LKQ withdraws full-year 2026 guidance as third-quarter revenue falls to $3.32 billion

LKQ Corporation (LKQ) said Friday in a filing that third-quarter revenue was $3.32 billion, down from $3.50 billion a year earlier, and that it is withdrawing its full-year 2026 guidance. The figures are preliminary and unaudited for the quarter ended Sept. 30.

The company said it will report full third-quarter results on Oct. 29 and hold a conference call at that time.

Here’s how the company did:

• Revenue: $3.32 billion vs. $3.50 billion a year earlier
• Net loss: $16 million to $32 million, including $111 million of non-cash impairment charges, vs. net income of $178 million a year earlier
• Diluted loss per share: $0.06 to $0.12, including $0.42 per share of non-cash impairment charges, vs. diluted earnings of $0.69 a year earlier
• Adjusted diluted earnings per share: $0.47 to $0.53, vs. $0.84 a year earlier
• Parts and services organic revenue: down 5.4%

The company attributed the results mainly to its Europe segment, citing operational disruptions tied to the ERP implementation in Germany and volume declines in the United Kingdom and Benelux.

Europe parts and services organic revenue fell 9.8%. Segment EBITDA margin, or earnings before interest, taxes, depreciation and amortization relative to revenue, was 4.1% to 5.1%, compared with 10.0% a year earlier.

The company said the Specialty segment was modestly lower. It also said North America performed in line despite softer market conditions.

The company is withdrawing its full-year 2026 guidance, which it last updated on July 30, 2026. It cited the third-quarter results in Europe and the appointment of Abbate as chief executive. The filing gave no replacement figures.

Chairman of the Board John Mendel said: “LKQ’s performance, particularly in Europe, has fallen significantly short of the Board’s expectations, and the Board is taking decisive action to address it.”

Justin L. Jude ceased to serve as president and chief executive and resigned from the board, both effective Oct. 23. The filing does not give a reason for his departure. He is eligible for payments under the company’s severance policy, which the filing describes by reference to a March 24, 2026 proxy statement.

Salvatore A. Abbate, 58, will become president and chief executive on Dec. 15 and join the board on the same date. At Veritiv Corporation, where he was chief executive, the company’s share price rose more than 13-fold during his tenure. Veritiv was sold to Clayton, Dubilier & Rice for $2.6 billion in 2023.

The offer letter provides Abbate with an annual base salary of $1,340,000 and a target cash incentive of 150% of base salary. It also includes a $3,300,000 sign-on cash award and a one-time sign-on grant of restricted stock units with a grant-date value of $12,000,000.

Until Abbate takes over, an interim Office of the Chief Executive Officer will oversee operations. It consists of Mendel and Sue Gove, Chair of the Audit Committee. Rick Galloway, senior vice president and chief financial officer, will serve as principal executive officer for SEC purposes until Dec. 15.

Abbate said in the release: “There is meaningful opportunity to improve performance, and I intend to move quickly.”

Andy Hamilton ceased to serve as senior vice president and president and managing director of LKQ Europe, effective Oct. 23.

The board engaged Alvarez & Marsal to advise on European operations, with an initial focus on improving customer service levels, stabilizing operations and strengthening performance and cost discipline across the region.

The changes are part of the board’s ongoing review of strategic alternatives, the company said. It will provide additional updates as appropriate. The filing does not describe the alternatives under review.