LKQ pulls 2026 guidance, names new CEO amid Europe slump

LKQ

23/10/2026 14:19

Oct 23 (Reuters) - Automotive parts distributor LKQ Corp LKQ.O withdrew its annual guidance on Friday, citing weak performance in Europe, and said Salvatore Abbate would take over as its new chief executive in December, succeeding current CEO Justin Jude.
Shares of the company fell 17% in premarket trading following the announcement.
The withdrawal of its annual forecast comes after LKQ cut its 2026 outlook in July citing weak Europe demand
LKQ expects the region to be the biggest drag on its third-quarter results, due to be reported on October 29
Parts and services organic revenue in Europe is expected to fall 9.8% from a year earlier during the quarter, amid operational disruptions in Germany and softer demand across other key markets
In January, LKQ said its board had begun reviewing strategic alternatives, including a possible sale, after pressure from activist investor Ananym Capital to divest its European business and increase share repurchases
Activist investors have increasingly targeted auto parts suppliers, pressing them to divest slower-growing assets and ramp up share repurchases. Peer Genuine Parts said in February it would split into two companies after pressure from activist investor Elliott Investment Management
Newly appointed CEO Abbate previously served as chief executive of Veritiv Corp, a packaging and distribution company acquired by Clayton, Dubilier & Rice in 2023
LKQ expects third-quarter adjusted profit to be between 47 cents and 53 cents per share, well below analysts' estimate of 69 cents, according to data compiled by LSEG
It expects quarterly revenue at $3.32 billion, compared with estimates of $3.41 billion

(Reporting by Apratim Sarkar in Bengaluru; Editing by Jonathan Ananda)
((Apratim.Sarkar@thomsonreuters.com;))