LKQ Stock Is S&P 500’s Worst Performer. Fewer Cars Are Being Repaired.

LKQ now expects organic revenue for parts and services to decline year over year. (Dreamstime)

Shares of LKQ were plummeting Thursday after the automotive parts and services company reported a smaller-than-expected quarterly profit and lowered its financial forecasts for the full year.

The company posted adjusted earnings of 87 cents a share, below analysts’ consensus estimate of 92 cents and down 11% from the prior year. Revenue totaled $3.64 billion, surpassing Wall Street’s forecast of $3.62 billion, but comparable revenue for parts and services decreased 3.4% from the same period in 2024.

LKQ stock was down 21% on Thursday, putting it on track for its largest percentage decrease on record and its lowest close since Oct. 28, 2020. LKQ was the worst performer in the S&P 500.

In perhaps the most concerning news for investors, the company said it expects 2025 adjusted earnings of between $3 and $3.30 a share, compared with a previous forecast of $3.40 to $3.70. Management is also forecasting a decline of 1.5% to 3.5% in organic revenue for parts and services, having previously told investors to expect the number to be flat to 2% higher.

Economic softness in Europe and uncertainty about tariffs in North America are two of the factors behind the gloomier call, management said. Meanwhile, higher deductibles, lower rates of insurance coverage, a decline in used-car prices, and increased repair prices have led to a downturn in the share of vehicles that are insured and repairable after accidents, the company said

Write to Nate Wolf at nate.wolf@barrons.com