LKQ lowers 2026 organic revenue growth outlook to (3.0%) to (1.0%) from (0.5%) to 1.5%
Company cuts 2026 diluted EPS forecast to $1.78-$2.08 from $2.16-$2.46
LKQ says actions in Europe are focused on restoring service levels and aligning costs with demand
Overview
US auto parts supplier's Q2 revenue fell 3%, missing analyst expectations
Adjusted EPS for Q2 missed analyst expectations
Company repurchased 1.9 mln shares for $52 mln in Q2
Result Drivers
North America recovery - North America returned to positive organic growth for the first time in nine quarters, driven by record alternative-parts utilization and improving repairable claims
European weakness - Europe fell short of expectations due to ERP implementation issues in Germany and lower volumes in the UK and Benelux, partially offset by cost reductions
Specialty segment resilience - Specialty delivered growth despite a challenging end-market environment and continued macro-economic pressure on consumers
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for LKQ Corp is $41.00, about 55.4% above its July 29 closing price of $26.39
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago
LKQ•
