How did LUCK's revenue and expenses trend in Q2 2025 compared to previous quarters?
5/8/2025 05:33pm
LKQ Corp.'s revenue and expenses in Q2 2025 showed a mixed performance compared to the previous quarter, Q2 2024.
1. **Revenue Trend**:
- In Q2 2025, LKQ Corp. reported a revenue of $3.5 billion, which was slightly below the estimated $3.556 billion and reflected a 6.5% decrease from the previous year's revenue.
- The company's organic revenue for parts and services experienced a 4.3% decrease, and there was a 0.9% reduction from acquisitions.
2. **Expense Trend**:
- The company's gross margin improved to 39.8% in Q2 2025, up from 39.2% in the previous year, despite the decrease in revenue.
- LKQ Corp. reported a net income of $169 million in Q2 2025, which was a 7% increase from $158 million in the same quarter of 2024.
3. **Financial Performance**:
- The diluted earnings per share (EPS) in Q2 2025 was $0.65, which missed the estimated $0.70 but showed a 10.2% increase from $0.59 in Q2 2024.
- The company's free cash flow was negative $57 million in Q2 2025, indicating a decline in cash generation capabilities during the quarter.
4. **Dividend and Shareholder Returns**:
- LKQ Corp. declared a quarterly dividend of $0.30 per share, payable in the second quarter of 2025.
- The company returned $118 million to shareholders, with $40 million spent on share repurchases and $78 million on dividends.
In conclusion, LKQ Corp. experienced a decline in revenue and a negative free cash flow in Q2 2025 compared to the previous quarter, but there were improvements in gross margin and net income. The company's EPS showed an increase, and it continued to return value to shareholders through dividends and share repurchases.