LKQMEDIUM SIGNALOPERATIONAL10-K

LKQ has simplified its business structure by consolidating from five product sources to four and eliminating its Self Service segment operations.

The company appears to be streamlining operations by moving away from self-service retail facilities and simplifying its product sourcing categories, potentially indicating a focus on higher-margin distribution channels. However, the removal of S&P 500 membership language from the business overview suggests possible index exclusion, which could impact institutional ownership and stock liquidity.

Comparing 2026-02-19 vs 2025-02-20View on EDGAR →
FINANCIAL ANALYSIS

LKQ's financial performance shows a mixed picture with operating income declining to $993 million and net income falling to $608 million, reflecting operational headwinds. The company significantly reduced share buybacks while increasing total debt to $1.8 billion, suggesting a shift in capital allocation strategy. Despite these pressures, cash and equivalents grew meaningfully to $319 million, providing financial flexibility during this operational transition period.

FINANCIAL STATEMENT CHANGES
Share Buybacks
Cash Flow
-55.8%
$360.0M→$159.0M

Buyback activity reduced 55.8% — capital being redeployed elsewhere or cash conservation underway.

Total Debt
Balance Sheet
+42.5%
$1.3B→$1.8B

Debt increased 42.5% — substantial leverage increase; assess whether deployed for growth or covering losses.

Cash & Equivalents
Balance Sheet
+36.3%
$234.0M→$319.0M

Cash position surged 36.3% — strong cash generation or capital raise providing significant financial cushion.

Operating Income
P&L
-17.2%
$1.2B→$993.0M

Operating profitability softening — costs rising faster than revenue, watch for margin recovery plan.

Net Income
P&L
-12.3%
$693.0M→$608.0M

Net income declined 12.3% — review whether driven by operations, interest costs, or non-recurring items.

LANGUAGE CHANGES
NEW — 2026-02-19
PRIOR — 2025-02-20
ADDED
The number of outstanding shares of the registrant's common stock as of February 13, 2026 was 255,132,267 .
BUSINESS OVERVIEW LKQ Corporation ("LKQ," the "Company" or "we") is a global distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, and specialty aftermarket products and accessories to improve the performance, functionality and appearance of vehicles.
Buyers of vehicle replacement products have the option to purchase from primarily four sources: new products produced by original equipment manufacturers ("OEMs"); new products produced by companies other than the OEMs, which are referred to as aftermarket products; salvaged products taken from total loss vehicles; and reconditioned products that have been refurbished or remanufactured.
We also sell specialty products and accessories, which are vehicle products that improve the performance, functionality and appearance of vehicles.
We are organized into three operating segments: North America (formerly known as ("f/k/a") Wholesale - North America); Europe; and Specialty, each of which is presented as a reportable segment.
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REMOVED
The number of outstanding shares of the registrant's common stock as of February 14, 2025 was 259,154,784 .
BUSINESS OVERVIEW LKQ Corporation ("LKQ," the "Company" or "we"), a member of the Standard Poor's 500 Stock In dex ("S P 500 Index") , is a global distributor of vehicle products, including replacement parts, components and systems used in the repair and maintenance of vehicles, and specialty aftermarket products and accessories to improve the performance, functionality and appearance of vehicles.
Buyers of vehicle replacement products have the option to purchase from primarily five sources: new products produced by original equipment manufacturers ("OEMs"); new products produced by companies other than the OEMs, which are referred to as aftermarket products; recycled products obtained from salvage and total loss vehicles; recycled products that have been refurbished; and recycled products that have been remanufactured.
We distribute a variety of products to collision and mechanical repair shops, including aftermarket collision and mechanical products; recycled collision and mechanical products; refurbished collision products such as wheels, bumper covers and lights; and remanufactured engines and transmissions.
Our Self Service segment operates self service retail facilities across the U.S.
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