Source: Investing.com

On Thursday, LKQ Corporation reported first quarter results that fell short of earnings expectations while revenue exceeded analyst forecasts.

The company’s shares were flat in pre-market trading following the announcement.

The automotive parts distributor posted adjusted earnings per share of $0.67, missing the analyst consensus of $0.68 by $0.01. Revenue reached $3.47 billion, surpassing the $3.4 billion estimate and rising 4.3% from $3.33 billion in the prior-year quarter. The company reported adjusted net income of $171 million, down from $193 million in the first quarter of 2025.

LKQ maintained its full-year adjusted EPS guidance of $2.90 to $3.20. The midpoint of $3.05 sits slightly above the analyst consensus of $3.02.

The company also reaffirmed its outlook for operating cash flow of $900 million to $1.1 billion and free cash flow of $700 million to $850 million. Shares were unchanged following the results.

“We are operating in a challenging environment and are focused on improving our results,” said Justin Jude, President and Chief Executive Officer. “Our teams are taking deliberate actions to reduce costs, streamline operations while taking market share, and position ourselves for success going forward as the environment improves.”

Parts and services organic revenue declined 1.6%, though foreign exchange provided a 5.1% boost.

North America revenue increased 0.4% to $1.44 billion, while Europe revenue grew 6.5% to $1.62 billion. The company’s first quarter results included a $44 million, or $0.17 per share, impairment charge related to its equity method investment in Mekonomen.

LKQ distributed $77 million in cash dividends during the quarter and declared a quarterly dividend of $0.30 per share payable June 4. The company continues its strategic review process initiated in January to explore alternatives to enhance shareholder value.