Overview

• Auto parts provider's Q4 revenue rose 2.7%, beating analyst expectations

• Adjusted EPS for Q4 missed analyst expectations

• Company initiated strategic review to enhance shareholder value

Outlook

• LKQ anticipates 2026 organic revenue growth for parts and services between -0.5% and 1.5%

• Company expects 2026 diluted EPS of $2.35 to $2.65

• LKQ projects 2026 operating cash flow between $900 mln and $1.1 bln

Result Drivers

• NORTH AMERICA MARKET SHARE - Co gained market share in North America through pricing discipline and MSO relationship expansion despite soft demand

• EUROPEAN OPERATIONS - Co integrated and simplified European operations to support margin improvement

• SPECIALTY SEGMENT GROWTH - Specialty segment posted 7.8% organic revenue growth due to improving end markets

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 $42.50, about 27.9% above its February 18 closing price of $33.22

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nGNXPLjLM

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