LKQ posts Q3 loss, replaces CEO amid Europe struggles

LKQ Corporation (NASDAQ: LKQ) reported preliminary third-quarter 2026 results showing a net loss of $16 million to $32 million, compared with net income of $178 million in the same period a year earlier, driven largely by underperformance in its European segment.

Revenue for the quarter ended September 30, 2026, came in at $3.32 billion, down from $3.50 billion in the third quarter of 2025. Parts and services organic revenue declined 5.4% overall, while Europe parts and services organic revenue fell 9.8%. Europe segment EBITDA margin dropped to between 4.1% and 5.1%, compared with 10.0% in the prior-year period. The company attributed the European shortfall to operational disruptions from an ERP system implementation in Germany and volume declines in the United Kingdom and Benelux.

The preliminary results include $111 million in non-cash impairment charges. Diluted loss per share from continuing operations is expected to be between $0.06 and $0.12, versus earnings of $0.69 per share a year ago. Adjusted diluted earnings per share, a non-GAAP measure, are projected at $0.47 to $0.53, compared with $0.84 in the third quarter of 2025.

LKQ announced the appointment of Salvatore A. Abbate as President and Chief Executive Officer, effective December 15, 2026, succeeding Justin Jude, who departed immediately. An interim Office of the Chief Executive Officer, consisting of Board Chairman John Mendel and Audit Committee Chair Sue Gove, will oversee operations until Abbate assumes the role.

Andy Hamilton also departed as President and Managing Director of LKQ Europe. The company said it has retained advisory firm Alvarez & Marsal to focus on stabilizing European operations and improving performance and cost discipline.

LKQ withdrew its full-year 2026 guidance, which had most recently been updated on July 30, 2026. The company said it will report full third-quarter results on October 29, 2026. The preliminary figures are unaudited and subject to change.

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