LKQ replaces Justin Jude, after a little over two years as president and CEO, as the company announces a net loss of $16 million to $32 million in its third quarter.
The company’s shares fell Friday to $17.42 at close, a 22.47% decline, after the announcement of its Q3 and administrative changes. The shares continued to hold close to Friday’s closing price early this week.
Salvatore A. Abbate, CEO of Veritiv Corp., will start as president and CEO Dec. 15, LKQ says. It added that Jude departed from the company Oct. 23.
“LKQ’s performance, particularly in Europe, has fallen significantly short of the board’s expectations, and the board is taking decisive action to address it,” said John Mendel, chairman of the board, in the release. “We have strong conviction in LKQ’s business and its potential to create significant value for shareholders. Sal is a proven operator with a track record of driving performance in complex distribution businesses, and A&M brings deep experience in operational improvement. Together with LKQ’s talented teams, we are focused on improving execution and delivering improved results for our stakeholders.”
Mendel and Sue Grove, chair of the audit committee, will cover the president and CEO duties until Abbate assumes the role, according to the release.
Preliminary financial results show LKQ’s revenue dropped in Q3 to $3.32 billion, from $3.50 billion in Q3 2025, the release adds.
Parts and services organic revenue declined 5.4%.
The company’s net loss includes $111 million of non-cash impairment charges compared with a net income of $178 million in Q3 2025, according to the release.
“The third quarter results primarily reflect underperformance in the Europe segment, including operational disruptions associated with the ERP implementation in Germany and volume declines in the United Kingdom and Benelux,” the release states. “While Specialty was modestly below expectations, the shortfall was more limited, and North America performed in line with the company’s expectations despite softer market conditions.”
LKQ is withdrawing its full-year 2026 guidance, last updated in July, due to the Q3 results and the appointment of Abbate, the release adds.
The company also announced that Andy Hamilton is departing from his role as president and managing director of LKQ Europe in the news release. It adds that the board has engaged Alvarez & Marsal (A&M) to advise the company on its European operations.
“As CEO of Veritiv Corporation, he led a significant transformation of the company, with its share price increasing more than 13-fold during his tenure, culminating in its $2.6 billion sale to Clayton, Dubilier & Rice in 2023,” the release states.
He previously served as Veritiv’s chief operating officer and chief commercial officer. He also previously held senior leadership roles at Andersen Windows & Doors, Solutia (now East Chemical Company, and Armstrong World Industries, according to the release.
LKQ says that Abbate’s experience “aligns closely with LKQ’s strategic and operational priorities.” It adds that he has led high-volume, multi-site distribution businesses where pricing, procurement and supply chain discipline are critical to performance.
The release adds that Abbate has led portfolio transformations focused on margin improvement and cash generation.
“After a thorough search, the Board concluded that Sal is the right leader for LKQ at this moment,” Mendel said. “He is a disciplined operator and people-centered leader, who has transformed a complex distribution business, improved margins and created significant value for shareholders. Sal brings the operating rigor, commercial instincts and sense of urgency we need to sharpen execution across our businesses and unlock the full potential of LKQ. On behalf of the Board, I also want to thank Justin for his years of service and contributions to LKQ.”
Jude said insurance carriers are looking for ways to cut costs and the easiest way to do so is by using more alternative parts and improving cycle times.
“A lot more business is being driven to the MSOs [multi-shop operators] right now,” Jude said. “Now, MSOs are the bigger customers. They get the best prices. But at the end of the day, they do use more alternative parts than a non-MSO rooftop, so we see a bigger share of opportunity for our wallet to grow with those guys.”
Alternative parts usage (APU) was more than 40% for the second quarter, Jude said. He added this surpasses a previous record from last quarter.
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Photo of LKQ Euro Car Parts courtesy LKQ
