- LKQ Corporation (LKQ, Financial) reports Q1 2025 revenue of $3.5 billion, down 6.5% from Q1 2024.
- Diluted EPS increased by 10.2% to $0.65, while the company returned $118 million to shareholders.
- The company maintains its full-year 2025 guidance with organic revenue growth projected at 0-2%.
LKQ Corporation (LKQ) announced its financial results for the first quarter of 2025. The company reported revenue of $3.5 billion, marking a 6.5% decrease compared to $3.7 billion in the same period of 2024. The decline was primarily driven by a 4.3% reduction in organic revenue from parts and services.
Despite the revenue contraction, LKQ achieved a net income of $169 million, up from $158 million in Q1 2024. This improvement resulted in a 10.2% increase in diluted earnings per share (EPS), reaching $0.65 compared to $0.59 in the prior year. Adjusted net income decreased by 7.3% to $204 million, with adjusted diluted EPS decreasing to $0.79 from $0.82 in the previous year.
The company's cash flow from operations was negative $3 million, and free cash flow stood at negative $57 million. LKQ's balance sheet showed total debt of $4.4 billion with a leverage ratio of 2.5x EBITDA as of March 31, 2025.
In the first quarter, LKQ returned $118 million to stockholders, including $40 million in share repurchases and $78 million in dividends. The company also declared a quarterly dividend of $0.30 per share for the second quarter of 2025.
Looking ahead, LKQ has maintained its full-year 2025 financial guidance, projecting organic revenue growth in the range of 0% to 2% and adjusted diluted EPS between $3.40 and $3.70. The company has formed a tariff task force to navigate potential market disruptions, although tariff impacts have not been included in the current guidance.
Overall, LKQ's Q1 performance reflects operational resilience amid revenue challenges, with management focusing on cost optimization and maintaining shareholder returns.
