 2025 levels.

Jude pointed to momentum successful the company’s aftermarket collision merchandise enactment and a grounds level of alternate parts utilization. He said utilization reached “nearly 40% done February,” and helium expected the inclination to proceed into March.

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During Q&A, Jude told Baird expert Craig Kennison that MSOs thin to beryllium higher utilizers of alternate parts and that LKQ is seeing maturation with those customers. He said LKQ renewed respective MSO agreements and is integrating ordering capabilities with cardinal partners to amended the “ease and velocity of ordering” and procurement workflows. Jude besides said integrations tin assistance automate decision-making astir pb times and economics, which tin summation measurement and alternate parts usage.