Investing.com -- LKQ Corporation (NASDAQ: LKQ) shares plummeted 10% in Friday morning trading after the automotive parts distributor released preliminary third-quarter 2026 results that missed Wall Street expectations and announced a major executive overhaul.

For the quarter, LKQ expects revenue of $3.32 billion, down from $3.50 billion in the same period last year and short of the $3.41 billion analyst consensus. Adjusted diluted earnings per share (EPS) are projected at $0.47 to $0.53—well below the $0.69 expectation and down sharply from $0.84 in Q3 2025.

Organic revenue for parts and services fell 5.4% year-over-year. The company anticipates a third-quarter net loss of $16 million to $32 million, driven by $111 million in non-cash impairment charges. By comparison, LKQ posted net income of $178 million in Q3 2025.

The disappointing results stem largely from significant underperformance in Europe, where organic parts and services revenue contracted 9.8%. The segment’s EBITDA margin dropped to between 4.1% and 5.1%, compared with 10.0% in the prior-year period.

Management cited operational disruptions stemming from an Enterprise Resource Planning (ERP) implementation in Germany, alongside persistent volume declines across the United Kingdom and Benelux regions. To address the downturn, LKQ has retained consulting firm Alvarez & Marsal to stabilize European operations and improve customer service.

Alongside its financial update, LKQ announced sweeping leadership changes:

• Salvatore A. Abbate will take over as President and Chief Executive Officer, effective December 15, 2026.

• Justin Jude has departed as CEO, effective Friday.

• Andy Hamilton, President and Managing Director of LKQ Europe, is also exiting the company.

In light of the Q3 missteps and executive transitions, LKQ withdrew its full-year 2026 financial guidance. The company is scheduled to report complete third-quarter financial results on October 29, 2026.

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