Sector: Consumer Discretionary|Industry: Auto Parts|Market Cap: $9.56B|Employees: 49K
LKQ Corporation engages in the distribution of replacement parts, components, and systems used in the repair and maintenance of vehicles and specialty vehicle aftermarket products and accessories. It operates through four segments: Wholesale-North America, Europe, Specialty, and Self Service. The company distributes bumper covers, automotive body panels, and lights, as well as mechanical automotive parts and accessories; salvage products, including mechanical and collision parts comprising engines; transmissions; door assemblies; sheet metal products, such as trunk lids, fenders, and hoods; lights and bumper assemblies; scrap metal and other materials to metals recyclers; and brake pads, discs and sensors, clutches, steering and suspension products, filters, and oil and automotive fluids, as well as electrical products, including spark plugs and batteries. In addition, the company distributes recreational vehicle appliances and air conditioners, towing hitches, truck bed covers, vehicle protection products, marine electronics, cargo management products, wheels, tires, and suspension products. It serves collision and mechanical repair shops, and new and used car dealerships, as well as retail customers. The company operates in the United States, Canada, the United Kingdom, Germany, Belgium, the Netherlands, Luxembourg, Italy, the Czech Republic, Austria, Poland, Slovakia, Taiwan, and other European countries. LKQ Corporation was incorporated in 1998 and is headquartered in Chicago, Illinois.
Total revenue decreased by $240 million, or 6.5%, to $3,463 million for the three months ended March 31, 2025, from $3,703 million in the prior year. This decline was primarily due to a $151 million (4.3%) organic parts and services revenue decrease and a $56 million (1.6%) negative impact from foreign exchange rate fluctuations.
Despite the revenue decline, gross margin improved by 60 basis points to 39.8% in Q1 2025 from 39.2% in Q1 2024, primarily due to a 7.3% decrease in Cost of Goods Sold. Operating income margin also expanded to 8.3% from 7.8%, contributing to a 7.0% increase in net income to $169 million.
Net cash used in operating activities was $3 million for the three months ended March 31, 2025, a substantial change from $253 million provided in the same period of 2024. This was primarily driven by increased cash outflows for receivables ($7 million) and inventories ($34 million), and lower cash inflows from accounts payable ($212 million).