LKQ Names Salvatore Abbate CEO

Justin Jude and LKQ Europe chief Andy Hamilton depart as Alvarez & Marsal is retained to advise on European operations.

LKQ Corporation (NASDAQ: LKQ) has appointed Salvatore A. “Sal” Abbate, the former chief executive officer of Veritiv Corporation, as its next president and CEO, replacing Justin Jude, who left the company Oct. 23, the same day LKQ disclosed preliminary third-quarter results that showed significant underperformance in Europe.

Abbate takes over Dec. 15. Until then, an interim office of the chief executive officer made up of John Mendel, chairman of the board, and Sue Gove, chair of the board’s audit committee, will oversee operations with LKQ’s leadership team. Andy Hamilton also departed Oct. 23 as president and managing director of LKQ Europe, the board engaged Alvarez & Marsal (A&M) to advise on the European business and LKQ withdrew its full-year 2026 guidance.

The changes put new leadership at the top of the collision repair industry’s largest supplier of recycled and aftermarket replacement parts while a board review that includes a potential sale of the company remains underway. LKQ said its North America segment, which supplies collision repair facilities, performed in line with expectations in the third quarter despite softer market conditions, following a second quarter in which the segment returned to organic growth and alternative parts utilization topped 40%.

“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,” Mendel said. “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.”

Europe Drives Third-Quarter Shortfall

LKQ expects to report third-quarter revenue of $3.32 billion, down from $3.50 billion a year earlier, with parts and services organic revenue down 5.4%. Europe’s organic parts and services revenue fell 9.8%, and the segment’s earnings before interest, taxes, depreciation and amortization (EBITDA) margin is expected at 4.1% to 5.1%, compared with 10.0% in the third quarter of 2025.

The company attributed the European results to operational disruptions tied to its enterprise resource planning (ERP) system implementation in Germany and to volume declines in the United Kingdom and Benelux. The Specialty segment came in modestly below expectations.

The German conversion was already weighing on results in July, when LKQ estimated it reduced second-quarter European revenue by approximately $140 million and EBITDA by approximately $50 million, and said Germany had recovered to above 85% of its normal revenue run rate. Europe’s segment EBITDA margin was 7.5% in that quarter.

A&M’s initial focus will be improving customer service levels, stabilizing operations and strengthening performance and cost discipline across the region.

LKQ expects a third-quarter net loss from continuing operations attributable to stockholders of $16 million to $32 million, including $111 million of non-cash impairment charges — $88 million for goodwill and $23 million for net assets held for sale — compared with net income of $178 million a year earlier. Diluted loss per share is expected at $0.06 to $0.12, including $0.42 per share of impairment charges, compared with diluted earnings of $0.69. Adjusted diluted EPS is expected at $0.47 to $0.53, down from $0.84.

The withdrawn guidance was last revised July 30, when LKQ cut its adjusted diluted EPS outlook to $2.60 to $2.90 and projected organic parts and services revenue growth of negative 3.0% to negative 1.0%. The company cited the European results and Abbate’s pending start as the reasons for withdrawing it. LKQ will report full third-quarter results and hold a conference call Oct. 29.

Abbate brings more than three decades of experience leading distribution and industrial businesses. As CEO of Veritiv, he led a transformation during which the company’s share price rose more than 13-fold, culminating in its $2.6 billion sale to Clayton, Dubilier & Rice in 2023. He previously served as Veritiv’s chief operating officer and chief commercial officer and held senior roles at Andersen Windows & Doors, Solutia Inc., now part of Eastman Chemical Company, and Armstrong World Industries.

Abbate serves on the board of ArcBest and holds a bachelor’s degree in industrial engineering from the Georgia Institute of Technology and an MBA from Northwestern University’s Kellogg School of Management.

“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,” Mendel said. “On behalf of the Board, I also want to thank Justin for his years of service and contributions to LKQ.”

“There is meaningful opportunity to improve performance, and I intend to move quickly,” Abbate said. “That starts with listening to our customers and teams, fostering a culture where our people can succeed and thrive, driving disciplined execution across every region and holding ourselves accountable for results.”

Jude, an LKQ employee since 2004 who led the Wholesale – North America segment from 2015 through 2023, succeeded Dominick Zarcone as president and CEO July 1, 2024. Hamilton, who joined LKQ through its 2011 acquisition of Euro Car Parts, was named to lead LKQ Europe effective Jan. 1, 2024.

Strategic Review

LKQ described the CEO appointment, the European leadership change and the A&M engagement as actions taken in connection with the board’s review of strategic alternatives, announced in January, which includes a potential sale of the company. LKQ said it will provide additional updates on the process as appropriate.