Core Insights - LKQ reported quarterly earnings of $0.84 per share, exceeding the Zacks Consensus Estimate of $0.74 per share, but down from $0.88 per share a year ago, representing an earnings surprise of +13.51% [1] - The company posted revenues of $3.5 billion for the quarter ended September 2025, missing the Zacks Consensus Estimate by 0.84% and down from $3.58 billion year-over-year [2] - LKQ shares have declined approximately 18.3% year-to-date, contrasting with the S&P 500's gain of 17.2% [3] Earnings Outlook - The future performance of LKQ's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - The current consensus EPS estimate for the upcoming quarter is $0.70 on revenues of $3.38 billion, and for the current fiscal year, it is $3.10 on revenues of $14.01 billion [7] Industry Context - The Automotive - Replacement Parts industry, to which LKQ belongs, is currently ranked in the top 15% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - Empirical research suggests a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked using tools like the Zacks Rank [5][6]

Financial Data and Key Metrics Changes - Total revenues for Q3 2025 were reported at $3.5 billion, reflecting a 1.3% increase compared to the prior year [20] - Diluted earnings per share (EPS) were $0.69, a decrease of $0.02 from Q3 2024, while adjusted diluted EPS was $0.84, down from $0.86 in the prior year [21] - Free cash flow was strong at $387 million for the quarter, bringing year-to-date free cash flow to $573 million [22] - The company narrowed its full-year 2025 guidance for adjusted diluted EPS to a range of $3.00 to $3.15, with an updated midpoint of $3.07 [28] Business Line Data and Key Metrics Changes - North America experienced a decline in repairable claims by approximately 6%, with revenue decreasing by 30 basis points per day, marking the smallest decline since Q1 2024 [8][9] - The specialty segment saw a 9.4% increase in organic revenue, marking the first positive growth in 14 quarters [16] - In Europe, organic revenue declined by 4.7% on a per day basis, but the EBITDA margin improved to 10%, a 60 basis point increase sequentially [10][24] Market Data and Key Metrics Changes - The automotive market is facing ongoing macro challenges, including reduced consumer spending and lower demand for vehicle repairs [4][5] - Used car prices are stabilizing but remain volatile, impacting total loss frequencies and repairable claims [46] - The Canadian hard parts business showed organic growth improvement despite a recession-like economy [10] Company Strategy and Development Direction - The company is focused on a multi-year transformation strategy centered around simplifying its portfolio, expanding its lean operating model, and pursuing disciplined capital allocation [5][6] - The sale of the self-service segment for $410 million was aimed at strengthening the balance sheet and reducing debt [6][19] - The company is actively reviewing its portfolio to simplify operations and improve margins, with a target of $75 million in cost savings for 2025 [7][18] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the full-year outlook, citing positive operational performance and one-time tax benefits [4] - The company remains cautious about the competitive landscape in Europe, noting that while some markets are performing well, others are facing challenges due to political unrest and consumer sentiment [36] - Management highlighted the importance of maintaining a strong balance sheet to navigate uncertainties in the market [26] Other Important Information - The company repaid approximately $262 million of debt in Q3 and further reduced debt by $390 million following the sale of the self-service segment [25][27] - The effective interest rate was reported at 5.1% at the end of Q3, slightly lower than Q2 [26] Q&A Session Summary Question: Can you help us understand the competitive landscape in Europe? - Management indicated that the competitive landscape is stable, with varying performance across different countries, and emphasized LKQ's strong value proposition in a challenging market [36] Question: What are the trends in alternative utilization and total loss frequencies? - Management noted that alternative utilization was flat quarter-over-quarter, with total loss frequencies affected by volatility in used car pricing [46] Question: What is driving specialty growth? - Management attributed specialty growth to maintaining service levels and inventory, gaining market share, and not cutting back on operations despite overall market challenges [52]

OCTOBER 30, 2025 Third 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 ...

Exhibit 99.1 LKQ CORPORATION ANNOUNCES RESULTS FOR THIRD QUARTER 2025 Simplified Portfolio with Successful Closing on Sale of Self Service Segment Returned $118 Million of Capital to Shareholders; $40 Million of Share Repurchases and $78 Million in Cash Dividends Raised Midpoint and Narrowed Range for Full Year 2025 EPS Outlook Following Sale of Self Service Antioch, TENN (October 30, 2025) -- LKQ Corporation (Nasdaq: LKQ) today reported third quarter 2025 financial results and updates outlook for 2025 foll ...

Core Insights - LKQ Corporation successfully closed the sale of its Self Service segment, returning $118 million to shareholders through share repurchases and cash dividends [1][8] - The company reported a revenue increase of 1.3% year-over-year for Q3 2025, reaching $3,499 million, despite a decline in organic revenue [2][33] - Adjusted diluted earnings per share (EPS) guidance for 2025 has been raised to a range of $3.00 to $3.15, reflecting improved operational performance and a one-time tax benefit [3][10] Financial Performance - Q3 2025 net income was $178 million, down from $187 million in Q3 2024, with diluted EPS decreasing by 2.8% to $0.69 [3][24] - Total parts and services revenue increased by 1.1%, with a notable 2.6% increase attributed to foreign exchange rates [2][34] - Cash flow from operations for Q3 2025 was $440 million, with free cash flow at $387 million [5][29] Strategic Initiatives - The company is focused on simplifying its business portfolio by divesting non-core assets and enhancing operational efficiencies [7][9] - LKQ aims to expand its lean operating model globally to drive productivity and improve execution [7] - The company is committed to disciplined capital allocation to maximize shareholder value and strengthen its balance sheet [9][10] Shareholder Returns - In Q3 2025, LKQ repurchased approximately 1.2 million shares for $40 million and distributed $78 million in cash dividends [8][9] - Since the initiation of the stock repurchase program in late 2018, the company has repurchased about 67.7 million shares for a total of $2.9 billion [8][9] - The Board of Directors declared a quarterly cash dividend of $0.30 per share, payable on December 4, 2025 [8][9] 2025 Outlook - Following the divestiture of the Self Service segment, the company has updated its full-year outlook, projecting organic revenue growth for parts and services to be between -3.0% and -2.0% [10] - The updated diluted EPS guidance for 2025 is now set at $2.47 to $2.62, reflecting a more optimistic view based on recent performance [10][9] - Management expressed confidence in the company's strategy and momentum towards sustained value creation [9][10]

Core Insights - RS Investments' "RS Large Cap Value Strategy" underperformed the Russell 1000 Value Index in Q3 2025, returning 4.47% net compared to the Index's 5.33% [1] - Adverse stock selection in the Consumer Discretionary and Consumer Staples sectors negatively impacted the portfolio's performance [1] Company Analysis: LKQ Corporation - LKQ Corporation is a leading distributor of vehicle products and parts, with a market capitalization of $8.1 billion and a stock price of $31.48 as of October 27, 2025 [2] - The one-month return for LKQ Corporation was 3.08%, but it experienced a significant decline of 15.76% over the last 52 weeks [2] - LKQ is the largest provider of alternative vehicle products in North America, historically growing at GDP+ in a recession-resistant industry [3] - The collision repair industry has faced a cumulative decline of over 15% in vehicle repair volumes due to inflation on insurance rates and repair costs, with LKQ's volumes down 8% to 9% [3] - The anticipated stabilization of the North American collision repair market has not yet occurred, leading to LKQ's stock underperformance in the quarter [3] - Incremental tariffs on imported auto parts are expected to further increase collision repair costs, prompting the company to exit its position in LKQ for the time being [3]

Core Insights - LKQ Corporation has partnered with Ecobility Services GmbH to implement a large-scale rooftop solar power system at its logistics centers in Germany, marking a significant step in its sustainability strategy [1][4] - The solar system will cover over 12,000 square meters, featuring more than 6,000 photovoltaic modules, and is expected to generate approximately 2.7 gigawatt hours of electricity annually, meeting up to 50% of the site's energy demand [2][3] - The initiative is projected to save up to 1,000 metric tonnes of greenhouse gas emissions per year compared to conventional grid electricity [2] Company Overview - LKQ Corporation is a leading provider of alternative and specialty parts for automobiles, with operations in North America, Europe, and Taiwan, offering a wide range of recycled and aftermarket parts [5] - Ecobility Services GmbH specializes in sustainability-focused services aimed at improving energy efficiency and reducing carbon emissions in commercial and industrial operations [6] Project Details - The project will be executed through a 20-year Power Purchase Agreement (PPA), with installation expected to begin in October and be completed by mid-2026 [1][3] - Ecobility Services GmbH will manage the planning, installation, operation, and maintenance of the solar system throughout the agreement's duration [3] - This initiative is part of LKQ's broader roadmap to reduce greenhouse gas emissions, which includes energy optimization, transitioning to electric fleets, and adopting circular economy practices [4]

Core Insights - Global equity markets experienced broad positive returns in Q3 2025, driven by resilient corporate earnings, enthusiasm for AI, and the U.S. Federal Reserve's first interest rate cut of the year [3][21] - Emerging markets, particularly China, led the gains, supported by a U.S. trade truce and strength in the tech sector [3][4] - The Polaris Global Equity Composite gained 5.04% (net of fees) for the quarter, underperforming the MSCI World Index, which returned 7.36% [5][6] Market Performance - Developed markets saw weaker currencies benefiting export-oriented indices, with Japan's TOPIX Index up 11.0% and the U.K.'s FTSE All-Share Index up 6.9% [4] - The U.S. market, represented by the S&P 500 Index, gained over 8%, primarily due to tech and communication stocks [4] - France and Germany underperformed due to geopolitical and fiscal concerns, with tepid growth projections under new U.S. trade policy [4] Sector Analysis - The healthcare sector was the best performer, with notable gains from pharmaceutical stocks, while financials, consumer discretionary, and IT also contributed positively [5][6] - Health insurers faced challenges, with UnitedHealth Group and CVS Health posting over 10% returns, while Elevance Health's shares dropped sharply due to profit guidance cuts [7] - In IT, Samsung Electronics excelled with strong performance in HBM technology and a significant deal with Tesla for AI chip manufacturing [11] Company Highlights - United Therapeutics Corp. was a top contributor to portfolio performance, driven by positive clinical trial results for its drug Tyvaso, potentially adding $4-5 billion in peak sales [6] - AbbVie, Inc. expects high single-digit revenue growth through 2029, with flagship drugs projected to exceed $31 billion in sales by 2027 [6] - The Carlyle Group Inc. outperformed in the financial sector, up over 20% due to strong fee-based credit and secondaries business [8] Investment Strategy - The current economic environment is characterized by a "two-speed" economy, with a concentrated AI-driven boom amidst subdued growth in other sectors [21][22] - Financials are seen as attractive due to stable net interest margins and loan growth, while defensives like consumer staples and healthcare are expected to perform well [22] - Opportunities in economically-sensitive sectors are being explored, with a focus on industrials benefiting from AI integration and supply chain modernization [22][23]

Core Viewpoint - LKQ Inc. is currently experiencing a slight increase in stock price, but has seen a decline over the past month and year, raising questions about its valuation despite stable performance in the current session [1]. Group 1: Stock Performance - The current stock price of LKQ Inc. is $29.83, reflecting a 0.03% increase [1]. - Over the past month, the stock has decreased by 2.71% [1]. - In the past year, the stock has declined by 23.23% [1]. Group 2: P/E Ratio Analysis - The P/E ratio is a critical metric for evaluating LKQ's market performance against its historical earnings and industry averages [5]. - LKQ has a lower P/E ratio compared to the aggregate P/E of 149.44 for the Distributors industry, suggesting potential undervaluation [6]. - A low P/E ratio may indicate undervaluation but could also reflect weak growth prospects or financial instability [8]. Group 3: Investment Considerations - Investors should use the P/E ratio cautiously, as it is just one of many metrics to consider when assessing a company's financial health [8]. - A comprehensive approach that includes other financial ratios, industry trends, and qualitative factors is essential for making informed investment decisions [8].

Company Overview - LKQ Corporation is valued at approximately $7.4 billion and is a global leader in alternative and aftermarket automotive parts, serving various sectors including repair shops, dealerships, and consumers with recycled, remanufactured, and specialty components [1] - The company is headquartered in Chicago and operates over 1,400 locations across North America, Europe, and Asia, employing around 46,000 people [1] Earnings Expectations - LKQ is set to announce its fiscal 2025 Q3 earnings results on October 30, with analysts expecting a profit of $0.74 per share, which represents a 15.9% decrease from $0.88 per share in the same quarter last year [2] - For the current fiscal year, analysts project an EPS of $3.10, down 10.9% from $3.48 in fiscal 2024, but anticipate a recovery with a projected EPS of $3.41 in FY2026, reflecting a 10% annual increase [3] Stock Performance - Over the past 52 weeks, LKQ shares have declined by 25.3%, underperforming compared to the S&P 500 Index's 14.4% increase and the Consumer Discretionary Select Sector SPDR Fund's 19% return [3] Recent Developments - On October 1, LKQ shares rose by 1.9% following the completion of the sale of its Self Service segment, Pick Your Part, to an affiliate of Pacific Avenue Capital Partners for $410 million, which aligns with the company's strategy to streamline operations and strengthen its balance sheet [4] Analyst Ratings - The consensus view among analysts on LKQ Corporation's stock is moderately bullish, with a "Moderate Buy" rating overall; five analysts recommend "Strong Buy," one suggests "Moderate Buy," one indicates "Hold," and one rates it as "Strong Sell" [5] - The mean price target for LKQ is $43, suggesting a potential upside of 47.5% from current market prices [5]