LKQ Q2 revenue misses expectations on European weakness

LKQ

30/07/2026 12:37

Overview
US auto parts supplier's Q2 revenue fell 3%, missing analyst expectations
Adjusted EPS for Q2 missed analyst expectations
Company repurchased 1.9 mln shares for $52 mln in Q2

Outlook
LKQ lowers 2026 organic revenue growth outlook to (3.0%) to (1.0%) from (0.5%) to 1.5%
Company cuts 2026 diluted EPS forecast to $1.78-$2.08 from $2.16-$2.46
LKQ says actions in Europe are focused on restoring service levels and aligning costs with demand

Result Drivers
NORTH AMERICA RECOVERY - North America returned to positive organic growth for the first time in nine quarters, driven by record alternative-parts utilization and improving repairable claims
EUROPEAN WEAKNESS - Europe fell short of expectations due to ERP implementation issues in Germany and lower volumes in the UK and Benelux, partially offset by cost reductions
SPECIALTY SEGMENT RESILIENCE - Specialty delivered growth despite a challenging end-market environment and continued macro-economic pressure on consumers

Company press release: ID:nGNX5ZMkJp

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Revenue
Miss
$3.4 bln
$3.48 bln (7 Analysts)
Q2 Adjusted EPS
Miss
$0.67
$0.71 (9 Analysts)
Q2 EPS
 
$0.52
 

Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 8 "strong buy" or "buy", 3 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the auto, truck & motorcycle parts peer group is "buy"
Wall Street's median 12-month price target for LKQ Corp is $41.00, about 55.4% above its July 29 closing price of $26.39
The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Reuters Recommended Reads
July 29 - Auto parts retailer O'Reilly lifts annual profit forecast on sustained replacement parts demand
July 29 - Monro Q1 sales fall 4.6%, but slightly beat estimates
July 29 - Teva Pharm seeking details on Trump drug tariffs plan, CEO says

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)