Risk Sleuth
LKQ · 10-K filed 19 Feb 2026 · year to 31 Dec 2025

LKQ

37 named things its latest annual report says its results depend on, each in the company's own words. 18 of them are also named by other companies we've read.

Read the filing on SEC.gov ↗

Suppliers

North America segment top six aftermarket vendors

depends on · approximately 44% of our aftermarket purchasesnamed as a risk
In 2025, approximately 44% of our aftermarket purchases were made from our top six vendors, with our largest vendor accounting for approximately 13% of our annual inventory purchases for the North America segment.Business (Item 1)

Key paint supplier (PBE business)

depends on · approximately 13% of our annual inventory purchases
This concentration is largely attributable to our paint, body and equipment ("PBE") business, through which we established a strategic relationship with a key supplier of paint and related products.Business (Item 1)

Specialty segment largest supplier

depends on · approximately 10% of our annual inventory purchases
In 2025, approximately 19% of our specialty vehicle aftermarket purchases were made from our top three suppliers, with our largest supplier accounting for approximately 10% of our annual inventory purchases.Business (Item 1)

Salvage auctions

depends onnamed as a risk
Most of our wholesale recycled inventory is obtained from vehicles offered at salvage auctions that are owned and operated by third party companies.Risk factors (Item 1A)

Partners and platforms

Automobile insurance companies

depends onnamed as a risk
We rely on business relationships with insurance companies and our customers, and our success depends, in part, on the acceptance and promotion of alternative parts usage by automotive insurance companies and vehicle repair facilities.Risk factors (Item 1A)

Certified Automotive Parts Association

depends onnamed as a risk
Lack of certification may negatively impact us because many major insurance companies recommend or require the use of aftermarket products only if they have been certified by such an organization.Risk factors (Item 1A)

Other companies

Ancora Catalyst Institutional, LP and Engine Capital, LP

named as a risk
Depending on the circumstances, we may reach agreements with such investors, such as the cooperation agreement that we entered into with Ancora Catalyst Institutional, LP, Engine Capital, LP and certain of their affiliates in February 2025 (amended May 2025).Risk factors (Item 1A)

Pacific Avenue Capital Partners, LLC

On September 30, 2025, we completed the sale of our Self Service segment to an affiliate of Pacific Avenue Capital Partners, LLC.Business (Item 1)

Competitors

Original equipment manufacturers (OEMs)

competes withnamed as a risk
We believe that a majority of collision parts by dollar amount are supplied by the OEMs, with the balance being supplied by distributors of alternative aftermarket, recycled, refurbished and remanufactured collision parts like us.Risk factors (Item 1A)

Also named by DORM, IOT, R, VSEC, WTS

Places

Europe

operates in · 54.4% of our revenuenamed as a risk
Our operations outside of the U.S. represented 54.4% of our revenue during both years ended December 31, 2025 and 2024.Market risk (Item 7A)

Also named by ADSK, AME, AMRC, ATR, BCSF, BKNG, BMI, BMY and 60 more

Taiwan

depends onnamed as a risk
Our North American business is dependent on a relatively small number of suppliers of aftermarket products, a large portion of which are sourced from Taiwan.Risk factors (Item 1A)

Also named by AAOI, AAPL, AB, ADI, AEHR, ALAB, AMAT, AMD and 50 more

China

depends onnamed as a risk
In addition, a number of our suppliers are based in China and Taiwan and so increasing strains and any political repercussions may have implications upon our supply chain.Risk factors (Item 1A)

Also named by A, AA, AAOI, AAP, AAPL, AB, ADI, AEHR and 261 more

Ukraine

operates innamed as a risk
We have a presence in Ukraine and are monitoring the situation there carefully.Risk factors (Item 1A)

Also named by C, CL, DKNG, JLL, LSTR, MDLZ, MSFT, NUE and 4 more

Mexico

operates in
In Mexico, we remanufacture engines and transmissions for sale in the U.S.Business (Item 1)

Also named by AAP, AME, AMRC, ANET, AOS, ARES, AYI, AZO and 83 more

Hazards

Red Sea crisis

named as a risk
Additional and/or increased geopolitical tensions, including the crisis in the Red Sea and increased trade barriers or restrictions on global trade, could result in, among other things, supply disruptions, lower consumer demand, and changes to foreign exchange rates and financial markets, any of which may adversely affect our business, financial condition and results of operations.Risk factors (Item 1A)

Also named by ALSN, FIVE

Commodities and inputs

Euro

exposed to its price · 74%named as a risk
During the year, 93% of our products were sourced from companies located in Europe, and 74% and 17% of our total inventory purchases were denominated in euros and pounds sterling, respectively.Business (Item 1)

Also named by ABBV, ABNB, ABT, ADBE, ADI, AME, AMG, AMGN and 186 more

Palladium

exposed to its price · 20%named as a risk
The average prices of rhodium, platinum, and palladium increased by 40%, 38% and 20%, respectively, for the year ended December 31, 2025 compared to the average prices for the year ended December 31, 2024.Market risk (Item 7A)

Also named by JBL, MXL, TTMI, VSH

Scrap metal

exposed to its price · decreased by 9%named as a risk
The average of scrap metal prices for the year ended December 31, 2025 decreased by 9% over the average for 2024, noting prices decreased over both years.Market risk (Item 7A)

Also named by IRM

Platinum

exposed to its price · 38%named as a risk
The average prices of rhodium, platinum, and palladium increased by 40%, 38% and 20%, respectively, for the year ended December 31, 2025 compared to the average prices for the year ended December 31, 2024.Market risk (Item 7A)

Also named by RBA

Rhodium

exposed to its price · increased by 40%named as a risk
The average prices of rhodium, platinum, and palladium increased by 40%, 38% and 20%, respectively, for the year ended December 31, 2025 compared to the average prices for the year ended December 31, 2024.Market risk (Item 7A)

Sheet metal

exposed to its pricenamed as a risk
Because a substantial volume of our sales involves products manufactured from sheet metal, we can be adversely impacted if sheet metal becomes unavailable or is only available at higher prices, which we may not be able to pass on to our customers.Risk factors (Item 1A)

Steel, aluminum and plastics

exposed to its pricenamed as a risk
The prices of steel, aluminum, and plastics are components of the cost to manufacture products for our aftermarket business.Risk factors (Item 1A)

Freight and shipping containers

exposed to its pricenamed as a risk
If the cost of freight and shipping containers rise in the future, we might not be able to pass the cost increases on to our customers.Risk factors (Item 1A)

Taiwan dollar

exposed to its pricenamed as a risk
In several of our operations, we purchase inventory from manufacturers in Taiwan in U.S. dollars, which exposes us to fluctuations in the relationship between the local functional currency and the U.S. dollar, as well as fluctuations between the U.S. dollar and the Taiwan dollar.Market risk (Item 7A)

Regulators

Federal Trade Commission

subject tonamed as a risk
The Federal Trade Commission has issued guides that regulate the use of certain terms such as “rebuilt” or “remanufactured” in connection with the sale of automotive parts.Risk factors (Item 1A)

Also named by AMZN, AN, AVGO, BJ, CART, CELH, CHD, CHE and 56 more

U.S. Customs and Border Protection

subject tonamed as a risk
U.S. Customs and Border Protection has taken the position that certain of our aftermarket parts infringe certain OEM trademarks and seized our aftermarket parts as we attempted to import them into the U.S.Risk factors (Item 1A)

Also named by BALL, BJ, CHRW, CROX, EXPD, FDX, FDXF, JBHT and 12 more

U.S. International Trade Commission

subject tonamed as a risk
OEMs have brought such claims in court and with the U.S. International Trade Commission.Risk factors (Item 1A)

Also named by ANET, IDCC, KEYS, MO, MSI, NUE, PKG, QCOM

Laws and programs

U.S. tariffs

subject tonamed as a risk
In March 2025, the U.S. government imposed additional tariffs on a significant number of countries and threatened to further increase the scope and amount of tariffs in the event of retaliatory countermeasures, causing the future of existing tariffs and the possibility for new tariffs to be uncertain.Risk factors (Item 1A)

Also named by A, AAPL, ACHR, ADI, AEHR, AEP, AIOT, AKAM and 170 more

General Data Protection Regulation (GDPR)

subject tonamed as a risk
The GDPR provides severe penalties for noncompliance.Risk factors (Item 1A)

Also named by A, AB, ABNB, ADBE, ADP, AGX, AIOT, AJG and 100 more

California Proposition 65

subject tonamed as a risk
In addition, laws relating to the regulation of parts affecting vehicle emissions, such as California’s Proposition 65, may impact the ability of our Specialty segment to sell certain accessory products.Risk factors (Item 1A)

Also named by ARE, CELH, ECL, KDP, KO, MKC, MNST, PEP and 3 more

U.S. state aftermarket parts laws

subject tonamed as a risk
Many states have introduced or passed laws that limit the use of aftermarket products in collision repair.Risk factors (Item 1A)

State salvage title laws

subject tonamed as a risk
Whether states issue salvage titles is important to the supply of inventory for the vehicle recycling industry because an increase in vehicles that qualify as salvage vehicles provides greater availability and typically lowers the price of such vehicles.Risk factors (Item 1A)

Motor Vehicle Block Exemption Regulation (MVBER)

subject to
In Europe, the Motor Vehicle Block Exemption Regulations ("MVBER") regulate the competition rules on automotive spare parts.Risk factors (Item 1A)

U.K. Motor Vehicle Block Exemption Order

subject to
A similar regulation has also been adopted in the U.K. under the Motor Vehicle Block Exemption Order, which addresses technological and data requirements and remains in force until May 31, 2029.Risk factors (Item 1A)

Technology

Electric vehicles

named as a risk
Thus, an increase in electric vehicles as a percentage of vehicles sold could have a negative impact on our sales of engines, transmissions, and other related parts.Risk factors (Item 1A)

Also named by AAP, ALB, AZO, BWA, GPC, ON, PRM, SUN and 1 more

OEM vehicle telematics

named as a risk
To the extent that this data is not shared with alternative suppliers, the OEMs will have an advantage with respect to such matters as contacting the vehicle driver, recommending repairs and maintenance, and directing the vehicle owner to an affiliated dealership.Risk factors (Item 1A)

Oracle iReceivables

depends onnamed as a risk
In addition, in early October 2025, we determined that an unauthorized actor gained access to our Oracle iReceivables application and downloaded certain customer, supplier and employee records.Risk factors (Item 1A)