LKQ · 8-K · 20261029PR000050

Operating Margin Drivers

LKQ CORP · 2026-10-29 · Importance 69 · Surprise 64 · No source text

Third-quarter gross margin fell to 37.2% of revenue from 38.3% a year earlier, and gross margin dollars declined 7.8% to $1.236 billion. Operating income fell 80.7% to $53 million, or 1.6% of revenue versus 7.8%, while total Segment EBITDA decreased to $296 million from $395 million and its margin fell to 8.9% from 11.3%. Europe Segment EBITDA declined to $68 million from $162 million, with margin falling to 4.6% from 10.0%; Specialty Segment EBITDA was $25 million versus $34 million, and North America Segment EBITDA was $203 million versus $199 million.

Key facts

• LKQ’s third-quarter 2026 operating income was $53 million (1.6% of revenue), compared with $274 million (7.8% of revenue) in Q3 2025. source
• LKQ’s third-quarter 2026 gross margin was $1.236 billion, or 37.2% of revenue, compared with $1.341 billion, or 38.3%, in Q3 2025. source
• LKQ disclosed that fluctuations in commodity prices could adversely affect its financial results. source
• LKQ Specialty was modestly below plan in Q3 2026. source

Impact estimates