LKQ Corp. (Nasdaq: LKQ) reported $156 million of net income on revenue of $3.4 billion in 2024’s fourth quarter, and $690 million of net income on revenue of $14.4 billion for the full year.
Year-over-year, net income fell about 15% in the quarter and 27% for the year. Revenue declined 4% in Q4, rising 3.5% for the year, compared with 2023.
Tennessee-based LKQ reported results Feb. 20. The company sells aftermarket and recycled OEM parts, equipment and services.
Parts and services organic revenue -- receipts from core current operations -- saw low quarterly and annual single-digit percentage declines. In 2025, LKQ expects flat results or a slight increase.
Annual diluted earnings per share fell one-fourth, to $2.62; 2025 diluted EPS will be $2.91 to $3.21.
LKQ expects 2025 free cash flow of $750 million to $900 million; it had $800 million in 2024.
Segment Revenue
LKQ offers unaudited results of revenue and segment EBITDA, “as a supplemental disclosure [of] segment profit and loss and underlying trends in our ongoing operations,” according to its regulatory earnings filing.
Wholesale North America revenue in the quarter was $1.37 billion, down about 7%. On the year, this rose 9% to $5.76 billion. Segment EBITDA declined 2-3% YOY for the two periods, while segment EBITDA margins for each timeframe hovered just below 17%.
In Europe, revenue dipped about 2% in the quarter to $1.51 billion but rose for the year to $6.4 billion, and EBITDA margins improved in both the quarter and year, running about 10%.
President and CEO Justin Jude in LKQ’s earnings press release highlighted European results, noting a record quarterly EBITDA margin and record annual EBITDA overall.
Finance Moves
LKQ said Jude uses segment numbers “to compare profitability … and evaluate business strategies.”
On Feb. 6, the company named two new independent directors to its board, joining a third added in December. The board formed a finance committee and LKQ is working with hedge funds Ancora Catalyst Institutional LP and Engine Capital LP, a press release said.
The company’s earnings press release said the finance committee would “make recommendations to the board relating to the company’s capital allocation strategy and business portfolio.”
“We will continue to emphasize portfolio simplification, operational excellence, and profitable growth,” Jude said in the release.
Paul Hughes