ANTIOCH, Tenn., May 28, 2025 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ), a global leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles, today announced the release of its 2024 Sustainability Report. The report showcases LKQ's role in driving success as a best-in-class operator for our investors and key stakeholders, while maintaining a critical role in facilitating the growth of the global circular economy. Furthermore, it reflects our on-going ...

Company Performance - LKQ Corporation reported solid numbers in the last quarter, benefiting from its size and market positioning in North America [1] Investment Philosophy - The investment approach focuses on finding value opportunities, particularly in small and mid-cap sectors where market inefficiencies are prevalent [1] - The strategy includes identifying industry leaders in out-of-favor sectors, quality companies facing temporary setbacks, and businesses with strong balance sheets and robust cash generation [1] Analytical Approach - The analysis emphasizes balance sheet strength from a credit perspective, near-term cash flow generation, next twelve-month earnings forecasts, and book value analysis, especially for financial sector investments [1] Professional Background - The investment philosophy is supported by over 10 years of experience in financial sector consulting, which aids in identifying overlooked opportunities [1]

LKQ (LKQ) FY 2025 Annual General Meeting May 07, 2025 03:00 PM ET Speaker0 I want to welcome all of you to the Annual Meeting of Stockholders of LKQ Corporation. I am Justin Jude, President and Chief Executive Officer of LKQ. We are pleased to be hosting our sixth virtual meeting. It is now shortly after 2PM Central on Wednesday, May 7, and this meeting is called to order. I would like to introduce the other members of the board participating in today's meeting, Patrick Burrard, Andrew Clark, Meg DeVito, Su ...

My previous investment thought on LKQ Corporation (NASDAQ: LKQ ) was a downgrade to a hold rating because I was not confident that LKQ would see a turnaround in 2H25, as it is dependent on howI focus on long-term investments while incorporating short-term shorts to uncover alpha opportunities. My investment approach revolves around bottom-up analysis, delving into the fundamental strengths and weaknesses of individual companies. My investment duration is the medium to long-term. Ultimately, I aim to identif ...

Priced as of April 17, 2025 In this note, we include the latest comp sheet and valuation metrics for global automotive OEMs (page 3), auto parts suppliers (page 5), auto auction service providers (page 13), tire manufacturers (page 14), auto rentals (page 15), and auto dealers (page 16). J P M O R G A N North America Equity Research 21 April 2025 Autos Valuation Comp Sheet Autos & Auto Parts Ryan Brinkman AC (1-212) 622-6581 ryan.j.brinkman@jpmorgan.com Rajat Gupta AC (1-212) 622-6382 rajat.gupta@jpmorgan.c ...

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.65, a 6¢ increase compared to Q1 2024, while adjusted diluted earnings per share decreased by $0.03 to $0.79 [28][29] - North America's organic revenue fell by 4.1% per day, which is less than the decline seen in the last three quarters of 2024 [13] - The overall EBITDA margin for North America was 15.7%, a 60 basis point decrease year-over-year, while Europe reported a segment EBITDA margin of 9.3%, a 60 basis point improvement [31][33] Business Line Data and Key Metrics Changes - North America experienced a decline in repairable claims, impacting organic revenue, but managed to generate positive growth in lead tech calibration and diagnostics [13][14] - Specialty's organic revenue declined by 4.9% on a per-day basis, although there was sequential improvement compared to Q4 of 2024 [19] - Self-service operations delivered a year-over-year improvement in both EBITDA dollars and percentage, generating $20 million in segment EBITDA for Q1 [36] Market Data and Key Metrics Changes - In Europe, organic revenue declined by 1.8% per day compared to a growth of 4.4% in Q1 of 2024, with noticeable softness in many markets due to consumer confidence [14][15] - The company noted that competitive pricing in some countries contributed to challenging conditions, but they expect stabilization in the long term [16] - The SKU rationalization project in Europe has led to a reduction of 17,000 SKUs, with private label penetration increasing by 20 basis points [17] Company Strategy and Development Direction - The company remains committed to a balanced capital allocation strategy, incorporating dividends, share repurchases, and maintaining an investment-grade rating [12] - The ongoing strategy to simplify the portfolio included divesting two operations, demonstrating a commitment to streamlining [11] - The focus is on people, process, and performance, with an emphasis on talent development and leadership competencies [9][10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential for repairable claims to improve due to rising used car prices and stabilizing insurance premiums [56][58] - The company established a global tariff task force to navigate the complexities of the current tariff situation, with less than 15% of U.S. business costs directly imported from outside the U.S. [22][21] - Management expects headwinds on repairable claims to continue in 2025 but anticipates some easing in the latter half of the year [33] Other Important Information - The company plans to publish its 2024 sustainability report in May, emphasizing sustainability in its operations [24] - Free cash flow during the quarter was a net outflow of $57 million, but positive free cash flow is anticipated in the next three quarters [37][38] - The company borrowed approximately $170 million in the quarter, with total debt at $4.4 billion and a leverage ratio of 2.5 times EBITDA [40][41] Q&A Session Summary Question: Trends from insurance companies regarding used car pricing - Management noted a shift in market share with insurance carriers and indicated that used car pricing has plateaued and started to improve [55][56] Question: Impact of tariffs on business - Management discussed the complexities of tariffs, indicating that they have historically been beneficial for the industry and that they are working with suppliers to mitigate impacts [60][67] Question: Impact of SKU reduction program in Europe - Management confirmed that there has been no negative impact on revenue from the SKU reduction program, as they have been able to offset sales through private labels [80][81] Question: Percentage of revenue from private label and future targets - Current private label revenue is in the 21-22% range, with a target of reaching around 30% by 2030 [86] Question: Link between pricing initiatives and competitive landscape - Management clarified that improvements in market share were not driven by pricing actions but by enhanced service levels and inventory management [96][97] Question: Clarification on aftermarket part imports and tariffs - Management explained the complexity of tariffs and confirmed that most aftermarket collision parts are already branded under private labels [101][102]

APRIL 24, 2025 First Quarter 2025 Earnings Call Presentation Forward Looking Statements and Non-GAAP Financial Measures Statements and information in this presentation that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the "safe harbor" provisions of such Act. Forward-looking statements include, but are not limited to, statements regarding our outlook, guidance, expectations, beliefs, hopes, intentions an ...

Revenue Performance - Total revenue for the three months ended March 31, 2025, was $3,463 million, a decrease of $240 million or 6.5% compared to $3,703 million in the same period of 2024[84] - Parts and services revenue decreased by $240 million, or 6.8%, driven by a decline in segment revenue across Europe (down 7.4%), Wholesale - North America (down 6.0%), Specialty (down 6.8%), and Self Service (down 5.7%)[84] - Total third-party revenue decreased by $240 million, or 6.5%, to $3,463 million for the three months ended March 31, 2025, compared to $3,703 million in 2024[91] - Organic parts and services revenue decreased by $151 million, or 4.3%, with a 3.1% decrease on a per day basis[84] Cost and Expenses - Cost of goods sold decreased by $165 million, or 7.3%, to $2,086 million, with a reduction in cost of goods sold as a percentage of revenue from 60.8% to 60.2%[86] - Selling, general and administrative expenses decreased by $55 million, or 5.3%, to $989 million, with SG&A as a percentage of revenue increasing from 28.2% to 28.6%[87] Net Income and Tax - Net income for the three months ended March 31, 2025, was $170 million, representing 4.9% of total revenue, compared to 4.3% in the same period of 2024[83] - The effective income tax rate decreased to 27.7% for the three months ended March 31, 2025, from 30.7% in the same period of 2024, primarily due to a decrease in the unfavorable impact of discrete items[89] Segment Performance - In the Wholesale - North America segment, parts and services revenue decreased by $86 million, or 6.0%, to $1,336 million, primarily due to a reduction in repairable claims and one fewer selling day[93] - Europe segment revenue decreased by $122 million, or 7.4%, to $1,515 million, driven by difficult economic conditions and heightened competition[94] - Specialty segment revenue decreased by $29 million, or 6.8%, to $393 million, attributed to demand softness in automotive and RV product lines[95] - Self Service segment revenue remained relatively stable, decreasing by $1 million to $136 million, with gross margin increasing by $4 million, or 6.4%, to $64 million[96] - Segment EBITDA for Wholesale - North America decreased by $22 million, or 9.0%, to $222 million, with a margin of 15.7%[93] - Segment EBITDA for Europe decreased by $2 million, or 1.4%, to $141 million, with a margin of 9.3%[94] - Segment EBITDA for Specialty decreased by $6 million, or 22.2%, to $21 million, with a margin of 5.4%[95] - Segment EBITDA for Self Service increased by $4 million, or 25.0%, to $20 million, with a margin of 14.6%[96] Cash Flow and Liquidity - For the three months ended March 31, 2025, net cash used in operating activities was $3 million, compared to net cash provided of $253 million for the same period in 2024[113] - Free cash flow for the three months ended March 31, 2025, was $(57) million, compared to $187 million for the same period in 2024[115] - Total liquidity as of March 31, 2025, was $1,289 million, a decrease of $167 million from December 31, 2024, primarily due to increased borrowings of $160 million[98] Capital and Financing - The company believes it has sufficient access to capital markets to support future growth objectives, utilizing cash flows from operations and various forms of debt financing for acquisitions[97] - The company had outstanding borrowings of $1,811 million under revolving credit facilities and term loans as of March 31, 2025[108] - The maximum total leverage ratio covenant was 4.00:1.00, with an achieved ratio of 2.5 as of March 31, 2025[105] - The overall weighted average interest rate on borrowings was 5.2% as of March 31, 2025[107] Dividend and Growth Strategy - The company declared a quarterly cash dividend of $0.30 per share on April 22, 2025, payable on May 29, 2025[101] - The company intends to continue evaluating markets for potential growth through internal development and selected business acquisitions[116] - The company’s acquisition strategy focuses on highly accretive tuck-in acquisitions with significant synergies, with no large platform acquisitions expected[76] Current Assets - Current assets increased to $2,497 million as of March 31, 2025, from $2,321 million as of December 31, 2024[119]

LKQ Corporation (LKQ) delivered adjusted earnings of 79 cents per share for first-quarter 2025, in line with the Zacks Consensus Estimate. However, earnings declined from 82 cents reported in the year-ago period. The aftermarket auto parts distributor registered quarterly revenues of $3.46 billion, missing the Zacks Consensus Estimate of $3.57 billion. The top line also fell from the year-ago level of $3.7 billion. Parts and Services organic revenues decreased 4.3% year over year. LKQ currently carries a Za ...

LKQ (LKQ) Q1 2025 Earnings Call April 24, 2025 08:00 AM ET Company Participants Joseph Boutross - VP, IRJustin Jude - President & CEORick Galloway - Senior VP & CFOJash Patwa - Equity Research AssociateGary Prestopino - Managing DirectorBret Jordan - Managing Director Conference Call Participants Scott Stember - Executive Director & Senior Research AnalystCraig Kennison - Director of Research Operations & Senior Research Analyst Operator Hello, everyone, and thank you for joining the LKQ Corporation's First ...