LKQ Q2 revenue misses expectations on European weakness

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

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

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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.)