LKQ Corporation reported second quarter 2025 financial results and provided updated outlook for 2025.
Revenue for the second quarter of 2025 was $3.6 billion, a decrease of 1.9% compared to $3.7 billion for the second quarter of 2024. Parts and services organic revenue decreased 3.4% (2.7% decrease on a per day basis), the net impact of acquisitions and divestitures decreased revenue by 1.0%, and foreign exchange rates increased revenue by 2.3% year over year, for a total parts and services revenue decrease of 2.1%.
Net income was $192 million compared to $185 million for the same period of 2024. Diluted earnings per share2 was $0.75 compared to $0.70 for the same period of 2024, an increase of 7.1%.
On an adjusted basis, net income was $225 million compared to $261 million for the same period of 2024. Adjusted diluted earnings per share was $0.87 compared to $0.98 for the same period of 2024, a decrease of 11.2%.
The company’s focus on cost reduction measures has resulted in more than $125 million in costs taken out over the past 12 months with an additional $75 million targeted for 2025.
North American organic revenue outperformed the market even as repairable claims across the entire industry declined 9%. In Europe, the company has replaced more than 25% of the leadership team and continues to focus on reducing costs, rationalizing SKU’s and enhancing revenue opportunities, including entering into a strategic partnership to expand our salvage business.
Strategic Initiatives
- Simplify Business Portfolio and Operations: Streamlining operations by focusing on our non-discretionary businesses, divesting non-core assets, and enhancing efficiencies, in collaboration with qualified advisors to ensure comprehensive evaluation and execution of strategic decisions.
- Expand Lean Operating Model Globally: Continuing to scale lean operating model across all regions to drive productivity, improve execution, and accelerate decision-making.
- Invest and Grow Organically: Investing in our core businesses to achieve above market growth and drive market share gains.
- Pursue Disciplined Capital Allocation Strategy: Capital allocation remains focused on maximizing shareholder value.
2025 Outlook
“As we look ahead, we are focused on executing on our strategic initiatives to deliver improved financial results. We will continue to follow a disciplined capital allocation strategy that returns capital to shareholders. Our strategy includes driving efficiencies and simplifying our business and portfolio as we look at ROIC as a constant measure. We are navigating through the cyclical issues in our marketplace and will have a stronger Company that is well-positioned when the market turns,” stated Rick Galloway, senior vice president and chief financial officer.
Based on a confluence of macroeconomic factors in both North America and Europe, coupled with the results this quarter, LKQ is lowering its full year outlook. In North America, the company is not seeing a recovery in the repairable claims and tariff uncertainty continues. In Europe, general economic softness and geopolitical unrest are drivers of an uncertain environment.
