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]

Core Insights - LKQ Corporation reported adjusted earnings of 79 cents per share for Q1 2025, matching the Zacks Consensus Estimate but down from 82 cents in the same period last year [1] - Quarterly revenues were $3.46 billion, missing the Zacks Consensus Estimate of $3.57 billion and declining from $3.7 billion year-over-year [1] - Organic revenues from Parts and Services decreased by 4.3% year-over-year [1] Segment Highlights - Wholesale North American segment revenues were $1.41 billion, down 5.8% year-over-year and below the estimate of $1.51 billion; EBITDA was $222 million, below the forecast of $246 million and last year's $244 million [3] - European segment revenues totaled $1.52 billion, a decline of 7.4% year-over-year, missing the estimate of $1.55 billion; EBITDA was $141 million, slightly above the forecast of $140 million but down from $143 million year-over-year [4] - Specialty segment revenues were $394 million, down 7% year-over-year but exceeding the projection of $365 million; EBITDA was $21 million, down from $27 million year-over-year and matching the forecast [5] - Self-Service segment revenues were $136 million, slightly down from $137 million in Q1 2024 but exceeding the estimate of $124 million; EBITDA was $20 million, surpassing the estimate of $10.2 million and up from $16 million year-over-year [6] Financial Position & Dividend - As of March 31, 2025, LKQ had cash and cash equivalents of $227 million, down from $234 million at the end of 2024; long-term obligations were $3.84 billion, down from $4.13 billion [6] - Total debt stood at $4.4 billion as of March 31, 2025 [6] - The company announced a quarterly cash dividend of 30 cents per share, payable on May 29, 2025, to stockholders of record by May 15, 2025 [8] 2025 Guidance - LKQ anticipates organic revenue growth for parts and services in the range of 0-2% year-over-year; adjusted EPS is expected to be between $3.40 and $3.70 compared to $3.48 in 2024 [9] - The company projects operating cash flow between $1.075 billion and $1.275 billion and free cash flow in the range of $750 million to $900 million for 2025 [9]

Financial Data and Key Metrics Changes - The company reported diluted earnings per share of $0.65, a $0.06 increase compared to Q1 2024, while adjusted diluted earnings per share was $0.79, a decrease of $0.03 per share versus the prior year [18] - 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 [8] - The overall segment EBITDA margin for North America was 15.7%, a 60 basis point decrease relative to last year [19] - Europe reported a segment EBITDA margin of 9.3%, a 60 basis point improvement over last year [21] Business Line Data and Key Metrics Changes - Specialty's organic revenue declined by 4.9% on a per day basis, showing sequential improvement compared to Q4 2024 [12] - Self-service generated $20 million in segment EBITDA in Q1, an increase of $4 million and a 290 basis point improvement as a percentage of revenue [23] - North America benefited from a diversified portfolio, generating positive growth in lead tech calibration and diagnostics business [9] 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 2024, with noticeable softness in many markets impacted by consumer confidence [10] - The company experienced a relatively mild winter in Europe, affecting demand for certain products [10] Company Strategy and Development Direction - The company is committed to a balanced capital allocation strategy, incorporating dividends, share repurchases, and maintaining an investment-grade rating [8] - The ongoing strategy to simplify the portfolio included divesting two operations, demonstrating a commitment to streamlining [7] - The company aims to grow above the market, simplify operations, and improve free cash flow while investing in growth organically and through small acquisitions [30][31] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the potential stabilization of repairable claims as market conditions improve [8] - The company established a global tariff task force to navigate the complexities of the current tariff situation [12] - Management believes that the current tariff environment could lead to increased demand for recycled products due to competitive pricing [14] Other Important Information - The company plans to publish its 2024 sustainability report in May, emphasizing its commitment to sustainability in operations [16] - Free cash flow during the quarter was a net outflow of $57 million, in line with expectations due to timing of payables [24] 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 [36][38] Question: Impact of tariffs on business - Management stated that historically, tariffs have been beneficial for the industry and LKQ, and they are working with suppliers to mitigate impacts [39][40] Question: Impact of SKU reduction program in Europe - Management confirmed that there has been no negative impact on revenue from the SKU reduction program, and they are confident in maintaining market share [54][56] Question: Private label program percentage and future targets - The current private label revenue is in the 21% to 22% range, with a target of reaching around 30% by 2030 [57][68] Question: Clarification on aftermarket parts imports and tariffs - Management clarified that the tariff situation is complex, with some products subject to different tariff rates based on their origin [66][70]

分组1 - LKQ reported quarterly earnings of $0.79 per share, matching the Zacks Consensus Estimate, but down from $0.82 per share a year ago [1] - The company posted revenues of $3.46 billion for the quarter, missing the Zacks Consensus Estimate by 2.95% and down from $3.7 billion year-over-year [2] - LKQ shares have increased by approximately 14.6% since the beginning of the year, contrasting with the S&P 500's decline of -8.6% [3] 分组2 - The earnings outlook for LKQ is uncertain, with current consensus EPS estimates at $0.98 for the coming quarter and $3.61 for the current fiscal year [7] - The Zacks Rank for LKQ is currently 4 (Sell), indicating expectations of underperformance in the near future [6] - The Automotive - Replacement Parts industry is ranked in the top 38% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8]

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].