Published by Global Banking & Finance Review®
Posted on February 19, 2026
2 min readLast updated: April 3, 2026
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LKQ forecast 2026 adjusted EPS of $2.90–$3.20, missing the $3.29 estimate, as soft aftermarket demand and tariffs hit North America and Europe. Shares fell premarket and LKQ announced a $60–$70M restructuring targeting $50M in savings.
Feb 19 - LKQ Corp on Thursday forecast annual profit below Wall Street expectations, as weak demand for auto aftermarket parts and services weighs on its North American and European operations.
Shares of the company fell more than 6% in premarket trading.
Auto parts suppliers are contending with broad tariff-related pressures that have slowed orders for aftermarket parts.
On Thursday, the Chicago, Illinois-based company announced a restructuring plan that is expected to cost about $60 million to $70 million, and generate $50 million in annualized savings. More than half of the savings is anticipated to be realized in 2026, the company said.
LKQ has come under pressure from activist investor Ananym Capital since October to sell its European unit and buy back shares. Ananym argued that pairing the European and North American businesses no longer offered strategic logic, according to a letter to LKQ's board seen by Reuters.
In January, LKQ said its board had begun reviewing strategic alternatives, including a possible sale.
Activist investors have increasingly targeted auto parts suppliers, pushing them to shed slower-growing businesses and boost shareholder returns.
Peer Genuine Parts is also facing a push from activist investor Elliott Investment Management to streamline operations and improve margins.
LKQ's organic revenue from parts and services fell 1.7% during the quarter, including a 4.8% slide in Europe.
The company expects 2026 adjusted profit between $2.90 per share and $3.20 per share, below analysts' estimates of $3.29 per share, according to data compiled by LSEG.
Fourth-quarter adjusted profit was 59 cents per share, missing analysts' estimates of 65 cents per share.
Revenue rose nearly 2.7% to $3.3 billion in the quarter, compared with estimates of $3.25 billion.
(Reporting by Apratim Sarkar in Bengaluru; Editing by Sahal Muhammed)
LKQ’s annual earnings outlook came in below Wall Street estimates due to weak aftermarket parts demand and tariff pressures, prompting a share drop and a new cost-cutting plan.
The company projects adjusted EPS of $2.90–$3.20 for 2026, versus analysts’ $3.29 estimate, reflecting softer demand in North America and Europe.
LKQ unveiled a restructuring expected to cost $60–$70 million and deliver over $50 million in annualized savings, with more than half expected in 2026.
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