Lkq Corporation · NASDAQ:LKQ
Lkq — Q1 2025 Earnings Presentation
22 slides from Lkq's earnings presentation, Apr 24, 2025
Slide 1: First Quarter 2025 Earnings Call Presentation
APRIL 24, 2025 First Quarter 2025 Earnings Call Presentation
Slide 2: Forward Looking Statements and Non-GAAP Financial Measures
Forward Looking Statements and 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 A
Slide 3: Opening Remarks
Opening Remarks JUSTIN JUDE President and Chief Executive Officer
Slide 4: Q1 2025 Summary
Q1 2025 Summary Highlights Q1 2025 Performance YoY Change ($ in millions, except per share data) ■ Simplification efforts helped drive margin expansion in Total Revenue $3,463 q (6.5)% a declining market Organic Parts and Services Revenue Growth ■ Tariff Task Force formed to oversee and analyze all
Slide 5: Tariff Exposure
Tariff Exposure US direct imports are a small portion of global COGS Diversity In Operations Limits Exposure • Geographic mix (e.g. Europe) • Domestically sourced product mix ◦ Salvage (collision and major mechanical) North America* Indirect / Other ◦ Remanufacturing with minimal foreign sourced com
Slide 6: Q1 2025 Results
Q1 2025 Results RICK GALLOWAY Senior Vice President and Chief Financial Officer
Slide 7: Consolidated Operating Results – Q1 2025
Consolidated Operating Results – Q1 2025 ($ in millions, except per share data) Parts & Services Organic Total Revenue Segment EBITDA(1) Growth (Decline) $430 $404 $3,703 $3,463 (2.8)% 11.6% 11.7% $3,535 (4.3)% $3,295 (5.4)% (5.4)% (6.4)% Q1 2024 Q1 2025 Wholesale Europe Specialty Self Total Q1 2024
Slide 8: Wholesale – North America – Q1 2025
Wholesale – North America – Q1 2025 ($ in millions) Total Revenue Gross Margin Commentary $1,500 $1,412 $663 Parts and Services Revenue Change $627 • Organic Decline: 5.4% (4.1% decline per day) • Acquisitions / Divestitures: 0.3% 44.2% 44.4% • Foreign Exchange: (1.0)% $1,422 $1,336 Organic Decline
Slide 9: Europe – Q1 2025
Europe – Q1 2025 ($ in millions) Total Revenue Gross Margin Commentary $1,644 $1,522 Parts and Services Revenue Change $623 $591 • Organic Decline: 2.8% (1.8% decline per day) • Acquisitions / Divestitures: (2.2)% 38.8% • Foreign Exchange: (2.5)% $1,637 37.9% $1,515 Organic Decline Drivers: Decrease
Slide 10: Specialty – Q1 2025 and Self Service – Q1 2025
Specialty – Q1 2025 ($ in millions) Self Service – Q1 2025 ($ in millions) Total Revenue Gross Margin Total Revenue Gross Margin $423 $394 $106 $137 $136 $64 $60 $54 $51 47.0% $95 $422 $393 25.0% 43.9% 24.2% $83 $85 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Q1 2024 Q1 2025 Parts & services rev
Slide 11: Capital Allocation, Leverage & Liquidity
Capital Allocation, Leverage & Liquidity YTD 2025 Capital Deployment Key Metrics as of March 31, 2025 ($ and shares in millions) Cash $227 Total Debt(1) $4,429 Capex Effective Interest Rate(2) 5.2% Total Leverage Ratio(3) 2.5x $54M Available Liquidity $1,289 Dividends $78M Share Repurchase Program $
Slide 12: Outlook 2025
Outlook 2025(1) (guidance unchanged from February 20, 2025) 2025 Full Year Outlook Other Assumptions (balance of year): Organic P&S Revenue Growth 0% to 2% • Tax Rate: 27.0% • FX Rates: $1.08 EUR, $1.28 GBP, $0.70 CAD Diluted EPS: • Scrap & Precious Metals Prices: Near Q1 average GAAP(2) $2.91 to $3
Slide 13: Closing Remarks
Closing Remarks JUSTIN JUDE President and Chief Executive Officer
Slide 14: Appendix
Appendix LKQ
Slide 15: Appendix 1: Metals Prices & Foreign Exchange
Appendix 1 Metals Prices & Foreign Exchange Q1 2025 vs Q1 2024 Segment EBITDA Impact Average Metals Prices Wholesale - North ($ in millions) Self Service America Total $250 Scrap Steel $— $(1) $(1) $229 Precious Metals $— $— $— $200 $212 $203 $196 Total $— $(1) $(1) $193 $150 $98 $100 $97 $101 $97 $
Slide 16: Appendix 2: Revenue and Segment EBITDA by segment
Appendix 2 Revenue and Segment EBITDA by segment Three Months Ended March 31 (in millions) 2025 % of revenue 2024 % of revenue Revenue Wholesale - North America $1,412 $1,500 Europe 1,522 1,644 Specialty 394 423 Self Service 136 137 Eliminations (1) (1) Total Revenue $3,463 $3,703 Segment EBITDA Who
Slide 17: Appendix 3: Reconciliation of Net Income to Segment EBITDA
Appendix 3 Reconciliation of Net Income to Segment EBITDA Three Months Ended March 31 We have presented Segment EBITDA solely as a (in millions) 2025 2024 supplemental disclosure that offers investors, securities analysts and other interested parties useful Net income $169 $158 information to evalua
Slide 18: Appendix 4: Reconciliation to Adjusted Net Income and Adjusted Diluted EPS
Appendix 4 Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Three Months Ended March 31 (in millions, except per share data) 2025 2024 Net income $169 $158 Adjustments: Amortization of acquired intangibles 35 37 Restructuring and transaction related expens
Slide 19: Appendix 4: Adjusted Net Income and Adjusted Diluted EPS Definitions
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 20: Appendix 5: 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) $753 $831 Adjustments: Amortization of acquired intangibles 141 141 Restructuring and transaction related expenses 34 34 Other ad
Slide 21: Appendix 6: Free Cash Flow and Adjusted EBITDA Reconciliations
Appendix 6 Reconciliations of Net Cash Provided by (Used in) Operating Activities to Free Cash Flow and Net Income to Adjusted EBITDA Three Months Ended March 31 (in millions) 2025 2024 Net cash (used in) provided by operating activities $(3) $253 Less: purchases of property, plant and equipment 54
Slide 22: Appendix 6: Free Cash Flow and Adjusted EBITDA Reconciliations
Appendix 6 Reconciliations of Net Cash Provided by (Used in) 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 information to eva