LKQ is a global distributor of alternative vehicle replacement parts — meaning aftermarket, salvage, and remanufactured parts that are cheaper than OEM equivalents. LKQ's primary customers are collision and mechanical repair shops, and while insurers aren't direct customers, they're a critical demand driver because they push repair shops to use cheaper alternative parts to reduce claim costs. LKQ sells primarily through a two-step model, delivering directly to repair shops from its own network of warehouses and branches. LKQ operates three segments: North America (the largest, highest-margin segment), Europe, and Specialty. North America sells aftermarket and salvage parts under the Keystone and Bumper to Bumper brands. Europe sells hard parts for mechanical repair across roughly 20 countries and is undergoing significant restructuring. The Specialty segment distributes RV, truck, off-road, and marine accessories, and LKQ is exploring its sale as part of a broader portfolio simplification effort. LKQ's core economics are the spread between inventory cost and the price charged to repair shops. Salvage economics are driven by the cost of buying totaled vehicles at auction vs. total revenue extracted from parts. In Europe, LKQ is expanding private-label products, which carry meaningfully higher gross margins than branded equivalents. CEO Justin Jude, who took the role in mid-2024, has centered strategy on portfolio simplification, cost reduction in Europe, organic share gains, and returning capital to shareholders. In January 2026, LKQ's board announced a formal review of strategic alternatives, including a potential sale of the company.