Overview

• Auto parts distributor's Q1 revenue rose 4.3% yr/yr, beating analyst expectations

• Adjusted EPS for Q1 missed consensus, declining 9.5% yr/yr

• Company continues strategic review to enhance shareholder value, maintains dividend payments

Outlook

• LKQ lowered 2026 full-year diluted EPS outlook to $2.16-$2.46 from $2.35-$2.65

• Company maintains 2026 organic revenue growth outlook for parts and services at (0.5%) to 1.5%

• LKQ says productivity and restructuring initiatives are intended to offset macroeconomic and cost pressures

Result Drivers

• FOREIGN EXCHANGE IMPACT - Revenue growth was mainly driven by a 5.1% positive impact from foreign exchange rates, offsetting a 1.6% decline in organic parts and services revenue

• COST REDUCTION AND RESTRUCTURING - Co said it is taking deliberate actions to reduce costs and streamline operations in response to a challenging environment

• IMPAIRMENT CHARGE - Q1 net income included a $44 mln impairment on the Mekonomen equity method investment, weighing on earnings

Company press release: ID:nGNX6FZ4kY

Key Details

Metric	Beat/Miss	Actual	Consensus Estimate
Q1 Revenue	Beat	$3.47 bln	$3.39 bln (6 Analysts)
Q1 Adjusted EPS	Miss	$0.67	$0.68 (7 Analysts)
Q1 EPS		$0.30

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 $41.00, about 33.7% above its April 29 closing price of $30.66

• The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

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