LKQ Corporation Reports Q3 2026 Revenue Decline Amid European Operational Disruptions
LKQ Corporation reported a decline in third-quarter 2026 results, with revenue falling to $3.3 billion, a 5.1% decrease year-over-year. The company faced significant headwinds in Europe due to self-inflicted operational issues stemming from an ERP system implementation in Germany, which resulted in approximately $95 million in lost revenue and a sharp contraction in EBITDA margins for the region. In contrast, the North American segment showed resilience, with EBITDA margins increasing by 40 basis points due to strategic pricing and cost controls. Despite the European struggles, North America saw record alternative part utilization at 41%. Due to these complexities and a leadership transition, management has suspended its full-year 2026 guidance and the ongoing strategic review of its specialty segment.