Finance
LKQ forecasts annual profit below estimates on weak demand for auto parts
Published by Global Banking & Finance Review®
Posted on February 19, 2026
2 min readLast updated: February 19, 2026
Tags:corporate strategy
Quick Summary
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.
LKQ Sees 2026 Profit Missing Estimates Amid Softer Auto Parts Demand
Earnings Outlook and Market Reaction
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.
Premarket Shares Drop
Shares of the company fell more than 6% in premarket trading.
Tariff and Demand Headwinds
Auto parts suppliers are contending with broad tariff-related pressures that have slowed orders for aftermarket parts.
Restructuring Costs and Savings
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.
Activist Investor Pressure
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 Moves: Genuine Parts
Peer Genuine Parts is also facing a push from activist investor Elliott Investment Management to streamline operations and improve margins.
Segment Performance: Europe vs North America
LKQ's organic revenue from parts and services fell 1.7% during the quarter, including a 4.8% slide in Europe.
LSEG Consensus Comparison
2026 EPS Guidance vs Estimates
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.
Quarterly Results Snapshot
Fourth-quarter adjusted profit was 59 cents per share, missing analysts' estimates of 65 cents per share.
Revenue Beats Forecasts
Revenue rose nearly 2.7% to $3.3 billion in the quarter, compared with estimates of $3.25 billion.
Reporting and Editing Credits
(Reporting by Apratim Sarkar in Bengaluru; Editing by Sahal Muhammed)
Key Takeaways
- •LKQ guided 2026 adjusted EPS to $2.90–$3.20, below the $3.29 LSEG consensus.
- •Weak aftermarket demand and tariff pressures weighed on North America and Europe; organic parts and services fell 1.7%, including a 4.8% slide in Europe.
- •Shares fell more than 6% in premarket trading on Feb 19, 2026 after the outlook.
- •New restructuring will cost $60–$70 million and target over $50 million in annualized savings, with more than half realized in 2026.
- •Activist Ananym Capital has urged a sale of the European unit; LKQ’s board began reviewing strategic alternatives in January.
Frequently Asked Questions about LKQ forecasts annual profit below estimates on weak demand for auto parts
1What is the main topic?
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.
2How does LKQ’s 2026 profit guidance compare to estimates?
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.
3What cost actions did LKQ announce?
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.
