LKQ misses third-quarter estimates, withdraws 2026 guidance and suspends Specialty sale process

Revenue came in at $3.32 billion against $3.47 billion expected, and the company pinned the shortfall mostly on Europe.

LKQ reported third-quarter earnings of $0.50 a share, $0.20 below expectations. Revenue was $3.32 billion, against $3.47 billion expected. Chief Financial Officer Rick Galloway said the quarter reflected weakness in Europe, where a German ERP system rollout and volume declines in the UK and Benelux both weighed. Specialty was modestly below plan. North America was in line with expectations.

The company withdrew its full-year 2026 guidance, which it had last updated on July 30, 2026. The board named Salvatore A. Abbate as president and chief executive, effective December 15, 2026. It also suspended its strategic review, including the sale process for the Specialty segment, so that new leadership can assess the business.

The board declared a quarterly cash dividend of $0.30 a share, payable December 3, 2026, to shareholders of record on November 19, 2026. It also extended the stock repurchase program for two years, allowing buybacks through October 25, 2028.

The pause on the Specialty sale marks a move from active restructuring to stabilization. A decision that shareholders had been following since the review began now waits until Abbate starts. Keeping the dividend unchanged and extending the buyback signal that the board sees the miss as an operating problem, not a balance-sheet or cash-flow problem. Galloway's breakdown places the fix in Europe, which fits an earlier leadership shakeup in that region. With the review frozen, the next visible step is Abbate's first assessment of the business.