LKQ cuts 2026 outlook after second-quarter revenue and earnings decline

LKQ reported second-quarter 2026 revenue of $3.4 billion, down 3.0% year over year, while diluted EPS fell to $0.52 from $0.72 and adjusted diluted EPS declined to $0.67 from $0.84. The company lowered its 2026 outlook to organic revenue growth of negative 3.0% to negative 1.0%, diluted EPS of $1.78 to $2.08, adjusted diluted EPS of $2.60 to $2.90, operating cash flow of $825 million to $1.025 billion and free cash flow of $625 million to $775 million, citing a slower European recovery after an ERP implementation in Germany; its strategic review, including potential transactions involving the company or Specialty segment, remains active without a timetable.