Slide 1: Second Quarter 2026 Earnings Call Presentation
JULY 30, 2026 Second Quarter 2026 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: Q2 2026 Performance Summary
Q2 2026 Performance Summary ($ in millions, except per share data) Operating Performance(1) Q2 2026 YoY Change Total Revenue $3,408 (3.0)% ■ North America delivered organic growth of 0.5%, the first q quarterly growth since 2023, outperforming repairable claims Organic Parts and Services Revenue Gro
Slide 5: Q2 2026 Results
Q2 2026 Results RICK GALLOWAY Senior Vice President and Chief Financial Officer
Slide 6: Consolidated Operating Results – Q2 2026
Consolidated Operating Results – Q2 2026 ($ in millions, except per share data) Parts & Services Organic (1) Total Revenue Segment EBITDA Growth (Decline) 4.5% $414 $3,513 0.5% $349 $3,408 11.8% 10.2% (5.1)% (12.6)% Q2 2025 Q2 2026 North Europe Specialty Total Q2 2025 Q2 2026 America (2) (3) Diluted
Slide 7: North America – Q2 2026
North America – Q2 2026 ($ in millions) Total Revenue Gross Margin Commentary $1,466 $1,442 Parts and Services Revenue Change $619 $622 • Organic Growth: 0.5% Organic Drivers Pricing initiatives to recoup tariff costs and offset inflationary pressures, 42.9% 42.5% partially offset by lower volumes f
Slide 8: Europe – Q2 2026
Europe – Q2 2026 ($ in millions) Total Revenue Gross Margin Commentary $619 Parts and Services Revenue Change $1,607 $574 $1,455 • Organic Decline: 12.6% • Foreign Exchange: 2.1% 39.4% • Acquisitions / Divestitures: 0.9% 38.5% Organic Drivers Lower volumes driven primarily by temporary operational c
Slide 9: Specialty – Q2 2026
Specialty – Q2 2026 ($ in millions) Total Revenue Gross Margin Commentary $488 $125 Parts and Services Revenue Change $465 • Organic Growth: 4.5% $118 • Acquisitions / Divestitures: 0.6% 25.4% 25.6% Organic Drivers Volume growth in marine, RV and automotive product lines Q2 2025 Q2 2026 Q2 2025 Q2 2
Slide 10: Capital Allocation, Leverage & Liquidity
Capital Allocation, Leverage & Liquidity YTD 2026 Capital Deployment Key Metrics as of June 30, 2026 ($ and shares in millions) Cash $301 Capex Total Debt(1) $3,961 Effective Interest Rate(2) 5.0% Total Leverage Ratio(3) 2.8x $91M Available Liquidity $1,930 Share Repurchase Program Dividends $1,503
Slide 11: Outlook 2026
Outlook 2026(1) (effective only on the date issued: July 30, 2026) 2026 Full Year Outlook Organic P&S Revenue Growth (3.0%) to (1.0%) Prior Outlook (0.5%) to 1.5% Diluted EPS: GAAP(2) $1.78 to $2.08 Prior Outlook $2.16 to $2.46 Adjusted(2)(3) $2.60 to $2.90 Prior Outlook $2.90 to $3.20 Cash Flow: Op
Slide 12: Closing Remarks
Closing Remarks JUSTIN JUDE President and Chief Executive Officer
Slide 13: Appendix
Appendix L Ka Keeping you moving
Slide 14: Revenue and Segment EBITDA by segment
Appendix 1 Revenue and Segment EBITDA by segment Three Months Ended June 30 We have presented Segment EBITDA solely as a supplemental (in millions) 2026 % of revenue 2025 % of revenue disclosure that offers investors, securities analysts and other interested parties useful information to evaluate ou
Slide 15: Reconciliation of Net Income to Segment EBITDA
Appendix 2 Reconciliation of Net Income to Segment EBITDA Three Months Ended June 30 We have presented Segment EBITDA solely as a (in millions) 2026 2025 supplemental disclosure that offers investors, Net income $136 $193 securities analysts and other interested parties useful information to evaluat
Slide 16: 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 June 30 (in millions, except per share data) 2026 2025 Net income $136 $193 Less: net income attributable to continuing noncontrolling interest — 1 Net income attributable to LK
Slide 17: 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 18: Forecasted EPS and Free Cash Flow Reconciliation
Appendix 4 Forecasted EPS and Free Cash Flow Reconciliation Forecasted Fiscal Year 2026 (in millions, except per share data) Minimum Outlook Maximum Outlook Net income(1) $453 $529 Adjustments: Amortization of acquired intangibles 134 134 Restructuring and transaction related expenses 90 90 Impairme
Slide 19: Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow
Appendix 5 Reconciliation of Net Cash Provided by Operating Activities to Free Cash Flow Six Months Ended June 30 (in millions) 2026 2025 Net cash provided by operating activities(1) $55 $293 Less: purchases of property, plant and equipment(1) 91 107 Free cash flow (1) $(36) $186 (1) Includes both c