LKQ Corp's Q2 2025 Earnings Report: Revenue Down 1.9% to $3.6 Billion, EPS at $0.75 Misses Estimates

LKQ Corp reported Q2 2025 earnings with revenue of $3.6 billion, a 1.9% decrease from the same period last year, and diluted EPS of $0.75, a 7.1% increase from the previous year. Despite a challenging market environment, the company managed to increase its net income to $192 million and achieved a gross margin of 38.8%. LKQ Corp is committed to simplifying its business portfolio, enhancing return on invested capital, and driving organic growth and market share gains.

LKQ Corporation (Nasdaq: LKQ) reported its second-quarter 2025 financial results, showcasing a 1.9% decrease in revenue to $3.6 billion compared to $3.7 billion in the same period last year. The company's diluted earnings per share (EPS) increased by 7.1% to $0.75. Despite the challenging market environment, LKQ managed to boost its net income to $192 million and achieved a gross margin of 38.8%.

Justin Jude, President and Chief Executive Officer, commented on the quarter, "We are executing on our three-year plan outlined at our September 2024 Investor Day and are confident in our strategy. We have no doubt we have the size, scale, and an unmatched distribution network that are the best in the industry. Our results this quarter reflect a Company that is in transformation. We will move faster and harder to simplify our business and reduce costs."

LKQ's strategic initiatives include simplifying its business portfolio and operations, expanding its lean operating model globally, and pursuing a disciplined capital allocation strategy focused on maximizing shareholder value. The company has taken out more than $125 million in costs over the past 12 months and plans to reduce an additional $75 million in 2025.

Cash flow from operations and free cash flow were $296 million and $243 million, respectively, for the second quarter of 2025. The company returned approximately $235 million to its shareholders through stock repurchases and dividends for the six months ended June 30, 2025.

LKQ lowered its full-year outlook for 2025 due to macroeconomic factors in North America and Europe, as well as the results of the second quarter. The company is navigating through cyclical issues in its marketplace and expects a stronger position when the market turns.

References:
[1] https://finance.yahoo.com/news/lkq-corporation-announces-results-second-110000909.html