This report does not constitute a rating action. due to weakness in North America and elevated competition in key European geographies, but we expect revenues to stabilize this year, with S&P Global Ratings-adjusted EBITDA margins remaining near recent levels. The company?s financial results have been weaker since 2022 due to lower repairable claims activity affecting parts volumes in its North America segment and more intense pricing competition in parts of Europe. Inflationary pressures, including tariffs, have also been dilutive to margins, despite some offset from pricing initiatives (mainly in North America). These factors have weighed down LKQ?s EBITDA margins, which decreased to 13.5% in 2025 from above 15% in 2022. We expect parts volumes to stabilize in North America as
