LKQ expects to report third-quarter revenue of $3.32 billion and a net loss as operational problems in Europe weigh on the auto-parts distributor.

The company withdrew its full-year 2026 guidance and announced a leadership transition after releasing preliminary results for the quarter ended September 30. The move contrasts with stronger industrial updates recently reported by Kaiser Aluminum and Gorman-Rupp.

Europe Drives the Quarterly Shortfall

LKQ said on October 23 that revenue is expected to decline from $3.50 billion a year earlier. Parts and services organic revenue fell an estimated 5.4%, while Europe’s comparable measure dropped 9.8%.

The company cited disruption from an enterprise-resource-planning rollout in Germany and lower volumes in the United Kingdom and Benelux. LKQ expects Europe’s segment EBITDA margin to land between 4.1% and 5.1%, down from 10.0% a year ago.

Loss and Guidance Withdrawal Raise Stakes

LKQ forecast a net loss of $16 million to $32 million, including $111 million of noncash impairment charges. Adjusted diluted EPS is expected between $0.47 and $0.53, compared with $0.84 in the prior-year quarter.

The company withdrew its full-year forecast, last updated July 30, because of Europe’s performance and the CEO transition. The preliminary figures remain subject to final accounting procedures, with full results scheduled for October 29.

Leadership Changes Target Execution

Salvatore A. Abbate will take over as president and CEO on December 15. Until then, board chairman John Mendel and audit committee chair Sue Gove will run an interim Office of the CEO. LKQ also retained Alvarez & Marsal to advise on European operations.

The board’s response puts execution, customer service and cost discipline at the center of the next phase. Markets will compare the restructuring path with other companies managing pressure on forecasts, including the backlog and revenue trends recently reported by Booz Allen.

Elsy Kanana is a financial and cryptocurrency journalist at FusionMarketNews, covering digital assets, blockchain technology, financial markets, and emerging fintech trends. Her reporting focuses on market movements, regulatory developments, and on-chain analytics, delivering clear, data-driven insights to readers worldwide.