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].

Acquisitions and Growth Strategy - In 2023, LKQ Corporation acquired Uni-Select Inc., enhancing its position in the North American automotive maintenance parts market and expanding its paint distribution operations[19] - LKQ's operational strategy emphasizes driving profitable growth, increasing free cash flow, and maintaining a strong balance sheet through organic investments and strategic acquisitions[21] - The Specialty segment was formed in 2014 and has expanded through acquisitions, reaching most major markets in the U.S. and Canada[49] Revenue Generation and Market Segments - The Wholesale - North America segment generated significant revenue through the sale of alternative vehicle collision replacement products, with a focus on aftermarket and recycled parts[24] - The company operates in approximately 20 European countries, boasting the largest distribution network in the aftermarket industry in Europe[46] - The company operates in four segments: Wholesale - North America, Europe, Specialty, and Self Service, each presented as a reportable segment[213] - The Wholesale - North America segment is a leading provider of alternative vehicle collision replacement products, with extensive sales and distribution facilities across the U.S. and Canada[214] - The Europe segment provides alternative vehicle replacement and maintenance products in multiple countries, including Germany, the U.K., and Italy[214] - The Specialty segment distributes aftermarket equipment and accessories for specialty vehicles, reaching major markets in the U.S. and Canada[214] - The Self Service segment operates retail facilities selling recycled automotive products from end-of-life vehicles across the U.S.[214] Inventory and Supply Chain Management - Approximately 49% of LKQ's aftermarket purchases in 2024 were made from its top six vendors, with the largest vendor accounting for about 19% of annual inventory purchases[28] - LKQ's inventory includes over 900,000 SKUs, with a focus on mechanical aftermarket parts for vehicles aged 3 to 15 years, including brake pads and electrical products[42] - The company aims to achieve 80% completion of its product mix evaluation by the end of 2025, targeting efficiency in inventory management[42] - LKQ's distribution network in North America is considered the largest for alternative vehicle parts, enhancing service levels and fulfillment rates for local repair shops[36] Financial Performance and Capital Management - The company maintains a disciplined capital allocation strategy, focusing on accretive acquisitions and divesting non-core operations, as demonstrated by the divestment of certain operations in Poland in 2024[23] - The company had approximately $1,651 million in unsecured, variable-rate debt outstanding, with $987 million maturing in 2026 and $664 million in 2028[122] - The company had approximately $2,436 million in unsecured, fixed-rate debt outstanding, including $800 million of 5.75% senior notes due 2028[122] - The company could incur an additional $1,222 million of indebtedness under its credit agreement as of December 31, 2024[126] - The amount and frequency of the company's share repurchases and dividend payments may fluctuate based on cash flow and operational priorities[135] Risks and Challenges - The company is monitoring economic, political, and social conditions in North America, Europe, and Taiwan, which could adversely affect its business[80] - The company faces competition from various suppliers in the vehicle replacement products industry, which is highly competitive[86] - An increase in electric vehicles could negatively impact sales of engines and transmissions, which are significant revenue sources[103] - Fluctuations in commodity prices, particularly for metals, could adversely affect financial results and inventory values[104] - Disruptions in the supply chain, particularly from suppliers in Taiwan, could increase expenses and impede customer service[106] - The company is subject to risks related to intellectual property claims from OEMs, which could restrict the sale of aftermarket products[96] - Future public health emergencies could materially adversely impact the company's business and financial condition[114] - The company faces risks related to the limited supply of salvage vehicles in North America, which could increase costs over time[110] - The complexity of vehicle parts due to technological advancements may hinder the company's ability to compete with OEMs[112] Cybersecurity and IT Management - The Company maintains a risk-based approach to cybersecurity, integrating policies and practices into operations based on recognized frameworks[178] - The Chief Information Security Officer (CISO) has over 27 years of experience in IT and information security, holding multiple professional certifications[188] - The Company has established comprehensive incident response and recovery plans that are regularly tested and evaluated[182] - The Board and Risk Management Committee receive regular updates on cybersecurity risks and incidents, ensuring timely management responses[186] - The Company does not believe that any cybersecurity threats have materially affected its business strategy or financial condition to date[190] Corporate Governance and Compliance - The Board refreshment process has resulted in over half of the current Board being added since August 2018, with 38% from underrepresented groups[75] - The company has adopted "proxy access," allowing eligible stockholders to nominate director nominees in proxy materials[76] - A revised Code of Ethics was adopted in 2024, covering various topics including bribery, conflicts of interest, and data protection[77] - The company is subject to ongoing audits of its income tax returns in various jurisdictions, which could result in additional taxes impacting cash flows and financial results[157] - The effective tax rate may materially increase due to changes in U.S. and international tax legislation, affecting cash flows[154] Environmental and Regulatory Considerations - The company is subject to various environmental regulations, which could incur costs and impact its operations if compliance is not maintained[141] - The company may face liabilities related to contamination from its facilities, which could exceed established financial reserves[145] - The company is affected by evolving climate change regulations, which could require additional expenditures and impact demand for its products[150] Employee and Labor Relations - The company employs around 47,000 people globally, with approximately 19,000 in North America, 26,000 in Europe, and 2,000 in Asia[64] - Labor union activities and changes in labor laws may increase costs and reduce operational flexibility, impacting overall business performance[165] Operational Efficiency and Future Plans - The company is executing a multi-year plan to develop a European-wide ERP system, projected to reduce the number of IT systems by 2027[48] - The company is undergoing a systems conversion project for its European businesses, which carries risks of delays and increased costs[172] - The company may face challenges in renewing leases for key operational locations, potentially losing the right to operate at those sites[175] Stock Performance and Shareholder Returns - The Company has declared a quarterly cash dividend of $0.30 per share, with a total of four dividends declared in 2024[201] - The Board has authorized a stock repurchase program totaling $4,500 million, with $1,000 million added on October 22, 2024[206] - In the three months ended December 31, 2024, the Company repurchased 2.1 million shares at an average price of $38.63[207] - The cumulative total return on the Company's stock from December 31, 2019, to December 31, 2024, was $111, compared to $197 for the S&P 500 Index[203]

Core Insights - LKQ Corporation reported adjusted earnings of 80 cents per share for Q4 2024, exceeding the Zacks Consensus Estimate of 75 cents but down from 84 cents in the same quarter last year. Quarterly revenues were $3.36 billion, missing the estimate of $3.42 billion and declining from $3.5 billion year-over-year. Organic revenues from parts and services decreased by 3.6% year-over-year [1]. Segment Highlights - The Wholesale North American segment generated revenues of $1.37 billion, a decrease of 6.9% year-over-year, and fell short of the estimate of $1.44 billion. EBITDA for this segment was $231 million, surpassing the forecast of $216.1 million but lower than $239 million from Q4 2023 [3]. - Revenues from the European segment were $1.51 billion, down 2.3% year-over-year, and missed the estimate of $1.56 billion. The segment's EBITDA increased to $152 million from $129 million year-over-year, exceeding the forecast of $132 million [4]. - The Specialty segment reported revenues of $349 million, a decline of 5.9% year-over-year, but exceeded the projection of $337.2 million. EBITDA for this segment was $14 million, down from $21 million year-over-year and below the forecast of $17.1 million [5]. - The Self-Service segment achieved revenues of $131 million, an increase of 11% year-over-year, surpassing the estimate of $100.3 million. The segment's EBITDA was $11 million, exceeding the estimate of $5.7 million and up from $7 million in the previous year [6]. Financial Position & Dividend - As of December 31, 2024, LKQ had cash and cash equivalents of $234 million, down from $299 million a year earlier. Long-term obligations rose to $4.13 billion from $3.66 billion year-over-year, with total debt at $4.2 billion [7]. - In 2024, cash flow from operating activities totaled $1.12 billion, with positive free cash flow of $810 million. During Q4 2024, the company repurchased 2.1 million shares for $80 million, totaling approximately 65 million shares repurchased for $2.8 billion since the buyback program began in late October 2018 [8]. - LKQ announced a quarterly cash dividend of 30 cents per share, payable on March 27, 2025, to stockholders of record as of March 13, 2025 [9]. 2025 Guidance - For 2025, LKQ anticipates organic revenue growth in parts and services to be between 0-2% year-over-year. The company expects adjusted EPS in the range of $3.40-$3.70 compared to $3.48 in 2024, with operating cash flow projected between $1.075 billion and $1.275 billion, and free cash flow expected to be between $750 million and $900 million [10].