LKQ Corporation announced preliminary financial results for the fiscal third quarter ended September 30, 2026, revealing a significant decline in performance compared to the prior year. The company reported revenue of $3.32 billion, a decrease from $3.50 billion in the third quarter of 2025. This decline was driven by a 5.4% drop in organic revenue for parts and services. The company also reported a net loss of $16 million to $32 million, compared to net income of $178 million in the prior year. A key factor in this loss was $111 million in non-cash impairment charges, which resulted in a diluted loss per share of $0.06 to $0.12, versus earnings of $0.69 in the prior year.
The company’s European operations were identified as the primary source of underperformance. Europe’s parts and services organic revenue declined by 9.8%, and its segment EBITDA margin fell to a range of 4.1% to 5.1%, down from 10.0% in the prior year. The company cited operational disruptions associated with an ERP implementation in Germany, as well as volume declines in the United Kingdom and Benelux, as contributing factors.
In response to these results, LKQ has withdrawn its full-year 2026 guidance, which was last updated on July 30, 2026. The company also announced significant leadership changes. Justin Jude, the current President and Chief Executive Officer, has ceased to serve in those roles effective October 23, 2026. He is being succeeded by Salvatore A. Abbate, who will assume the position of President and CEO effective December 15, 2026. Mr. Abbate brings over three decades of experience leading distribution and industrial businesses, including a tenure as CEO of Veritiv Corporation.
Effective immediately, Andy Hamilton has departed his role as Senior Vice President and President and Managing Director of LKQ Europe. The Board of Directors has engaged Alvarez & Marsal to advise the company on its European operations, with an initial focus on improving customer service and stabilizing performance. An interim Office of the Chief Executive Officer has been established to provide leadership continuity until Mr. Abbate assumes his role, consisting of Chairman John Mendel and Audit Committee Chair Sue Gove.
