The auto parts distributor projects $625M-$775M free cash flow as North American organic growth turns positive after nine quarters.
LKQ Corporation set Q2 2026 adjusted earnings guidance at $2.60-$2.90 per share and free cash flow between $625M and $775M. The outlook reflects improving conditions in Europe and a return to organic growth in North America, the first positive quarter in nine periods.
The company’s prior quarter fell short of internal expectations, though alternative part utilization trends remained steady. Analysts had anticipated a rebound in European demand, which management cited as a key driver for the revised projections.
Shares showed muted reaction in after-hours trading as investors weighed the guidance against broader sector performance.