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 (LKQ) came out with quarterly earnings of $0.79 per share, in line with the Zacks Consensus Estimate. This compares to earnings of $0.82 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this vehicle components company would post earnings of $0.75 per share when it actually produced earnings of $0.80, delivering a surprise of 6.67%.Over the last four quarters, the company has surpassed consensus EPS estimates two times.LKQ, which belongs to the ...

Exhibit 99.1 LKQ CORPORATION ANNOUNCES RESULTS FOR FIRST QUARTER 2025 Antioch, TENN (April 24, 2025) -- LKQ Corporation (Nasdaq: LKQ) today reported first quarter 2025 financial results. "We are pleased with our first-quarter performance and are driven to sustain this momentum as we advance our operational excellence initiatives and generate long-term value despite market uncertainties. By embracing these initiatives, even with lower demand, the team's unwavering focus on optimizing the Company's cost struc ...

Core Insights - LKQ Corporation reported a first quarter 2025 revenue of $3.5 billion, a decrease of 6.5% compared to $3.7 billion in the same period of 2024, driven by lower demand and foreign exchange impacts [2][27] - The company achieved a net income of $169 million, up from $158 million year-over-year, with diluted earnings per share increasing by 10.2% to $0.65 [3][36] - The company is focused on operational excellence initiatives and has formed a tariff task force to navigate potential market disruptions due to changing tariffs [1][6] Financial Performance - Revenue for parts and services decreased by 6.8%, with organic revenue down 4.3% [2][27] - Adjusted net income for the first quarter was $204 million, a decrease of 7.3% from $220 million in 2024, and adjusted diluted earnings per share fell by 3.7% to $0.79 [3][36] - Cash flow from operations was negative $3 million, and free cash flow was negative $57 million for the quarter [4][25] Shareholder Returns - The company repurchased approximately $40 million worth of shares and paid $78 million in dividends during the first quarter [5][8] - Since the initiation of the stock repurchase program in late 2018, LKQ has repurchased about 65.5 million shares for a total of $2.8 billion, with an additional $1.7 billion remaining for future repurchases [5][8] Outlook - The company maintained its full-year 2025 guidance, expecting organic revenue growth for parts and services to be between 0% to 2% [6][9] - The outlook does not account for potential impacts from tariffs, which remain uncertain [6][9] - The company anticipates strong balance sheet and liquidity to manage headwinds and capitalize on emerging opportunities [6][9]

Revenue of $3.5 billionOrganic revenue for parts and services decreased 4.3%; a decrease of 3.1% on a per day basisDiluted EPS2 of $0.65; adjusted diluted EPS1,2 of $0.79Returned $118 million to our stockholders; repurchased $40 million of LKQ shares and paid $78 million in dividendsDividend of $0.30 per share approved to be paid in the second quarter of 2025 ANTIOCH, Tenn., April 24, 2025 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) today reported first quarter 2025 financial results. “We are pleased ...

Core Viewpoint - LKQ Corporation is set to release its first quarter 2025 financial results on April 24, 2025, and will host a conference call to discuss these results with senior management [1][2]. Group 1: Financial Results Announcement - LKQ Corporation will announce its first quarter 2025 financial results on April 24, 2025 [1]. - The conference call to discuss the results will take place at 8:00 a.m. Eastern Time [2]. - Investors can access the call by dialing (833) 470-1428 for domestic calls and (404) 975-4839 for international calls, using conference ID: 101078 [2]. Group 2: Webcast and Replay Information - An audio webcast and accompanying slide presentation will be available on LKQ's Investor Relations section of their website [3]. - A replay of the conference call will be accessible by telephone and online until May 1, 2025, with specific access numbers and conference ID provided for replays [4]. Group 3: Company Overview - LKQ Corporation is a leading provider of alternative and specialty parts for automobiles and other vehicles, with operations in North America, Europe, and Taiwan [5]. - The company offers a wide range of OE recycled and aftermarket parts, replacement systems, components, equipment, and services for various types of vehicles [5].

Group 1 - The core investment thesis for LKQ Corporation (NASDAQ: LKQ) is a buy rating, driven by expectations of better-than-expected performance in the North American region and demand in Europe [1] - The investment strategy focuses on long-term investments while also incorporating short-term shorts to identify alpha opportunities [1] - The analysis is based on a bottom-up approach, emphasizing the fundamental strengths and weaknesses of individual companies [1] Group 2 - The investment duration is medium to long-term, aiming to identify companies with solid fundamentals, sustainable competitive advantages, and growth potential [1]

Core Viewpoint - LKQ Corporation is positioned to benefit from strategic acquisitions and restructuring plans despite facing challenges from declining repairable claims and increased competition in the automotive parts industry [1]. Group 1: Acquisitions and Growth Strategies - The acquisition of Uni-Select Inc. for $2.1 billion, completed on August 1, 2023, enhances LKQ's global automotive vehicle parts distribution and is expected to boost revenue growth and improve margins [2]. - The integration of FinishMaster, a subsidiary of Uni-Select, aims to achieve annualized synergies of $65 million by the end of 2026 [2]. - The completion of a mega-yard expansion in Crystal River, FL, and the initiation of new mega-yards in Illinois and Washington, scheduled to open in 2026, will support growth in recycled parts and enhance productivity [4]. Group 2: Restructuring and Operational Efficiency - LKQ's restructuring plan focuses on exiting non-strategic businesses, streamlining operations, and optimizing logistics, which has led to increased efficiency and reduced overhead costs in Europe and North America [3]. - The integration of expertise from North American and European segments is expected to enhance procurement, remanufacturing, and product development, while also creating opportunities in electrification [5]. Group 3: Shareholder Value and Financial Performance - LKQ returned $678 million to shareholders through dividends and share repurchases in 2024, with a total of $2.8 billion bought back since initiating its first repurchase plan in October 2018 [6]. - The company increased its stock repurchase authorization by $1 billion in October 2024, with $1.7 billion remaining on the buyback authorization as of December 31, 2024 [6]. Group 4: Challenges and Market Conditions - LKQ experienced significant revenue and margin headwinds in the first three quarters of 2024 due to a 6% decline in repairable claims in North America, a trend expected to continue into 2025 [7]. - Rising insurance premiums, repair costs, and declining used car prices, along with increased competition from smaller distributors, are creating a challenging economic environment for LKQ [7].