LKQ Europe with Double-digit EBITDA Margin in the Second Quarter 2021

Date: Friday 30 July 2021

---

LKQ Corporation (Nasdaq:LKQ) today reported second quarter 2021 results that reflect strength for the Company in a number of key metrics including total revenue, segment margins and free cash flow. In other second quarter developments, MSCI increased the Company's ESG rating from A to AA, and Fitch Ratings, Inc. assigned LKQ an initial rating of ‘BBB-’ (outlook stable).

"We were able to produce yet another record performance in the second quarter. This performance marks two key milestones as the first quarterly period with EPS of over $1 and the highest quarterly Segment EBITDA in the Company’s history. The North America and Specialty segments achieved record Segment EBITDA margins in the quarter, and Europe delivered a double-digit margin for the first time since the second quarter of 2016. The European performance further validates the margin targets provided at the start of the LKQ Europe program and gives us confidence that we are on track with the overall goals of the program,” noted Dominick Zarcone, President and Chief Executive Officer.

Global revenue for the second quarter of 2021 was $3.4 billion, an increase of 30.8% as compared to $2.6 billion in the second quarter of 2020, reflecting the annualization of the pandemic impact during the second quarter of 2020.

In the second quarter 2021, LKQ Europe, a subsidiary of LKQ Corporation, achieved a double-digit revenue growth of 30.2% to $1.58 billion, as compared to $1.21 billion in the second quarter of 2020. The segment EBITDA margin increased further to 10.7%.

“We continued our recovery from a challenging 2020 with a particularly strong double-digit growth in revenues in the second quarter of 2021. The great dedication of our employees, together with the ongoing improvements from our LKQ Europe program, and the strong loyalty of our customers helped us to further advance our business throughout Europe. The easing of Covid-19 restrictions and rising vaccination rates in most European countries in the last months were supportive. On the flipside we saw rising logistics and raw material costs. As we move forward, the pandemic will continue to occupy us in 2021. Nevertheless we are still confident to keep up our operating strengths and the execution of our strategies, expecting a good performance for the second half of the year,” said Arnd Franz, CEO of LKQ Europe.

---