LKQ Corporation Q1 2026 Financial Results and Strategic Review

LKQ Corporation reported Q1 2026 revenue of $3,469 million, a 4.3% increase year-over-year. However, net income decreased by 53.3% to $79 million, with diluted EPS falling to $0.31 from $0.65 in Q1 2025. This decline was impacted by a $44 million impairment charge related to an equity investment in Mekonomen. Adjusted net income was $171 million, and adjusted diluted EPS was $0.67, down 9.5% from the prior year. The company generated negative free cash flow of $96 million in Q1 2026. LKQ Corporation also announced that its Board of Directors has initiated a comprehensive review of strategic alternatives to enhance shareholder value, retaining financial advisors for this process. The company reaffirmed its full-year 2026 outlook for organic revenue growth, diluted EPS, adjusted diluted EPS, operating cash flow, and free cash flow.