LKQ (LKQ) Q2 2025 Earnings Call Transcript

Motley Fool Transcribing, The Motley Fool

Mon, May 4, 2026 astatine 9:56 AM CDT 37 min read

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DATE

Thursday, July 24, 2025 astatine 8 a.m. ET

CALL PARTICIPANTS

• President and Chief Executive Officer — Justin L. Jude

• Senior Vice President and Chief Financial Officer — Rick Galloway

Full Conference Call Transcript

Justin L. Jude: Thank you, Joe, and bully greeting to everyone joining america connected the call. As you each know, I person present been successful the CEO relation for a afloat year. The twelvemonth has presented immoderate macro challenges and immoderate short-term operational obstacles, but besides opportunities for longer- word worth creation. Alongside my enactment team, we person made immoderate pugnacious but indispensable decisions to fundamentally reshape however we run and enactment america backmost to a way of accordant worth creation. The decisions made are aligned with our overarching strategy, a multiyear translation to simplify our portfolio, sharpen our absorption and presumption america arsenic a high-performing institution centered connected our halfway concern segments.

Our planetary squad is laser-focused connected increasing our marketplace stock portion driving productivity and efficiently managing our outgo structure. At our September 2024 Investor Day, we acceptable our strategical priorities, simplify our concern portfolio and operations, grow our thin operating exemplary globally with a absorption connected borderline enhancement, put and turn organically and prosecute a disciplined superior allocation strategy. And truthful arsenic we determination forward, we are going to stock however we are doing against each of these a scorecard, if you will, that makes it wide for the concern assemblage to spot however we are doing. I can't sugarcoat that today, the results are yet to amusement this advancement and the macro headwinds necessitated our revised guidance.

We are not wherever we request to be, and truthful we are going to propulsion harder and determination faster. To that end, we are focused connected 2 contiguous things. One, further cost-cutting measures, chiefly successful Europe but besides successful North America with a extremity of cutting different $75 cardinal successful costs; two, a heightened accent connected the strategical reappraisal of our concern units successful operations that whitethorn effect successful the merchantability of assets that further accelerate our simplification strategy and superior allocation priorities. We are seeing a crook successful the marketplace for strategical enactment with recognition markets opening. Momentum down midsized transactions and backstage equity actively seeking to deploy capital.

While this volition not beryllium a linear process, I stay assured that we are connected way to recognize the afloat benefits of this strategy by 2027, arsenic outlined astatine our September 2024 Investor Day. It is worthy noting that we are doing these things astatine a clip erstwhile determination are broader challenges successful the wide car manufacture and macroeconomic environment. It is simply a dynamic and fluid environment. Given amongst different factors, the rising input costs and the uncertainties astir tariffs are creating confusion. We are not unsocial successful the manufacture successful facing these challenges, but you tin either kick and marque excuses oregon absorption connected your concern and operating exemplary to present the champion imaginable results.