LKQ Corporation Reports $14.4 Billion Revenue for Fiscal Year 2024, Net Income Declines

LKQ Corporation reported a total revenue of $14.4 billion for the fiscal year ending December 31, 2024, marking an increase of 3.5% from $13.9 billion in 2023. The company's parts and services revenue rose by $544 million, or 4.1%, driven primarily by a 9.9% increase in the Wholesale - North America segment, which was bolstered by the acquisition of Uni-Select in August 2023. However, the Self Service and Specialty segments experienced declines of 8.4% and 0.7%, respectively. The overall gross margin decreased slightly to 39.1% from 40.2% in the previous year, attributed to a higher cost of goods sold, which rose to 60.9% of revenue compared to 59.8% in 2023.

In terms of profitability, LKQ's net income attributable to stockholders was $690 million, down from $936 million in 2023, resulting in diluted earnings per share of $2.62, compared to $3.49 the previous year. The decline in net income was influenced by increased interest expenses, which rose by $48 million due to higher outstanding debt and interest rates, as well as restructuring and transaction-related expenses that totaled $135 million, up from $65 million in 2023. The company also reported a significant increase in depreciation and amortization expenses, primarily due to the integration of Uni-Select.

Strategically, LKQ has focused on expanding its market presence through acquisitions, including the notable purchase of Uni-Select, which enhanced its North American paint distribution operations and provided a foothold in the Canadian market. The company also divested certain operations in Slovenia, Poland, and Bosnia as part of its ongoing restructuring efforts. As of December 31, 2024, LKQ employed approximately 47,000 people globally, with a significant portion based in North America and Europe.

Operationally, LKQ's Wholesale - North America segment generated $5.8 billion in revenue, while the Europe segment contributed $6.4 billion. The Specialty segment reported $1.7 billion, and the Self Service segment accounted for $532 million. The company continues to emphasize organic growth, with a focus on improving operational efficiencies and enhancing its product offerings, particularly in response to evolving vehicle technologies. Looking ahead, LKQ anticipates continued growth opportunities, although it acknowledges potential challenges from economic conditions and competitive pressures in the automotive parts industry.