LKQ Corporation Reports Q2 2025 Revenue of $3.642 Billion, Net Income Rises to $192 Million

LKQ Corporation reported its financial results for the second quarter of 2025, revealing a revenue of $3.642 billion, a decrease of 1.9% from $3.711 billion in the same quarter of 2024. For the first half of 2025, total revenue was $7.105 billion, down from $7.414 billion year-over-year. The company's net income attributable to LKQ stockholders for the second quarter was $192 million, or $0.75 per diluted share, compared to $185 million, or $0.70 per diluted share, in the prior year. For the six-month period, net income rose to $361 million from $343 million, reflecting a positive trend in profitability despite the revenue decline.

The decrease in revenue was primarily driven by a 2.1% drop in parts and services revenue, which fell to $3.477 billion from $3.552 billion. This decline was attributed to reduced volumes in the Wholesale - North America and Europe segments, as well as a decrease in customer admissions in the Self Service segment. The company noted that organic revenue decreased by 3.4%, while foreign exchange fluctuations contributed positively to revenue by approximately 2.3%. Cost of goods sold also decreased, totaling $2.230 billion for the quarter, which helped maintain a stable gross margin percentage of 38.8%.

In terms of operational developments, LKQ continued to implement its 2024 Global Restructuring Plan aimed at enhancing profitability through cost reductions and operational efficiencies. The company incurred restructuring expenses of $8 million in the second quarter, down from $49 million in the same period last year. Additionally, LKQ's selling, general, and administrative expenses increased slightly to $998 million, reflecting ongoing investments in operational capabilities. The company reported a total employee headcount of approximately 26,000 as of June 30, 2025, consistent with its strategic focus on maintaining a skilled workforce.

Geographically, LKQ's revenue from the United States was $1.729 billion, down from $1.769 billion, while revenue from Europe decreased to $1.601 billion from $1.633 billion. The Specialty segment reported revenue of $464 million, slightly down from $466 million, and the Self Service segment generated $50 million, down from $55 million. The company continues to focus on expanding its market presence and enhancing product adoption rates across its segments, despite facing challenges from competitive pressures and economic conditions.

Looking ahead, LKQ remains cautiously optimistic about its financial outlook, emphasizing its commitment to strategic acquisitions and organic growth initiatives. The company plans to leverage its liquidity, which stood at $1.425 billion as of June 30, 2025, to support future investments and operational needs. With a focus on improving cash flow and maintaining a strong balance sheet, LKQ aims to navigate the evolving market landscape while delivering value to its shareholders.