LKQ shares fell more than 16% in pre-market trading on October 23, 2026, after the vehicle-parts distributor disclosed preliminary third-quarter revenue below analyst expectations, projected a quarterly loss and withdrew its full-year guidance. The announcement also included Justin Jude’s immediate departure as chief executive, with Salvatore A. Abbate scheduled to take over on December 15.
Key Takeaways
- Expected quarterly revenue of $3.32 billion fell short of the $3.41 billion analyst consensus.
- European operating problems weighed on earnings beyond the effect of non-cash impairment charges.
- Full-year guidance was withdrawn, with complete third-quarter results scheduled for October 29.
Table of Contents
- LKQ shares retreat as preliminary figures miss expectations
- Europe drives the operating shortfall
- Leadership changes leave an interim period
- Conclusion
LKQ shares retreat as preliminary figures miss expectations
The pre-market decline followed a warning covering the quarter ended September 30, 2026. The trading move was not a closing result, and LKQ’s financial estimates remained preliminary and unaudited.
LKQ’s preliminary third-quarter announcement put expected revenue at $3.32 billion, compared with $3.50 billion a year earlier. That was $90 million below the supplied analyst consensus of $3.41 billion.
The company projected a loss from continuing operations attributable to shareholders of $16 million to $32 million, versus income of $178 million a year earlier. The forecast included $111 million of non-cash impairment charges, equivalent to $0.42 per share.
Excluding specified adjustments, diluted earnings per share were expected to be $0.47 to $0.53, down from $0.84. That decline indicates the earnings weakness extended beyond the impairment charges; adjusted earnings are a non-GAAP measure, not a substitute for the reported accounting result.
| Item | Details |
|---|---|
| Group parts and services organic revenue | Preliminary Q3 2026 decline of 5.4%. |
| Reported diluted EPS | Expected loss of $0.06–$0.12, versus earnings of $0.69 in Q3 2025; continuing operations attributable to shareholders. |
| Goodwill impairment | $88 million included in preliminary impairment charges. |
| Impairment of assets held for sale | $23 million included in preliminary impairment charges. |
Europe drives the operating shortfall
LKQ attributed most of the underperformance to Europe, citing disruptions associated with an enterprise resource planning system implementation in Germany and lower volumes in the United Kingdom and Benelux.
European parts and services organic revenue was expected to decline 9.8%. The segment’s projected EBITDA margin of 4.1% to 5.1% compared with 10.0% a year earlier, showing substantial pressure on profitability as well as sales.
North America performed in line with company expectations despite softer market conditions, while the Specialty business was modestly below expectations. The board retained Alvarez & Marsal to advise on European operations, initially focusing on customer service, operational stability and cost discipline.
Leadership changes leave an interim period
Jude departed on October 23, while Abbate’s appointment takes effect on December 15. Board chairman John Mendel and audit committee chair Sue Gove will oversee operations through an interim Office of the Chief Executive Officer. European division leader Andy Hamilton also departed on October 23.
LKQ withdrew its 2026 guidance, last updated on July 30, in light of the European results and incoming leadership. The withdrawal removes the previous full-year benchmark without replacing it with a new forecast.
The company cautioned that its accounting procedures were incomplete and that final quarterly figures could differ materially from the preliminary estimates.
Conclusion
LKQ’s October 29 results release and conference call are the next scheduled checkpoints for the final quarterly figures and further detail on European operations. Abbate’s planned December 15 start follows the interim leadership period.
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