# LKQ Forecasts a Third-Quarter Loss and Withdraws 2026 Guidance

By John Kim

Canonical URL: https://www.tokenpost.com/news/business/39594
Published: 2026-10-24T03:36:49.000Z
Updated: 2026-10-24T03:36:49.000Z
Section: Business

> The company expects revenue of $3.32 billion and adjusted diluted EPS of 47 cents to 53 cents for the quarter ended Sept. 30.

LKQ Corporation expects a third-quarter net loss of up to $32 million and has withdrawn its 2026 outlook as weakness in Europe weighs on preliminary results.

LKQ serves vehicle-repair and accessory customers across North America, Europe and Taiwan. Its projections cover the three months ended Sept. 30. Revenue is expected to reach $3.32 billion, down from $3.50 billion in the same quarter last year. Organic revenue from parts and services is forecast to decline 5.4%.

The anticipated net loss is $16 million to $32 million, including $111 million in noncash impairment charges. LKQ projects diluted loss per share of 6 cents to 12 cents, including 42 cents per share in impairment charges. On an adjusted basis, diluted earnings per share are expected at 47 cents to 53 cents, compared with 84 cents in third-quarter 2025. Adjusted EPS is a non-GAAP measure.

Europe is the main area of weakness. LKQ expects organic revenue from regional parts and services to fall 9.8%. The segment’s EBITDA margin is forecast at 4.1% to 5.1%, versus 10% a year earlier. The company cited disruption from an ERP implementation in Germany and fewer units moving through the United Kingdom and Benelux.

LKQ’s North American business tracked expectations, while Specialty came in slightly below them. The company withdrew its full-year 2026 guidance, most recently updated July 30.

CEO Justin Jude is departing effective Friday, Oct. 23. LKQ named Salvatore A. Abbate president and CEO, with the appointment taking effect Dec. 15. Until then, an interim Office of the CEO will be led by Board Chairman John Mendel and Audit Committee Chair Sue Gove. LKQ Europe President and Managing Director Andy Hamilton is also departing. The board retained Alvarez & Marsal to advise on European operations.

“LKQ’s performance, particularly in Europe, has fallen significantly short of the Board’s expectations,” Mendel said.

The estimates are preliminary and unaudited, and final results may differ materially. LKQ plans to release its full third-quarter results Thursday, Oct. 29.