Slide 1: Fourth Quarter and Full Year 2024 Earnings Call Presentation
FEBRUARY 20, 2025 Fourth Quarter and Full Year 2024 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: Q4 2024 Summary
Q4 2024 Summary Q4 2024 Performance YoY Change Highlights ($ in millions, except per share data) Total Revenue $3,357 q (4.1)% ■ Exceeded our commitment to return 50% of free cash Organic Parts and Services Revenue Growth flow(4) to stockholders by delivering $678 million (or q (3.6)% (Decline) 84%
Slide 5: Q4 2024 Results
Q4 2024 Results RICK GALLOWAY Senior Vice President and Chief Financial Officer
Slide 6: Consolidated Operating Results – Q4 2024
Consolidated Operating Results – Q4 2024 ($ in millions, except per share data) Parts & Services Organic Total Revenue Segment EBITDA(1) Growth (Decline) $396 $408 $3,501 $3,357 0.1% —% 12.1% (3.6)% 11.3% $3,356 $3,204 (5.8)% (7.2)% Q4 2023 Q4 2024 Wholesale Europe Specialty Self Total Q4 2023 Q4 20
Slide 7: Wholesale – North America – Q4 2024
Wholesale – North America – Q4 2024 ($ in millions) Total Revenue Gross Margin Commentary $1,467 $1,366 Parts and Services Revenue Change $662 $591 • Organic Decline: 7.2% (8.5% decline per day) • Acquisitions / Divestitures: 0.7% • Foreign Exchange: (0.4)% $1,393 $1,296 45.0% 43.2% Organic Decline
Slide 8: Europe – Q4 2024
Europe – Q4 2024 ($ in millions) Total Revenue Gross Margin Commentary $1,546 $597 $592 Parts and Services Revenue Change $1,511 • Organic Growth: 0.1% (0.2% decline per day) • Acquisitions / Divestitures: (2.1)% 38.7% 39.2% • Foreign Exchange: (0.2)% $1,541 $1,507 Organic Growth Drivers: Organic re
Slide 9: Specialty – Q4 2024 Self Service – Q4 2024
Specialty – Q4 2024 ($ in millions) Self Service – Q4 2024 Total Revenue Gross Margin Total Revenue Gross Margin $56 $371 $349 $91 $86 $131 $49 $118 $52 $51 $371 43.1% $349 24.8% 24.7% 41.3% $67 $79 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Q4 2023 Q4 2024 Parts & services rev. Parts & service
Slide 10: Capital Allocation, Leverage & Liquidity
Capital Allocation, Leverage & Liquidity Key Metrics 2024 Capital Deployment as of December 31, 2024 ($ and shares in millions) Cash $234 Total Debt(1) $4,198 Capex Effective Interest Rate(2) 5.3% Dividends Total Leverage Ratio(3) 2.3x $318M $311M Available Liquidity $1,456 Share Repurchase Program
Slide 11: Outlook 2025
Outlook 2025(1) (effective only on the date issued: February 20, 2025) 2025 Full Year Outlook Other Assumptions: Organic P&S Revenue Growth 0 to 2% • Tax Rate: 27.0% • FX Rates: $1.04 EUR, $1.25 GBP, $0.70 CAD Diluted EPS: • Scrap & Precious Metals Prices: Near Q4' 24 average GAAP(2) $2.91 to $3.21
Slide 12: 2025 Adjusted EPS Guidance Walk
2025 Adjusted EPS(1) Guidance Walk (2) $3.70 $3.48 $3.40 FY 2024 Legal Settlement / FX Metals Prices Interest / 2024 Share Operating Results FY 2025 Actual D&A / Other Taxes Repurchases Guidance (1) Adjusted Diluted EPS is a non-GAAP measure. Refer to Appendix 5 for reconciliation of forecasted Adju
Slide 13: Closing Remarks
Closing Remarks JUSTIN JUDE President and Chief Executive Officer
Slide 14: Appendix
Appendix LKQ
Slide 15: Appendix 1: Constant Currency Reconciliation
Appendix 1 Constant Currency Reconciliation The following unaudited table reconciles revenue and revenue growth for parts & services and total revenue to constant currency revenue and revenue growth for the same measures: Three Months Ended Three Months Ended December 31, 2024 December 31, 2024 (in
Slide 16: Appendix 2: Revenue and Segment EBITDA by segment
Appendix 2 Revenue and Segment EBITDA by segment Three Months Ended December 31 % of % of (in millions) 2024 revenue 2023 revenue Revenue Wholesale - North America $1,366 $1,467 Europe 1,511 1,546 Specialty 349 371 Self Service 131 118 Eliminations — (1) Total Revenue $3,357 $3,501 Segment EBITDA Wh
Slide 17: Appendix 3: Reconciliation of Net Income to Segment EBITDA
Appendix 3 Reconciliation of Net Income to Segment EBITDA Three Months Ended December 31 We have presented Segment EBITDA solely as a (in millions) 2024 2023 supplemental disclosure that offers investors, securities analysts and other interested parties useful Net income $157 $178 information to eva
Slide 18: Appendix 4: Reconciliation of Net Income and Diluted EPS to Adjusted
Appendix 4 Reconciliation of Net Income and Diluted EPS to Adjusted Net Income and Adjusted Diluted EPS Three Months Ended December 31 (in millions, except per share data) 2024 2023 Net income $157 $178 Less: net income attributable to continuing noncontrolling interest 1 1 Net income attributable t
Slide 19: Appendix 4: Adjusted Net Income and 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 (1) Net income $755 $833 Adjustments: Amortization of acquired intangibles 142 142 Restructuring and transaction related expenses 34 34 Tax eff
Slide 21: Appendix 6: Free Cash Flow and Adjusted EBITDA Reconciliations
Appendix 6 Reconciliations of Net Cash Provided by Operating Activities to Free Cash Flow and Net Income to Adjusted EBITDA Year Ended December 31 (in millions) 2024 2023 Net cash provided by operating activities $1,121 $1,356 Less: purchases of property, plant and equipment 311 358 Free cash flow $
Slide 22: Appendix 6: Free Cash Flow and Adjusted EBITDA Reconciliations
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 information to evaluate our
Slide 23: Appendix 7: Metals Prices & Foreign Exchange
Appendix 7: Metals Prices & Foreign Exchange Q4 2024 vs Q4 2023 Segment EBITDA Impact Average Metals Prices Wholesale - North ($ in millions) Self Service America Total Scrap Steel $(3) $1 $(2) $239 $227 $229 Precious Metals $— $— $— $200 $209 $203 $151 $196 $196 $193 Total $(3) $1 $(2) $138 $126 $1