They are like NAPA Auto Parts for recycled and aftermarket car parts.

Think of them as the Grainger of vehicle components for repair and maintenance.

Imagine a national auto parts store (like AutoZone or O'Reilly Auto Parts) that also processes salvaged vehicles for parts and distributes specialty vehicle accessories.

• Collision Repair Parts: LKQ distributes new and salvaged automotive body panels, bumper covers, lights, and glass products like windshields for vehicle repair.
• Mechanical Repair Parts: The company provides new and salvaged mechanical components such as engines, transmissions, brakes, clutches, steering and suspension parts, filters, and electrical products.
• Specialty Vehicle Products: LKQ offers a range of aftermarket products including RV appliances, air conditioners, towing hitches, truck bed covers, wheels, and tires.
• Scrap Metal: The company sells scrap metal and other materials generated from its salvage operations to metals recyclers.

LKQ Corporation primarily sells to other businesses. Based on the provided background information, its major customer categories are:

• Collision and mechanical repair shops
• New and used car dealerships

The company also serves retail customers, which are individuals.

The background information does not identify specific named public companies as major customers. LKQ serves a broad and dispersed network of businesses within the automotive repair and maintenance industry.

Justin Jude President and Chief Executive Officer

Justin Jude assumed the role of President and Chief Executive Officer of LKQ Corporation in July 2024. He has been with LKQ since February 2004, holding various leadership positions including Executive Vice President and Chief Operating Officer from January 2024 to June 2024, and Senior Vice President and President of Wholesale – North America from July 2015 through December 2023. Mr. Jude also served as President of Keystone Automotive Operations, Inc. from June 2014 to July 2015. He currently serves as CEO and Director of Pick-Your-Part Auto Wrecking, Inc. and Director of LKQ India Pvt Ltd., which are likely LKQ subsidiaries.

Rick Galloway Senior Vice President and Chief Financial Officer

Rick Galloway was appointed Senior Vice President and Chief Financial Officer of LKQ Corporation in September 2022. Prior to this, he served as Chief Financial Officer of LKQ's Wholesale – North America and Self Service segments starting in 2019. Before joining LKQ, Mr. Galloway held various positions at Alcoa Corporation from 2010 to 2019, including Chief Financial Officer of Alcoa's Engineered Products and Solutions division, which encompassed 97 manufacturing facilities globally. He began his career in public accounting with Grant Thornton as an auditor.

Andy Hamilton Senior Vice President of LKQ Corporation and President and Managing Director of LKQ Europe

Andy Hamilton became Senior Vice President of LKQ Corporation and President and Managing Director of LKQ Europe in January 2024. He joined Euro Car Parts in 2010, which was subsequently acquired by LKQ in 2011. During his tenure at Euro Car Parts, he held several executive roles, including Chief Operating Officer, and later served as Chief Commercial Officer of LKQ Europe from 2016. From 2019 through 2023, Mr. Hamilton was the Chief Executive Officer of LKQ Euro Car Parts. Prior to his time at LKQ, he held various management roles for Halfords Group.

John R. Meyne Senior Vice President of LKQ Corporation and President of North America

John R. Meyne was appointed Senior Vice President of LKQ Corporation and President of North America in January 2024. He joined LKQ in July 2009. His previous roles at LKQ include East Division Vice President of North America from 2022 to 2023 and Regional Vice President for the Southeast Region of the North America segment from 2011 to 2021. Mr. Meyne began his career in the industry with Keystone Automotive Industries, Inc. in 1987, and in 2006, he started his own aftermarket collision parts company, which was acquired by LKQ in 2009.

Walter P. Hanley Senior Vice President, Business Development and Strategy

Walter P. Hanley became Senior Vice President of Business Development and Strategy in October 2024. He has been with LKQ since December 2002, initially serving as Vice President of Development, Associate General Counsel, and Assistant Secretary until December 2005. From December 2005 to October 2024, he held the position of Senior Vice President of Development.

The key risks to LKQ Corporation's business include the transformative impact of evolving vehicle technology, macroeconomic headwinds affecting demand, and intense competition within the automotive aftermarket.

1. Technological Disruption from Electric and Autonomous Vehicles: The automotive industry is undergoing a significant transformation with the rise of electric vehicles (EVs) and autonomous driving technology. This shift poses a substantial long-term risk to LKQ's core business of distributing replacement parts for traditional internal combustion engine (ICE) vehicles. Electric vehicles generally require fewer mechanical replacement parts, such as exhaust components and fewer brake replacements due to regenerative braking. LKQ Europe estimates that battery-electric vehicles will require up to 40% fewer parts in the future. Furthermore, advancements in autonomous driving systems are expected to significantly reduce the number of traffic accidents, thereby decreasing the demand for collision repair parts. This evolution necessitates substantial investments in new capabilities and a strategic adaptation of LKQ's business model to cater to the needs of these new vehicle technologies.

2. Economic Downturns and Macroeconomic Headwinds: LKQ's business is highly sensitive to broader economic conditions, including inflation, interest rates, and consumer sentiment. Economic downturns can lead to reduced vehicle usage, fewer accidents, and a decrease in discretionary spending on vehicle repairs and maintenance, directly impacting the demand for LKQ's products. The company has explicitly cited macroeconomic headwinds, softening consumer sentiment, and inflationary pressures as significant challenges, particularly impacting its Specialty segment and overall performance in regions like Europe. A persistent decline in repairable claims, influenced by factors such as decreasing used car pricing relative to repair costs and rising insurance premiums, also pressures the company's revenue.

3. Intense Competition and Pricing Pressure: The automotive parts industry is characterized by intense competition from numerous players, including original equipment manufacturers (OEMs), other aftermarket distributors, and online retailers. This competitive landscape can lead to pricing pressure and impact LKQ's profit margins. OEMs may also exert pressure by attempting to "lock down" their ecosystems, limiting the market for "like-kind-quality" replacement parts and forcing vehicles to source parts directly from specific manufacturers. LKQ has specifically noted persistent competition in Europe as an ongoing risk that limits its ability to pass on price increases.

The increasing adoption of Electric Vehicles (EVs) represents a clear emerging threat to LKQ. EVs possess significantly fewer mechanical components compared to traditional internal combustion engine (ICE) vehicles. This fundamental difference is likely to reduce the demand for a substantial portion of LKQ's product offerings, particularly in its mechanical and salvage segments, which include engines, transmissions, oil, filters, spark plugs, and clutches. As the global vehicle fleet transitions towards electrification, the market for many of the core ICE-specific replacement parts distributed by LKQ will diminish.

Addressable Markets for LKQ's Main Products and Services:

• Automotive Aftermarket Parts (Mechanical and General Replacement Parts)
  • North America: The automotive aftermarket industry was estimated at approximately USD 108.73 billion in 2024 and is projected to grow to USD 127.51 billion by 2030.
  • Europe: The automotive aftermarket spare parts market size is estimated at USD 107.83 billion in 2025 and is expected to reach USD 126.23 billion by 2030.
• Automotive Collision Repair Parts and Services
  • North America: This market was approximately USD 53.1 billion in 2023 and is expected to reach USD 87.1 billion by 2032.
  • Europe: The European automotive collision repair market size is projected to be USD 86.82 billion in 2025 and is forecast to reach USD 96.42 billion by 2030.
• Automotive Glass Products
  • North America: The North America automotive glass market is expected to grow from USD 6.26 billion in 2025 to USD 9.32 billion by 2031.
  • Europe: The Europe automotive glass market size was valued at USD 16.5 billion in 2025 and is expected to reach USD 22.9 billion by 2034.
• Vehicle Recycling and Salvage Products (including mechanical and collision parts, and scrap metal)
  • Global: The global automotive recycling market size was approximately USD 201.69 billion in 2024, projected to grow to USD 238.00 billion by 2025, and exceed USD 897.14 billion by 2033.
  • North America: This region held approximately 42.36% of the global vehicle recycling market in 2024.
• Specialty and Truck Accessories (including towing hitches, truck bed covers, vehicle protection products, cargo management products, wheels, tires, and suspension products)
  • North America Commercial Vehicle Accessories: The North America commercial vehicle accessories market accounted for approximately USD 30.98 billion in 2023.
  • U.S. Truck Bed Accessories: This segment of the market was estimated at USD 2.56 billion in 2024 and is projected to grow to USD 3.83 billion by 2030.

LKQ Corporation (NASDAQ: LKQ) is expected to drive future revenue growth over the next two to three years through a combination of strategic initiatives focused on its core operations, market expansion, and efficiency gains.

Here are 4 expected drivers of future revenue growth:

• Specialty Segment Growth: The company's Specialty segment has demonstrated strong organic revenue growth, with a 7.8% increase in the fourth quarter of 2025 and 2.7% for the full year 2025, driven by improving end markets. This segment is a key area of focus, contributing to overall top-line expansion.
• North American Market Share Expansion: LKQ's North America business has successfully gained market share, even in a soft demand environment. This growth is attributed to disciplined pricing strategies, the expansion of relationships with large repair shop groups (MSOs), and the ongoing development of its Canadian hard parts business.
• Operational Enhancements and Selective Pricing Strategies: Management's outlook for 2026 is centered on cost discipline, operational enhancements, and selective pricing strategies. Initiatives like the global rollout of a lean operating model and a SKU rationalization program are designed to improve productivity and execution. While primarily focused on profitability, these efficiencies and pricing discipline are expected to support and generate profitable revenue growth, including an anticipated return to double-digit EBITDA margins in the European segment.
• Strategic Portfolio Optimization: LKQ's Board of Directors has initiated a comprehensive review of strategic alternatives to enhance shareholder value, following the simplification of its business portfolio, including the sale of the Self-Service segment. This strategic pivot aims to focus on higher-margin, core growth areas, allowing the company to allocate capital and management attention to its non-discretionary parts business for more focused and profitable revenue streams.

Share Repurchases

• LKQ Corporation expanded its stock repurchase program in October 2024, increasing the aggregate authorization to $4.5 billion and extending it through October 25, 2026.
• As of December 31, 2025, approximately $1.6 billion remained authorized for potential additional repurchases.
• In 2025, the company repurchased 4.5 million shares for approximately $159 million, and in 2024, it repurchased shares worth $360 million.

Outbound Investments

• In February 2023, LKQ Europe acquired the Dutch-based Rhenoy Group, a leading supplier of remanufactured engines and recycled OEM car parts, to reinforce its commitment to sustainable mobility.
• LKQ Europe entered into a joint venture with SYNETIQ Ltd. in June 2025 to combine distribution with vehicle dismantling, reuse, and remanufacturing expertise, supporting future EU regulations and enhancing the salvage channel.
• Between 2021 and 2023, LKQ completed several acquisitions including Uni-Select, Digraph, Green Bean Battery, and Greenlight Automotive.

Capital Expenditures

• LKQ's capital expenditures were $216 million in 2025, $311 million in 2024, and $358 million in 2023.
• Capital expenditures are focused on initiatives to improve operating efficiencies, enhance margins, and leverage intellectual capital across operating segments.
• A portion of capital expenditures, referred to as "Transformation capital expenditures," are for long-lived assets like software and facilities, specifically related to the "1 LKQ Europe program" to centralize and standardize European operations.