LKQ Corporation Revenue & Financials

LKQ reported revenue of $13.65 billion in FY2025, down 1.3% from $13.82 billion in FY2024. Parts and services revenue declined 1.5% to $13.31 billion, while Other revenue grew 8.2% to $345 million. The revenue decline was driven by a 2.7% decrease in organic revenue (2.3% on a per-day basis), partially offset by a 1.7% benefit from foreign exchange rates and a 0.5% net negative impact from acquisitions and divestitures. Gross profit was $5.27 billion, yielding a gross margin of 38.6%, down 30 basis points from 38.9% in FY2024. Cost of goods sold was $8.39 billion. Selling, general, and administrative expenses increased 1.5% to $3.81 billion, representing 27.9% of revenue versus 27.2% in FY2024. Restructuring and transaction-related expenses declined 68.9% to $42 million from $135 million. The company recorded a $52 million impairment of goodwill in Q4 2025. Operating income fell 13.3% to $993 million (7.3% margin) from $1.15 billion (8.3% margin) in FY2024. Interest expense was $224 million, down 5.9% from $238 million. The provision for income taxes was $204 million, yielding an effective tax rate of 25.5%. Net income from continuing operations attributable to LKQ stockholders was $596 million ($2.31 per diluted share), down 10.5% from $666 million ($2.54) in FY2024. Adjusted net income was $777 million ($3.01 per share), down 13.1% from $894 million ($3.39). Segment EBITDA was $1.51 billion (11.1% margin), down from $1.69 billion (12.2%) in FY2024. Cash flow from operations was $1.06 billion, and free cash flow was $847 million. Capital expenditures were $216 million, down from $311 million in FY2024. The balance sheet shows $289 million in cash and cash equivalents, total debt of $3.7 billion, and total stockholders' equity of $6.56 billion. Total leverage, as defined in the credit facility, was 2.4x EBITDA. The company returned $469 million to shareholders in FY2025: $159 million in share repurchases (4.5 million shares) and $310 million in dividends. Since initiating the repurchase program in October 2018, LKQ has repurchased approximately 69.0 million shares for $2.9 billion, with $1.6 billion remaining for potential additional repurchases through October 2026. The quarterly dividend is $0.30 per share ($1.20 annually), yielding approximately 4.79% at the current stock price.