LKQ Corporation · NASDAQ:LKQ
LKQ — Q2 2025 Earnings Presentation
44 slides from LKQ's earnings presentation, Oct 27, 2025
Slide 1: Charting Our Future
LKQ CHARTING OUR FUTURE
Slide 2: Forward Looking Statements & Non-GAAP Financial Measures
Forward Looking Statements & Non-GAAP Financial Measures Statements and information in this presentation that are not historical are forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 and are made pursuant to the “safe harbor” provisions of such Act
Slide 3: LKQ's Evolution
LKQ’s Evolution 2003 2007 2011 Q2 2025 TTM Total Revenue: $328 million Total Revenue: $1.11 billion Total Revenue: $3.27 billion Total Revenue: $14.05 billion 6% 15% 5% 5% 17% 14% 4% 28% 12% 5% 45% 5% 19% 36% 94% 44% 1% 45% LKQ has grown from a North American collision operation to a globally divers
Slide 4: LKQ's Evolution
LKQ’s Evolution Wholesale Remanufactured Salvage US Keystone/ Europe-Sator Europe-Rhiag Services Uni-Select Paint Self Serve 1998 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 Aftermarket Keystone/ Europe- Europe-ECP Collision Specialty Stah
Slide 5: LKQ's Investment Thesis
LKQ’s Investment Thesis Organic Growth & Focus on Cash Flow Strong Market Position Operational Excellence and Capital Allocation • Market leadership in all four reporting • Ability to grow revenue organically • Convert EBITDA to FCF by maintaining segments: faster than market growth rigorous working
Slide 6: Key Strategic Priorities
Key Strategic Priorities Maximize Total Operational Excellence Stockholder Return Simplify Business Portfolio and Operations Invest in Organic Growth Expand Lean Operating Model Globally Disciplined Acquisitions of High Synergy Drive Cash Flow Tuck-in Businesses Grow Organically Return of Cash to St
Slide 7: Focused Strategy to Deliver Total Shareholder Return
Focused Strategy to Deliver Total Shareholder Return Drive Operational Excellence Simplify Business Drive Lean Operating Above Market Portfolio & Operations Model Globally Growth Capital Allocation Strategy Invest in Execute High Return Cash to Organic Growth Synergy Tuck-ins Shareholders 7
Slide 8: Second Quarter 2025 Results
Second Quarter 2025 Results LKQ @ Charting our Future
Slide 9: Executing on Strategic Initiatives – Making Progress
Executing on Strategic Initiatives – Making Progress Expand Lean Operating Model Globally & Grow Organically Returning Cash To Shareholders, Maximizing TSR Continued To Drive Multi-year Delivering Consistent Shareholder Returns Transformation & Growth Plan Invested $39 million in 2Q 2025 to repurcha
Slide 10: Q2 2025 Financial Performance Summary
Q2 2025 Financial Performance Summary ($ in millions, except per share data) Operating Performance Q2 2025 YoY Change Total Revenue $3,642 (1.9)% Organic Parts and Services Revenue Growth (Decline) (3.4)% Segment EBITDA(1) $430 (10.9)% Segment EBITDA(1) Margin 11.8% (120) bps Diluted EPS(2)
Slide 11: Outlook 2025
Outlook 2025(1) (effective only on the date issued: July 24, 2025) 2025 Full Year Outlook Organic P&S Revenue Growth (3.5%) to (1.5%) Prior Outlook(5) 0% to 2% 2H 2025 Headwinds Included in Outlook Diluted EPS: North America GAAP(2) $2.47 to $2.77 • Economic conditions delay recovery in repairable c
Slide 12: Operating Segments
Operating Segments LKQ @ Charting our Future
Slide 13: LKQ – Leading Vehicle Recycler and Global Parts Distributor
LKQ – Leading Vehicle Recycler and Global Parts Distributor Product Overview Revenue by Segment(1) Wholesale - North America Europe 4% Collision Mechanical 12% • Aftermarket automotive products • Aftermarket Hard Parts • Recycled & refurbished • Remanufactured products • Paint, Body & Equipment Coll
Slide 14: Wholesale North America & Europe
Wholesale North America & Europe Wholesale North America LKQ Europe Other / Services Collision Hard Parts Salvage Reman Reman ~$6 Bn ~$6+ Bn Collision Hard Parts Salvage Operating from a Position of Strength in Our Core Markets Collision Mechanical Services • Aftermarket • Recycled & Remanufactured
Slide 15: Wholesale North America & Europe: Better Together
Wholesale North America & Europe Better Together 01 02 03 Geographic and Leveraging regional Greater access to global product strengths and best financing opportunities diversification practices globally 04 05 06 Wholesale distribution Jointly and Global Competency businesses in resilient collaborat
Slide 16: Why We Win
Why We Win Unmatched Footprint and Distribution Network Value Proposition LKQ Network Effect on Fill Rates 75% 2014 F-150 2018 Nissan Altima 2020 Dodge Caravan Hood Headlamp Transmission New OEM $1,266 $484 $4,660 25% Reman na na $2,864 Salvage $590 $207 $1,590 AFM $938 $347 na LKQ Competition *For
Slide 17: Tariff Exposure
Tariff Exposure US direct imports are a small portion of global COGS Diversity In Operations Limits Exposure • Geographic mix (e.g. Europe) • Domestically sourced product mix • Salvage (collision and major mechanical) • Remanufacturing with minimal foreign sourced components Europe North America* In
Slide 18: Grow Our Core Collision Business
Grow Our Core Collision Business 01 02 New Product Launches Digital Sales Tools PBE, Private label, LKQ refinish brand 03 04 Share of Wallet Gains National Footprint and Inventory 18
Slide 19: Collision Trends in Wholesale - North America
Collision Trends in Wholesale - North America Collision volumes remain steady while increased self-pays, unrepaired vehicles and TLVs/ELVs* reduced repairable claims from 2022 to present USA Accident Volumes Key Drivers of Volume Changes Since 2022 Units in M Factor CAGR Market Forces Total Accident
Slide 20: Repairable Claim Count & WNA Organic P&S Growth
Repairable Claim Count & WNA Organic P&S Growth Y-o-Y change in Repairable Claims Count and WNA Organic P&S Revenue Growth, in % YoY % Change in Repairable Claims WNA Organic P&S Revenue Growth on a Per Day Basis 11.4% 11.4% Over this period, 8.6% we 6.7% 4.6% 5.5% 5.3% 4.8% outperformed 3.4% 2.5% 2
Slide 21: Market Leader in Europe-Segment Overview
Market Leader in Europe-Segment Overview Benelux-France #1 Market Position in Top 7 Markets Central and Eastern Europe $6.4 BN 26,500 DACH Revenue 2024 Colleagues Italy Belgium Czech Republic Scandinavia UK & ROI Italy Ireland 18 900 Germany Netherlands countries Locations we operate in United Kingd
Slide 22: Europe-Who We Are, Why We Win
Europe-Who We Are, Why We Win Size & Scale Range & World Class Concepts & Availability Logistics Innovation Market leader with Leading partnerships Only aftermarket company Tailored services, training & unmatched footprint. with Tier 1 suppliers with pan-European workshop concepts to 900 locations s
Slide 23: Europe-Key Market Dynamics
Europe-Key Market Dynamics VIO Evolution in Our European Markets, in M Vehicles VIO growth 2024-2027 CAGR +0.4% 250 251 252 253 3% 4% 5% 6% 4% 5% 6% 9% 93% 91% 88% 86% 2024 2025 2026 2027 BEV (P)HEV ICE Source: IHS forecast. Markets included: Austria, Belgium, Czech Republic, France, Germany, Hungar
Slide 24: Europe-Key Market Dynamics
Europe-Key Market Dynamics Total Market Growth 2024-2027 1.0-1.5% CAGR1 Headwinds Tailwinds 01 01 Key Opportunities New car registrations below 2019 levels Aging of the car parc Category Management 02 Geographical footprint 02 Softer 5-13yrs car segment 03 Workshop Concept New vehicle technologies &
Slide 25: Target Operating Model
Target Operating Model Customer Growth Product Leadership Operational Improvements Branch & Processes Workshop SKU Consolidation Asset Breadth & Depth Network and Concepts Private Label Expansion Rationalization Of Product Design Systems Central GCC Procurement Channel and Geographical Development S
Slide 26: Specialty Overview
Specialty Overview 2024 Revenue ~$1.7 billion | 2024 Segment EBITDA Margin 6.8% | 2,400+ Employees Key Facts #1 Customers • Distributor in Specialty Aftermarket 19,000+ • Distributor in RV Aftermarket Stocking SKUs • Manufacturer Off-Road Recovery Equipment 130,000+ Suppliers 1,250+ Locations 8 8 35
Slide 27: Self Service segment has the largest national footprint
LKQ’s Self Service segment has the largest national footprint with opportunity for growth 2024 Revenue $532 M 2024 Segment 2 EBITDA Margin 3 9.3% 5 2 3 15 ~1,700 2 Employees ~65 Self Service locations 3 Locations 4 2 27
Slide 28: Financial
Financial LKQ @ Charting our Future
Slide 29: Targeted Financial Results
Targeted Financial Results Driving Managing Expanding Vendor Incremental TWC to Drive Financing Profitability Incremental Cash 29
Slide 30: New Playbook Linked to Driving Financial Results
New Playbook Linked to Driving Financial Results To be the leading global value-added and sustainable distributor of vehicle parts and accessories by offering our customers the most comprehensive, available and cost-effective selection of parts and service solutions while building strong partnership
Slide 31: Strong Balance Sheet Provides Significant Operating Flexibility
Strong Balance Sheet Provides Significant Operating Flexibility Lean TWC Management Debt Overview (as of June 2025) Inventory Debt Profile Credit Ratings • Footprint rationalization S&P BBB-/ Stable Debt / EBITDA1 2.6x • SKU consolidation Moody’s Baa3 / Stable • Network optimization Weighted Average
Slide 32: Robust Balance Sheet Provides Capital Allocation Flexibility
Robust Balance Sheet Provides Capital Allocation Flexibility Capital Expenditures 30% Investment For Growth Tuck-In M&A 10% Projected 40% 2025 – 2027 Operating Cash Flow1 Dividends 25% $3.4B - $4.6B Return Capital Share Repurchases to Stakeholders 35% 60% Debt Repayment 1. These projections are base
Slide 33: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy 2021 to Q2 2025 - Capital Allocation Priorities for Near Term $5.4 Billion Operating Cash Flows Deployed Operating Maintain consistent conversion; Cash Flow scale with business Acquisitions & Other, net of Debt Capital Similar level expected with 11% +/‒ Expen
Slide 34: Our Strategic Plan 2025 – 2027 Targets
Our Strategic Plan LKQ Corporation 2025 – 2027 Targets Annual Organic Revenue Growth Above Market Simplification & Operational Excellence Enhanced Margins 1.0% to 2.0% Average Annual Organic1 Segment EBITDA Margin Improvement2 10 bps to 20 bps Profitable Growth Cash Flow Generation Next 3-year Cumul
Slide 35: Appendix
Appendix LKQ @ Charting our Future
Slide 36: Appendix 1-N/A
Appendix 1-N/A LKQ @ Charting our Future 36
Slide 37: Revenue and Segment EBITDA by segment
Appendix 2 Revenue and Segment EBITDA by segment Three Months Ended June 30 We have presented Segment EBITDA solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful (in millions) 2025 % of revenue 2024 % of revenue information to evaluate ou
Slide 38: Reconciliation of Net Income to Segment EBITDA
Appendix 3 Reconciliation of Net Income to Segment EBITDA Three Months Ended June 30 We have presented Segment EBITDA solely as a supplemental disclosure that offers investors, securities (in millions) 2025 2024 analysts and other interested parties useful information to Net income $193 $186 evaluat
Slide 39: Reconciliation of Net Income and Diluted EPS to Adjusted Diluted EPS
Appendix 4 Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Three Months Ended June 30 (in millions, except per share data) 2025 2024 Net income $193 $186 Less: net income attributable to noncontrolling interest 1 1 Net income attributable to LKQ stockhold
Slide 40: Reconciliation of Net Income and Diluted EPS to Adjusted Diluted EPS
Appendix 4 Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS We have presented Adjusted Net Income and Adjusted Diluted Earnings per Share as we believe these measures are useful for evaluating the core operating performance of our continuing business acros
Slide 41: Forecasted EPS and Free Cash Flow Reconciliation
Appendix 5 Forecasted EPS and Free Cash Flow Reconciliation Forecasted Fiscal Year 2025 (in millions, except per share data) Minimum Outlook Maximum Outlook Net income(1) $639 $717 Adjustments: Amortization of acquired intangibles 142 142 Restructuring and transaction related expenses 42 42 Other ad
Slide 42: Reconciliations to Free Cash Flow and Adjusted EBITDA
Appendix 6 Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Net Income to Adjusted EBITDA We have presented free cash flow solely as a supplemental disclosure that offers investors, securities analysts and other interested parties useful Six Months Ended June 30 inf
Slide 43: Metals Prices & Foreign Exchange
Appendix 7 Metals Prices & Foreign Exchange Q2 2025 vs Q2 2024 Segment EBITDA Impact Wholesale – ($ in millions) Self Service Total North America Scrap Steel $3 $— $3 Precious Metals $1 $1 $2 Total $4 $1 $5 Foreign Exchange YoY Impact Q2 2025 Q2 2024 GBP 5.8% 1.34 1.26 EUR 5.3% 1.13 1.08 CAD (1.1)%
Slide 44: LKQ @ Charting Our Future
LIQ @ Charting Our Future