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AUTOMOTIVE: LKQ (LKQ Baa3/BBB-/BBB-): 3Q24 Results

AUTOMOTIVE

Probably neutral on balance. Sales guidance isn’t much of a surprise, while margins and FY FCF are encouraging, if at the expense of capex. While not a shock, increasing the buyback in the current environment might not be well received by credit investors.

  • LKQ reported revenue 2% shy of consensus, with organic -2.8%.
  • Adj. EBITDA came in-line. Margin is 50bp better YoY with expense management cited.
  • FCF was $341mn vs $282mn expected. Total leverage stands at 2.4x, little changed. It targets below 2x.
  • Revenue headwinds continue due to tough automotive market conditions. FY24 organic growth was revised down by 1.75% to -2.75% to -1.75%. FCF and conversion guidance were affirmed, implying no adj. EBITDA impact. Capex and WC are to be reduced to help that, though.
  • Webcast 13.00 BST https://events.q4inc.com/attendee/427516020.
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Probably neutral on balance. Sales guidance isn’t much of a surprise, while margins and FY FCF are encouraging, if at the expense of capex. While not a shock, increasing the buyback in the current environment might not be well received by credit investors.

  • LKQ reported revenue 2% shy of consensus, with organic -2.8%.
  • Adj. EBITDA came in-line. Margin is 50bp better YoY with expense management cited.
  • FCF was $341mn vs $282mn expected. Total leverage stands at 2.4x, little changed. It targets below 2x.
  • Revenue headwinds continue due to tough automotive market conditions. FY24 organic growth was revised down by 1.75% to -2.75% to -1.75%. FCF and conversion guidance were affirmed, implying no adj. EBITDA impact. Capex and WC are to be reduced to help that, though.
  • Webcast 13.00 BST https://events.q4inc.com/attendee/427516020.