LKQ Corporation, the parent company of Keystone Automotive and its NTP-STAG RV aftermarket distribution division, reported first quarter 2025 financial results.
“We are pleased with our first quarter performance and are driven to sustain this momentum as we advance our operational excellence initiatives and generate long-term value despite market uncertainties. By embracing these initiatives, even with lower demand, the team’s unwavering focus on optimizing the company’s cost structure is reflected in our year-over-year EBITDA percentage growth,” stated Justin Jude, president and chief executive officer. “We have formed a dedicated tariff task force comprised of leaders from across our global enterprise to proactively prepare for and navigate the potential opportunities or disruptions that could be caused by the ever-changing tariff landscape.”
First Quarter 2025 Financial Results
Revenue for the first quarter of 2025 was $3.5 billion, a decrease of 6.5% compared to $3.7 billion for the first quarter of 2024. Parts and services organic revenue decreased 4.3% (3.1% decrease on a per day basis), the net impact of acquisitions and divestitures decreased revenue by 0.9% and foreign exchange rates decreased revenue by 1.6% year over year, for a total parts and services revenue decrease of 6.8%.
Net income was $169 million compared to $158 million for the same period of 2024. Diluted earnings per share was $0.65 compared to $0.59 for the same period of 2024, an increase of 10.2%.
On an adjusted basis, net income was $204 million compared to $220 million for the same period of 2024, a decrease of 7.3%. Adjusted diluted earnings per share was $0.79 compared to $0.82 for the same period of 2024, a decrease of 3.7%.
Cash Flow & Balance Sheet
Cash flow from operations and free cash flow were negative $3 million and negative $57 million, respectively, for the first quarter of 2025. As of March 31, the balance sheet reflected total debt of $4.4 billion and total leverage, as defined in the company’s credit facility, was 2.5x EBITDA.
Stock Repurchase & Dividend Programs
During the first quarter of 2025, the company invested approximately $40 million to repurchase 1.0 million shares of its common stock and distributed $78 million in cash dividends. Since initiating the stock repurchase program in late October 2018, the company has repurchased approximately 65.5 million shares of its common stock for a total of $2.8 billion through March 31. An aggregate balance of $1.7 billion remains for potential additional stock repurchases through Oct. 25, 2026. On April 22, the board of directors declared a quarterly cash dividend of $0.30 per share of common stock, payable on May 29 to stockholders of record at the close of business on May 15.
2025 Outlook
“The company delivered a solid first quarter, in line with our expectations, and we left our prior full year 2025 guidance unchanged. This outlook does not include potential positive or negative effects from tariffs, which are unknown at this time. We will update our guidance as necessary in future quarters when there is greater clarity regarding the tariff situation. Our strong balance sheet, robust free cash flow, and ample liquidity should allow us to manage headwinds and move quickly as opportunities emerge,” stated Rick Galloway, senior vice president and chief financial officer.
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