Operating income has failed to scale with revenue, declining to $217 million in 2026Q1 from a peak of $329 million in 2024Q2, reflecting significant margin pressure.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 | Dec'06 | Dec'05 | Dec'04 | Dec'03 | Dec'02 | Dec'01 | Dec'00 |
|---|
| Sales/Revenue | 13.92B | 13.92B | 14.36B | 13.87B | 12.79B | 13.09B | 11.63B | 12.51B | 11.88B | 9.74B | 8.58B | 7.19B | 6.74B | 5.06B | 4.12B | 3.27B | 2.47B | 2.05B | 1.91B | 1.13B | 789.38M | 547.39M | 424.76M | 327.97M | 287.13M | 250.46M | 226.3M |
| Revenue Growth % | -1.37% | -3.06% | 3.53% | 8.38% | -2.25% | 12.56% | -7.01% | 5.3% | 21.98% | 13.43% | 19.34% | 6.71% | 33.14% | 22.79% | 26.09% | 32.39% | 20.6% | 7.3% | 69.37% | 42.75% | 44.21% | 28.87% | 29.51% | 14.23% | 14.64% | 10.67% | - |
| Cost of Goods Sold | 8.68B | 8.62B | 8.74B | 8.29B | 7.57B | 7.77B | 7.04B | 7.65B | 7.3B | 5.94B | 5.23B | 4.36B | 4.09B | 2.99B | 2.4B | 1.88B | 1.38B | 1.12B | 1.06B | 621.08M | 431.83M | 289.79M | 227.14M | 174.24M | 154.57M | 132.52M | 119.31M |
| COGS % of Revenue | - | 61.97% | 60.91% | 59.79% | 59.18% | 59.34% | 60.5% | 61.2% | 61.48% | 60.98% | 60.95% | 60.61% | 60.65% | 59% | 58.18% | 57.43% | 55.73% | 54.7% | 55.79% | 55.12% | 54.71% | 52.94% | 53.48% | 53.13% | 53.84% | 52.91% | 52.72% |
| Gross Profit | 5.25B | 5.29B | 5.61B | 5.58B | 5.22B | 5.32B | 4.59B | 4.85B | 4.57B | 3.8B | 3.35B | 2.83B | 2.65B | 2.08B | 1.72B | 1.39B | 1.09B | 927.81M | 843.83M | 505.75M | 357.55M | 257.6M | 197.62M | 153.74M | 132.55M | 117.94M | 106.99M |
| Gross Margin % | 37.68% | 38.03% | 39.09% | 40.21% | 40.82% | 40.66% | 39.5% | 38.8% | 38.52% | 39.02% | 39.05% | 39.39% | 39.35% | 41% | 41.82% | 42.57% | 44.27% | 45.3% | 44.21% | 44.88% | 45.29% | 47.06% | 46.52% | 46.87% | 46.16% | 47.09% | 47.28% |
| Gross Profit Growth % | - | -5.69% | 0.65% | 6.74% | -1.86% | 15.87% | -5.33% | 6.05% | 20.4% | 13.36% | 18.29% | 6.85% | 27.78% | 20.37% | 23.86% | 27.3% | 17.86% | 9.95% | 66.85% | 41.45% | 38.8% | 30.36% | 28.54% | 15.98% | 12.39% | 10.24% | - |
| Operating Expenses | 4.23B | 4.21B | 4.41B | 4.22B | 3.64B | 3.85B | 3.61B | 3.96B | 3.69B | 2.95B | 2.59B | 2.13B | 2B | 1.55B | 1.29B | 1.03B | 795.6M | 696.37M | 650.55M | 383.09M | 280.38M | 204.66M | 162.71M | 127.68M | 111.71M | 104.83M | 102.38M |
| OpEx % of Revenue | - | 30.22% | 30.73% | 30.42% | 28.47% | 29.4% | 31.02% | 31.63% | 31.09% | 30.34% | 30.15% | 29.6% | 29.7% | 30.52% | 31.2% | 31.52% | 32.21% | 34% | 34.09% | 34% | 35.52% | 37.39% | 38.31% | 38.93% | 38.91% | 41.85% | 45.24% |
| Selling, General & Admin | 3.9B | 3.89B | 3.92B | 3.87B | 3.54B | 3.57B | 3.27B | 3.58B | 3.35B | 2.72B | 2.36B | 1.43B | 1.34B | 1.03B | 871.43M | 679.57M | 522.95M | 659.7M | 611.75M | 365.61M | 268.56M | 196.09M | 155.84M | 122.23M | 106.69M | 64.26M | 21.89M |
| SG&A % of Revenue | - | 27.98% | 27.28% | 27.91% | 27.7% | 27.26% | 28.09% | 28.63% | 28.23% | 27.89% | 27.48% | 19.9% | 19.88% | 20.33% | 21.14% | 20.78% | 21.17% | 32.21% | 32.05% | 32.45% | 34.02% | 35.82% | 36.69% | 37.27% | 37.16% | 25.66% | 9.67% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 312M | 496M | 348M | 98M | 280M | 341.63M | 374.85M | 339.88M | 239.22M | 229.19M | 697.67M | 661.82M | 516.22M | 414.76M | 350.94M | 272.66M | 36.67M | 38.79M | 17.49M | 11.82M | 8.57M | 6.87M | 5.45M | 5.01M | 40.57M | 80.49M |
| Operating Income | 1.02B | 1.09B | 1.2B | 1.36B | 1.58B | 1.47B | 985.58M | 896.64M | 882.24M | 845M | 763.4M | 704.63M | 649.87M | 530.18M | 437.95M | 361.48M | 297.88M | 231.45M | 193.28M | 122.66M | 77.17M | 52.94M | 34.91M | 26.06M | 20.84M | 13.11M | 4.62M |
| Operating Margin % | 7.31% | 7.81% | 8.35% | 9.79% | 12.36% | 11.26% | 8.48% | 7.17% | 7.43% | 8.68% | 8.89% | 9.8% | 9.64% | 10.47% | 10.62% | 11.05% | 12.06% | 11.3% | 10.13% | 10.89% | 9.78% | 9.67% | 8.22% | 7.95% | 7.26% | 5.24% | 2.04% |
| Operating Income Growth % | - | -9.34% | -11.64% | -14.17% | 7.26% | 49.56% | 9.92% | 1.63% | 4.41% | 10.69% | 8.34% | 8.43% | 22.57% | 21.06% | 21.15% | 21.35% | 28.7% | 19.75% | 57.58% | 58.95% | 45.76% | 51.67% | 33.95% | 25.02% | 58.97% | 184.12% | - |
| EBITDA | 1.42B | 1.49B | 1.6B | 1.68B | 1.84B | 1.76B | 1.28B | 1.21B | 1.18B | 1.08B | 969.48M | 832.82M | 775.3M | 616.64M | 508.12M | 415.99M | 339.31M | 269.51M | 226.7M | 140.68M | 89.25M | 61.52M | 41.78M | 31.51M | 25.86M | 21.01M | 12.16M |
| EBITDA Margin % | 10.21% | 10.73% | 11.18% | 12.09% | 14.42% | 13.43% | 11.05% | 9.68% | 9.9% | 11.04% | 11.29% | 11.58% | 11.5% | 12.18% | 12.32% | 12.72% | 13.74% | 13.16% | 11.88% | 12.48% | 11.31% | 11.24% | 9.84% | 9.61% | 9.01% | 8.39% | 5.37% |
| EBITDA Growth % | -11.29% | -6.98% | -4.24% | -9.16% | 4.95% | 36.85% | 6.07% | 2.95% | 9.4% | 10.9% | 16.41% | 7.42% | 25.73% | 21.36% | 22.15% | 22.6% | 25.9% | 18.88% | 61.15% | 57.62% | 45.09% | 47.24% | 32.61% | 21.84% | 23.08% | 72.83% | - |
| D&A (Non-Cash Add-back) | 405M | 406M | 406M | 319M | 264M | 284M | 299M | 314.41M | 294.08M | 230.2M | 206.09M | 128.19M | 125.44M | 86.46M | 70.17M | 54.51M | 41.43M | 38.06M | 33.42M | 18.02M | 12.09M | 8.57M | 6.87M | 5.45M | 5.01M | 7.9M | 7.54M |
| EBIT | 968M | 1.05B | 1.22B | 1.45B | 1.6B | 1.47B | 1.01B | 907.86M | 873.22M | 868.27M | 765.54M | 706.89M | 652.43M | 527.01M | 440.6M | 360.08M | 299.89M | 237.57M | 196.96M | 123.05M | 77.17M | 52.94M | 34.91M | 26.06M | 20.84M | 13.11M | 4.62M |
| Net Interest Income | -212M | -224M | -262M | -214M | -78M | -71.43M | -110.81M | -160.17M | -162.38M | -31.7M | -84.02M | -49.78M | -57.31M | -49.05M | -31.43M | -16.81M | -17.94M | -30.9M | -35.54M | -16.01M | -5.82M | -1.89M | -1.21M | 0 | 0 | 0 | 0 |
| Interest Income | 3M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 76.94M | 2.45M | 2.72M | 1.03M | 2.13M | 0 | 1.86M | 1.45M | 1.35M | 2.31M | 1.75M | 131K | 341K | 46.08K | 0 | 0 | 0 | 0 |
| Interest Expense | 215M | 224M | 262M | 214M | 78M | 71.43M | 110.81M | 160.17M | 162.38M | 108.64M | 86.47M | 52.49M | 58.34M | 51.18M | 31.43M | 18.67M | 19.39M | 32.25M | 37.85M | 17.76M | 5.96M | 2.23M | 1.25M | 0 | 0 | 0 | 0 |
| Other Income/Expense | -260M | -262M | -233M | -107M | -52M | -52.41M | -95.57M | -137.9M | -203.28M | -72.46M | -86.71M | -61.7M | -64.08M | -54.35M | -28.79M | -25.71M | -27.75M | -26.13M | -32.5M | -14.39M | -4.34M | -1.26M | -1.05M | -1.91M | -2.58M | -4.94M | -4.86M |
| Pretax Income | 757M | 825M | 966M | 1.25B | 1.53B | 1.42B | 890.01M | 758.75M | 678.96M | 772.53M | 676.69M | 642.93M | 585.78M | 475.83M | 409.17M | 335.77M | 270.13M | 205.32M | 160.78M | 108.27M | 72.82M | 51.68M | 33.86M | 24.15M | 18.27M | 8.17M | -241K |
| Pretax Margin % | 5.44% | 5.93% | 6.73% | 9.01% | 11.95% | 10.86% | 7.65% | 6.07% | 5.72% | 7.93% | 7.88% | 8.94% | 8.69% | 9.4% | 9.92% | 10.27% | 10.94% | 10.03% | 8.42% | 9.61% | 9.23% | 9.44% | 7.97% | 7.36% | 6.36% | 3.26% | -0.11% |
| Income Tax | 188M | 210M | 273M | 306M | 385M | 330.59M | 249.5M | 215.33M | 191.4M | 235.56M | 220.57M | 219.7M | 204.26M | 164.2M | 147.94M | 125.51M | 103.01M | 78.18M | 63.69M | 42.37M | 28.43M | 20.8M | 13.28M | 9.58M | 7.26M | 3.94M | 637K |
| Effective Tax Rate % | 24.83% | 25.45% | 28.26% | 24.48% | 25.18% | 23.26% | 28.03% | 28.38% | 28.19% | 30.49% | 32.59% | 34.17% | 34.87% | 34.51% | 36.16% | 37.38% | 38.13% | 38.08% | 39.61% | 39.13% | 39.04% | 40.24% | 39.24% | 39.65% | 39.76% | 48.22% | -264.32% |
| Net Income | 517M | 607M | 690M | 936M | 1.15B | 1.09B | 638.42M | 541.26M | 480.12M | 533.74M | 463.98M | 423.22M | 381.52M | 311.62M | 261.23M | 210.26M | 169.07M | 127.52M | 99.9M | 65.9M | 44.4M | 30.89M | 20.57M | 14.58M | -38.89M | 4.23M | -878K |
| Net Margin % | 3.71% | 4.36% | 4.81% | 6.75% | 8.98% | 8.34% | 5.49% | 4.33% | 4.04% | 5.48% | 5.41% | 5.88% | 5.66% | 6.16% | 6.34% | 6.43% | 6.85% | 6.23% | 5.23% | 5.85% | 5.62% | 5.64% | 4.84% | 4.44% | -13.55% | 1.69% | -0.39% |
| Net Income Growth % | -26.25% | -12.03% | -26.28% | -18.54% | 5.32% | 70.89% | 17.95% | 12.73% | -10.05% | 15.04% | 9.63% | 10.93% | 22.43% | 19.29% | 24.24% | 24.36% | 32.58% | 27.65% | 51.59% | 48.44% | 43.73% | 50.13% | 41.15% | 137.48% | -1019.47% | 581.78% | - |
| Net Income (Continuing) | 569M | 615M | 693M | 944M | 1.14B | 1.09B | 640.51M | 543.41M | 487.56M | 536.97M | 456.12M | 423.22M | 381.52M | 311.62M | 261.23M | 210.26M | 167.12M | 127.14M | 97.09M | 65.9M | 44.4M | 30.89M | 20.57M | 14.58M | 11.01M | 4.23M | -878K |
| Discontinued Operations | 1000K | -7M | 0 | -6M | 6M | 1M | -95K | 1.62M | -4.4M | -6.75M | 7.85M | 0 | 0 | 0 | 0 | 0 | 1.95M | 384K | 2.81M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 24M | 24M | 15M | 14M | 38M | 39M | 39.66M | 39.7M | 56.45M | 8.48M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 2.02 | 2.35 | 2.63 | 3.51 | 4.13 | 3.66 | 2.09 | 1.74 | 1.52 | 1.71 | 1.50 | 1.38 | 1.25 | 1.02 | 0.87 | 0.71 | 0.58 | 0.45 | 0.36 | 0.28 | 0.20 | 0.16 | 0.12 | 0.10 | -0.25 | 0.03 | -0.01 |
| EPS Growth % | -25% | -10.65% | -25.07% | -15.01% | 12.84% | 75.12% | 20.11% | 14.47% | -11.11% | 14% | 8.7% | 10.4% | 22.55% | 17.24% | 22.54% | 22.41% | 28.89% | 25% | 28.57% | 40% | 25% | 33.33% | 20% | 140% | -1009.09% | - | - |
| EPS (Basic) | - | 2.35 | 2.63 | 3.52 | 4.15 | 3.68 | 2.10 | 1.75 | 1.53 | 1.72 | 1.51 | 1.39 | 1.26 | 1.04 | 0.88 | 0.72 | 0.59 | 0.46 | 0.37 | 0.29 | 0.21 | 0.18 | 0.13 | 0.11 | -0.28 | 0.03 | -0.01 |
| Diluted Shares Outstanding | 255.9M | 256M | 263.9M | 268.3M | 278M | 297.72M | 305.01M | 310.97M | 315.85M | 310.65M | 309.78M | 307.5M | 306.05M | 304.13M | 300.69M | 296.75M | 291.71M | 287.98M | 282.05M | 239.64M | 221.97M | 196.11M | 178.9M | 145.76M | 155.19M | 153.82M | 140.48M |
| Basic Shares Outstanding | 255.4M | 255.9M | 263.6M | 267.6M | 277.1M | 296.84M | 304.64M | 310.15M | 314.43M | 308.61M | 306.9M | 304.72M | 302.34M | 299.57M | 295.81M | 292.25M | 286.54M | 281.08M | 272.98M | 227.24M | 211.4M | 176.5M | 161.36M | 129.56M | 141.23M | 141M | 140.48M |
| Dividend Payout Ratio | - | 51.07% | 46.09% | 32.27% | 24.72% | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - | - |
Margin compression from procurement
As reported in recent financial filings, LKQ's revenue growth has shifted from double-digit expansion in 2023 to a contraction of 3.06% over the trailing period, reflecting significant headwinds in core markets and the potential impact of recent divestitures on the company's top-line performance trajectory.
The transition from 16.7% growth in late 2023 to recent negative prints suggests that the company's aggressive acquisition-led strategy is facing diminishing returns. Investors should monitor whether this deceleration is a temporary byproduct of portfolio optimization or a structural decline in demand for recycled automotive components.
Based on the company's latest income statement data, gross margins have contracted from a peak of 40.0% in 2023Q4 to 38.4% in 2026Q1, indicating that rising salvage acquisition costs are increasingly difficult to pass through to repair shops and insurance carriers in the current environment.
The erosion of the gross margin spread suggests that the company's procurement costs for total-loss vehicles are not aligning with the retail pricing power of its recycled parts. This trend warrants investigation into whether the company is losing its ability to maintain the price-to-cost spread that historically defined its competitive moat.
According to the provided quarterly figures, operating income has failed to scale with revenue, dropping to $217 million in 2026Q1 from a high of $329 million in 2024Q2, which implies that fixed overhead costs are becoming a heavier burden on the company's bottom-line profitability.
The inability to maintain operating margins above 7% in recent quarters suggests that the company's SG&A structure is not sufficiently flexible to absorb revenue volatility. This lack of operating leverage may indicate that the integration of recent acquisitions has not yet yielded the expected cost-saving synergies.
As evidenced by the sharp 52.3% decline in EPS during 2026Q1, LKQ's net income appears highly sensitive to non-operating items and fluctuating tax impacts, which complicates the assessment of the company's underlying operational health and long-term earnings power for institutional shareholders.
The significant variance in net income relative to operating income suggests that investors should look past headline EPS to understand the impact of restructuring charges and non-core items. The inconsistent net margin, which fell to 2.3% in the most recent quarter, highlights a potential vulnerability in the company's ability to convert revenue into sustainable shareholder value.
While management emphasizes the resilience of the recycled parts business, the recent trend of declining net margins and contracting revenue suggests that the company's reliance on salvage auctions may be a liability if used car prices continue their downward trajectory in the coming quarters.
Short-term observers may argue that the company's business model is overly exposed to commodity price cycles and the availability of total-loss vehicles. If the 'total loss threshold' shifts, the company may find its primary inventory source constrained, further pressuring margins and challenging the long-term viability of its current operational footprint.
Quick answers to the most common questions about buying LKQ stock.
For fiscal year 2025, LKQ Corporation (LKQ) reported total revenue of $13.92B. This represents a 6049.3% increase compared to $226.3M in 2000.
LKQ Corporation (LKQ) is profitable, generating $607.0M in net income for the fiscal year ending 2025 with a net profit margin of 4.4%.
LKQ Corporation (LKQ) reported an operating income of $1.09B, resulting in an operating profit margin of 7.8%. This margin reflects the operational efficiency of the business before interest and taxes.
LKQ Corporation (LKQ) generated $5.29B in gross profit for the year, representing a gross profit margin of 38.0%. This demonstrates the company's core pricing power and production efficiency.