LKQ Ousts CEO Jude, Withdraws 2026 Guidance After $111M Europe Impairment
LKQ is trading near its 52-week low of $21.17 (4.1% below the low).
Summary
LKQ replaced CEO Justin Jude and Europe head Andy Hamilton, withdrew full-year 2026 guidance, and pre-announced a Q3 net loss of $16M-$32M including $111M of non-cash impairment driven by European underperformance, with adjusted EPS of 47-53 cents far below the 69 cents analysts expected and shares down 18% to $18.45 premarket.
Updated with a Dow Jones Newswires report · What changed
Updates
· Dow Jones Newswires — LKQ expects Q3 adjusted EPS of 47-53 cents versus the 69 cents analysts polled by FactSet expected, and shares fell 18% to $18.45 premarket.
Key Events · Earnings and Guidance · LKQ
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New · · Dow Jones Newswires
Shares Fall 18% Premarket
LKQ shares fell 18% to $18.45 premarket after the preliminary results and withdrawn guidance.
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Updated · · Dow Jones Newswires
Q3 Prelim: Loss, Impairment, EPS Miss
Preliminary Q3 2026 revenue of $3.32B versus $3.50B a year ago, with organic parts and services revenue down 5.4%. Net loss of $16M-$32M includes $111M of non-cash impairment charges ($0.42 per share); adjusted diluted EPS of $0.47-$0.53 compares with $0.84 and with the 69 cents analysts polled by FactSet expected.
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CEO and Europe Head Out
Justin Jude ceased as President and CEO and resigned from the Board effective October 23, 2026; Andy Hamilton, President and Managing Director of LKQ Europe, departed the same day. Salvatore Abbate becomes CEO effective December 15, 2026, with an interim Office of the CEO (John Mendel, Sue Gove) and CFO Rick Galloway as principal executive officer in the gap.
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Europe Is the Problem
Europe organic parts and services revenue fell 9.8% and segment EBITDA margin dropped to 4.1%-5.1% from 10.0%, driven by ERP implementation disruptions in Germany and volume declines in the UK and Benelux. Alvarez & Marsal was retained to advise on stabilizing the region.
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Guidance Withdrawn
Full-year 2026 guidance, most recently updated July 30, 2026, is withdrawn. Full Q3 results and a conference call are scheduled for October 29, 2026.
Analysis · LKQ · Trade & Services
The board moved against both its CEO and its Europe head on the same day it told investors Europe had blown past expectations to the downside. Preliminary Q3 revenue of $3.32B (down from $3.50B) and a net loss of $16M-$32M — including $111M of non-cash impairment — forced the board's hand, and full-year 2026 guidance is now withdrawn entirely. The market's verdict was immediate: adjusted EPS of 47-53 cents against the 69 cents analysts polled by FactSet expected, and the stock fell 18% to $18.45 premarket. Salvatore Abbate, who ran Veritiv through a 13-fold share-price gain and a $2.6B sale, takes over December 15, with an interim Office of the CEO and CFO Rick Galloway as principal executive officer until then. Alvarez & Marsal is being brought in on Europe, and the board says its strategic-alternatives review continues — meaning a sale or breakup of the European business is now a live question. With the stock already near its 52-week low, the market is being asked to underwrite a turnaround with no guidance and no permanent CEO for roughly two months.
How filings like this one have moved
In the 30 days to Oct 24, 2026, 46.3% of the 270 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.74%. These are measured outcomes after filings of this importance, not a forecast for this one.
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At the time of this filing, LKQ was trading at $20.31 on NASDAQ in the Trade & Services sector, with a market capitalization of approximately $5.7B. The 52-week trading range was $21.17 to $37.13. This filing was assessed with negative market sentiment and an importance score of 9 out of 10.