LKQ cuts annual profit forecast on softer auto parts demand in Europe

• The company expects 2026 adjusted profit of $2.60 per share to $2.90 per share, down from its prior estimate of $2.90 per share to $3.20 per share.
• The company now expects organic revenue growth for parts and services to decline 1% to 3%, compared with its previous forecast for a 0.5% decline to 1.5% growth.
• Second-quarter adjusted earnings came in at 67 cents per share, missing analysts' estimates of 71 cents per share, according to data compiled by LSEG.
• Revenue for the quarter ended June 30 fell 3% to $3.41 billion from a year earlier, compared with estimates of $3.48 billion.
• Quarterly total parts and services revenue decreased 3.6% from the year-ago period.

July 30 (Reuters) - Auto parts supplier LKQ Corp cut its full-year adjusted profit forecast on Thursday, citing weaker demand for auto parts and repair services in its European markets.

Europe remains a tough market for automotive suppliers, as weak economic growth and restrained consumer spending weigh on demand for vehicle repairs and aftermarket parts.

• Shares of the company were down 16% in premarket trading.
• LKQ has been pursuing strategic options in recent months, announcing last year that it was exploring a sale of its Specialty segment before expanding the review in January to include alternatives such as a sale of the entire company.
• The company said the strategic review process remains active and that it continues to engage with multiple parties.