LKQ Corporation said preliminary third-quarter 2026 revenue fell to $3.32 billion from $3.50 billion a year earlier, a decline of $180 million, as the company posted a net loss of $16 million to $32 million versus net income of $178 million in the third quarter of 2025.
The company said diluted loss per share was $0.06 to $0.12, compared with diluted earnings per share of $0.69 in the prior-year quarter. Adjusted diluted EPS dropped to $0.47 to $0.53 from $0.84.
Europe was the main drag. LKQ said Europe organic revenue declined 9.8%, and segment EBITDA margin fell to 4.1% to 5.1% from 10.0% a year earlier. The company said the region’s results were hurt by operational disruptions tied to an ERP implementation in Germany and lower volumes in the U.K. and Benelux.
The preliminary loss included $111 million of non-cash impairment charges. In the same quarter last year, LKQ reported net income of $178 million.
North America, by contrast, was in line with expectations, while specialty came in modestly below plan.
LKQ also said it is withdrawing full-year 2026 guidance, which it had last updated on July 30.
On leadership, the company named Salvatore A. Abbate president and chief executive officer, effective Dec. 15, 2026. He will replace Justin Jude, who is departing effective immediately. Until Abbate takes over, an interim office of the chief executive officer will be led by John Mendel and Sue Gove.
Andy Hamilton is also departing his role as president and managing director of LKQ Europe.
The board retained Alvarez & Marsal to advise on European operations, with an initial focus on customer service, operational stabilization and cost discipline. The market has reacted to these announcements by moving the company's shares 5.1% to a price of $22.47. Check out the company's full 8-K submission here.
