LKQ (LKQ) Q4 2025 Earnings Call Transcript

Image source: The Motley Fool.

Thursday, Feb. 19, 2026 astatine 8 a.m. ET

• President and Chief Executive Officer — Justin L. Jude

• Senior Vice President and Chief Financial Officer — Joseph P. Boutross

Justin L. Jude. Thanks, Joe, and bully greeting to everyone joining america connected the telephone today. Before we get into the quarter, I privation to commencement with an important connection to our LKQ Corporation team. This past twelvemonth tested america successful meaningful ways and yet it besides showcased the strength, discipline, and resilience of LKQ Corporation. We accomplished a batch successful 2025 and are focused connected keeping this momentum going successful 2026.

Justin L. Jude: In February, I committed to delivering $825,000,000 of escaped currency travel successful 2025. And contempt aggregate headwinds, our colleagues astir the satellite executed, adapted, and delivered connected that commitment. Importantly, we besides made meaningful advancement simplifying our portfolio. The divestiture of our self-service conception was a cardinal constituent of the simplification strategy we outlined astatine our 2024 Investor Day. We delivered connected that committedness successful 2025. Transactions of this standard and complexity necessitate important enactment absorption and discipline. Executing successfully successful the midst of a challenging twelvemonth crossed our planetary endeavor reflects the spot of our teams and our quality to present against our strategy.

I americium arrogant of the result and our continued absorption connected creating semipermanent worth for shareholders. The headwinds of 2025 were existent and significant: a continued diminution successful repairable claims, the interaction of tariffs, and persistent softness successful the European market. Any 1 of those would person been a situation connected its own. Taken together, they created a hard environment. And yet our radical recovered ways to service customers, support discipline, and present connected our escaped currency travel commitment. That is an exceptional accomplishment and a testament to the grit of our employees. As galore of you are aware, successful 2026, LKQ Corporation's committee of directors formally initiated a broad review.

Given the spot of our underlying show adjacent successful a twelvemonth defined by important headwinds, it has go progressively wide that our existent banal terms does not bespeak the existent worth oregon semipermanent imaginable of our businesses. The committee and I, on with our full absorption team, are aligned successful our assurance successful that future, and that assurance compels america to research whether alternate structures could unlock worth much efficaciously than the marketplace is recognizing today. This reappraisal volition tally successful parallel with our relentless absorption connected operational execution. Please enactment that we volition not beryllium answering immoderate questions oregon commenting further connected our strategical reappraisal process until further disclosure is due oregon required.