LKQ Corporation (LKQ)

Over the past six months, LKQ's stock price has decreased by 2.77%, with the share price falling from $46.03 on July 17, 2024, to $37.35 as of July 16, 2025, representing an 18.86% decrease. This underperformance is attributed to weakening demand for vehicle parts due to a decline in repairable claims. Specific events impacting the stock include the Q1 2025 earnings announcement where LKQ met EPS expectations but missed revenue forecasts, the Q3 2024 earnings announcement where revenue increased slightly but net income decreased, the announcement of a $1 billion increase to its stock repurchase program, a joint venture with SYNETIQ Ltd., the publication of its 2024 Global Sustainability Report, and the CEO's stock purchase.

Demand for LKQ Corp.'s products and services is influenced by weather patterns, with historically strong seasonal demand in the first and second quarters. The company's business is also exposed to the cyclical nature of the automotive repair and replacement parts market. Weakening demand for vehicle parts, driven by a decline in repairable claims due to soaring insurance premiums and escalating repair costs, has negatively impacted LKQ's business.

LKQ Corporation is a global distributor of alternative and specialty parts for vehicle repair and accessorization, operating primarily in the automotive aftermarket industry. The company provides replacement parts, remanufactured products, specialty aftermarket products, accessories, components, systems, and vehicle diagnostic services. LKQ is also the world's largest vehicle recycler, recycling over 95% of materials from end-of-life vehicles.

LKQ Corporation has a broad global presence with operations in North America, Europe, and Taiwan, maintaining over 1,684 locations in more than 20 countries worldwide. In North America, it operates in the United States, Canada, and Mexico. In Europe, it has presence in the United Kingdom, Belgium, Netherlands, Luxembourg, Italy, Czech Republic, Austria, Slovakia, Poland, France, Germany, Switzerland, Hungary, Romania, Ukraine, Bulgaria, and Spain. In Asia, it operates in Taiwan.

LKQ Corporation maintains a strong brand reputation in the automotive parts industry, known for quality and reliability. The company emphasizes its commitment to quality through warranties, CAPA certification, and a Promise of Protection indemnification program. Events affecting its reputation include the publication of its 2024 Global Sustainability Report, the announcement of FinishMaster by LKQ, and the rebranding of the LKQ Refinish Division.

LKQ Corporation's ownership is a mix of institutional, retail, and individual investors. Approximately 64.22% of the company's stock is owned by institutional investors, with major holders including Vanguard Group Inc., BlackRock, Inc., and Morgan Stanley. Jacob H. Welch is the largest individual shareholder, owning 15.15% of the company, and ValueAct Capital owns 7.1%. Insiders own approximately 0.75% of the stock.