LKQ ousts CEO, pulls 2026 guidance after preliminary third quarter shows European slump

LKQ replaced its chief executive and withdrew its full-year outlook on Friday, saying its European business fell far short in the third quarter, according to an 8-K filing with preliminary results.

The auto parts distributor named Salvatore A. Abbate president and CEO effective Dec. 15, 2026. He succeeds Justin Jude, who left the company effective Friday. Until Abbate starts, Chairman John Mendel and Audit Committee Chair Sue Gove will lead an interim Office of the Chief Executive Officer.

A weak quarter in Europe

Based on preliminary, unaudited figures, LKQ expects third-quarter revenue of $3.32 billion, down from $3.50 billion a year earlier, with parts and services organic revenue down 5.4%. It expects a net loss from continuing operations of $16 million to $32 million, including $111 million of non-cash impairment charges, compared with net income of $178 million a year ago.

The company expects a diluted loss of $0.06 to $0.12 a share and adjusted EPS of $0.47 to $0.53, compared with adjusted EPS of $0.84 a year earlier.

Europe drove the miss. Organic parts and services revenue there fell 9.8%, and segment EBITDA margin is expected at 4.1% to 5.1%, down from 10.0%. LKQ cited disruptions from an ERP system rollout in Germany and lower volumes in the United Kingdom and Benelux. Specialty was modestly below plan, while North America performed in line with expectations despite softer markets, the release said.

Leadership and advisers

Andy Hamilton is leaving his role as president and managing director of LKQ Europe. The board hired Alvarez & Marsal to advise on European operations, starting with customer service, stabilizing operations, and cost discipline.

"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 in the release.

LKQ withdrew the 2026 guidance it last updated on July 30. It said the moves are part of its ongoing review of strategic alternatives. Full third-quarter results are due Oct. 29.

By the numbers

• Preliminary revenue: $3.32 billion, versus $3.50 billion
• Expected net loss: $16 million to $32 million
• Impairment charges: $111 million
• Adjusted EPS: $0.47 to $0.53, versus $0.84
• Europe organic decline: 9.8%

Sources

1. LKQ Corporation, Form 8-K with Exhibit 99.1 filed Oct. 23, 2026, accession 0001065696-26-000047

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