LKQ's Growth and Diversification - LKQ's total revenue has grown significantly from $328 million in 2003 to $12.8 billion in 2022 and $13.6 billion in Q3 2025 TTM[3] - LKQ has evolved from a North American collision operation to a globally diversified alternative parts distributor[3] - In Q3 2025 TTM, WNA-Recycled Products accounted for 15%, WNA-Aftermarket 18%, WNA-Hard Parts 45%, Europe Parts 14%, Specialty 6%, and Other 2% of total revenue[3] Market Position and Strategy - LKQ operates from a position of strength in its core markets, including Wholesale North America (~$6 billion) and LKQ Europe (~$6+ billion)[5,6] - LKQ's expertise lies in collision (aftermarket, recycled & refurbished, automotive paint), mechanical (recycled & remanufactured, hard parts), and services (vehicle diagnostics & calibration)[7] - LKQ's network effect results in a 75% fill rate, with 62% of parts revenue generated outside the yard but within the region, and 14% generated in another region[10] Strategic Priorities and Investment Thesis - Key strategic priorities include operational excellence, maximizing total stockholder return, and simplifying the business portfolio and operations[13] - LKQ aims to grow revenue organically faster than market growth and EBITDA faster than revenue[15] - LKQ focuses on cash flow and capital allocation to drive consistent and strong growth in Adjusted EPS over the long term[15] Collision Trends in North America - Unrepaired vehicles are increasing at a rate of 7% to 9% due to higher insurance rates and lower consumer confidence[17] - ELVs due to collision are increasing at a rate of 10% to 12% due to a decline in used car prices combined with increased cost to repair[17] - Insured TLVs are increasing at a rate of 3% to 5% due to higher deductibles, less insurance coverage, and increased concerns about rising insurance premiums[17]