lkq-20260331

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

________________________________________

FORM 10-Q

____________________________


☒			QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Quarterly Period Ended March 31, 2026


☐			TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the Transition Period from to

Commission File Number: 001-42002

____________________________

LKQ CORPORATION

(Exact name of registrant as specified in its charter)

____________________________

Delaware

36-4215970

(State or other jurisdiction of incorporation or organization)

(I.R.S. Employer Identification No.)

5846 Crossings Boulevard

Antioch, Tennessee

37013

(Address of principal executive offices)

(Zip Code)

Registrant’s telephone number, including area code: (615) 781-5200

Securities registered pursuant to Section 12(b) of the Act:

Title of Each Class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $.01 per share

LKQ

The Nasdaq Global Select Market

4.125% Notes due 2031

LKQ31

The Nasdaq Global Select Market

________________________________________

Indicate by check mark whether the registrant: (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes ☒ No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§ 232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). Yes ☒ No ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company," and "emerging growth company" in Rule 12b-2 of the Exchange Act.

Large Accelerated Filer

☒

Accelerated Filer

☐

Emerging Growth Company

☐

Non-accelerated Filer

☐

Smaller Reporting Company

☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes ☐ No ☒

At April 23, 2026, the registrant had outstanding an aggregate of 254,790,835 shares of Common Stock.

*****

TABLE OF CONTENTS


Item		Page
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements:
	Unaudited Condensed Consolidated Statements of Income for the Three Months Ended M a rch 3 1 , 202 6 and 202 5	3
	Unaudited Condensed Consolidated Statements of Comprehensive Income for the Three Months Ended March 3 1 , 202 6 and 202 5	4
	Unaudited Condensed Consolidated Balance Sheets as of March 31, 202 6 and December 31, 202 5	5
	Unaudited Condensed Consolidated Statements of Cash Flows for the Three Months Ended March 3 1 , 202 6 and 202 5	6
	Unaudited Condensed Consolidated Statements of Stockholders' Equity for the Three Months Ended March 31 , 202 6 and 202 5	7
	Notes to Unaudited Condensed Consolidated Financial Statements	8
Item 2.	Management's Discussion and Analysis of Financial Condition and Results of Operations	20
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	31
Item 4.	Controls and Procedures	32
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	33
Item 1A.	Risk Factors	33
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	33
Item 3.	Defaults Upon Senior Securities	33
Item 4.	Mine Safety Disclosures	33
Item 5.	Other Information	33
Item 6.	Exhibits	34
SIGNATURES		35

PART I

FINANCIAL INFORMATION

Item 1. Financial Statements

LKQ CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Income

(In millions, except per share data)


	Three Months Ended March 31,
	2026		2025
Revenue	$	3,469	$	3,327
Cost of goods sold	2,138		2,014

Gross margin	1,331		1,313
Selling, general and administrative expenses	994		949
Restructuring and transaction related expenses	33		11

Depreciation and amortization	87		86

Operating income	217		267
Other expense (income):
Interest expense	53		57

Interest income and other income, net	(3)		(10)
Total other expense, net	50		47
Income from continuing operations before provision for income taxes	167		220
Provision for income taxes	44		61
Equity in losses of unconsolidated subsidiaries	46		1
Income from continuing operations	77		158
Net income from discontinued operations	2		11
Net income	$	79	$	169







Basic earnings per share:
Income from continuing operations	$	0.30	$	0.61
Net income from discontinued operations	0.01		0.04
Net income	$	0.31	$	0.65




Diluted earnings per share:
Income from continuing operations	$	0.30	$	0.61
Net income from discontinued operations	0.01		0.04
Net income	$	0.31	$	0.65

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

LKQ CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Comprehensive Income

(In millions)


	Three Months Ended March 31,
	2026		2025
Net income	$	79	$	169




Other comprehensive (loss) income:
Foreign currency translation, net of tax	(71)		100

Net change in unrealized gains/losses on pension plans, net of tax	—		1
Other comprehensive (loss) income from unconsolidated subsidiaries	(5)		3
Other comprehensive (loss) income	(76)		104

Comprehensive income	$	3	$	273

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

LKQ CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Balance Sheets

(In millions, except per share data)


	March 31, 2026		December 31, 2025
Assets
Current assets:
Cash and cash equivalents	$	335	$	319
Receivables, net of allowance for credit losses	1,456		1,204
Inventories	3,354		3,426

Prepaid expenses and other current assets	330		299

Total current assets	5,475		5,248
Property, plant and equipment, net	1,406		1,452
Operating lease assets, net

SEC Form 10-Q filed by LKQ Corporation