LKQ Corporation has announced leadership changes, operational restructuring, and a withdrawal of its full-year 2026 financial guidance following preliminary third-quarter losses driven by underperformance in Europe.
For Q3 2026, LKQ expects revenue of $3.32 billion, down from $3.50 billion in Q3 2025, alongside an organic parts and services revenue decline of 5.4%. The company projects a net loss of $16 million to $32 million, including $111 million in non-cash impairment charges, compared to net income of $178 million in Q3 2025.
The decline was driven primarily by European operations, where organic parts and services revenue fell 9.8%, impacted by ERP implementation disruptions in Germany and volume drops in the UK and Benelux.
Salvatore A. Abbate has been appointed President and Chief Executive Officer, effective 15 December 2026, replacing Justin Jude. An interim Office of the CEO, comprising Board Chairman John Mendel and Audit Committee Chair Sue Gove, will manage operations until Abbate takes office.
Andy Hamilton has also departed as President and Managing Director of LKQ Europe. Consultancy firm Alvarez & Marsal has been retained to advise on European operations, focusing on customer service, operational stability, and cost discipline.
John Mendel, Chairman of the Board, said: “LKQ’s performance, particularly in Europe, has fallen significantly short of the Board’s expectations, and the Board is taking decisive action to address it.”
LKQ has withdrawn its full-year 2026 guidance, previously updated on 30 July 2026. Further details are available via LKQ Corporation at www.lkqcorp.com.