LKQ cuts annual profit forecast on softer auto parts demand in Europe

LKQ

30/07/2026 13:08

July 30(Reuters) - Auto parts supplier LKQ Corp LKQ.O cut its full-year adjusted profit forecast on Thursday, citing weaker demand for auto parts and repair services in its European markets.
Europe remains a tough market for automotive suppliers, as weak economic growth and restrained consumer spending weigh on demand for vehicle repairs and aftermarket parts.
Shares of the company were down 16% in premarket trading.
LKQ has been pursuing strategic options in recent months, announcing last year that it was exploring a sale of its Specialty segment before expanding the review in January to include alternatives such as a sale of the entire company.
The company said the strategic review process remains active and that it continues to engage with multiple parties.
The company expects 2026 adjusted profit of $2.60 per share to $2.90 per share, down from its prior estimate of $2.90 per share to $3.20 per share.
The company now expects organic revenue growth for parts and services to decline 1% to 3%, compared with its previous forecast for a 0.5% decline to 1.5% growth.
Second-quarter adjusted earnings came in at 67 cents per share, missing analysts' estimates of 71 cents per share, according to data compiled by LSEG.
Revenue for the quarter ended June 30 fell 3% to $3.41 billion from a year earlier, compared with estimates of $3.48 billion.
Quarterly total parts and services revenue decreased 3.6% from the year-ago period.

 (Reporting by Apratim Sarkar in Bengaluru; Editing by Tasim Zahid)
 ((Apratim.Sarkar@thomsonreuters.com;))