LKQ CFO NDR Takeaways: Path to Growth Clearing as US Collision Trends Improve; ERP Integration Milestones in Europe Key to Alleviate Remaining Overhang

研报英文原文证据摘录

LKQ CFO NDR Takeaways: Path to Growth Clearing as US Collision Trends Improve; ERP Integration Milestones in Europe Key to Alleviate Remaining Overhang

J P M O R G A N North America Equity Research

10 June 2026

LKQ

CFO NDR Takeaways: Path to Growth Clearing as US Overweight

Collision Trends Improve; ERP Integration Milestones in LKQ, LKQ US

Europe Key to Alleviate Remaining Overhang Price (09 Jun 26):$25.36

Autos & Auto Parts

Jash Patwa AC

(1-212) 622-5472

jash.patwa@jpmchase.com

Rajat Gupta

(1-212) 622-6382

rajat.gupta@jpmorgan.com

We recently hosted LKQ SVP and CFO Rick Galloway and VP of Investor Relations

Yash Beswala

Joseph P. Boutross for investor meetings in London. The overarching takeaway is that

(1-212) 622-0028

management continues to execute its self-help initiatives at an impressive pace despite yash.beswala@jpmchase.com

a choppy industry backdrop over the past two years, demonstrating notable resilience J.P. Morgan Securities LLC

and discipline through the cycle. Signs of a cyclical turn are emerging as the decline

in collision claims continues to taper, with insurance rates moving lower and US used

vehicle prices holding up, suggesting potential for an imminent recovery over the next

couple of quarters. Stabilization in the US collision industry is a critical piece of the

puzzle, but equally important are the European integration efforts, where ERP

implementation is still in its early stages. Management expressed confidence in the

ERP integration playbook, though investors remain justifiably cautious and are

looking for proof of execution across a broader set of markets. Once the integration

is further along, LKQ sees significant cost synergy potential from a unified European

platform, including an opportunity for ~200bps of EBITDA margin expansion (vs.