LKQ withdrew its full-year 2026 guidance after preliminary third-quarter results showed a steep decline in Europe and a loss attributable to stockholders. The auto-parts distributor also named Salvatore Abbate as its next chief executive and brought in Alvarez & Marsal to advise on European operations.
Europe drives the preliminary shortfall
LKQ announced the preliminary results on October 23 for the quarter ended September 30. The company’s SEC-filed release attributed Europe’s weakness to disruptions from an enterprise-resource-planning rollout in Germany and lower volumes in the United Kingdom and Benelux.
| Metric | Q3 2026 preliminary | Q3 2025 |
|---|---|---|
| Revenue | About $3.32B | $3.50B |
| Net income attributable to LKQ stockholders | Loss of $18M–$34M | $180M |
| Adjusted diluted EPS | $0.47–$0.53 | $0.84 |
| Europe EBITDA margin | 4.1%–5.1% | 10.0% |
The forecast includes a $111 million noncash impairment charge, equal to about $0.42 per diluted share. The adjusted EPS range excludes specified items, so it should not be treated as interchangeable with the company’s GAAP loss.
Guidance withdrawn as leadership changes
LKQ withdrew the 2026 outlook it last updated on July 30, citing Europe’s third-quarter performance and the leadership transition. Justin Jude left the company on October 23, while an interim Office of the CEO will lead operations until Abbate begins on December 15.
The board also said Andy Hamilton departed as president and managing director of LKQ Europe. Alvarez & Marsal will initially focus on customer service, operational stability, performance and cost discipline across the region.
October 29 results become the next test
LKQ plans to report complete third-quarter results on October 29, when investors will receive final figures and further context on the restructuring effort. The withdrawal of guidance raises the importance of cash flow, European execution and any timetable attached to the company’s strategic review.
For wider auto-sector context, readers can compare the setup with the latest Ford earnings preview and Gentex margin outlook. Manufacturing demand signals in Texas Instruments’ results offer another useful comparison; this article is informational and not investment advice.
Elsy kanana
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.
