LKQ (LKQ) Financials

Here’s a concise, investor-focused summary of LKQ’s recent four-year trend across income statements, balance sheets, and cash flow figures. The highlights focus on cash generation, liquidity, profitability, and leverage, with a view toward how these trends may influence the stock over the near term.

• LKQ continues to generate solid operating cash flow in 2025, with notable quarterly strengths such as 438 million from continuing operations in Q3 2025 and 332 million in Q4 2025. This pattern supports ongoing liquidity and the ability to fund operations without relying solely on external financing.
• Liquidity looks solid by year-end 2025: LKQ had about 289 million in cash and equivalents (Q3 2025), and total current assets of 5.715 billion versus total current liabilities of 3.581 billion, yielding a healthy current ratio near 1.6.
• The company has access to capital markets in 2025, evidenced by debt issuances of 532 million in Q3 2025 and 436 million in Q4 2025, providing a liquidity runway to support operations and capital needs.
• Profitability remains robust on a quarterly basis. Net income attributable to common shareholders was 235 million in Q3 2025, 253 million in Q2 2025, and 226–233 million in nearby quarters, reflecting consistent cash-generating profitability.
• Gross profit remained sizable relative to revenue in 2024–2025. For example, Q4 2025 gross profit was 1.135 billion on 3.047 billion in revenue (roughly 37% margin), a durable level that compares favorably with the prior year’s margin (around 39% in Q4 2024).
• In Q4 2025, LKQ reported a positive net cash figure from continuing investing activities of 329 million, contributing to overall cash flexibility alongside operating cash flow and debt financing activity.
• The business exhibits seasonality and quarterly revenue swings typical for an auto parts aftermarket company, which can make quarter-to-quarter comparisons muted or misleading without context.
• The balance sheet contains substantial goodwill and intangible assets (Goodwill around 5.5–5.6 billion and intangibles around 1.1–1.3 billion in recent periods), which could expose LKQ to impairment risk if market conditions deteriorate or if product segments underperform.
• Leverage remains a concern. Across the latest quarters, total liabilities sit around 9.0–9.6 billion with long-term debt near 3.6–4.4 billion, signaling a relatively high debt burden that could pressure interest expense and balance-sheet flexibility if operating conditions worsen.
• Gross margin has shown moderation, sliding from roughly 39% in late 2024 to about 37% in 2025, indicating modest margin compression that could impact earnings quality if selling prices or cost dynamics don’t improve.