Group 1 - The previous investment stance on LKQ Corporation (NASDAQ: LKQ) was a hold rating due to lack of confidence in its ability to meet guidance [1] - The 2Q25 results indicated a deterioration in LKQ's fundamentals, confirming the previous assessment [1] - The investment strategy focuses on long-term investments while also considering short-term opportunities to identify alpha [1] Group 2 - The investment approach is based on bottom-up analysis, emphasizing the fundamental strengths and weaknesses of individual companies [1] - The investment horizon is medium to long-term, aiming to find companies with solid fundamentals and growth potential [1]

LKQ (LKQ -17.82%), a leading distributor of alternative and specialty automotive parts, released its earnings results for the second quarter of fiscal 2025 on July 24, 2025. The headline news was a decline in both adjusted earnings per share and revenue, with earnings missing analyst estimates. Adjusted (Non-GAAP) diluted earnings per share was $0.87, compared to the consensus of $0.92. Revenue for the period was $3.64 billion, falling 1.9 % from the same period in 2024. Management assessed the quarter as c ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, D.C. 20549 ________________________________________ FORM 10-Q ____________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the Transition Period from to Commission File Number: 001-42002 ____________________________ LKQ CORPORATION (Exact name of registrant as specified in its charter) ____________________________ Delaware 36-4215970 (State or other jurisdiction of incorporation or orga ...

Key Takeaways LKQ reported Q2 EPS of 87 cents, missing estimates and down from 98 cents a year ago on lower segment EBITDA.LKQ cut FY25 EPS outlook to $3-$3.30 and sees parts and services organic revenue declining up to 3.5%.FY'25 operating and free cash flow guidance lowered, now targeting $600-$750M in FCF versus $750-$900M prior.LKQ Corporation (LKQ) delivered adjusted earnings of 87 cents per share for second-quarter 2025, which missed the Zacks Consensus Estimate of 93 cents. The earnings also declined ...

LKQ (LKQ) came out with quarterly earnings of $0.87 per share, missing the Zacks Consensus Estimate of $0.93 per share. This compares to earnings of $0.98 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -6.45%. A quarter ago, it was expected that this vehicle components company would post earnings of $0.79 per share when it actually produced earnings of $0.79, delivering no surprise.Over the last four quarters, the company has ...

Financial Data and Key Metrics Changes - Total revenues for the quarter were reported at $3.6 billion, with diluted earnings per share at $0.75, a $0.05 increase compared to Q2 2024 [23] - Adjusted diluted earnings per share decreased by $0.11 to $0.87, primarily due to lower operating results [23] - Free cash flow during the quarter was $243 million, despite a nearly $35 million headwind from tariffs, bringing year-to-date cash flows to $186 million [23][24] Business Line Data and Key Metrics Changes - North America's organic revenue fell by 2.2% per day, which is an improvement compared to the last five quarters, with aftermarket collision parts business witnessing slight growth [10] - Europe's organic revenue decreased by 4.9% or 3.8% on a per day basis, primarily due to difficult economic conditions and increased competition [11] - Specialty's organic revenue was largely flat year over year, marking the best quarterly performance since Q4 2021 [17] Market Data and Key Metrics Changes - North America posted a segment EBITDA margin of 15.8%, a 150 basis point decrease from last year [25] - Europe's segment EBITDA margin was 9.4%, a 120 basis point decrease from last year, with ongoing economic softness impacting performance [25] - The self-service segment reported an EBITDA margin of 10%, consistent with the prior year [27] Company Strategy and Development Direction - The company is focused on a multi-year transformation strategy to simplify its business portfolio and operations, enhance margins, and pursue disciplined capital allocation [6][22] - Immediate actions include additional cost-cutting measures primarily in Europe, targeting an additional $75 million in cost reductions [8] - The company aims to expand its market share and improve operational efficiency while navigating macroeconomic challenges [9][20] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macro challenges and operational obstacles but emphasized opportunities for long-term value creation [5] - The outlook for North America anticipates a delayed recovery in repairable claims and ongoing tariff disruptions [29] - In Europe, persistent economic softness and geopolitical unrest are expected to continue impacting market conditions [30] Other Important Information - The company has made significant leadership changes, with over 25% of VP-level roles refreshed to drive transformation [19] - The effective interest rate was 5.2% at the end of Q2, with total debt of $4.5 billion and a leverage ratio of 2.6 times EBITDA [27][29] Q&A Session Summary Question: Discussion on increased competition in North America and used car pricing - Management noted that while used car pricing showed some improvement earlier in the quarter, it has not grown fast enough to significantly impact repairable claims [40][41] Question: Pricing competition in Europe - Management indicated that while competition remains, they are maintaining market share and have renegotiated several national account agreements [46] Question: Impact of tariffs on the bottom line - Management clarified that the $35 million headwind from tariffs was related to inventory at the end of Q2, with minimal impact on the P&L [110][112] Question: Production flexibility of key suppliers - Management mentioned that many suppliers are considering relocating production to mitigate tariff impacts, but no major movements have been observed yet [93] Question: Breakdown of collision versus non-collision organic revenue growth - Management stated that aftermarket volume was up in the quarter, while paint and some mechanicals were down due to market conditions [96][98]

Financial Data and Key Metrics Changes - Total revenues for Q2 2025 were reported at $3.6 billion, with diluted earnings per share at $0.75, an increase of $0.05 compared to Q2 2024 [25] - Adjusted diluted earnings per share decreased by $0.11 to $0.87, primarily due to lower operating results [25] - Free cash flow for the quarter was $243 million, despite a nearly $35 million headwind from tariffs, bringing year-to-date cash flows to $186 million [25][26] Business Line Data and Key Metrics Changes - North America's organic revenue fell by 2.2% per day, which is an improvement compared to the last five quarters, with aftermarket collision parts showing slight growth [11] - Europe's organic revenue decreased by 4.9%, primarily due to difficult economic conditions and increased competition [12] - Specialty's organic revenue was largely flat year over year, marking the best quarterly performance since Q4 2021 [18] - Self-service's organic revenue was soft due to lower part volumes but maintained a 10% EBITDA margin [18] Market Data and Key Metrics Changes - North America experienced a 100 basis point decline in gross margins, with segment EBITDA margin at 15.8%, a decrease of 150 basis points year over year [27] - Europe reported a segment EBITDA margin of 9.4%, a decrease of 120 basis points from last year [27] - The overall market for repairable claims is expected to remain weak, with auto insurance prices projected to rise by an average of 7.5% this year [32] Company Strategy and Development Direction - The company is focused on a multiyear transformation strategy to simplify its portfolio and operations, enhance margins, and pursue disciplined capital allocation [6][37] - Immediate actions include additional cost-cutting measures, primarily in Europe, aiming to cut another $75 million in costs [7] - The company is also reviewing business units for potential asset sales to accelerate its simplification strategy [7] Management's Comments on Operating Environment and Future Outlook - Management acknowledged macroeconomic challenges and operational obstacles but emphasized a commitment to executing their strategic plan [5][9] - The outlook for North America has been revised downward due to delayed recovery in repairable claims and ongoing tariff disruptions [31] - In Europe, persistent economic softness and geopolitical unrest are expected to continue impacting performance [32] Other Important Information - The company has made significant leadership changes, refreshing over 25% of VP-level roles to drive transformation [20] - A new executive position focused on global talent development has been created to support overall business growth [19] Q&A Session Summary Question: Discussion on increased competition in North America and used car pricing - Management noted that while used car pricing showed some improvement earlier in the quarter, it has not grown fast enough to significantly impact repairable claims [42][44] Question: Competitive dynamics in Europe - Management indicated that while competition remains strong, they are maintaining market share and have renegotiated several national account agreements [48] Question: Impact of tariffs on financials - Management confirmed that the $35 million headwind from tariffs was related to inventory at the end of Q2, with minimal impact on the P&L [110] Question: Production flexibility of suppliers - Management stated that many suppliers are considering relocating production to mitigate tariff impacts, but no major movements have been observed yet [94] Question: Breakdown of collision versus non-collision organic revenue growth - Management highlighted that aftermarket parts volume was up, while paint and some mechanicals were down due to market conditions [99]

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 and strategies. These statements are subject to a number of ris ...

Exhibit 99.1 LKQ CORPORATION ANNOUNCES RESULTS FOR SECOND QUARTER 2025 Progressing with Simplifying the Portfolio to Enhance Return on Invested Capital Reaf irms Commitment to Executing on Three-Year Plan to Drive Shareholder Value Updates Outlook for Full Year 2025; Capital Allocation Strategy Unchanged Antioch, TENN (July 24, 2025) -- LKQ Corporation (Nasdaq: LKQ) today reported second quarter 2025 financial results and provided updated outlook for 2025. Second Quarter 2025 Financial and Operating Results ...

Progressing with Simplifying the Portfolio to Enhance Return on Invested Capital Reaffirms Commitment to Executing on Three-Year Plan to Drive Shareholder Value Updates Outlook for Full Year 2025; Capital Allocation Strategy Unchanged ANTIOCH, Tenn., July 24, 2025 (GLOBE NEWSWIRE) -- LKQ Corporation (Nasdaq: LKQ) today reported second quarter 2025 financial results and provided updated outlook for 2025. Second Quarter 2025 Financial and Operating Results Revenue for the second quarter of 2025 was $3.6 billi ...