LKQ Replaces Its CEO and Pulls Guidance After a Weak Europe

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LKQ Corporation has appointed Salvatore A. Abbate as president and chief executive, effective December 15, 2026. He succeeds Justin Jude, who left the company on Friday. The board made the move alongside preliminary third-quarter results that the company said showed significant underperformance in Europe.

Until Abbate starts, an interim Office of the Chief Executive Officer will run the company. It consists of John Mendel, the chairman of the board, and Sue Gove, who chairs the audit committee. Andy Hamilton also left his post as president and managing director of LKQ Europe the same day.

What the quarter looked like

LKQ expects third-quarter revenue of $3.32 billion, against $3.50 billion a year earlier. Organic revenue from parts and services fell 5.4%. The company projects a net loss of $16 million to $32 million, which includes $111 million of non-cash impairment charges. A year ago it earned $178 million.

Adjusted diluted earnings per share are expected at $0.47 to $0.53, compared with $0.84 in the third quarter of 2025. In Europe, parts and services organic revenue dropped 9.8%, and the segment's EBITDA margin came in at 4.1% to 5.1%, down from 10.0% a year earlier.

LKQ pointed to operational disruptions tied to an ERP rollout in Germany and to volume declines in the United Kingdom and Benelux. Specialty came in modestly below expectations. North America performed in line with plans despite softer market conditions.

Advisers and guidance

The board has engaged Alvarez & Marsal to advise on the European operations, starting with customer service levels, stabilising operations and tightening performance and cost discipline across the region. LKQ also withdrew the full-year 2026 guidance it last updated on July 30.

"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," Mendel said. He described Abbate as a proven operator with a track record of driving performance in complex distribution businesses.

The appointment, the European leadership changes and the adviser's hiring are part of the board's ongoing review of strategic alternatives, and further updates will follow as appropriate. LKQ will report full third-quarter results on October 29, 2026, and hold a conference call.

Source: LKQ Corporation