What changed in this filing

/stocks — the workspaceLOADING

Item 1. Financial Statements

2026-04-30 compared with 2025-10-30 · 155 added, 344 removed, 400 unchanged (56% of the section changed)

3 unchanged sentences

(In millions, except per share data)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Revenue $ 3,469 $ 3,327

11 unchanged sentences

Provision for income taxes 44 61

Equity in earnings of unconsolidated subsidiaries — ( 3 ) — ( 3 )

Equity in losses of unconsolidated subsidiaries 46 1

Income from continuing operations 77 158

1 unchanged sentence

Net income $ 79 $ 169

net income attributable to continuing noncontrolling interest — 1 1 2

Net income attributable to LKQ stockholders $ 180 $ 191 $ 541 $ 534

Basic earnings per share:

2 unchanged sentences

Net income $ 0.31 $ 0.65

net income attributable to continuing noncontrolling interest — — — —

Net income attributable to LKQ stockholders $ 0.70 $ 0.73 $ 2.10 $ 2.02

Diluted earnings per share:

2 unchanged sentences

Net income $ 0.31 $ 0.65

net income attributable to continuing noncontrolling interest — — — 0.01

Net income attributable to LKQ stockholders $ 0.70 $ 0.73 $ 2.10 $ 2.01

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(In millions)

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Net income $ 79 $ 169

net income attributable to continuing noncontrolling interest — 1 1 2

Net income attributable to LKQ stockholders 180 191 541 534

Other comprehensive (loss) income:

Foreign currency translation, net of tax ( 71 ) 100

Net change in unrealized gains/losses on cash flow hedges, net of tax — ( 4 ) 1 1

Net change in unrealized gains/losses on pension plans, net of tax — 1

Other comprehensive income (loss) from unconsolidated subsidiaries 5 ( 2 ) 1 ( 2 )

Other comprehensive (loss) income from unconsolidated subsidiaries ( 5 ) 3

Other comprehensive (loss) income ( 76 ) 104

Comprehensive income $ 3 $ 273

comprehensive income attributable to continuing noncontrolling interest — 1 1 2

Comprehensive income attributable to LKQ stockholders $ 147 $ 309 $ 874 $ 579

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

2 unchanged sentences

(In millions, except per share data)

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Current assets:

3 unchanged sentences

Prepaid expenses and other current assets 330 299

Current assets of discontinued operations — 48

Total current assets 5,475 5,248

5 unchanged sentences

Other noncurrent assets 414 449

Noncurrent assets of discontinued operations — 515

Total assets $ 15,139 $ 15,137

9 unchanged sentences

Other current liabilities 104 88

Current liabilities of discontinued operations — 35

Total current liabilities 3,547 3,137

3 unchanged sentences

Other noncurrent liabilities 327 332

Noncurrent liabilities of discontinued operations — 117

Commitments and contingencies

Stockholders' equity:

Common stock, $ 0.01 par value, 1,000.0 shares authorized, 324.0 shares issued and 256.3 shares outstanding at September 30, 2025;

Common stock, $ 0.01 par value, 1,000.0 shares authorized, 324.2 shares issued and 255.2 shares outstanding at March 31, 2026;

324.0 shares issued and 255.0 shares outstanding at December 31, 2025

3 unchanged sentences

Treasury stock, at cost;

67.7 shares at September 30, 2025 and 64.5 shares at December 31, 2024

69.0 shares at March 31, 2026 and 69.0 shares at December 31, 2025

( 2,948 ) ( 2,948 )

7 unchanged sentences

(In millions)

Nine Months Ended September 30,

Three Months Ended March 31,

CASH FLOWS FROM OPERATING ACTIVITIES (1) :

Net income $ 79 $ 169

Adjustments to reconcile net income to net cash provided by operating activities:

Adjustments to reconcile net income to net cash used in operating activities:

Depreciation and amortization 99 100

Impairment on Mekonomen equity method investment 44 —

Stock-based compensation expense 9 8

Other ( 25 ) 66

Changes in operating assets and liabilities, net of effects from acquisitions and dispositions:

6 unchanged sentences

Operating lease assets and liabilities ( 1 ) —

Net cash provided by operating activities 733 886

Net cash used in operating activities ( 56 ) ( 3 )

CASH FLOWS FROM INVESTING ACTIVITIES (1) :

6 unchanged sentences

Repayments under revolving credit facilities ( 175 ) ( 233 )

Repayments of other debt, net ( 33 ) ( 30 )

Proceeds from issuance of Euro Notes (2031), net of unamortized bond discount — 816

Repayment of Euro Notes (2024) — ( 547 )

(Repayments) borrowings of other debt, net ( 8 ) 11

Dividends paid to LKQ stockholders ( 77 ) ( 78 )

1 unchanged sentence

Other financing activities, net ( 13 ) ( 12 )

Net cash used in financing activities ( 562 ) ( 516 )

Net cash provided by financing activities 111 40

Effect of exchange rate changes on cash, cash equivalents and restricted cash ( 6 ) 5

Net increase in cash, cash equivalents and restricted cash 57 71

Net increase (decrease) in cash, cash equivalents and restricted cash 7 ( 8 )

Cash, cash equivalents and restricted cash of continuing operations, beginning of period (2)

4 unchanged sentences

Cash, cash equivalents and restricted cash, end of period (2)

Supplemental disclosure of cash paid for:

Income taxes, net of refunds $ 146 $ 219

Interest 163 153

(1) Amounts presented contain results from both continuing and discontinued operations.

Refer to Note 2, "Discontinued Operations" for further information regarding cash flows associated with the results of discontinued operations.

(2) Non cash investing activities for the nine months ended September 30, 2025 includes an approximately $ 390 million receivable related to the sale of Self Service .

Refer to Note 2, "Discontinued Operations" for further information.

(2) See Note 15, "Cash, Cash Equivalents and Restricted Cash" for further information on restricted cash.

3 unchanged sentences

(In millions, except per share data)

Three Months Ended September 30, 2025

LKQ Stockholders

Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated

Comprehensive Loss Noncontrolling Interest Total Stockholders' Equity

Shares Amount Shares Amount

Balance as of July 1, 2025 323.8 $ 3 ( 66.5 ) $ ( 2,868 ) $ 1,567 $ 7,867 $ ( 51 ) $ 25 $ 6,543

Net income — — — — — 180 — — 180

Other comprehensive loss — — — — — — ( 33 ) — ( 33 )

Purchase of treasury stock — — ( 1.2 ) ( 40 ) — — — — ( 40 )

Vesting of restricted stock units, net of shares withheld for employee tax 0.2 — — — ( 3 ) — — — ( 3 )

Stock-based compensation expense — — — — 10 — — — 10

Dividends declared to LKQ stockholders ($0.30 per share) — — — — — ( 78 ) — — ( 78 )

Balance as of September 30, 2025 324.0 $ 3 ( 67.7 ) $ ( 2,908 ) $ 1,574 $ 7,969 $ ( 84 ) $ 25 $ 6,579

Three Months Ended September 30, 2024

LKQ Stockholders

Common Stock Treasury Stock Additional Paid-In Capital Retained Earnings Accumulated

Comprehensive Loss Noncontrolling Interest Total Stockholders' Equity

Shares Amount Shares Amount

Balance as of July 1, 2024 323.6 $ 3 ( 59.4 ) $ ( 2,580 ) $ 1,547 $ 7,472 $ ( 313 ) $ 15 $ 6,144

Net income — — — — — 191 — 1 192

Other comprehensive income — — — — — — 118 — 118

Purchase of treasury stock — — ( 3.0 ) ( 126 ) — — — — ( 126 )

Vesting of restricted stock units, net of shares withheld for employee tax — — — — ( 5 ) — — — ( 5 )

Stock-based compensation expense — — — — 6 — — — 6

Dividends declared to LKQ stockholders ($0.30 per share) — — — — — ( 79 ) — — ( 79 )

Balance as of September 30, 2024 323.6 $ 3 ( 62.4 ) $ ( 2,706 ) $ 1,548 $ 7,584 $ ( 195 ) $ 16 $ 6,250

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

LKQ CORPORATION AND SUBSIDIARIES

Unaudited Condensed Consolidated Statements of Stockholders' Equity

(In millions, except per share data)

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2026

LKQ Stockholders

4 unchanged sentences

Net income — — — — — 79 — — 79

Other comprehensive income — — — — — — 333 — 333

Purchase of treasury stock — — ( 3.2 ) ( 121 ) — — — — ( 121 )

Other comprehensive loss — — — — — — ( 76 ) — ( 76 )

Vesting of restricted stock units, net of shares withheld for employee tax 0.2 — — — ( 6 ) — — — ( 6 )

1 unchanged sentence

Dividends declared to LKQ stockholders ($0.30 per share) — — — — — ( 77 ) — — ( 77 )

Acquisition of a subsidiary with noncontrolling interest — — — — — — — 9 9

Balance as of September 30, 2025 324.0 $ 3 ( 67.7 ) $ ( 2,908 ) $ 1,574 $ 7,969 $ ( 84 ) $ 25 $ 6,579

Nine Months Ended September 30, 2024

Balance as of March 31, 2026 324.2 $ 3 ( 69.0 ) $ ( 2,948 ) $ 1,584 $ 7,960 $ ( 133 ) $ 24 $ 6,490

Three Months Ended March 31, 2025

LKQ Stockholders

9 unchanged sentences

Dividends declared to LKQ stockholders ($0.30 per share) — — — — — ( 78 ) — — ( 78 )

Purchase of noncontrolling interest — — — — ( 1 ) — — — ( 1 )

Balance as of September 30, 2024 323.6 $ 3 ( 62.4 ) $ ( 2,706 ) $ 1,548 $ 7,584 $ ( 195 ) $ 16 $ 6,250

Balance as of March 31, 2025 323.8 $ 3 ( 65.5 ) $ ( 2,827 ) $ 1,558 $ 7,753 $ ( 313 ) $ 15 $ 6,189

The accompanying notes are an integral part of the Unaudited Condensed Consolidated Financial Statements.

8 unchanged sentences

These Unaudited Condensed Consolidated Financial Statements reflect, in the opinion of management, all material adjustments (which include only normally recurring adjustments) necessary to fairly state, in all material respects, our financial position, results of operations and cash flows for the periods presented.

We have reclassified certain prior period amounts in the Unaudited Condensed Consolidated Statements of Cash Flows to conform to the current period presentation and in the Unaudited Condensed Consolidated Statements of Income and on the Unaudited Condensed Consolidated Balance Sheets for the presentation of discontinued operations as a result of the sale of our Self Service segment as discussed in Note 2, "Discontinued Operations."

We have reclassified certain prior period amounts in the Unaudited Condensed Consolidated Statements of Income for the presentation of discontinued operations as a result of the sale of our Self Service segment in the prior year as discussed in Note 2, "Discontinued Operations."

Results for interim periods are not necessarily indicative of the results that can be expected for any subsequent interim period or for a full year.

1 unchanged sentence

Recent Accounting Pronouncements

In December 2023, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") No.

2023-09, "Income Taxes (Topic 740):

Improvements to Income Tax Disclosures." The ASU requires disclosure of disaggregated income taxes paid, prescribes standard categories for the components of the effective tax rate reconciliation, and modifies other income tax-related disclosures.

The ASU is effective for fiscal years beginning after December 15, 2024, and can be adopted prospectively or retrospectively.

The adoption of this ASU is expected to impact the tax disclosure with no impact to the consolidated balance sheets, statements of income, statements of cash flows, and statements of comprehensive income and will be adopted prospectively.

In November 2024, the FASB issued ASU 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):

In November 2024, the Financial Accounting Standards Board ("FASB") issued Accounting Standards Update ("ASU") 2024-03, "Income Statement-Reporting Comprehensive Income-Expense Disaggregation Disclosures (Subtopic 220-40):

Disaggregation of Income Statement Expenses." The ASU requires disclosure of specific expense categories within relevant income statement captions.

6 unchanged sentences

This update is effective for annual periods beginning after December 15, 2027, including interim periods within those fiscal years, though early adoption is permitted.

The ASU can be adopted either prospectively, retrospectively, or utilizing a modified transition approach.

This ASU can be adopted either prospectively, retrospectively, or utilizing a modified transition approach.

We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.

In November 2025, the FASB issued ASU 2025-09, "Derivatives and Hedging (Topic 815):

Hedge Accounting Improvements", which amends certain aspects of hedge accounting to more closely align with the economics of an entity’s risk management activities.

The amendments include changes to the risk assessment for cash flow hedges, hedging forecasted interest payments on choose-your-rate debt instruments, cash flow hedges of nonfinancial forecasted transactions, net written options as hedging instruments and dual hedges of foreign currency denominated debt instruments.

This update is effective for annual periods beginning after December 15, 2026, including interim periods within those fiscal years, though early adoption is permitted.

This ASU is required to be adopted prospectively for all hedging relationships, with the option to adopt the amendments for hedging relationships that exist as of the adoption date.

We are currently evaluating the impact of adopting this ASU on our consolidated financial statements.

Discontinued Operations

In accordance with FASB Accounting Standards Codification 205-20, "Presentation of Financial Statements - Discontinued Operations" ("ASC 205-20"), we classify operations as discontinued when they meet all the criteria to be classified as held for sale and when the sale represents a strategic shift that will have a major impact on our financial condition and results of operations.

In determining if a disposal constitutes a strategic shift, we evaluate various qualitative and quantitative factors, an example of which is the impact to segment reporting.

We generally consider the disposal of an entire reportable segment to constitute a strategic shift.

When operations are identified for discontinued operations reporting, results of operations for all periods presented are reclassified as discontinued operations in the c onsolidated statements of income , assets and liabilities of the operations are reported as discontinued operations on the consolidated balance sheets, and information is recast throughout the notes to the consolidated financial statements to exclude the results of the discontinued operations.

Furthermore, ASC 205-20 defines what activities may be classified as discontinued operations with general corporate overhead generally not being allocable to discontinued operations .

On August 25, 2025, we entered into a definitive agreement to sell our Self Service segment to an affiliate of Pacific Avenue Capital Partners, LLC for an enterprise value of $ 410 million, subject to customary purchase price adjustments.

The sale of the Self Service segment reflects our continued efforts to simplify our portfolio of businesses by exiting an asset-intensive business heavily affected by changes in commodity prices.

The sale was completed on September 30, 2025.

2 unchanged sentences

Additionally, general corporate overhead costs that were historically allocated to the Self Service segment remain within continuing operations for all periods presented.

The pretax net proceeds receivable are recorded within Prepaid expenses and other current assets on the Unaudited Condensed Consolidated Balance Sheets as of September 30, 2025.

In connection with the transaction, we also entered into a transition services agreement to provide certain post-close support services.

1 unchanged sentence

The following table summarizes the comparative financial results of discontinued operations which are presented in Net income from discontinued operations in the Unaudited Condensed Consolidated Statements of Income (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Revenue $ — $ 136

1 unchanged sentence

Gross margin — 64

Impairment on assets held for sale (1)

Gain on disposal of business (1)

Selling, general and administrative expenses — 40

6 unchanged sentences

Income from discontinued operations before provision for income taxes 3 16

(Benefit) provision for income taxes ( 2 ) 2 4 6

Provision for income taxes 1 5

Net income from discontinued operations $ 2 $ 11

(1) During the three and nine months ended September 30, 2025, we recorded an impairment to write down the carrying value of Self Service to its fair value less costs to sell.

The major classes of Assets of discontinued operations and Liabilities of discontinued operations for Self Service as of December 31, 2024 stated on the Unaudited Condensed Consolidated Balance Sheets are as follows (in millions):

December 31, 2024

Current assets:

Receivables, net of allowance for credit losses $ 9

Inventories 37

Prepaid expenses and other current assets 2

Total current assets of discontinued operations 48

Property, plant and equipment, net 108

Operating lease assets, net 132

Other noncurrent assets 1

Total noncurrent assets of discontinued operations 515

Total assets of discontinued operations $ 563

Current liabilities:

Accounts payable $ 4

Accrued expenses:

Accrued payroll-related liabilities 7

Refund liability 1

Other accrued expenses 6

Current portion of operating lease liabilities 15

Other current liabilities 2

Total current liabilities of discontinued operations 35

Long-term operating lease liabilities, excluding current portion 114

Long-term obligations, excluding current portion 3

Total noncurrent liabilities of discontinued operations 117

Total liabilities of discontinued operations $ 152

(1) During the three months ended March 31, 2026, we recorded a gain upon finalizing the working capital adjustment for Self Service.

The following table summarizes the significant non-cash operating activities and capital expenditures of the Company’s discontinued operations related to the Self Service segment (in millions):

Nine Months Ended September 30,

Three Months Ended March 31,

Depreciation and amortization $ — $ 4

Impairment on assets held for sale 12 —

Gain on disposal of business ( 3 ) —

Purchases of property, plant and equipment — 2

Allowance for Credit Losses

Our allowance for credit losses was $ 54 million and $ 56 million as of September 30, 2025 and December 31, 2024, respectively.

The provision for credit losses was $ 7 million for both the three months ended September 30, 2025 and 2024 and $ 14 million and $ 11 million for the nine months ended September 30, 2025 and 2024, respectively.

Our allowance for credit losses was $ 63 million and $ 53 million as of March 31, 2026 and December 31, 2025, respectively.

The provision for credit losses was $ 16 million and $ 5 million for the three months ended March 31, 2026 and 2025, respectively.

Intangible Assets

Goodwill and indefinite-lived intangible assets are tested for impairment at least annually.

We performed our annual impairment test during the fourth quarter of 2024, and determined no impairment existed as each of our reporting units had a fair value estimate which exceeded the carrying value by at least 10 %.

The fair value estimates of our reporting units were established using weightings of the results of a discounted cash flow methodology and a comparative market multiples approach.

Goodwill and indefinite-lived intangible assets impairment testing may also be performed on an interim basis when

events or circumstances arise that may lead to impairment.

We did not identify any indicators of impairment in the first nine months of 2025 that necessitated an interim test of goodwill impairment or indefinite-lived intangible assets impairment for our continuing operations.

During our annual goodwill and indefinite-lived intangible assets impairment test performed in the fourth quarter of 2025 , we determined the carrying value of our Specialty reporting unit exceeded the fair value estimate and an impairment charge was recorded.

In connection with our previously announced plan to explore a potential sale of our Specialty reporting unit, we determined that as of March 31, 2026 it was more likely than not, defined as a likelihood of more than 50 percent, though not probable, that the Specialty reporting unit will be sold which constitutes a triggering event.

As such, we performed an interim impairment test for our Specialty reporting unit as of March 31, 2026.

Based on the results of this interim goodwill impairment test, the Specialty reporting unit had a fair value estimate which exceeded the carrying value by 11 % and, therefore, no further impairment existed.

We will continue to monitor each of our reporting units for any risk of future impairments.

For our North America and Europe reporting units, we did not identify any triggering events or other indicators of impairment in the first three months of 2026 that necessitated an interim test of goodwill impairment or indefinite-lived intangible assets impairment.

Equity Method Investments

The carrying value of our Equity method investments were as follows (in millions):

Segment Ownership as of March 31, 2026

March 31, 2026 December 31, 2025

Europe 26.6 % $ 113 $ 157

Total $ 125 $ 170

(1) Equity in losses and earnings from our investment in MEKO AB ("Mekonomen") are reported on a one quarter lag and are excluded from the calculation of Segment EBITDA.

As of March 31, 2026, the Level 1 fair value of our investment in Mekonomen was $ 113 million based on the quoted market price for Mekonomen's common stock using the same foreign exchange rate as the carrying value.

We evaluated our investment in Mekonomen for impairment and concluded that events occurring in Q1 2026 signaled the decline in fair value was other-than-temporary, specifically the change in financial condition, including the significant increase in their leverage ratio and discontinuation of their dividend, in combination with the prolonged significant stock price decrease and operational underperformance due to difficult economic conditions.

Therefore, we recognized an other-than-temporary impairment of $ 44 million, which represented the difference in the carrying value and the fair value of our investment in Mekonomen.

The fair value of our investment in Mekonomen was determined using the Mekonomen share price of SEK 69 as of March 31, 2026.

The impairment charges are recorded in Equity in losses of unconsolidated subsidiaries in our Unaudited Condensed Consolidated Statements of Income.

As a result of the impairment charge in the first quarter, the Level 1 fair value of our equity investment in the publicly traded Mekonomen common stock at March 31, 2026 approximated the carrying value of $ 113 million.

Revenue Recognition

2 unchanged sentences

(i) parts and services and (ii) other.

Parts revenue is generated from the sale of vehicle products including replacement parts, components and systems used in the repair and maintenance of vehicles and specialty products and accessories to improve the performance, functionality and appearance of vehicles.

Parts revenue is generated from the sale of alternative parts and vehicle products including collision parts, which are typically exterior components used in the collision repair process to restore a vehicle's appearance and safety;

hard parts, which are typically internal components that are either mechanical in nature or functional components that are replaced as part of routine maintenance;

major mechanical parts;

and specialty products and accessories, which are vehicle products that improve the performance, functionality and appearance of vehicles.

Services revenue includes additional services that are generally billed concurrently with the related product sales, such as the sale of service-type warranties, and diagnostic and repair services.

For Wholesale - North America, vehicle replacement products include sheet metal collision parts such as doors, hoods, and fenders;

bumper covers;

head and tail lamps;

and large mechanical items such as engines and transmissions.

For Europe, and to a lesser extent for Wholesale - North America, vehicle replacement products include a wide variety of small mechanical products such as brake pads, discs and sensors;

electrical products such as spark plugs and batteries;

steering and suspension products;

and oil and automotive fluids.

Additionally, in both our Wholesale - North America and Europe segments, we sell paint and paint related consumables for refinishing vehicles.

For our Specialty operations, we serve seven product segments:

truck and off-road;

speed and performance;

recreational vehicles ("RV");

wheels, tires and performance handling;

and miscellaneous accessories.

Other revenue includes sales of scrap and precious metals (platinum, palladium, and rhodium), bulk sales to mechanical manufacturers (including cores) and sales of aluminum ingots and sows from furnace operations;

We derive scrap metal and other precious metals from several sources in our Wholesale - North America segment, including vehicles that have been used in our recycling operations and vehicles from original equipment manufacturers ("OEMs") and other entities that contract with us for secure disposal of "crush only" vehicles.

Revenue from the sale of hulks in our Wholesale - North America segment is recognized based on a price per ton of delivered material when the customer (processor) collects the scrap.

all of which are typically acquired as byproducts of our salvage operations.

Revenue from the sale of hulks in our North America segment is recognized based on a price per ton of delivered material when the customer (processor) collects the scrap.

The following table sets forth our revenue disaggregated by category and reportable segment (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Wholesale - North America $ 1,343 $ 1,349 $ 4,041 $ 4,169

Three Months Ended March 31,

North America $ 1,341 $ 1,336

Europe 1,613 1,515

1 unchanged sentence

Parts and services 3,362 3,244

Wholesale - North America 80 74 236 227

Europe 5 4 18 17

Other 85 78 254 244

North America 99 76

Total revenue $ 3,469 $ 3,327

1 unchanged sentence

Amounts related to variable consideration on our Unaudited Condensed Consolidated Balance Sheets are as follows (in millions):

Classification September 30, 2025 December 31, 2024

Classification March 31, 2026 December 31, 2025

Return asset Prepaid expenses and other current assets $ 67 $ 66

4 unchanged sentences

The following table sets forth our revenue by geographic area (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

United States $ 1,569 $ 1,545

4 unchanged sentences

Restructuring and Transaction Related Expenses

From time to time, we initiate restructuring plans to integrate acquired businesses, to align our workforce with strategic business activities, or to improve efficiencies in our operations.

Below is a summary of our current restructuring plans:

2024 Global Restructuring Plan

In the first quarter of 2024, we began a global restructuring initiative focused on enhancing profitability.

This initiative includes exiting businesses and markets that do not align with our strategic objectives and executing on opportunities to reduce costs, streamline operations and consolidate facilities.

As we continue to move forward with our plan, we have incurred and expect to incur impairments and other charges related to the disposal of long-lived assets, inventory, and other assets;

costs for employee severance;

lease termination charges and facility closure costs;

and other contract termination charges.

We expect that the largest portion of the activity will come from the Europe segment.

In 2024, we divested our operations in Slovenia and Bosnia to third parties and, certain operations in Poland to MEKO AB, an equity method investment of which we own 26.6 %, and received a combination of cash and notes receivable.

Our decision to exit these markets constituted a triggering event to evaluate certain long-lived assets for impairment, and as a result, we incurred impairment charges with the divestitures of Slovenia, Poland, and Bosnia.

This plan is scheduled to be substantially complete by the end of 2025 with an estimated total incurred cost of approximately $ 140 million.

1 LKQ Europe Plan

In 2019, we announced a multi-year plan called "1 LKQ Europe" which is intended to create structural centralization and standardization of key functions to facilitate the operation of the Europe segment as a single business.

Under the 1 LKQ Europe plan, we are reorganizing our non-customer-facing teams and support systems through various projects including the implementation of a common Enterprise Resource Planning platform, rationalization of our product portfolio, and creation of a Europe headquarters office and central back office.

This plan is scheduled to be substantially complete by the end of 2027 with an estimated total incurred cost of between $ 30 million and $ 40 million.

In the future, we may identify additional initiatives under the plan that may result in additional expenditures, although we are currently unable to estimate the range of charges for such potential future initiatives.

Strategic Restructuring and Transformation Initiatives

As part of executing our strategy to deliver profitable growth, drive a lean operating model and maximize returns on invested capital, we will, from time to time, engage in restructuring and business transformation initiatives.

These initiatives can range in scope from broad changes such as centralizing and standardizing non-customer facing teams and divesting non-strategic assets, to targeted changes such as consolidating underutilized facilities and closing underperforming locations.

Executing on these initiatives can take a few months to several years to fully implement depending on the scope and complexity of the initiative.

Additionally, initiatives can change or expand based on the information obtained while executing on the initiative and when additional actions are identified.

We anticipate we will incur approximately $ 70 million of cost in 2026 executing on the approved actions in connection with this initiative.

The following table sets forth the expenses incurred related to our Strategic Restructuring and Transformation Initiatives (in millions):

Three Months Ended March 31,

Expense Type 2026 2025 (1)

Employee related costs $ 18 $ 7

Facility exit costs 10 2

Other costs 2 1

Total $ 30 $ 10

(1) Includes costs previously included in the 2024 Global Plan.

Expenses incurred for the three months ended March 31, 2026 were related to the closing of underperforming locations and the elimination of inefficient cost structures primarily in our Europe segment.

Acquisition Integration Plans

1 unchanged sentence

These costs are typically incurred within a year from the acquisition date and vary in magnitude depending on the size and complexity of the related integration activities.

There are no material acquisition integration plans as of September 30, 2025.

The following table sets forth the expenses incurred related to our restructuring plans (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

Plan Expense Type 2025 2024 2025 2024

2024 Global Plan Employee related costs $ 2 $ 10 $ 13 $ 13

Facility exit costs 3 4 8 4

Inventory related costs (1)

Asset impairments (2)

Other (benefits) costs 1 — 1 7

Total $ 6 $ 14 $ 22 $ 84

2022 Global Plan Employee related costs $ — $ — $ — $ 1

Facility exit costs — 1 — 2

Total $ — $ 1 $ — $ 3

1 LKQ Europe Plan Employee related costs $ — $ — $ 1 $ 2

Facility exit costs — — — 1

Inventory related costs (1)

Total $ — $ 1 $ 1 $ 4

Acquisition Integration Plans Employee related costs $ — $ — $ — $ 4

Facility exit costs 2 4 3 13

Other (benefits) costs 1 — 1 3

Total $ 3 $ 4 $ 4 $ 20

Total restructuring expenses $ 9 $ 20 $ 27 $ 111

(1) Recorded to Cost of goods sold in the Unaudited Condensed Consolidated Statements of Income.

(2) Related to impairment of assets in Property, plant and equipment, net and Prepaid expenses and other current assets on the Unaudited Condensed Consolidated Balance Sheets.

The following table sets forth the cumulative plan costs by segment related to our restructuring plans (in millions):

Cumulative Program Costs

Wholesale - North America Europe Specialty Total

2024 Global Plan $ 25 $ 108 $ — $ 133

1 LKQ Europe Plan — 16 — 16

There are no material Acquisition Integration Plans as of March 31, 2026.

We incurred expenses totaling $ 1 million for each of the three months ended March 31, 2026 and 2025.

Transaction Related Expenses

During the three months ended September 30, 2025 and 2024, we incurred expenses totaling $ 5 million and $ 1 million, respectively, and during the nine months ended September 30, 2025 and 2024, we incurred expenses totaling $ 6 million and $ 3 million, respectively, for legal, accounting and advisory services related to completed and potential transactions.

During the three months ended March 31, 2026 and 2025, we incurred expenses totaling $ 2 million and an insignificant amount, respectively, for legal, accounting and advisory services related to completed and potential transactions.

Earnings Per Share

The following chart sets forth the computation of earnings per share (in millions, except per share amounts):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Income from continuing operations $ 77 $ 158

2 unchanged sentences

Restricted stock units ("RSUs") 0.5 0.5

Performance-based RSUs ("PSUs") — 0.1 — 0.1

Denominator for diluted earnings per share—Adjusted weighted-average shares outstanding 255.9 259.6

5 unchanged sentences

The components of Accumulated Other Comprehensive Income (Loss) are as follows (in millions):

Three Months Ended September 30, 2025

Foreign Currency Translation Unrealized Gain (Loss) on Cash Flow Hedges Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries Accumulated Other Comprehensive Income (Loss)

Balance as of July 1, 2025

Three Months Ended March 31, 2026

Foreign Currency Translation Unrealized Gain (Loss) on Cash Flow Hedges (1)

Unrealized Gain (Loss) on Pension Plans Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries Accumulated Other Comprehensive Income (Loss)

Balance as of January 1, 2026

$ ( 64 ) $ ( 7 ) $ 10 $ 4 $ ( 57 )

Pretax loss ( 71 ) — — — ( 71 )

Other comprehensive income from unconsolidated subsidiaries

Balance as of September 30, 2025

$ ( 81 ) $ ( 8 ) $ 5 $ ( 84 )

Three Months Ended September 30, 2024

Foreign Currency Translation Unrealized Gain (Loss) on Cash Flow Hedges Unrealized Gain (Loss) on Pension Plans Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries Accumulated Other Comprehensive Income (Loss)

Balance as of July 1, 2024 $ ( 321 ) $ ( 6 ) $ 6 $ 8 $ ( 313 )

Pretax income (loss) 122 ( 4 ) — — 118

Income tax effect — 1 — — 1

Reclassification of unrealized gain — ( 1 ) — — ( 1 )

Disposal of business 2 — — — 2

Other comprehensive loss from unconsolidated subsidiaries — — — ( 5 ) ( 5 )

Balance as of September 30, 2024

Balance as of March 31, 2026

$ ( 135 ) $ ( 7 ) $ 10 $ ( 1 ) $ ( 133 )

Nine Months Ended September 30, 2025

Three Months Ended March 31, 2025

Foreign Currency Translation Unrealized Gain (Loss) on Cash Flow Hedges (1)

Unrealized Gain (Loss) on Pension Plans Other Comprehensive Income (Loss) from Unconsolidated Subsidiaries Accumulated Other Comprehensive Income (Loss)

Balance as of January 1, 2025 $ ( 411 ) $ ( 9 ) $ ( 1 ) $ 4 $ ( 417 )

Pretax income 100 — — — 100

Income tax effect — ( 1 ) — — ( 1 )

Reclassification of unrealized loss — 1 — — 1

Reclassification of deferred income taxes — — 1 — 1

Other comprehensive income from unconsolidated subsidiaries — — — 3 3

Balance as of September 30, 2025

$ ( 81 ) $ ( 8 ) $ — $ 5 $ ( 84 )

Nine Months Ended September 30, 2024

Balance as of January 1, 2024 $ ( 243 ) $ ( 11 ) $ 6 $ 8 $ ( 240 )

Pretax income 44 5 — — 49

Income tax effect — ( 1 ) — — ( 1 )

Reclassification of unrealized gain — ( 4 ) — — ( 4 )

Reclassification of deferred income taxes — 1 — — 1

Disposal of business 2 — — — 2

Other comprehensive loss from unconsolidated subsidiaries — — — ( 2 ) ( 2 )

Balance as of September 30, 2024

Balance as of March 31, 2025

$ ( 311 ) $ ( 9 ) $ — $ 7 $ ( 313 )

(1) Balances primarily include the forward starting interest rate swaps to hedge the risk of changes in interest rates related to forecasted debt issuance to finance a portion of the Uni-Select Acquisition.

These swaps will continue to be reclassified to Interest expense over the term of the 5.75% senior notes due June 2028 (the "U.S.

Notes (2028)") and the 6.25% senior notes due June 2033 (the "U.S.

Notes (2033)" and together with the U.S.

Notes (2028), the "U.S.

Notes (2028/2033)").

Please refer to Note 20, "Derivative Instruments and Hedging Activities" in our 2023 Form 10-K for further information.

Our policy is to reclassify the income tax effect from Accumulated other comprehensive income (loss) to the Provision for income taxes when the related gains and losses are released to the Unaudited Condensed Consolidated Statements of Income.

1 unchanged sentence

We utilize voluntary supply chain finance programs to support our efforts in negotiating payment term extensions with suppliers as a part of our goal to improve our operating cash flows.

As of September 30, 2025 and December 31, 2024, we had $ 450 million and $ 416 million of Accounts payable outstanding under the arrangements, respectively.

As of March 31, 2026 and December 31, 2025, we had $ 457 million and $ 481 million of Accounts payable outstanding under the arrangements, respectively.

Long-Term Obligations

Long-term obligations consist of the following (in millions):

September 30, 2025

March 31, 2026

December 31, 2025

2 unchanged sentences

Term loan payable January 2027 5.14 % $ 500 5.19 % $ 500

Revolving credit facilities (2)

January 2028 7.21 % (1)

Revolving credit facilities December 2030 5.48 % (1)

212 3.13 % (1)

Senior Unsecured Term Loan Agreement:

Term loan payable July 2026 4.21 % 503 4.98 % 487

Term loan payable March 2029 3.82 % 503 3.81 % 510

Unsecured Senior Notes:

3 unchanged sentences

Euro Notes (2031) March 2031 4.13 % 866 4.13 % 881

Notes payable Various through October 2030 4.57 % (1)

Finance lease obligations 5.52 % (1)

101 4.81 % (1)

Other debt 4.24 % (1)

Other debt Various through December 2030 3.76 % (1)

Total debt 3,875 3,695

4 unchanged sentences

(1) Interest rate derived via a weighted average.

(2) Higher rate borrowings on the revolving credit facility of approximately $ 390 million at an interest rate of 7.63 % were repaid on October 1, 2025 with the pretax net proceeds from the sale of our Self Service segment.

Refer to Note 2, "Discontinued Operations" for additional information.

Senior Unsecured Credit Agreement

In the second quarter of 2025, we entered into Amendments No.

3 to the Senior Unsecured Credit Agreement and Amendment No.

2 to the Senior Unsecured Term Loan Agreement.

These amendments extended the maturity date of the Senior Unsecured Credit Agreement term loan facility from January 5, 2026 to January 5, 2027 as well as provided certain other immaterial modifications.

Cash paid for interest was $ 54 million and $ 60 million for the three months ended March 31, 2026 and 2025, respectively.

Derivative Instruments and Hedging Activities

3 unchanged sentences

Derivative Instruments Designated as Cash Flow Hedges

In March 2025, we entered into an interest rate swap agreement to mitigate the risk of changing interest rates on our variable interest rate payments related to borrowings under our Senior Unsecured Credit Agreement.

Under the terms of the interest rate swap agreement, we pay the fixed interest rate and receive a variable interest rate based on term Secured Overnight Financing Rate ("SOFR") that matches a contractually specified rate under the Senior Unsecured Credit Agreement.

The March 2025

agreement replaced the agreements that matured in February 2025 and include a total $ 400 million notional amount maturing in November 2025 with a fixed interest rate of 4.11 %.

Changes in the fair value of the interest rate swaps are recorded in Accumulated other comprehensive loss and reclassified to Interest expense when the hedged interest payments affect earnings.

The activity related to the interest rate swaps is classified in operating activities in our Unaudited Condensed Consolidated Statements of Cash Flows as the activity relates to normal recurring settlements to match interest payments.

All of our interest rate swap contracts have been executed with counterparties that we believe are creditworthy, and we closely monitor the credit ratings of these counterparties.

As of September 30, 2025 and December 31, 2024, the notional amounts, balance sheet classification and fair values of our derivative instruments designated as cash flow hedges were as follows (in millions):

September 30, 2025

Notional Amount Balance Sheet Caption Fair Value - Asset / (Liability)

Interest rate swap agreement $ 400 Other accrued expenses $ —

Interest rate swap agreements 300 Other accrued expenses —

In February 2023, we entered into interest rate swap agreements to mitigate the risk of changing interest rates on our variable interest rate payments related to borrowings under our Senior Unsecured Credit Agreement.

The agreements included a total $ 300 million notional amount that matured in February 2026.

Changes in the fair value of the interest rate swaps were recorded in Accumulated other comprehensive loss and reclassified to Interest expense when the hedged interest payments affected earnings.

The activity related to the interest rate swaps was classified in operating activities in our Unaudited Condensed Consolidated Statements of Cash Flows as the activity related to normal recurring settlements to match interest payments.

As of March 31, 2026, there are no derivative instruments designated as cash flow hedges outstanding.

All of our interest rate swap contracts were executed with counterparties that we believe are creditworthy, and we closely monitor the credit ratings of these counterparties.

As of December 31, 2025, the notional amounts, balance sheet classification and fair values of our derivative instruments designated as cash flow hedges were as follows (in millions):

December 31, 2025

1 unchanged sentence

Interest rate swap agreements $ 300 Other accrued expenses $ —

Interest rate swap agreements 300 Other noncurrent liabilities ( 1 )

The activity related to our cash flow hedges is included in Note 8, "Accumulated Other Comprehensive Income (Loss)." As of September 30, 2025, we estimate that $ 2 million of derivative losses (net of tax) included in Accumulated other comprehensive loss will be reclassified into our Unaudited Condensed Consolidated Statements of Income within the next 12 months.

The activity related to our cash flow hedges is included in Note 9, "Accumulated Other Comprehensive Income (Loss)." As of March 31, 2026, we estimate that $ 1 million of derivative losses (net of tax) included in Accumulated other comprehensive loss will be reclassified into our Unaudited Condensed Consolidated Statements of Income within the next 12 months.

Fair Value Measurements

Financial Assets and Liabilities Measured at Fair Value

We use the market and income approaches to estimate the fair value of our financial assets and liabilities, and during the three and nine months ended September 30, 2025, there were no significant changes in valuation techniques or inputs related to the financial assets or liabilities that we have historically recorded at fair value.

The tiers in the fair value hierarchy include:

Level 1, defined as observable inputs such as quoted market prices in active markets;

Level 2, defined as inputs other than quoted prices in active markets that are either directly or indirectly observable;

and Level 3, defined as significant unobservable inputs for which little or no market data exists, therefore requiring an entity to develop its own assumptions.

The following table presents information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs we utilized to determine such fair value as of September 30, 2025 and December 31, 2024 (in millions):

September 30, 2025 December 31, 2024

We use the market and income approaches to estimate the fair value of our financial assets and liabilities, and during the three months ended March 31, 2026, there were no significant changes in valuation techniques or inputs related to the financial assets or liabilities that we have historically recorded at fair value.

The following table presents information about our financial assets and liabilities measured at fair value on a recurring basis and indicate the fair value hierarchy of the valuation inputs we utilized to determine such fair value as of March 31, 2026 and December 31, 2025 (in millions):

March 31, 2026 December 31, 2025

Level 1 Level 2 Level 3 Total Level 1 Level 2 Level 3 Total

2 unchanged sentences

Total Assets $ 90 $ — $ — $ 90 $ 89 $ — $ — $ 89

Interest rate swaps $ — $ — $ — $ — $ — $ 1 $ — $ 1

Contingent consideration liabilities $ — $ — $ 1 $ 1 $ — $ — $ 3 $ 3

1 unchanged sentence

Investments in debt and equity securities relate to our captive insurance subsidiary and are included in Other noncurrent assets on the Unaudited Condensed Consolidated Balance Sheets.

The balance sheet classification of the interest rate swap agreements is presented in Note 11, "Derivative Instruments and Hedging Activities." For contingent consideration liabilities, the entire portion is current at September 30, 2025 and is included in Other current liabilities, while at December 31, 2024, the current portion was included in Other current liabilities and the noncurrent portion was included in Other noncurrent liabilities on the Unaudited Condensed Consolidated Balance Sheets based on the expected timing of the related payments.

We value derivative instruments using a third party valuation model that performs discounted cash flow analysis based on the terms of the contracts and market observable inputs such as current and forward interest rates and current and forward foreign exchange rates.

For contingent consideration liabilities, at both March 31, 2026 and December 31, 2025, the entire portion was current and was included in Other current liabilities on the Unaudited Condensed Consolidated Balance Sheets based on the expected timing of the related payments.

Our contingent consideration liabilities are related to our business acquisitions.

4 unchanged sentences

The fair value measurements of the borrowings under the credit agreement are classified as Level 2 within the fair value hierarchy since they are determined based upon significant inputs observable in the market, including interest rates on recent financing transactions with similar terms and maturities.

We estimated the fair value by calculating the upfront cash payment a market participant would require at September 30, 2025 and December 31, 2024 to assume these obligations.

The fair values of the 5.75% senior notes due June 2028 (the "U.S.

Notes (2028)"), the 6.25% senior notes due June 2033 (the "U.S.

Notes (2033)" and together with the U.S.

We estimated the fair value by calculating the upfront cash payment a market participant would require at March 31, 2026 and December 31, 2025 to assume these obligations.

The fair values of the U.S.

Notes (2028), the U.S.

Notes (2033), the 4.13% senior notes due April 2028 (the "Euro Notes (2028)") and the 4.13% senior notes due March 2031 (the "Euro Notes (2031)") are determined based upon observable market inputs including quoted market prices in markets that are not active, and therefore are classified as Level 2 within the fair value hierarchy.

Based on market conditions as of September 30, 2025 and December 31, 2024, the fair value of the borrowings under the Senior Unsecured Credit Agreement reasonably approximated the carrying values of $ 998 million and $ 1,164 million, respectively.

As of September 30, 2025 and December 31, 2024, the fair value of the borrowings under the Senior Unsecured Term Loan Credit Agreement ("CAD Note") reasonably approximated the carrying values of $ 503 million and $ 487 million, respectively.

The following table provides the carrying and fair value for our other financial instruments as of September 30, 2025 and December 31, 2024 (in millions):

As of September 30, 2025

Based on market conditions as of March 31, 2026 and December 31, 2025, the fair value of the borrowings under the Senior Unsecured Credit Agreement reasonably approximated the carrying values of $ 712 million and $ 501 million, respectively.

As of March 31, 2026 and December 31, 2025, the fair value of the borrowings under the Senior Unsecured Term Loan Credit Agreement ("CAD Note") reasonably approximated the carrying values of $ 503 million and $ 510 million, respectively.

The following table provides the carrying and fair value for our other financial instruments as of March 31, 2026 and December 31, 2025 (in millions):

As of March 31, 2026

As of December 31, 2025

8 unchanged sentences

The accounting estimates used to compute the provision for income taxes may change as new events occur, additional information is obtained or as the tax environment changes.

Our effective income tax rate for the nine months ended September 30, 2025 was 24.8 %, compared to 29.0 % for the nine months ended September 30, 2024.

The decrease in the effective tax rate for the nine months ended September 30, 2025 compared to the nine months ended September 30, 2024 is primarily attributable to discrete tax benefits, including a $ 10 million reduction to deferred tax liabilities related to tax rate changes enacted in Germany during the third quarter of 2025 and the nonrecurring unfavorable tax effects of the Global Restructuring Plan impairments in the prior year.

See Note 6, "Restructuring and Transaction Related Expenses" for further information on the impairments.

On July 4, 2025, new U.S.

tax legislation was signed into law, commonly referred to as the One Big Beautiful Bill Act ("OBBBA"), which includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act of 2017, modifications to the international tax framework and the restoration of favorable tax treatment for certain business provisions.

The OBBBA includes the acceleration of fixed asset depreciation, modifications to the capitalization of domestic research and development expenses, modifications to the limitations to the deductibility of interest expense, and modifications to certain international provisions.

These new provisions take effect starting in 2025 through 2027.

The Company has evaluated the OBBBA enacted during the quarter and estimated its impact on the consolidated financial statements to be immaterial.

We will continue to evaluate the full impact of these legislative changes as additional guidance becomes available.

Our effective income tax rate for the three months ended March 31, 2026 was 26.4 %, compared to 27.8 % for the three months ended March 31, 2025.

The decrease in the effective tax rate for the three months ended March 31, 2026 compared to the three months ended March 31, 2025 is primarily attributable to the 1.2 % year over year favorable impact of discrete items, mostly related to a return to provision adjustment.

Net income taxes paid were $ 30 million and $ 31 million for the three months ended March 31, 2026 and 2025, respectively.

Cash, Cash Equivalents and Restricted Cash

The following table provides a reconciliation of Cash and cash equivalents as reported in the Unaudited Condensed Consolidated Balance Sheets to Cash, cash equivalents and restricted cash shown in the Unaudited Condensed Consolidated Statements of Cash Flows (in millions):

September 30, 2025 December 31, 2024

The following table provides a reconciliation of Cash and cash equivalents as reported on the Unaudited Condensed Consolidated Balance Sheets to Cash, cash equivalents and restricted cash shown in the Unaudited Condensed Consolidated Statements of Cash Flows (in millions):

March 31, 2026 December 31, 2025

Cash and cash equivalents $ 335 $ 319

4 unchanged sentences

We have three operating segments:

Wholesale - North America;

and Specialty, each of which is presented as a reportable segment.

North America;

and Specialty, each of which are presented as a reportable segment.

The segments are organized based on a combination of geographic regions served and the types of product lines offered.

1 unchanged sentence

The following tables present our financial performance by reportable segment for the periods indicated (in millions):

Wholesale - North America Europe Specialty Eliminations Consolidated

Three Months Ended September 30, 2025

Third Party $ 1,423 $ 1,620 $ 456 $ — $ 3,499

Intersegment — — 1 ( 1 ) —

Total segment revenue $ 1,423 $ 1,620 $ 457 $ ( 1 ) $ 3,499

Cost of goods sold 825 991 343

Selling, general and administrative expenses 401 474 83

Other segment items (2)

( 2 ) ( 7 ) ( 3 )

Segment EBITDA $ 199 $ 162 $ 34 $ — $ 395

Total depreciation and amortization (3)

$ 49 $ 48 $ 8 $ — $ 105

Three Months Ended September 30, 2024

Third Party $ 1,423 $ 1,613 $ 417 $ — $ 3,453

Intersegment — — 2 ( 2 ) —

Total segment revenue $ 1,423 $ 1,613 $ 419 $ ( 2 ) $ 3,453

Cost of goods sold 814 993 310

Selling, general and administrative expenses 389 461 81

Other segment items (2)

( 4 ) ( 6 ) ( 3 )

Segment EBITDA $ 224 $ 165 $ 31 $ — $ 420

Total depreciation and amortization (3)

$ 49 $ 39 $ 8 $ — $ 96

Wholesale - North America Europe Specialty Eliminations Consolidated

Nine Months Ended September 30, 2025

North America Europe Specialty Eliminations Consolidated

Three Months Ended March 31, 2026

Third Party $ 1,440 $ 1,621 $ 408 $ — $ 3,469

8 unchanged sentences

$ 45 $ 46 $ 8 $ — $ 99

Nine Months Ended September 30, 2024

Three Months Ended March 31, 2025

Third Party $ 1,412 $ 1,522 $ 393 $ — $ 3,327

10 unchanged sentences

Intersegment expenses are included within the amounts shown.

(2) Amounts primarily represent other non operating income and expenses within each segment, as well as reconciling items to remove depreciation - cost of goods sold and restructuring - cost of goods sold, which are excluded from the calculation of Segment EBITDA.

See Note 6, "Restructuring and Transaction Related Expenses" for additional information on the restructuring charges.

(2) Amounts primarily represent other non operating income and expenses within each segment, as well as a reconciling item to remove depreciation - cost of goods sold, which is excluded from the calculation of Segment EBITDA.

(3) Amounts presented include depreciation and amortization expense recorded within Cost of goods sold and Restructuring and transaction related expenses.

17 unchanged sentences

The table below provides a reconciliation of Net Income to Segment EBITDA (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Net income $ 79 $ 169

net income attributable to continuing noncontrolling interest — 1 1 2

Net income attributable to LKQ stockholders 180 191 541 534

net income from discontinued operations 2 11

Net income from continuing operations attributable to LKQ stockholders 178 187 521 515

Income from continuing operations 77 158

Depreciation and amortization 99 96

1 unchanged sentence

Provision for income taxes 44 61

Equity in earnings of unconsolidated subsidiaries — ( 3 ) — ( 3 )

Equity in losses of unconsolidated subsidiaries (1)

Equity investment fair value adjustments — ( 1 )

Restructuring and transaction related expenses (2)

Restructuring expenses - cost of goods sold (1)

Direct impacts of Ukraine/Russia conflict (3)

Segment EBITDA $ 347 $ 379

(1) See Note 5, "Equity Method Investments" for further information.

(2) See Note 7, "Restructuring and Transaction Related Expenses" for further information.

1 unchanged sentence

The following table presents capital expenditures by reportable segment (in millions):

Three Months Ended September 30, Nine Months Ended September 30,

2025 2024 2025 2024

Three Months Ended March 31,

Capital Expenditures

Wholesale - North America

$ 20 $ 47 $ 58 $ 120

Europe 26 24 85 82

North America

Specialty 2 3

6 unchanged sentences

The following table presents assets by reportable segment (in millions):

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Receivables, net of allowance for credit losses

Wholesale - North America

North America

Europe 722 552

1 unchanged sentence

Total receivables, net of allowance for credit losses 1,456 1,204

Wholesale - North America

North America

Europe 1,407 1,496

2 unchanged sentences

Property, plant and equipment, net

Wholesale - North America

North America

Europe 666 695

2 unchanged sentences

Operating lease assets, net

Wholesale - North America

North America

Europe 535 544

3 unchanged sentences

Total assets $ 15,139 $ 15,137

Our largest countries of operation are the U.S., followed by Germany and the U.K.

Our largest countries of operation are the U.S., followed by Germany and the United Kingdom ("U.K.").

Additional European operations are located in the Netherlands, Italy, Czech Republic, Belgium, Austria, Slovakia, France and other European countries.

1 unchanged sentence

The following table sets forth our tangible long-lived assets by geographic area (in millions):

September 30, 2025 December 31, 2024

March 31, 2026 December 31, 2025

Long-lived assets

4 unchanged sentences

Total long-lived assets $ 2,727 $ 2,784

Subsequent Event

Securities Class Action Lawsuit

On April 22, 2026, a purported stockholder of LKQ filed a putative class action against LKQ Corporation and certain of its officers.

The complaint generally alleges that LKQ made certain materially false and misleading statements and omitted certain material information regarding LKQ’s acquisition and integration of Uni-Select Incorporated ("Uni-Select") and Uni-Select’s U.S.

operating subsidiary FinishMaster, which artificially inflated the market price of LKQ common stock.

The complaint seeks, among other things, unspecified compensatory damages.

Compared sentence by sentence after normalising whitespace, quotation marks, case and digits, so re-formatting and restated figures do not read as changed language. Wording changes appear as one removal and one addition. The current filing and the prior one are authoritative.

What changed 10-Q

Item 1. Financial Statements