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GlobeNewswire·

LKQ Corporation Announces Results for Fourth Quarter and Full Year 2025

LKQ
  • LKQ Corporation reported fourth quarter 2025 revenue of $3.3 billion & full year 2025 revenue of $13.7 billion.
  • Full year 2025 operating cash flow was $1.1 billion with free cash flow of $847 million.
  • The company returned $116 million to shareholders in the fourth quarter, consisting of $40 million in share repurchases & $76 million in cash dividends.
  • Total capital returned to shareholders for the full year 2025 amounted to $469 million through $159 million in buybacks & $310 million in dividends.
  • The Board of Directors initiated a comprehensive review of strategic alternatives to enhance shareholder value with no definitive timetable.
  • A restructuring plan was approved to generate over $50 million in annualized cost savings, with over half expected in 2026, incurring charges of $60 to $70 million.
  • 2026 outlook anticipates organic revenue growth for parts & services between 0.5% to 1.5% & diluted EPS between $2.35 to $2.65.
  • Full year 2026 operating cash flow is projected between $900 to $1,100 million with free cash flow expected between $700 to $850 million.
  • Adjusted diluted earnings per share for the fourth quarter of 2025 was $0.59, down 24.4% from $0.78 in the same period of 2024.
  • Specialty segment posted organic revenue growth of 7.8% in the fourth quarter as end markets improved.
  • Total debt as of December 31, 2025, was $3.7 billion with a leverage ratio of 2.4x EBITDA.
  • A quarterly cash dividend of $0.30 per share was declared on February 17, 2026, payable on March 26, 2026.
  • An aggregate balance of $1.6 billion remains available for share repurchases through October 25, 2026.
  • The company completed the sale of its Self Service segment & is exploring a potential sale of its Specialty segment.
  • Over 85% of targeted SKUs were reviewed under the SKU rationalization program in 2025, up from 50% in 2024.
  • The 2026 outlook includes estimated impacts from U.S. & retaliatory tariffs effective as of February 1, 2026.