LKQ earnings estimates released on October 23, 2026, pointed to a sharp third-quarter profit decline, prompting the vehicle-parts distributor to withdraw its full-year guidance and announce a leadership overhaul. Preliminary revenue was $3.32 billion, down from $3.50 billion a year earlier, with European operational problems driving the shortfall.
Key Takeaways
- Preliminary adjusted diluted earnings per share were $0.47–$0.53, versus $0.84 a year earlier.
- European systems disruptions and weaker volumes prompted management changes and an outside operational review.
- LKQ withdrew its 2026 guidance and scheduled full third-quarter results for October 29.
Table of Contents
- LKQ earnings estimates show a sharp profit decline
- European disruption drives the operating shortfall
- New CEO and advisers tasked with improving execution
- Full-year outlook withdrawn ahead of final results
- Conclusion
LKQ earnings estimates show a sharp profit decline
LKQ’s preliminary third-quarter announcement covers the three months ended September 30, 2026. The figures remain unaudited and subject to completion of financial and accounting procedures; they are not final quarterly results.
The company expects adjusted diluted earnings per share of $0.47–$0.53, compared with $0.84 in the third quarter of 2025. Its expected loss from continuing operations attributable to shareholders includes $111 million of non-cash impairment charges.
The distinction between adjusted earnings and the accounting loss is important: the adjusted measure excludes impairment charges and several other items. It should not be treated as a substitute for earnings calculated under generally accepted accounting principles.
| Item | Details |
|---|---|
| Group parts and services organic revenue | Preliminary decline of 5.4% in Q3 2026 |
| Loss from continuing operations attributable to shareholders | $16 million–$32 million, versus $178 million net income in Q3 2025 |
| Diluted loss per share from continuing operations | $0.06–$0.12, versus earnings of $0.69 in Q3 2025 |
| Adjusted net income | $119 million–$135 million, versus $216 million in Q3 2025 |
European disruption drives the operating shortfall
LKQ attributed the quarter’s underperformance primarily to Europe, citing disruption associated with an enterprise resource planning system implementation in Germany and volume declines in the United Kingdom and Benelux.
European parts and services organic revenue fell 9.8%. The segment’s preliminary EBITDA margin was 4.1%–5.1%, compared with 10.0% a year earlier, showing that the deterioration extended beyond sales to profitability.
Performance elsewhere was less severe. North America operated in line with company expectations despite softer market conditions, while Specialty was modestly below expectations.
New CEO and advisers tasked with improving execution
Salvatore A. Abbate was appointed president and chief executive officer, effective December 15, 2026. He will succeed Justin Jude, whose departure took effect on October 23.
Until Abbate takes over, board chairman John Mendel and audit committee chair Sue Gove will lead an interim Office of the Chief Executive Officer, working with the existing leadership team.
Andy Hamilton also departed as president and managing director of LKQ Europe on October 23. The board retained Alvarez & Marsal to advise on European operations, initially focusing on customer service, operational stability, performance and cost discipline.
Full-year outlook withdrawn ahead of final results
LKQ withdrew its full-year 2026 guidance, most recently updated on July 30, citing the European results and the incoming CEO appointment. The announcement did not provide a replacement outlook.
The leadership changes and appointment of advisers also form part of the board’s ongoing review of strategic alternatives. LKQ said it would provide further updates on that process as appropriate, without announcing a transaction or completion timetable.
Conclusion
The next confirmed milestone for LKQ earnings is the October 29, 2026, release of full third-quarter results and accompanying conference call. That release will finalize the preliminary figures following the guidance withdrawal and leadership changes.
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