LKQ Corporation · NASDAQ:LKQ
LKQ — Q3 2025 Earnings Presentation
36 slides from LKQ's earnings presentation, October 2025
Slide 1: Charting Our Future: Investor Presentation Third Quarter 2025
CHARTING OUR FUTURE I n ve s t o r P r e s e n t a t i o n Third Quarter 2025
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 2022 Q3 2025 TTM Total Revenue: $328 million Total Revenue: $1.11 billion Total Revenue: $12.8 billion Total Revenue: $13.6 billion(1) 2% 6% 2% 6% 5% 15% 15% 15% 4% 12% 14% 45% 18% 20% 36% 94% 46% 45% LKQ has grown from a North American collision operation to a globally div
Slide 4: 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 three reporting • Ability to grow revenue organically • Convert EBITDA to FCF by maintaining segments faster than market growth rigorous working
Slide 5: 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 6: 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 6
Slide 7: Third Quarter 2025 Results
Third Quarter 2025 Results LKQ @ Charting our Future
Slide 8: Executing on Strategic Initiatives
Executing on Strategic Initiatives Operational Excellence Maximizing Shareholder Returns Continuing To Drive Multi-year Transformation & Growth Plan Returning Cash To Shareholders Completed the sale of our Self Service Segment on September Invested $40 million in Q3 2025 to repurchase 1.2 million 30
Slide 9: Q3 2025 Financial Performance Summary
Q3 2025 Financial Performance Summary ($ in millions, except per share data) Operating Performance(1) Q3 2025 YoY Change Total Revenue $3,499 1.3% Organic Parts and Services Revenue Growth (Decline) (1.2)% Segment EBITDA(2) $395 (6.0)% Segment EBITDA(2) Margin 11.3% (90) bps Diluted EPS(3) $
Slide 10: Outlook 2025
Outlook 2025(1) (effective only on the date issued: October 30, 2025) 2025 Full Year Outlook Organic P&S Revenue Growth (3.0%) to (2.0%) Prior Outlook(5) (3.5%) to (1.5%) Outlook figures reflect impact of the Self Service Diluted EPS: divestiture. GAAP(2) $2.47 to $2.62 Prior Outlook(5) $2.32 to $2.
Slide 11: Operating Segments
Operating Segments LKQ @ Charting our Future
Slide 12: 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 Collision Collision 12% • Aftermarket automotive products • Aftermarket automotive products • Recycled & refurbished • Recycled • Paint, body & equipment • Paint, body
Slide 13: 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 14: 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 15: Wholesale North America - Why We Win
Wholesale North America- 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
Slide 16: 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 17: Repairable Claim Count & Total WNA Organic P&S Growth
Repairable Claim Count & Total WNA Organic P&S Growth Y-o-Y change in Repairable Claims Count and Total 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 6.7% 8.6% period, we 5.5% 5.3% 4.6% 2.9% 3.4% 4.8% ou
Slide 18: 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 26,000 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 19: 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 unmatched Leading partnerships Only aftermarket company with Tailored services, training & footprint. with Tier 1 suppliers pan-European workshop concepts to ensure 900 loca
Slide 20: 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 1,200+ Locations 8 10 3
Slide 21: Financial
Financial LKQ @ Charting our Future
Slide 22: Targeted Financial Results
Targeted Financial Results Driving Managing Expanding Vendor Incremental TWC to Drive Financing Profitability Incremental Cash 22
Slide 23: 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 24: Strong Balance Sheet Provides Significant Operating Flexibility
Strong Balance Sheet Provides Significant Operating Flexibility Lean TWC Management Debt Overview (as of September 2025) Inventory Debt Profile Credit Ratings Debt/EBITDA(1) 2.5x S&P BBB-/ Stable • Footprint efficiencies Weighted Average • SKU rationalization 3.56 yrs Moody’s Baa3 / Stable Maturity
Slide 25: 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% 2025 – 2027 40% Operating Cash Flow Dividends 25% Return Capital Share Repurchases to Stakeholders 35% 60% Debt Repayment 25
Slide 26: Disciplined Capital Allocation Strategy
Disciplined Capital Allocation Strategy 2024 to Q3 2025 - Capital Allocation Priorities for Near Term $1.9 Billion Operating Cash Flows Deployed Operating Maintain consistent conversion; Cash Flow scale with business Share Repurchases Capex Capital Similar level expected with +/‒ 26% 25% Expenditure
Slide 27: Appendix
Appendix LKQ @ Charting our Future
Slide 28: Revenue and Segment EBITDA by segment
Appendix 1 Revenue and Segment EBITDA by segment Three Months Ended September 30 We have presented Segment EBITDA solely as a supplemental (in millions) 2025 % of revenue 2024 % of revenue disclosure that offers investors, securities analysts and other interested parties useful information to evalua
Slide 29: Reconciliation of Net Income to Segment EBITDA
Appendix 2 Reconciliation of Net Income to Segment EBITDA Three Months Ended September 30 We have presented Segment EBITDA solely as a (in millions) 2025 2024 supplemental disclosure that offers investors, Net income $180 $192 securities analysts and other interested parties useful information to ev
Slide 30: Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS
Appendix 3 Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Three Months Ended September 30 (in millions, except per share data) 2025 2024 Net income $180 $192 Less: net income attributable to continuing noncontrolling interest — 1 Net income attributable
Slide 31: Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS
Appendix 3 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 32: Forecasted EPS and Free Cash Flow Reconciliation
Appendix 4 Forecasted EPS and Free Cash Flow Reconciliation Forecasted Fiscal Year 2025 (in millions, except per share data) Minimum Outlook Maximum Outlook Net income(1) $637 $675 Adjustments: Amortization of acquired intangibles 144 144 Restructuring and transaction related expenses 42 42 Other ad
Slide 33: Reconciliations of Operating Cash Flow to Free Cash Flow and Net Income to Adjusted EBITDA
Appendix 5 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 Nine Months Ended investors, securities analysts and other interested parties useful informatio
Slide 34: Reconciliation of Net Income to Segment EBITDA (Recast)
Appendix 6 Reconciliation of Net Income to Segment EBITDA (Recast for Discontinued Operations) Three Months Ended, (in millions) March 31, 2024 June 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Net income $158 $186 $157 $169 $193 Less: net income attributable to continuing noncontrolling
Slide 35: Reconciliation of Net Income and Diluted EPS to Adjusted Net Income (Recast)
Appendix 7 Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS (Recast for Discontinued Operations) Three Months Ended, (in millions, except per share data) March 31, 2024 June 30, 2024 December 31, 2024 March 31, 2025 June 30, 2025 Net income $158 $186 $157
Slide 36: LKQ @ Charting Our Future
LIQ @ Charting Our Future