LKQ Corporation ( (LKQ) ) has released its Q4 earnings. Here is a breakdown of the information LKQ Corporation presented to its investors.
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LKQ Corporation is a leading provider of alternative and specialty parts to repair and accessorize automobiles and other vehicles, operating across North America, Europe, and Taiwan. The company offers a broad range of OEM recycled and aftermarket parts, replacement systems, components, equipment, and services for various vehicles.
LKQ Corporation reported its financial results for the fourth quarter and full year of 2024, highlighting a revenue of $3.4 billion for the quarter and $14.4 billion for the year. Despite challenging market conditions, the company focused on core strengths to achieve a strong finish, with notable performance in its Europe segment attaining a record EBITDA margin of 10.1% in the fourth quarter.
The company experienced a decrease in organic revenue for parts and services, with a 3.6% decline in the fourth quarter and a 2.2% decline for the full year. Fourth-quarter net income was $156 million, a decrease from the previous year, with diluted EPS at $0.60. The company returned over 80% of its free cash flow to shareholders through share repurchases and dividends, exceeding its commitment to return 50%. Additionally, LKQ repurchased $80 million worth of shares in the fourth quarter.
Looking ahead to 2025, LKQ Corporation expects organic revenue growth for parts and services between 0% and 2%, with an anticipated diluted EPS range of $2.91 to $3.21. The company plans to continue emphasizing operational excellence and lean management initiatives to drive growth amid industry recovery, aiming for above-market revenue growth and strong free cash flow generation.
Overall, LKQ Corporation remains committed to delivering long-term value to shareholders through portfolio simplification and profitable growth strategies, as it navigates the evolving market conditions.
