---
title: "LKQ says alternative parts utilization hit record high of 40% in Q1"
url: https://burnaze.com/article/b9e7933a-7c66-4269-b68d-544b3f494e83
source: "Repairer Driven News"
original_url: https://www.repairerdrivennews.com/2026/05/11/lkq-says-alternative-parts-utilization-hit-record-high-of-40-in-q1/
author: "Teresa Moss"
category: "Automotive"
industry: "Automotive"
published: 2026-05-11T10:00:23.000Z
modified: 2026-05-11T11:30:34.120Z
image: https://www.repairerdrivennews.com/wp-content/uploads/2026/05/lkq-nashville-business-wire-tight-768x525-1.jpg
---

# LKQ says alternative parts utilization hit record high of 40% in Q1

**TL;DR:** LKQ reported a record high of 40% alternative parts utilization in Q1 2026, with CEO Justin Jude anticipating continued favorable trends. The company also saw a recovery in comparable claims and renewed several multi-shop operator contracts.

*By Teresa Moss, originally published in Repairer Driven News on 2026-05-11. [Read the original](https://www.repairerdrivennews.com/2026/05/11/lkq-says-alternative-parts-utilization-hit-record-high-of-40-in-q1/).*

## Key facts

- Alternative parts utilization reached 40%
- MSOs tend to be higher utilizers of alternative parts
- 75% of collision repairs require calibration and diagnostics

## Story

Alternative Parts Utilization (APU) reached a record high of 40% in the first quarter of 2026, delivering a strong performance for LKQ in its aftermarket collision product line, according to Justin Jude, LKQ President, CEO, and Director. Jude shared this information during an investor call and anticipates these favorable trends will continue.

The company also observed a recovery in comparable claims, although they remained down 2-4%. A positive development for LKQ is the renewal of several multi-shop operators (MSOs) and the integration of ordering capabilities with new partners.

> These integrations are designed to increase the ease and velocity of ordering, improve procurement workflows, and position us to capture more share of wallet.

Jude later clarified that MSOs tend to be higher utilizers of alternative parts. He also noted that MSOs benefit from better lead times and cycle times with insurance carriers.

## Msos and growth

> We win with the MSOs.

Elitek, LKQ's calibration and diagnostic business, also demonstrated strong organic growth and healthy EBITDA margins in the quarter.

> For context, an increasing share of collision repairs require calibration and diagnostics. And we estimate that requirement has risen to roughly 75% today from about 62% three years ago. We view this as a durable, long-term tailwind and a compelling opportunity to extend our service offering.

## Market trends

Rising used car prices are also benefiting the company, as this trend contributes to a decline in non-comprehensive total loss rates.

> Used car values improved every month this quarter, with March alone up 6.2%. These trends will drive a reduction in total loss frequency and boost the proportion of accidents that translate into repairable claims, supporting continued growth and opportunity for our company.

Jude indicated that these indicators suggest a broader recovery.

LKQ's financial results for Q1 show an increase in revenue by 4.3% to $3.4 billion. Total parts and service revenue grew by 3.6%, which includes a 5.1% increase from foreign exchange rates. However, the company also experienced a 1.5% decrease in parts and services.

Net income for the quarter was $77 million, compared to $158 million for the same period in 2025. A press release stated:

> Net income for the three months ended March 31, 2026, included a $44 million (or $0.17) impairment of our equity method investment in Mekonomen.

## Entities

- Automotive (sector)
- financial results (topic)
- Repairer Driven News (publication)
- Teresa Moss (person)
- LKQ Corporation (company)
- Justin Jude (person)
- Mekonomen (company)
- Elitek (company)
- alternative parts utilization (topic)
- multi-shop operators (topic)
- collision repair trends (topic)

---
Originally reported by Teresa Moss, Repairer Driven News (https://www.repairerdrivennews.com/2026/05/11/lkq-says-alternative-parts-utilization-hit-record-high-of-40-in-q1/). Summarized by Burnaze (https://burnaze.com/article/b9e7933a-7c66-4269-b68d-544b3f494e83).