Honda vs LKQ: Revenue, Profit and Business Model
Honda had ~$146B of annual revenue in FY2026 and a net loss of ~$2.8B. LKQ had $13.7B of annual revenue in FY2025 and $608M of net income.
Latest financial snapshot
Financial summary
Honda
Honda's revenue rose from ~$97.5 billion (JPY 14.55 trillion) in FY2022 to ~$145 billion (JPY 21.69 trillion) in FY2025 as a weaker yen and strong US hybrid demand lifted results. FY2026 revenue edged up to $146 billion (JPY 21.80 trillion), but EV charges of ~$10.6 billion (JPY 1.58 trillion) produced a ~$2.78 billion (JPY 414.3 billion) operating loss and a ~$2.84 billion (JPY 423.9 billion) net loss. Without those charges, adjusted operating profit was ~$6.97 billion (JPY 1.04 trillion). In Q1 FY2027 (April to June 2026) operating profit hit a record ~$3.56 billion (JPY 530.7 billion) and net profit was ~$3.02 billion (JPY 450.9 billion), and Honda raised its FY2027 net profit forecast to ~$2.68 billion (JPY 400 billion). Honda Motor Co., Ltd. is a monumental Japanese public multinational conglomerate, renowned globally and commanding a market valuation typically exceeding $50 billion.
LKQ
LKQ's revenue has been flat for four years: $13.27B in 2023, $13.82B in 2024 (restated) and $13.65B in 2025. FY2025 operating income was $993 million and net income attributable to stockholders was $607 million, while free cash flow was $847 million, of which $469 million was returned to shareholders. 2026 started weaker. Q1 diluted EPS fell to $0.30 from $0.61, and Q2 revenue fell 3.0% to $3.41 billion with net income of $134 million ($0.52 per share) versus $185 million a year earlier. Adjusted Q2 EPS was $0.67 versus $0.84. Free cash flow for the first half of 2026 was negative $36 million, total debt was $4.0 billion, and the company paid $154 million of dividends in the first half. LKQ Corporation is a massive American global provider of alternative and specialty parts to repair automobiles, commanding a market valuation typically over $12 billion.
Revenue and profit by year
Honda
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2026 | ~$146B | ~-$2.8B | -1.9% | +0.5% | Source |
| FY2025 | ~$145.3B | ~$5.6B | 3.9% | +6.2% | Source |
| FY2024 | ~$136.9B | ~$7.4B | 5.4% | +20.8% | Source |
| FY2023 | ~$113.3B | ~$4.4B | 3.9% | +16.2% | Source |
| FY2022 | ~$97.5B | ~$4.7B | 4.9% | +10.5% | Source |
| FY2021 | ~$88.2B | ~$4.4B | 5.0% | -11.8% | Source |
| FY2020 | ~$100B | ~$3.1B | 3.1% | -6.0% | Source |
| FY2019 | ~$106.5B | ~$4.1B | 3.8% | +3.4% | Source |
| FY2018 | ~$102.9B | ~$7.1B | 6.9% | +9.7% | Source |
| FY2017 | ~$93.8B | ~$4.1B | 4.4% | -4.1% | Source |
| FY2016 | ~$97.8B | ~$2.3B | 2.4% | — | Source |
LKQ
| Year | Revenue | Net income | Margin | Growth | Source |
|---|---|---|---|---|---|
| FY2025 | $13.7B | $608M | 4.5% | -1.2% | Source |
| FY2024 | $13.8B | $693M | 5.0% | +4.2% | Source |
| FY2023 | $13.3B | $938M | 7.1% | +3.7% | Source |
| FY2022 | $12.8B | $1.1B | 9.0% | -2.3% | Source |
| FY2021 | $13.1B | $1.1B | 8.3% | +12.6% | Source |
| FY2020 | $11.6B | $638M | 5.5% | -7.0% | Source |
| FY2019 | $12.5B | $541.3M | 4.3% | +5.3% | Source |
| FY2018 | $11.9B | $480.1M | 4.0% | +22.0% | Source |
| FY2017 | $9.7B | $533.7M | 5.5% | +13.4% | Source |
| FY2016 | $8.6B | $464M | 5.4% | — | Source |
Where the revenue comes from
Honda
- Automobiles~65%
Passenger vehicles, hybrids, EVs, SUVs, parts, accessories, and related service revenue sold through global dealer networks.
- Motorcycles~17%
Motorcycles, scooters, parts, and related products sold globally, especially in Asia and other high-volume mobility markets.
- Financial Services~16%
Vehicle loans, leases, dealer financing, and related finance products that support automobile and motorcycle demand.
- Power Products and Other~2%
Power equipment, marine engines, aircraft-related activity, and other mobility-adjacent operations.
LKQ
- Europe Segment - Aftermarket Parts and Services~46.2%
The Europe segment generated $6.31 billion in FY2025, down 1.5% from $6.41 billion in FY2024. This segment provides alternative vehicle replacement and maintenance products in over 20 European countries, built on four key acquisitions: Euro Car Parts (UK), Sator/Fource (Netherlands/Belgium/France), Rhiag (Italy/Eastern Europe), and Stahlgruber (Germany/Central Europe). Segment EBITDA was $584 million (9.3% margin).
- North America Segment - Collision, Mechanical, and Recycled Parts~41.4%
The North America segment generated $5.65 billion in FY2025, down 2.5% from $5.76 billion in FY2024. This segment provides aftermarket collision replacement products, paint and body repair products, alternative mechanical replacement products, and recycled parts through a network of distribution centers and processing facilities across the U.S. and Canada. Segment EBITDA was $814 million (14.4% margin).
- Specialty Segment - Aftermarket Equipment and Accessories~12.4%
The Specialty segment generated $1.69 billion in FY2025, up 2.1% from $1.66 billion in FY2024. This segment distributes aftermarket equipment and accessories for specialty vehicles including trucks, off-road vehicles, and RVs, built on Keystone Automotive Operations and later Meyer Distributing. Segment EBITDA was $111 million (6.5% margin). The company is exploring a potential sale of this segment.
- Other Revenue - Scrap Metals and Commodities~2.5%
Other revenue generated $345 million in FY2025, up 8.2% from $318 million in FY2024. This includes scrap and other metals sales, precious metals (platinum, palladium, rhodium) from catalytic converters, bulk sales to mechanical manufacturers, and aluminum ingots from furnace operations. This revenue is commodity-price dependent and varies significantly.
Business model and strategy
Honda
How it makes money
Honda earns money in four reportable segments. Automobiles (Honda and Acura cars and light trucks, led by the CR-V, Civic, Accord and hybrid e:HEV models) generate most revenue, with North America the largest profit market. Motorcycles generate high-volume, high-margin sales, especially in India, Indonesia, Vietnam and Brazil, and posted record profit in FY2026.
Growth strategy
Honda reset its electrification plan in 2026. In March it cancelled the US-built Honda 0 SUV, 0 Saloon and Acura RSX EVs, and in May it scrapped its 2030 and 2040 EV sales targets, including the goal of selling only battery-electric and fuel-cell vehicles by 2040. The new plan leans on hybrids, a next-generation e:HEV system, motorcycles in emerging markets, and more flexible EV timing.
Competitive advantage
Honda's edge comes from three things. It leads the global motorcycle market with roughly 40% unit share, which gives it a profit base most automakers lack. Its two-motor hybrid system is competitive in the markets where hybrid demand is growing fastest, especially the US.
LKQ
How it makes money
LKQ is a B2B distributor with three reporting segments. North America ($5.65B FY2025 revenue) sells aftermarket collision parts, recycled OEM parts harvested from salvage vehicles, paint and body supplies, and remanufactured engines and transmissions to collision and mechanical repair shops, with much of the demand steered by auto insurers seeking lower claim costs.
Growth strategy
LKQ's current strategy is less about acquisitions and more about productivity: cutting costs in Europe, raising alternative-parts utilization in North America, expanding private-label parts, and selling non-core assets such as Self Service (2025) and potentially Specialty. Capital returns continue, with $207 million returned to shareholders in the first half of 2026.
Competitive advantage
LKQ's advantage is scale in a fragmented market. Its salvage and distribution network gives it the broadest recycled and aftermarket collision inventory in North America, and its estimating-system and insurer relationships mean its parts are often the default alternative on a repair estimate. In Q2 2026 management said alternative-parts utilization in North America reached a record above 40%.
Questions about Honda vs LKQ
Which company has higher revenue — Honda Motor Co., Ltd. or LKQ Corporation?
Honda Motor Co., Ltd. had ~$146B (FY2026), while LKQ Corporation had $13.7B (FY2025). By latest annual revenue, Honda Motor Co., Ltd. is the larger business, with LKQ Corporation showing a smaller revenue base. Note: these are from different fiscal years and are not a direct like-for-like comparison.
What is the market cap of Honda Motor Co., Ltd. vs LKQ Corporation?
Honda Motor Co., Ltd.'s market capitalisation stands at $50.3B, while LKQ Corporation's is $5.9B. Honda Motor Co., Ltd. carries the higher market valuation, reflecting investors' expectations of its future earnings power relative to LKQ Corporation.
How does revenue per employee compare for Honda Motor Co., Ltd. and LKQ Corporation?
Honda Motor Co., Ltd. has $748k / employee in revenue per employee, while LKQ Corporation has $310k / employee. Headcounts may use different dates, so the ratio alone does not establish which business operates more efficiently.
How do Honda Motor Co., Ltd. and LKQ Corporation make money?
Honda Motor Co., Ltd. and LKQ Corporation generate revenue in fundamentally different ways. Honda Motor Co., Ltd.: Honda earns money in four reportable segments. LKQ Corporation: LKQ is a B2B distributor with three reporting segments.
Which company is valued higher relative to revenue — Honda Motor Co., Ltd. or LKQ Corporation?
On a price-to-sales (P/S) basis, Honda Motor Co., Ltd. trades at 0.3x P/S and LKQ Corporation at 0.4x P/S. LKQ Corporation commands a higher revenue multiple, typically indicating that investors expect faster growth or higher future margins compared to Honda Motor Co., Ltd.. A higher multiple is not inherently better — it may also signal that the stock is priced for perfection.
Is Honda Motor Co., Ltd. bigger than LKQ Corporation?
By last reported revenue, Honda Motor Co., Ltd. (~$146B (FY2026)) is the larger company compared to LKQ Corporation ($13.7B (FY2025)). Revenue scale is one dimension of size — market capitalisation, employee count, and geographic reach are also relevant depending on the context.
Figures come from each company's filings and the sources linked beside them. Amounts reported in another currency are shown in US dollars at an approximate rate and marked with ~. Back to the Honda vs LKQ overview