LKQ Q1 Revenue Rises 4.3% to $3.47B, Net Income Halves on $44M Impairment
LKQ•LKQ posted Q1 revenue of $3.469 billion, up 4.3% year-over-year, while net income plunged to $77 million from $158 million, reflecting a $44 million impairment charge. The board launched a strategic alternatives review, upheld a $0.30/share dividend, and reaffirmed full-year outlook while trimming EPS guidance to $2.16-$2.46.
1. Q1 2026 Financial Results
LKQ generated $3.469 billion in revenue for Q1, a 4.3% increase over the prior year. Net income fell to $77 million from $158 million, driven by a $44 million impairment in its equity method investment, while adjusted EPS declined 9.5% to $0.67.
2. Board Launches Strategic Alternatives Review
The board retained BofA Securities and Goldman Sachs to conduct a comprehensive review of strategic alternatives with no set deadline. The process aims to enhance shareholder value but may or may not result in a transaction.
3. Cash Flow and Balance Sheet
Q1 operating cash flow was negative $56 million with free cash flow at negative $96 million. As of March 31, total debt stood at $3.9 billion, representing leverage of 2.6x EBITDA.
4. Dividend and 2026 Outlook
LKQ distributed $77 million in Q1 dividends and declared a $0.30 per share payout for Q2. Management reaffirmed full-year organic revenue growth of (0.5%) to 1.5% and trimmed EPS guidance to $2.16–$2.46.
