LKQ Corporation Reports $1.1 B Operating Cash Flow, $847 M Free Cash Flow and Strategic Review
LKQ generated $1.1 billion in operating cash flow and $847 million in free cash flow in 2025, returning $116 million to shareholders via $40 million of buybacks and $76 million in dividends. The board initiated a strategic alternatives review and approved a $60–70 million restructuring to secure over $50 million in annual savings.
1. Financial Performance
In the fourth quarter of 2025, revenue climbed 2.7% to $3.3 billion, with a 3.7% foreign exchange tailwind offsetting a 1.7% drop in organic parts and services sales. Adjusted net income declined 24.4% to $150 million, with adjusted EPS at $0.59 versus $0.78 last year.
2. Cash Flow and Capital Return
For the full year, LKQ Corporation generated $1.1 billion in operating cash flow and $847 million in free cash flow. The company returned $116 million to shareholders in the fourth quarter via $40 million of share repurchases and $76 million in cash dividends, contributing to $469 million of capital returns in 2025.
3. Strategic Review and Restructuring
The board of directors initiated a comprehensive strategic alternatives review with no set timetable to explore value-enhancing transactions. A restructuring plan is expected to incur $60–70 million in charges and yield over $50 million in annualized cost savings, supporting ongoing lean operating model expansion.