LKQ Q3 2026: Europe ERP crisis wipes out guidance and the strategic review
As seen on the 24/7 Wall St. homepage on October 29, 2026.
Full-year guidance is gone and the strategic review is suspended, leaving no anchor for the stock until incoming CEO Sal Abbate takes over December 15. Europe is the hole: segment EBITDA margin collapsed to 4.6% after an ERP disruption in Germany, dragging adjusted EPS short of expectations.
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A botched ERP rollout in Germany pushed Europe's organic revenue down 9.8% year over year and gutted the segment's margin.
Adjusted EPS of $0.50 came in missing expectations of $0.69, and the quarter ended in a GAAP net loss.
LKQ pulled full-year 2026 guidance and suspended the strategic review, including the Specialty sale process, leaving investors with no financial anchor and no near-term deal catalyst.
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Incoming CEO Salvatore Abbate takes over December 15, with Alvarez and Marsal engaged to fix execution in Europe.
Free cash flow of $372 million held nearly flat, so cash generation remains intact even as reported earnings deteriorate.
Mentioned: LKQ