LKQ Cuts 2025 Outlook After Q2 Earnings Miss

LKQ Corporation reported second-quarter 2025 adjusted earnings of $0.87 per share, down from $0.98 a year ago and missing analyst estimates, while revenue fell 1.9% year over year to $3.64 billion, slightly above analyst forecasts. The company lowered its full-year adjusted earnings per share outlook to $3.00–$3.30 from a prior forecast of $3.40–$3.70, and now expects organic revenue to decline by 1.5% to 3.5% instead of growing. Shares dropped as much as 16% in premarket trading after the guidance cut and earnings miss. LKQ attributed these results to soft demand for auto parts in North America and Europe, margin pressures from tariff uncertainty and higher insurance costs, and a challenging macroeconomic environment. The company highlighted ongoing transformation efforts, including leadership changes in Europe and cost-saving initiatives. Despite meeting revenue expectations and maintaining stable operating margins, LKQ faces sluggish long-term sales growth amid industry headwinds.