LKQ Corporation (NASDAQ:LKQ) today announced preliminary, unaudited results for the third quarter ended September 30, 2026, as well as leadership and operational actions intended to address recent performance and position the Company for improved execution under new leadership.
Preliminary Third Quarter 2026 Results
Based on preliminary unaudited financials for the third quarter, LKQ expects to report the following:
Revenue of $3.32 billion, compared with $3.50 billion in the third quarter of 2025
Parts and services organic revenue decline of 5.4%
Net loss1 of $16 million to $32 million, including $111 million of non-cash impairment charges, compared with net income1 of $178 million in the third quarter of 2025
Diluted loss per share1 of $0.06 to $0.12, including $0.42 per share of non-cash impairment charges, compared with diluted EPS of $0.69 in the third quarter of 2025
Adjusted diluted EPS1,2 of $0.47 to $0.53, compared with $0.84 in the third quarter of 2025
Europe parts and services organic revenue decline of 9.8%; and segment EBITDA margin of 4.1% to 5.1%, compared with 10.0% in the third quarter of 2025
The third quarter results primarily reflect underperformance in the Europe segment, including operational disruptions associated with the ERP implementation in Germany and volume declines in the United Kingdom and Benelux. While Specialty was modestly below expectations, the shortfall was more limited, and North America performed in line with the Company’s expectations despite softer market conditions.
The Company will report full third quarter results on October 29, 2026, and will hold a conference call at that time.
Leadership Changes
LKQ today announced the appointment of Salvatore A. Abbate as President and Chief Executive Officer, effective December 15, 2026. He succeeds Justin Jude, who is departing the Company effective today. Until Mr. Abbate assumes the role of President and Chief Executive Officer, the Company has established an interim Office of the Chief Executive Officer to provide ongoing leadership continuity, consisting of John Mendel, Chairman of the Board, and Sue Gove, Chair of LKQ’s Audit Committee. The Office of the Chief Executive Officer will work closely with LKQ’s leadership team in overseeing the Company’s operations during the interim period.
(1) References in this release to Net (loss) income and Diluted (loss) earnings per share, and the corresponding adjusted figures, reflect amounts from continuing operations attributable to LKQ stockholders.
(2) Non-GAAP measure. See the table accompanying this release that reconciles the actual or forecasted U.S. GAAP measure to the actual or forecasted adjusted measure, which is non-GAAP.
Also effective today, Andy Hamilton is departing his role as President and Managing Director of LKQ Europe. The Board has engaged Alvarez & Marsal ("A&M") to advise the Company on its European operations, with an initial focus on improving customer service levels, stabilizing operations and strengthening performance and cost discipline across the region.
"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," said John Mendel, Chairman of the Board. "We have strong conviction in LKQ’s business and its potential to create significant value for shareholders. Sal is a proven operator with a track record of driving performance in complex distribution businesses, and A&M brings deep experience in operational improvement. Together with LKQ’s talented teams, we are focused on improving execution and delivering improved results for our stakeholders."
Withdrawal of Full-Year 2026 Guidance
Considering the third quarter results in Europe and the appointment of Mr. Abbate as President and Chief Executive Officer, effective December 15, 2026, LKQ is withdrawing its full-year 2026 guidance, which was most recently updated on July 30, 2026.
Strategic Review Update
In connection with the Board’s ongoing review of strategic alternatives, the Company has taken several actions, including appointing Mr. Abbate as the Company’s next President and Chief Executive Officer, implementing leadership changes within its European operations, and retaining A&M to advise the Company with respect to its European operations. The Company will provide additional updates regarding the strategic alternatives process as appropriate.