LKQ withdraws its 2026 performance guidance and appoints a new CEO amid sluggish European market conditions

Reuters October 23 - Auto parts distributor LKQ Corp (LKQ.O) on Friday withdrew its annual performance guidance, citing weak performance in its European business, and announced that Salvatore Abbate will take over as the new CEO in December, succeeding current CEO Justin Jude.

Following the announcement, the company’s shares fell 17% in pre-market trading.

• Previously, LKQ in July lowered 2026 (link) performance expectations due to weak European demand; this withdrawal of annual guidance follows that reduction.

• LKQ expects the region to be the biggest drag on its third-quarter results, with the related financial report scheduled for release on October 29

• Impacted by interruptions in German operations and weak demand in other major markets, it is expected that this quarter the European parts and services business will see organic revenue fall 9.8% year-over-year

• In January this year, after activist investor Ananym Capital pressured LKQ to divest its European business and increase stock buybacks, LKQ stated its board had begun reviewing strategic options, including a possible sale (link)

• Activist investors are increasingly targeting auto parts suppliers, pushing them to divest slower-growing assets and ramp up share buybacks. Peer Genuine Parts said in February that, after pressure from activist investor Elliott Investment Management , it would split into (link) two independent companies

• Incoming CEO Abbate previously served as CEO of Veritiv Corp, a packaging and distribution company acquired by Clayton, Dubilier & Rice in 2023

• According to data compiled by London Stock Exchange Group (LSEG), LKQ expects third-quarter adjusted earnings per share to be between 47 cents and 53 cents, well below analysts’ estimate of 69 cents

• The company expects quarterly revenue to be $3.32 billion, while the market expects $3.41 billion

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