LKQ expects $16M–$32M Q3 loss, withdraws guidance
LKQ withdrew full-year 2026 guidance as Europe recorded a 9.8% organic revenue decline and a 4.1% to 5.1% segment EBITDA margin.
Sentiment and the balance of points
Rhea-AI Sentiment reads the wording of the document, how positive or negative its language is on a 1 to 5 scale. The balance of points shown with the takes weighs what the document actually discloses, so the two can disagree, for example when a trial that missed its main goal is described in upbeat language.
Form Type
8-K
Rhea-AI Filing Summary
LKQ Corporation (LKQ) announced preliminary, unaudited third-quarter 2026 results: it expects revenue of $3.32 billion, versus $3.50 billion in Q3 2025, and a net loss of $16 million to $32 million, including $111 million in non-cash impairment charges, versus $178 million net income. Adjusted diluted EPS was $0.47 to $0.53, compared with $0.84. Europe parts and services organic revenue declined 9.8%; Europe segment EBITDA margin was 4.1% to 5.1%, versus 10.0%.
Justin L. Jude ceased serving as President and CEO and resigned from the Board effective October 23, 2026; Salvatore A. Abbate was appointed CEO effective December 15, 2026. John Mendel and Sue Gove will serve in an interim Office of the CEO, with CFO Rick Galloway serving as principal executive officer. Andy Hamilton left his LKQ Europe President and Managing Director role on October 23, 2026.
LKQ withdrew full-year 2026 guidance and retained Alvarez & Marsal to advise on European operations as the Board reviews strategic alternatives. LKQ cited ERP implementation disruptions in Germany and volume declines in the United Kingdom and Benelux among factors behind Europe’s results. Full third-quarter results were to be reported October 29, 2026.
0 points · 0 major0 major · 3 points
How this balance works
Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.
It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.
Rhea-AI Sentiment measures something else, the tone of the wording.
Positive
- None.
Negative
- Moderate pointPreliminary net loss: $16 million to $32 million, versus $178 million net income.
- Moderate pointAdjusted diluted EPS: $0.47 to $0.53, versus $0.84 in Q3 2025.
- Moderate pointEurope segment EBITDA margin: 4.1% to 5.1%, versus 10.0% in Q3 2025.
Filing Explained
Abbate’s terms include future, performance- and service-conditioned equity awards, plus severance and possible accelerated vesting tied to specified termination conditions.
The filing discloses the incoming CEO’s offer-letter terms: Salvatore Abbate is set to receive a
His annual base salary is
Abbate is eligible for a sign-on restricted-stock-unit grant with a grant-date value of
If Abbate is terminated without cause or resigns for good reason, he is eligible for 18 months of monthly severance payments and subsidized health and dental coverage, subject to release and restrictive-covenant conditions. LKQ says it will also enter into a change-of-control agreement: a qualifying termination within two years after, or in certain circumstances 12 months before, a change of control would provide a pro rata bonus, severance equal to twice the sum of base salary and the greater of target or average prior three-year bonus, up to 24 months of health and dental coverage, outplacement services, and full vesting of outstanding equity awards.
8-K Event Classification
4 items: 2.02, 5.02, 7.01, 9.01
4 items
Item 2.02
Results of Operations and Financial Condition
Financial
Disclosure of earnings results, typically an earnings press release or preliminary financials.
Item 5.02
Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers
Governance
Key personnel changes including departures, elections, or appointments of directors and executive officers.
Item 7.01
Regulation FD Disclosure
Disclosure
Material non-public information disclosed under Regulation Fair Disclosure, often investor presentations or guidance.
Item 9.01
Financial Statements and Exhibits
Exhibits
Financial statements, pro forma financial information, or exhibit attachments filed with this report.
Key Figures
Revenue: $3.32 billion
Net loss: $16 million to $32 million
Diluted loss per share: $0.06 to $0.12
+4 more
7 metrics
Revenue
$3.32 billion
Preliminary Q3 2026; $3.50 billion in Q3 2025.
Net loss
$16 million to $32 million
Preliminary Q3 2026; $178 million net income in Q3 2025.
Diluted loss per share
$0.06 to $0.12
Preliminary Q3 2026; diluted EPS of $0.69 in Q3 2025.
Adjusted diluted EPS
$0.47 to $0.53
Preliminary Q3 2026; $0.84 in Q3 2025.
Europe parts and services organic revenue decline
9.8%
Preliminary Q3 2026.
Europe segment EBITDA margin
4.1% to 5.1%
Preliminary Q3 2026; 10.0% in Q3 2025.
Non-cash impairment charges
$111 million
Included in the preliminary Q3 2026 net loss.
Key Terms
Adjusted diluted EPS, organic revenue, segment EBITDA margin, restricted stock units, +1 more
5 terms
Adjusted diluted EPS financial
"Adjusted diluted EPS of $0.47 to $0.53"
Adjusted diluted EPS is a company’s profit per share after adding back or removing one-time items (like restructuring costs or gains) and dividing by the number of shares including potential shares from options and convertible securities. Investors use it as a cleaner view of ongoing earnings—like looking at a car’s regular fuel efficiency rather than a trip boosted by downhill coasting—to judge underlying performance and compare companies without temporary distortions.
organic revenue financial
"parts and services organic revenue decline of 5.4%"
Organic revenue is the sales a company generates from its regular business activities after stripping out extra effects like revenue added or lost from buying or selling other businesses and from currency swings. Think of it as measuring how much a store’s own customers increased spending, not growth from opening new stores or temporary price moves; investors use it to judge the true strength and sustainability of a company’s core demand.
segment EBITDA margin financial
"segment EBITDA margin of 4.1% to 5.1%"
Segment EBITDA margin measures how much profit a particular business unit or product line generates from its own revenue after subtracting the direct operating costs, but before interest, taxes and certain accounting charges. Think of it like the share of each dollar from one shop in a chain that remains after paying the shop’s day-to-day expenses; investors use it to compare efficiency across parts of a company and to judge which units drive value or pose risk.
restricted stock units financial
"one-time sign-on grant of restricted stock units"
Restricted stock units are a type of company reward where employees are promised shares of stock, but they only fully own these shares after meeting certain conditions, like staying with the company for a set time. They matter because they can become valuable assets and are often used to motivate employees to help the company succeed.
Change of Control Agreement financial
"will also enter into a change of control agreement"
Earnings Snapshot
Revenue: $3.32 billion · Guidance included
Third quarter ended September 30, 2026
Revenue
$3.32 billion
Compared with $3.50 billion in Q3 2025
Net loss
$16 million to $32 million
Compared with $178 million net income in Q3 2025
Diluted loss per share
$0.06 to $0.12
Compared with diluted EPS of $0.69 in Q3 2025
Adjusted diluted EPS
$0.47 to $0.53
Compared with $0.84 in Q3 2025
Europe parts and services organic revenue
9.8% decline
Europe segment EBITDA margin
4.1% to 5.1%
Compared with 10.0% in Q3 2025
Guidance
Full-year 2026 guidance withdrawn.
FAQ
AI-generated questions and answers. How Rhea-AI works. Not financial advice.
What were LKQ’s preliminary Q3 2026 results?
LKQ expected revenue of $3.32 billion and a net loss of $16 million to $32 million, compared with $3.50 billion in revenue and $178 million in net income in Q3 2025. Adjusted diluted EPS was $0.47 to $0.53, compared with $0.84.
Why did LKQ say its Europe results were under pressure?
LKQ cited operational disruptions associated with the ERP implementation in Germany and volume declines in the United Kingdom and Benelux. Europe parts and services organic revenue declined 9.8%, and the segment’s EBITDA margin was 4.1% to 5.1%, compared with 10.0% in Q3 2025.
What compensation terms did LKQ disclose for Salvatore Abbate?
Abbate’s offer provides an annual base salary of $1,340,000 and a cash incentive target equal to 150% of his annual base salary. It also provides a $3,300,000 sign-on cash award payable prior to December 31, 2026, and a sign-on restricted stock unit grant with a grant date value of $12,000,000.
Why did LKQ withdraw its full-year 2026 guidance?
LKQ said it withdrew guidance considering third-quarter results in Europe and Abbate’s appointment as CEO, effective December 15, 2026. The company had most recently updated its full-year guidance on July 30, 2026.
AI-generated analysis. How Rhea-AI works. Not financial advice.
UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
________________________
FORM 8-K
________________________
Current Report
Pursuant to Section 13 or 15(d) of
The Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): October 21, 2026
________________________
(Exact name of registrant as specified in its charter)
_______________________
| (State or other jurisdiction of incorporation or organization) | (Commission File Number) | (IRS Employer Identification No.) | ||||||||||||||||||
| (Address of principal executive offices) | (Zip Code) | |||||||||||||||||||
Registrant's telephone number, including area code: (615 ) 781-5200
N/A
(Former name or former address, if changed since last report)
________________________
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
| Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) | |||||
| Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) | |||||
| Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b)) | |||||
| Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) | |||||
Securities registered pursuant to Section 12(b) of the Act:
| Title of each class | Trading Symbol(s) | Name of each exchange on which registered | |||||||||||||||
The | |||||||||||||||||
The | |||||||||||||||||
Indicate by check mark whether the Registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the Registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. o
| Item 2.02 | Results of Operations and Financial Condition. | ||||
Attached as Exhibit 99.1 and incorporated herein by reference is a copy of a press release issued by LKQ Corporation (the “Company”), dated October 23, 2026, announcing its preliminary financial results for the fiscal quarter ended September 30, 2026. The press release is hereby incorporated by reference in this Item 2.02.
| Item 5.02 | Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers. | ||||
On October 23, 2026, the Board of Directors (the “Board”) of the Company announced that Justin L. Jude ceased to serve as the Company’s President and Chief Executive Officer and resigned as a member of the Board, in each case, effective October 23, 2026. In connection with Mr. Jude’s separation, the Board appointed Salvatore A. Abbate to succeed Mr. Jude as the Company’s President and Chief Executive Officer and as a member of the Board, in each case, effective as of December 15, 2026. In addition, effective as of October 23, 2026, the Company established an interim Office of the Chief Executive Officer to provide ongoing leadership continuity until Abbate assumes his role.
Mr. Abbate, 58, brings more than three decades of experience leading large, complex distribution and industrial businesses. As CEO of Veritiv Corporation, he led a significant transformation of the company, with its share price increasing more than 13-fold during his tenure, culminating in its $2.6 billion sale to Clayton, Dubilier & Rice in 2023. Before becoming CEO, he served as Veritiv’s Chief Operating Officer and Chief Commercial Officer. Earlier in his career, Mr. Abbate held senior leadership roles at Andersen Windows & Doors, Solutia, Inc., now part of Eastman Chemical Company, and Armstrong World Industries, with responsibilities spanning sales, marketing, distribution, logistics, manufacturing, strategy and process improvement.
Mr. Abbate’s experience aligns closely with the Company’s strategic and operational priorities. He has led high-volume, multi-site distribution businesses where pricing, procurement and supply chain discipline are critical to performance, and has led portfolio transformation focused on margin improvement and cash generation. He also brings public-company and international experience. He currently serves on the board of ArcBest (Nasdaq: ARCB). He holds a bachelor’s degree in industrial engineering from the Georgia Institute of Technology and an MBA from Northwestern University’s Kellogg School of Management.
In connection with these transition matters, Mr. Jude became eligible for certain separation benefits in accordance with the Company’s Severance Policy for Key Executives (the “Severance Policy”) and the Company entered into an offer letter, dated as of October 21, 2026 (the “Offer Letter”) with Mr. Abbate.
Mr. Jude’s Separation Entitlements
In connection with Mr. Jude’s separation, he will be eligible to receive those payments and benefits due upon a termination without “cause” under the Severance Policy, as described in the Company’s definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission on March 24, 2026 under the caption “Severance Policy.”
Mr. Abbate’s Offer Letter
The Offer Letter provides Mr. Abbate with an annual base salary equal to $1,340,000 and eligibility to participate in the Company’s cash incentive plan with a target opportunity equal to 150% of his annual base salary. Mr. Abbate will also receive a sign-on cash award of $3,300,000 (the “Sign-On Cash Award”), payable prior to December 31, 2026, which is subject to repayment in full if the Company terminates his employment for cause or he resigns without good reason (each as defined in the Severance Policy) before December 15, 2027.
Mr. Abbate will be eligible to receive a one-time sign-on grant of restricted stock units (“Sign-On RSUs”) with a grant date value of $12,000,000, which will vest in equal semi-annual installments over three years beginning on March 1, 2027, subject to his continued employment.
If Mr. Abbate’s employment is terminated by the Company without cause or he resigns for good reason (as such terms are defined in the Severance Policy), subject to his execution and non-revocation of a release of claims, any then outstanding unvested Sign-On RSUs will immediately vest and he will not be required to repay the Sign-On Cash Award.
Mr. Abbate will also be eligible to receive an annual grant of performance-based restricted stock units (“PSUs”) in 2027 with a grant date target value of $8,000,000, which will be eligible to vest as follows: (i) 50% vest in six-month installments over a three-year period if positive adjusted diluted earnings per share is achieved during any fiscal year within five years following the grant date and (ii) 50% vest based on performance against pre-determined performance goals for the January 1, 2027 through December 31, 2029 performance period, in each case, subject to his continued employment and consistent with the vesting schedule applicable to the Company’s executive officers. Mr. Abbate’s future annual long-term incentive awards will also have a target opportunity of $8,000,000.
Mr. Abbate will be a participant in the Severance Policy, which provides that, upon a termination of his employment by the Company without cause or by Mr. Abbate for good reason, he will be entitled to the severance payments and benefits described above with respect to Mr. Jude, including monthly severance payments and Company-subsidized health and dental coverage for 18 months following his termination, subject to his execution and non-revocation of a release of claims and his compliance with restrictive covenants during such period. The Company will also enter into a change of control agreement with Mr. Abbate (the “Change of Control Agreement”) in substantially the form entered into with the Company’s other executive officers, which provides that, upon a termination of his employment by the Company without cause or by Mr. Abbate for good reason within two years following (or, in certain circumstances, within 12 months prior to) a change of control, he will be entitled to (i) a pro rata annual bonus for the year of termination based on his maximum bonus opportunity, (ii) a lump sum severance payment equal to two times the sum of his base salary and the greater of his target annual bonus and his average annual bonus over the preceding three years, (iii) continued health and dental coverage for up to 24 months, (iv) outplacement services and (v) full vesting of his outstanding equity awards.
The Offer Letter also provides for reimbursement of first-class airfare for business travel and reimbursement of up to $35,000 in legal fees and expenses incurred in connection with the negotiation of the Offer Letter.
The foregoing description of the Offer Letter does not purport to be complete and is qualified in its entirety by reference to the full text of the Offer Letter, a copy of which will be filed with the Company’s Quarterly Report on Form 10-Q for the quarterly period ending September 30, 2026.
Except as described herein, there are no arrangements or understandings between Mr. Abbate and any other person pursuant to which Mr. Abbate was selected as the Company’s President and Chief Executive Officer. Mr. Abbate has no family relationships with any other executive officer or director of the Company. Mr. Abbate has not been involved in any related person transactions with the Company that would require disclosure under Item 404(a) of SEC Regulation S-K.
Establishment of the Office of the Chief Executive Officer
On October 23, 2026, the Board of the Company established an Office of the Chief Executive Officer to provide ongoing leadership continuity until Mr. Abbate assumes his role. The Office of the Chief Executive Officer will work closely with the Company’s leadership team in overseeing the Company’s operations during the interim period, and will consist of John Mendel, Chairman of the Board, and Sue Gove, Chair of the Company’s Audit Committee.
Rick Galloway, the Company’s Senior Vice President and Chief Financial Officer, will serve as the Company’s principal executive officer for purposes of the rules and regulations of the U.S. Securities Exchange Commission until Mr. Abbate assumes the position of President and Chief Executive Officer on December 15, 2026.
Termination of Senior Vice President and President and Managing Director of LKQ Europe
In addition, on October 23, 2026, the Board announced that Andy Hamilton ceased to serve as the Company’s Senior Vice President and President and Managing Director of LKQ Europe, effective October 23, 2026. In connection with Mr. Hamilton’s separation, he will be eligible to receive those payments and benefits due upon a termination without “cause” under the Severance Policy as described in the Company’s definitive proxy statement on Schedule 14A filed with the Securities and Exchange Commission on March 24, 2026 under the caption “Severance Policy.” The Board has engaged Alvarez & Marsal to advise the Company on its European operations.
| Item 7.01 | Regulation FD Disclosure | ||||
In connection with the Board’s ongoing review of strategic alternatives, the Company has taken several actions, including appointing Mr. Abbate as the Company’s next President and Chief Executive Officer, implementing leadership changes within its European operations, and retaining Alvarez & Marsal to advise the Company with respect to its European operations. The Company will provide additional updates regarding the strategic alternatives process as appropriate. The Company is also withdrawing its full-year 2026 guidance, which was most recently updated on July 30, 2026.
On October 23, 2026, the Company issued press releases announcing the (i) preliminary financial results for the fiscal quarter ended September 30, 2026, (ii) terminations of Mr. Jude as President & Chief Executive Officer and of Mr. Hamilton as Senior Vice President and President and Executive Managing Director of LKQ Europe, (iii) appointment of Mr. Abbate as President & Chief Executive Officer, (iv) establishment of the Office of the CEO, (v) retention of Alvarez & Marsal, and (vi) withdrawal of the Company’s full-year 2026 guidance, and providing an update on the Company’s ongoing review of strategic alternatives.
| Item 9.01 | Financial Statements and Exhibits. | ||||
(d) Exhibits.
| Exhibit Number | Description of Exhibit | |||||||
99.1 | LKQ Corporation Press Release dated October 23, 2026. | |||||||
99.2 | LKQ Corporation Press Release dated October 23, 2026. | |||||||
| 104 | Cover Page Interactive Data File (embedded within the Inline XBRL document). | |||||||
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
Dated: October 23, 2026
| LKQ CORPORATION | ||||||||
| By: | /s/ Matthew J. McKay | |||||||
| Matthew J. McKay | ||||||||
| Senior Vice President, General Counsel and Corporate Secretary | ||||||||
Exhibit 99.1
LKQ Corporation Announces Preliminary Third Quarter 2026 Results and Leadership and Operational Actions
Salvatore A. Abbate appointed President and Chief Executive Officer
Third quarter results reflect significant underperformance in Europe
Alvarez & Marsal retained to advise Company on European operations
Withdraws full-year 2026 guidance
ANTIOCH, Tenn. – October 23, 2026 – LKQ Corporation (Nasdaq: LKQ) today announced preliminary, unaudited results for the third quarter ended September 30, 2026, as well as leadership and operational actions intended to address recent performance and position the Company for improved execution under new leadership.
Preliminary Third Quarter 2026 Results
Based on preliminary unaudited financials for the third quarter, LKQ expects to report the following:
•Revenue of $3.32 billion, compared with $3.50 billion in the third quarter of 2025
•Parts and services organic revenue decline of 5.4%
•Net loss1 of $16 million to $32 million, including $111 million of non-cash impairment charges, compared with net income1 of $178 million in the third quarter of 2025
•Diluted loss per share1 of $0.06 to $0.12, including $0.42 per share of non-cash impairment charges, compared with diluted EPS of $0.69 in the third quarter of 2025
•Adjusted diluted EPS1,2 of $0.47 to $0.53, compared with $0.84 in the third quarter of 2025
•Europe parts and services organic revenue decline of 9.8%; and segment EBITDA margin of 4.1% to 5.1%, compared with 10.0% in the third quarter of 2025
The third quarter results primarily reflect underperformance in the Europe segment, including operational disruptions associated with the ERP implementation in Germany and volume declines in the United Kingdom and Benelux. While Specialty was modestly below expectations, the shortfall was more limited, and North America performed in line with the Company’s expectations despite softer market conditions.
The Company will report full third quarter results on October 29, 2026, and will hold a conference call at that time.
Leadership Changes
LKQ today announced the appointment of Salvatore A. Abbate as President and Chief Executive Officer, effective December 15, 2026. He succeeds Justin Jude, who is departing the Company effective today. Until Mr. Abbate assumes the role of President and Chief Executive Officer, the Company has established an interim Office of the Chief Executive Officer to provide ongoing leadership continuity, consisting of John Mendel, Chairman of the Board, and Sue Gove, Chair of LKQ’s Audit Committee. The Office of the Chief Executive Officer will work closely with LKQ’s leadership team in overseeing the Company’s operations during the interim period.
(1) References in this release to Net (loss) income and Diluted (loss) earnings per share, and the corresponding adjusted figures, reflect amounts from continuing operations attributable to LKQ stockholders.
(2) Non-GAAP measure. See the table accompanying this release that reconciles the actual or forecasted U.S. GAAP measure to the actual or forecasted adjusted measure, which is non-GAAP.
Also effective today, Andy Hamilton is departing his role as President and Managing Director of LKQ Europe. The Board has engaged Alvarez & Marsal (“A&M”) to advise the Company on its European operations, with an initial focus on improving customer service levels, stabilizing operations and strengthening performance and cost discipline across the region.
“LKQ’s performance, particularly in Europe, has fallen significantly short of the Board’s expectations, and the Board is taking decisive action to address it,” said John Mendel, Chairman of the Board. “We have strong conviction in LKQ’s business and its potential to create significant value for shareholders. Sal is a proven operator with a track record of driving performance in complex distribution businesses, and A&M brings deep experience in operational improvement. Together with LKQ’s talented teams, we are focused on improving execution and delivering improved results for our stakeholders.”
Withdrawal of Full-Year 2026 Guidance
Considering the third quarter results in Europe and the appointment of Mr. Abbate as President and Chief Executive Officer, effective December 15, 2026, LKQ is withdrawing its full-year 2026 guidance, which was most recently updated on July 30, 2026.
Strategic Review Update
In connection with the Board’s ongoing review of strategic alternatives, the Company has taken several actions, including appointing Mr. Abbate as the Company’s next President and Chief Executive Officer, implementing leadership changes within its European operations, and retaining A&M to advise the Company with respect to its European operations. The Company will provide additional updates regarding the strategic alternatives process as appropriate.
About LKQ Corporation
LKQ Corporation (www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. LKQ offers its customers a broad range of OE recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.
Page | 2
The following unaudited table reconciles Net (Loss) Income and Diluted (Loss) Earnings per Share to Adjusted Net Income and Adjusted Diluted (Loss) Earnings per Share, respectively:
| Three Months Ended September 30, | |||||||||||||||||
| 2026 | 2025 | ||||||||||||||||
| Preliminary | |||||||||||||||||
| (In millions, except per share data) | Low | High | |||||||||||||||
| Net (loss) income | $ | (35) | $ | (19) | $ | 180 | |||||||||||
| Less: net (loss) income attributable to continuing noncontrolling interest | (1) | (1) | — | ||||||||||||||
| Net (loss) income attributable to LKQ stockholders | (34) | (18) | 180 | ||||||||||||||
| Less: net (loss) income from discontinued operations | (2) | (2) | 2 | ||||||||||||||
| Net (loss) income from continuing operations attributable to LKQ stockholders | (32) | (16) | 178 | ||||||||||||||
| Adjustments: | |||||||||||||||||
| Amortization of acquired intangibles | 34 | 34 | 37 | ||||||||||||||
| Restructuring and transaction related expenses | 24 | 24 | 14 | ||||||||||||||
| Impairment of goodwill | 88 | 88 | — | ||||||||||||||
| Impairment of net assets held for sale | 23 | 23 | — | ||||||||||||||
| Direct impacts of Ukraine/Russia conflict | 4 | 4 | — | ||||||||||||||
| Excess tax deficiency from stock-based payments | 1 | 1 | — | ||||||||||||||
| Tax effect of adjustments | (23) | (23) | (13) | ||||||||||||||
| Adjusted net income | $ | 119 | $ | 135 | $ | 216 | |||||||||||
| Weighted average diluted common shares o/s | 252.9 | 252.9 | 257.3 | ||||||||||||||
| Diluted (loss) earnings per share: | |||||||||||||||||
| Reported | $ | (0.12) | $ | (0.06) | $ | 0.69 | |||||||||||
| Adjusted | $ | 0.47 | $ | 0.53 | $ | 0.84 | |||||||||||
We have presented Adjusted Net Income and Adjusted Diluted Earnings per Share as we believe these measures are useful for evaluating the core operating performance of our continuing business across reporting periods and in analyzing our historical operating results. We define Adjusted Net Income and Adjusted Diluted Earnings per Share as Net Income and Loss and Diluted Earnings (Loss) per Share adjusted to eliminate the impact of net income and loss attributable to noncontrolling interest, income and loss from discontinued operations, restructuring and transaction related expenses, amortization expense related to all acquired intangible assets, gains and losses on debt extinguishment, changes in fair value of contingent consideration liabilities, other gains and losses related to acquisitions, equity method investments, or divestitures, impairment charges, direct impacts of the Ukraine/Russia conflict, excess tax benefits and deficiencies from stock-based payments and any tax effect of these adjustments. The tax effect of these adjustments is calculated using the effective tax rate for the applicable period or for certain discrete items the specific tax expense or benefit for the adjustment. These financial measures are used by management in its decision making and overall evaluation of our operating performance and are included in the metrics used to determine incentive compensation for our senior management. Adjusted Net Income and Adjusted Diluted Earnings per Share should not be construed as alternatives to Net Income and Loss or Diluted Earnings (Loss) per Share as determined in accordance with accounting principles generally accepted in the United States. In addition, not all companies that report measures similar to Adjusted Net Income and Adjusted Diluted Earnings per Share calculate such measures in the same manner as we do and, accordingly, our calculations are not necessarily comparable to similarly-named measures of other companies and may not be appropriate measures for performance relative to other companies.
Page | 3
Forward-Looking Statements
Statements and information in this press release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the “safe harbor” provisions of such Act.
Forward-looking statements include, but are not limited to, statements regarding our outlook, expectations, beliefs, hopes, intentions and strategies. These statements are subject to a number of risks, uncertainties, assumptions and other factors including those identified in our filings with the SEC. All forward-looking statements are based on information available to us at the time the statements are made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
You should not place undue reliance on our forward-looking statements. Actual events or results may differ materially from those expressed or implied in the forward-looking statements. The risks, uncertainties, assumptions and other factors that could cause actual events or results to differ from the events or results predicted or implied by our forward-looking statements include the factors discussed in our filings with the SEC, and other factors discussed in our filings with the SEC, including those disclosed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 and in our subsequent Quarterly Reports on Form 10-Q. These reports are available at the Investor Relations section on our website (www.lkqcorp.com) and on the SEC's website (www.sec.gov).
Preliminary Financial Information
The preliminary third quarter financial highlights presented in this press release are derived from our internal records and based on the most recent current information available to management, are subject to the closing and finalization of financial and accounting procedures for the period (which have yet to be performed) and should not be viewed as a substitute for our full financial statements prepared in accordance with GAAP. Our normal reporting processes with respect to the preliminary estimated financial data provided in this press release have not been fully completed. As a result, these preliminary estimated results may differ from the actual results that will be reflected in our unaudited condensed consolidated financial statements for the third quarter of 2026 when they are completed. While we believe that these estimates are based on reasonable assumptions, our actual results may vary, and such variations may be material.
Investor Contact
Joseph P. Boutross
LKQ Corporation
Vice President, Investor Relations
(312) 621-2793
jpboutross@lkqcorp.com
Media Contact
Whit Clay
Longacre Square Partners
lkq@longacresquare.com
Page | 4
Exhibit 99.2
LKQ Corporation Appoints Salvatore A. Abbate as President and Chief Executive Officer
Proven distribution leader to sharpen execution, drive improved performance and create long-term shareholder value
ANTIOCH, Tenn. – October 23, 2026 – LKQ Corporation (Nasdaq: LKQ) today announced that its Board of Directors has appointed Salvatore A. “Sal” Abbate as President and Chief Executive Officer, effective December 15, 2026. He succeeds Justin Jude, who is departing the Company effective today. Until Mr. Abbate assumes the role of President and Chief Executive Officer, the Company has established an interim Office of the Chief Executive Officer to provide ongoing leadership continuity, consisting of John Mendel, Chairman of the Board, and Sue Gove, Chair of LKQ’s Audit Committee. The Office of the Chief Executive Officer will work closely with LKQ’s leadership teams and management in overseeing the Company’s operations during the interim period.
Mr. Abbate brings more than three decades of experience leading large, complex distribution and industrial businesses. As CEO of Veritiv Corporation, he led a significant transformation of the company, with its share price increasing more than 13-fold during his tenure, culminating in its $2.6 billion sale to Clayton, Dubilier & Rice in 2023. Before becoming CEO, he served as Veritiv’s Chief Operating Officer and Chief Commercial Officer. Earlier in his career, Mr. Abbate held senior leadership roles at Andersen Windows & Doors, Solutia, Inc., now part of Eastman Chemical Company, and Armstrong World Industries, with responsibilities spanning sales, marketing, distribution, logistics, manufacturing, strategy and process improvement.
Mr. Abbate’s experience aligns closely with LKQ’s strategic and operational priorities. He has led high-volume, multi-site distribution businesses where pricing, procurement and supply chain discipline are critical to performance, and has led portfolio transformation focused on margin improvement and cash generation. He also brings public-company and international experience. He currently serves on the board of ArcBest (Nasdaq: ARCB). He holds a bachelor’s degree in industrial engineering from the Georgia Institute of Technology and an MBA from Northwestern University’s Kellogg School of Management.
“After a thorough search, the Board concluded that Sal is the right leader for LKQ at this moment,” said John Mendel, Chairman of the Board. “He is a disciplined operator and people-centered leader, who has transformed a complex distribution business, improved margins and created significant value for shareholders. Sal brings the operating rigor, commercial instincts and sense of urgency we need to sharpen execution across our businesses and unlock the full potential of LKQ. On behalf of the Board, I also want to thank Justin for his years of service and contributions to LKQ.”
“LKQ is an exceptional company, with unmatched scale, leading market positions and a deep bench of talented people,” said Mr. Abbate. “There is meaningful opportunity to improve performance, and I intend to move quickly. That starts with listening to our customers and teams, fostering a culture where our people can succeed and thrive, driving disciplined execution across every region and holding ourselves accountable for results. I’m honored to lead LKQ and look forward to working with the Board and the team to build a stronger, more profitable company.”
About LKQ Corporation
LKQ Corporation (www.lkqcorp.com) is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles. LKQ has operations in North America, Europe and Taiwan. LKQ offers its customers a broad range of OE recycled and aftermarket parts, replacement systems, components, equipment, and services to repair and accessorize automobiles, trucks, and recreational and performance vehicles.
Investor Contact
Joseph P. Boutross
LKQ Corporation
Vice President, Investor Relations
(312) 621-2793
jpboutross@lkqcorp.com
Media Contact
Whit Clay
Longacre Square Partners
lkq@longacresquare.com
Forward-Looking Statements
Statements and information in this press release that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the “safe harbor” provisions of such Act.
Forward-looking statements include, but are not limited to, statements regarding our outlook, expectations, beliefs, hopes, intentions and strategies. These statements are subject to a number of risks, uncertainties, assumptions and other factors including those identified in our filings with the SEC. All forward-looking statements are based on information available to us at the time the statements are made. We undertake no obligation to update any forward-looking statements, whether as a result of new information, future events or otherwise, except as required by law.
You should not place undue reliance on our forward-looking statements. Actual events or results may differ materially from those expressed or implied in the forward-looking statements. The risks, uncertainties, assumptions and other factors that could cause actual events or results to differ from the events or results predicted or implied by our forward-looking statements include the factors discussed in our filings with the SEC, including those disclosed under the captions “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” in our Annual Report on Form 10-K for the year ended December 31, 2025 and in our subsequent Quarterly Reports on Form 10-Q. These reports are available at the Investor Relations section on our website (www.lkqcorp.com) and on the SEC's website (www.sec.gov).
Page | 2