LKQ Corporation (NASDAQ:LKQ) saw its stock plummet 5.41% in pre-market trading on Thursday following the release of its second-quarter 2025 earnings report. The auto parts company missed analyst expectations and provided a cautious outlook, triggering investor concerns.

LKQ reported adjusted earnings per share of $0.87 for Q2, falling short of the analyst consensus estimate of $0.92. This represents an 11.22% decrease from the $0.98 per share earned in the same period last year. The company's quarterly revenue came in at $3.642 billion, meeting analyst expectations but showing a 1.86% decrease compared to the previous year. Adjusted net income for the quarter was $225 million, below the estimated $239.1 million.

Adding to investor worries, LKQ lowered its full-year 2025 outlook. The company now projects organic revenue growth for parts and services to be between -3.5% and -1.5%, and adjusted earnings per share in the range of $3.00 to $3.30. LKQ also reported ongoing challenges in its North American operations, citing no recovery in repairable claims and continued tariff uncertainty. Despite these headwinds, the company has implemented cost-reduction measures, having already cut costs by $125 million and targeting an additional $75 million in savings for 2025. As the market digests this mixed report, investors will be closely watching how LKQ navigates the challenging environment in the coming quarters.