LKQ Misses Q2 Earnings Estimates, Slashes FY25 Guidance

LKQ Corporation LKQ delivered adjusted earnings of 87 cents per share for second-quarter 2025, which missed the Zacks Consensus Estimate of 93 cents. The earnings also declined from 98 cents reported in the year-ago period. The aftermarket auto parts distributor registered quarterly revenues of $3.64 billion, surpassing the Zacks Consensus Estimate of $3.61 billion. The top line, however, fell from the year-ago level of $3.71 billion. Parts and Services organic revenues decreased 3.4% year over year.LKQ Corporation Price, Consensus and EPS Surprise LKQ Corporation price-consensus-eps-surprise-chart | LKQ Corporation QuoteSegment HighlightsIn the reported quarter, revenues from the Wholesale North American segment totaled $1,442 million, falling 2.2% year over year but topping our estimate of $1,438 million. The segment’s EBITDA was $227 million, which was below our forecast of $244.6 million, as well as $256 million generated in the second quarter of 2024.Revenues from the European segment were $1.61 billion, which fell 2% year over year but topped our estimate of $1.59 billion. The segment’s EBITDA came in at $151 million, which was down from the year-ago level of $174 million and missed our forecast of $167.9 million.Revenues from the Specialty segment came in at $465 million, which remained flat year over year but topped our projection of $437.7 million. The segment’s EBITDA was $39 million, which inched down from the year-ago figure of $41 million but topped our forecast $32.3 million.Revenues from the Self-Service segment totaled $129 million compared with $133 million in the second quarter of 2024. The metric missed our prediction of $135.3 million. The segment’s EBITDA was $13 million, which remained flat year over year but missed our estimate of $15.2 million.Financial Position & DividendLKQ had cash and cash equivalents of $289 million as of June 30, 2025, up from $234 million recorded as of Dec. 31, 2024. The long-term obligations (excluding the current portion) amounted to $4.4 billion as of June 30, 2025, up from $4.13 billion recorded as of Dec. 31, 2024. As of June 30, 2025, LKQ’s balance sheet reflected a total debt of $4.5 billion.In the second quarter of 2025, cash flow from operating activities and FCF were $296 million and $243 million, respectively.  During the second quarter of 2025, the company repurchased 1 million shares worth $39 million. Since initiating the stock buyback program in late October 2018, it has repurchased around 65.5 million shares for a total of $2.9 billion through June 30, 2025.On July 22, 2025, LKQ announced a quarterly cash dividend of 30 cents per share. The dividend will be paid out on Aug. 28, 2025, to stockholders of record at the close of business on Aug. 14, 2025.Revised 2025 GuidanceLKQ has revised its outlook for 2025. It now anticipates parts and services organic revenues to decline 1.5-3.5% against the previous estimate of growth of 0-2% year over year. It now expects adjusted EPS in the range of $3-$3.30, down from the previous estimate of $3.40-$3.70, compared with $3.48 in 2024. The company now envisions operating cash flow in the range of $875 million to $1.075 billion compared with the previous estimate of $1.075-$1.275 billion. It expects free cash flow in the range of $600-$750 million compared with the previous estimate of $750-$900 million.LKQ’s Zacks Rank & Key PicksLKQ carries a Zacks Rank #3 (Hold) at present.Some better-ranked stocks in the auto space are Geely Automobile Holdings Limited GELYY, OPENLANE, Inc. KAR and Ferrari N.V. RACE, each sporting a Zacks Rank #1 (Strong Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here. The Zacks Consensus Estimate for GELYY’s fiscal 2025 sales implies year-over-year growth of 94.14%. EPS estimates for 2025 and 2026 have improved 43 cents and 68 cents, respectively, in the past 30 days.The Zacks Consensus Estimate for KAR’s 2025 sales and earnings implies year-over-year growth of 2.86% and 17.65%, respectively. EPS estimates for fiscal 2025 and 2026 have improved a penny each in the past seven days.The Zacks Consensus Estimate for RACE’s 2025 sales and earnings implies year-over-year growth of 13.56% and 12.12%, respectively. EPS estimates for 2025 and 2026 have improved 34 cents and 38 cents, respectively, in the past 30 days.7 Best Stocks for the Next 30 DaysJust released: Experts distill 7 elite stocks from the current list of 220 Zacks Rank #1 Strong Buys. They deem these tickers "Most Likely for Early Price Pops."Since 1988, the full list has beaten the market more than 2X over with an average gain of +23.5% per year. So be sure to give these hand picked 7 your immediate attention. See them now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report LKQ Corporation (LKQ): Free Stock Analysis Report OPENLANE, Inc. (KAR): Free Stock Analysis Report Geely Automobile Holdings Ltd. (GELYY): Free Stock Analysis Report Ferrari N.V. (RACE): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks