LKQ Corp Q4 2025 – Revenue Up, Net Income Down

By Chris Stiles • Thursday, February 19 15:38 • Permanent Link

LKQ Corporation (NASDAQ: LKQ) has reported its financial results for the fourth quarter and full year 2025 and has provided an outlook for 2026. Here are the key figures:

In the fourth quarter of 2025, revenue was $3.3 billion, up 2.7% from the fourth quarter of 2024.
However, net income for the same period was $75 million, a decrease of 50.0% from $151 million in the fourth quarter of 2024. Diluted earnings per share also decreased by 50.0% to $0.29.
On an adjusted basis, net income for the fourth quarter of 2025 was $150 million, down 25% from $202 million in the same period of 2024. Adjusted diluted earnings per share decreased by 24.4% to $0.59.
For the full year of 2025, revenue decreased by 1.3% to $13.7 billion compared to $13.8 billion for the full year of 2024.
Net income for the full year of 2025 was $596 million, a decrease of 10% from $666 million in 2024. Diluted earnings per share decreased by 8.7% to $2.31.
On an adjusted basis, net income for the full year of 2025 was $777 million, down 13.5% from $894 million in 2024. Adjusted diluted earnings per share decreased by 11.2% to $3.01.
Cash flow from operations for the full year of 2025 was $1.1 billion, with free cash flow of $847 million.
During the fourth quarter of 2025, the company invested approximately $40 million to repurchase 1.3 million shares of its common stock and distributed $76 million in cash dividends. For the full year, the company returned approximately $469 million to its shareholders through stock repurchases and cash dividends.
Looking ahead to 2026, the company anticipates organic revenue growth for parts and services to be in the range of -0.5% to 1.5%. The outlook for diluted EPS is $2.35 to $2.65, and for adjusted diluted EPS, it is $2.90 to $3.20. Operating cash flow is expected to be $900 to $1,100 million, with free cash flow projected to be $700 to $850 million.

The market has reacted to these announcements by moving the company's shares -1.24% to a price of $33.51. If you want to know more, read the company's complete 8-K report here.

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