LKQ Q3 Revenue Falls 5.1% to $3.3 Billion and Swings to a $24 Million Net Loss on $111 Million in Impairment Charges
Auto parts distributor LKQ Corporation reported final third-quarter 2026 results on October 29 in Antioch, Tennessee. Revenue was $3.3 billion, down 5.1% year over year. Total parts and services revenue fell 5.6%, reflecting a 5.4% organic decline and a 0.7% foreign-exchange headwind, partly offset by a 0.6% net contribution from acquisitions and divestitures.
LKQ swung to a net loss of $24 million, including $111 million of pre-tax non-cash impairment charges, compared with net income of $178 million a year earlier. Diluted loss per share was $0.09, versus earnings of $0.69 a year earlier. On an adjusted basis, net income was $127 million and adjusted diluted earnings per share were $0.50, down from $0.84 a year earlier. The final figures were in line with the preliminary range the company released on October 23.
Chairman John Mendel said LKQ remains a fundamentally strong enterprise supported by its scale, leading positions across key markets and global distribution platform, but that recent financial and operating performance has not reflected the strength of the business or met the standards the company expects, particularly in Europe. He said the appointment of a new CEO, leadership changes in Europe and the engagement of Alvarez & Marsal are important steps in a broader effort to improve execution and financial performance.
Under actions announced earlier, Salvatore A. Abbate will become president and CEO on December 15, the company has withdrawn its full-year 2026 guidance, and a strategic review of the European business is under way. Preliminary figures showed European parts and services organic revenue down 9.8%, which the company attributed mainly to disruption from an ERP implementation in Germany and volume declines in the United Kingdom and Benelux.
Source: GSM · USA (original Chinese edition)
Photo: 图：一台从汽车上拆下的发动机与散落的零部件，LKQ 是全球主要汽车替换与再生零部件分销商。照片：Ivan Radic 摄，CC BY 2.0，经 Wikimedia Commons。 / An engine removed from a car surrounded by disassembled parts; LKQ is a leading distributor of replacement and recycled auto parts. Photo: Ivan Radic, CC BY 2.0, via Wikimedia Commons.
