LKQ Corporation (Nasdaq: LKQ), a leading global provider of alternative and specialty automotive parts, announced its first quarter 2025 financial results, demonstrating resilience amid market headwinds. This authoritative financial update highlights key quantitative metrics and strategic initiatives underpinning LKQ’s performance and outlook.
Revenue: LKQ reported first quarter 2025 revenue of \(3.5 billion, reflecting a 6.5% decrease from \)3.7 billion in Q1 2024. The organic revenue decline for parts and services was 4.3% (3.1% on a per day basis), impacted further by acquisitions/divestitures (-0.9%) and adverse foreign exchange rates (-1.6%).
Net Income: Net income attributable to LKQ stockholders increased 7.0% to \(169 million (4.9% of revenue) from \)158 million (4.3% of revenue) in the prior year period.
Earnings Per Share (EPS): Diluted EPS rose from \(0.59 to \)0.65, a 10.2% improvement year-over-year.
Adjusted Earnings: Adjusted net income was \(204 million, down 7.3% compared to \)220 million in Q1 2024. Adjusted diluted EPS was \(0.79 versus \)0.82 last year, marking a 3.7% decrease.
Gross Margin: The gross margin ratio improved slightly to 39.8% in Q1 2025 from 39.2% in Q1 2024, reflecting effective cost management.
Debt and Leverage: As of March 31, 2025, LKQ’s total debt stood at $4.4 billion, with total leverage at 2.5x EBITDA, reflecting a strong balance sheet position consistent with the company’s credit facility metrics.
Cash Flow: Operating cash flow for Q1 2025 was slightly negative at -\(3 million, with free cash flow at -\)57 million, representing a cash usage shift from positive free cash flow in the previous year’s quarter.
LKQ returned \(118 million to shareholders during Q1 2025, consisting of \)40 million in stock repurchases (approximately 1 million shares) and $78 million in dividend payments.
The Board approved a $0.30 per share quarterly dividend, payable in Q2 2025.
Since initiating share repurchases in late 2018, LKQ has repurchased approximately 65.5 million shares for \(2.8 billion, with \)1.7 billion capacity remaining under the repurchase authorization through October 2026.
Wholesale North America: Revenue declined 6.0% year-over-year to $1.336 billion.
Europe: Revenue decreased 7.4% to $1.515 billion.
Specialty: Revenue dropped 6.8% to $393 million.
Self-Service: Revenue decreased slightly by 5.7% to \(51 million. Segment EBITDA totaled \)404 million with a margin of 11.7%, relatively stable compared to 11.6% in Q1 2024.
LKQ’s leadership emphasizes ongoing operational excellence and cost structure optimization initiatives, positioning the company to navigate current market uncertainties effectively. A dedicated tariff task force has been established to address potential tariff-related disruptions and opportunities in the shifting global trade environment.
The company maintained its full-year 2025 guidance: - Organic revenue growth: 0% to 2% - Diluted EPS range: \(2.91 to \)3.21 - Adjusted diluted EPS range: \(3.40 to \)3.70 - Operating cash flow: \(1.075 billion to \)1.275 billion - Free cash flow: \(0.75 billion to \)0.90 billion
The outlook excludes uncertain tariff effects but assumes stable commodity prices and March-average foreign exchange rates.
In prior earnings calls, LKQ management has consistently prioritized operational efficiency and shareholder value return despite challenges such as macroeconomic uncertainties and supply chain disruptions. This Q1 2025 results release reflects those themes with quantified progress in EBITDA margin improvement and disciplined capital allocation.
Given LKQ’s solid balance sheet, manageable leverage, and robust cash flow generation capabilities, the company is well-positioned to manage economic headwinds and capitalize on emerging opportunities in the automotive aftermarket parts sector. Continued focus on integrating acquisitions, cost control, and tariff risk management will be crucial drivers of sustained financial performance.
For in-depth financial data and the official filing, please refer to the SEC 8-K Report for LKQ Corporation Q1 2025.
LKQ Corporation, Q1 2025 Earnings, Auto Parts Industry, Financial Performance, Stock Repurchase