LKQ (US:LKQ) ZACKS·2025-10-30 18:06Core Insights - LKQ Corporation reported third-quarter 2025 adjusted earnings of 84 cents per share, exceeding the Zacks Consensus Estimate of 74 cents but declining from 88 cents in the same period last year. Quarterly revenues were $3.5 billion, missing the Zacks Consensus Estimate of $3.52 billion and down from $3.58 billion year-over-year. Organic revenues from Parts and Services decreased by 1.2% year-over-year [1][9]. Financial Performance - The Wholesale North American segment generated revenues of $1,423 million, unchanged from the corresponding period of 2024 and exceeding the estimate of $1,381 million. However, its EBITDA was $199 million, below the forecast of $213 million and down from $224 million in Q3 2024 [3]. - The European segment reported revenues of $1.62 billion, slightly up from $1.61 billion year-over-year and surpassing the estimate of $1.57 billion. The segment's EBITDA was $162 million, down from $165 million a year ago but above the forecast of $147 million [4]. - The Specialty segment's revenues increased to $457 million from $419 million in the year-ago quarter, exceeding the projection of $406 million. Its EBITDA rose to $34 million from $31 million year-over-year, surpassing the forecast of $23.1 million [5]. Financial Position & Dividend - As of September 30, 2025, LKQ had cash and cash equivalents of $289 million, up from $234 million at the end of 2024. Long-term obligations (excluding current portions) were $3.6 billion, down from $4.12 billion at the end of 2024. Total debt stood at $4.2 billion [6]. - Cash flow from operating activities and free cash flow for Q3 2025 were $440 million and $387 million, respectively. The company repurchased 1.2 million shares worth $40 million during the quarter, totaling approximately 67.7 million shares repurchased for $2.9 billion since the buyback program began in late October 2018 [7]. - LKQ announced a quarterly cash dividend of 30 cents per share, payable on December 4, 2025, to stockholders of record as of November 20, 2025 [8]. 2025 Guidance - LKQ revised its 2025 outlook, now expecting parts and services organic revenues to decline by 2-3%, compared to the previous estimate of a decline of 1.5-3.5%. Adjusted EPS is anticipated to be in the range of $3-$3.15, up from the previous estimate of $2.85-$3.15. Operating cash flow is now expected to be between $825-$1,025 million, compared to the previous estimate of $800-$1,000 million. Free cash flow is projected to be in the range of $525-$675 million, down from the previous estimate of $600-$750 million [9][10].