LKQ Corporation (NASDAQ:LKQ) shares climbed over 4% in premarket trading Thursday after the auto parts supplier posted better-than-expected third-quarter earnings, even as softer North American demand weighed slightly on revenue.
The company reported adjusted earnings of $0.84 per share, surpassing analyst forecasts of $0.76, while revenue rose 1.3% year-on-year to $3.5 billion. The top line came in just below the $3.54 billion consensus estimate, but results reflected market share gains in North America despite a 6% drop in repairable claims.
Strong Execution and Refined Outlook
Following the September 30 divestiture of its Self Service segment, LKQ announced a narrower and higher earnings outlook for the full year. The company now expects adjusted EPS between $3.00 and $3.15 for fiscal 2025, up from its prior range of $2.85 to $3.15.
President and CEO Justin Jude credited broad-based execution across the business:
“Our third quarter results reflect solid performance in multiple areas of the business,” he said.
“We delivered on our commitment to simplify the business with the divestiture of Self Service, continued to gain market share in a down market in North America, bounced back with double digit margins in Europe and achieved more than 9% organic growth in our Specialty business.”
Regional and Segment Highlights
The company’s European operations posted a modest 0.4% revenue increase year-over-year, showing steady demand and improving margins. Meanwhile, the Specialty segment remained a bright spot with 9.3% organic revenue growth, underscoring continued strength in aftermarket parts and accessories.
LKQ also generated $387 million in free cash flow during the quarter, reinforcing its healthy balance sheet and funding capacity for shareholder returns.
Capital Returns and Dividend
The company continued its buyback and dividend program, repurchasing 1.2 million shares for roughly $40 million and distributing $78 million in dividends during the quarter.
LKQ’s board declared a quarterly dividend of $0.30 per share, payable on December 4, 2025, maintaining its consistent capital return strategy as it enters the final quarter of the year.