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November 17, 2025 • 3 min read
LKQ Corp (ticker: LKQ), a major global distributor of vehicle parts and accessories, recently released its financial results for the third quarter of 2025. For anyone interested in the health of the automotive aftermarket, this latest 10-Q filing with the SEC offers a detailed look under the hood. Let's break down the key numbers and see what they tell us about the company's performance.
For the third quarter ended September 30, 2025, LKQ reported total revenue of $3.5 billion, a slight increase from $3.45 billion in the same period last year. However, this modest top-line growth didn't fully translate to the bottom line. Net income attributable to LKQ stockholders came in at $180 million, a decrease from the $191 million reported in Q3 2024.
To better understand how LKQ's revenue flows through its business operations to generate profit, the following diagram provides a visual breakdown of the company's quarterly income statement.
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The small unallocated "Eliminations" category you see in the revenue stream represents sales between LKQ's different business segments, which are removed from the total revenue to avoid double-counting.
LKQ's business is divided into three main segments, and each tells a different story this quarter. Segment EBITDA, which stands for Earnings Before Interest, Taxes, Depreciation, and Amortization, is a useful metric for comparing the core operational profitability of these divisions.
Wholesale - North America: This segment saw its revenue hold steady at $1.42 billion. However, its profitability took a noticeable hit. Segment EBITDA fell to $199 million, or 14.0% of its revenue, down from $224 million (a 15.8% margin) in the same quarter last year. This suggests the company is facing margin pressure in its largest domestic market.
Europe: As LKQ's biggest segment by revenue, Europe posted a slight revenue increase to $1.62 billion. Its performance was relatively stable, with Segment EBITDA of $162 million and a 10.0% margin, compared to $165 million and a 10.2% margin a year ago.
Specialty: The Specialty segment, which provides performance and accessories parts, was the clear growth driver this quarter. Revenue jumped to $457 million from $419 million year-over-year. Segment EBITDA also grew to $34 million from $31 million, maintaining a consistent margin of 7.3%.
Despite the profitability challenges in North America, LKQ's overall financial position remains solid. The company reported total liquidity of nearly $1.7 billion, up from $1.46 billion at the end of 2024, giving it ample flexibility.
LKQ also continued its commitment to returning capital to shareholders. During the quarter, the company repurchased 1.2 million shares of its stock for approximately $40 million and paid out $78 million in dividends.
LKQ's Q3 2025 results paint a picture of a company navigating a complex market. While the growth in the Specialty segment is a positive sign, the declining profitability in the core North American wholesale business is a key area for investors to watch. The company's ability to manage costs, improve margins, and capitalize on the strength of its diverse portfolio will be crucial for its performance in the coming quarters. In the competitive auto parts market, where players compete on price, availability, and service, operational efficiency is paramount.
Last updated: November 17, 2025