LKQ Corp (LKQ) 2025 Q1 法說會逐字稿

Hello, everyone, and thank you for joining the LKQ Corporation's first-quarter 2025 earnings conference call. My name is Lucy, and I will be coordinating your call today. (Operator Instructions)

大家好，感謝您參加 LKQ 公司 2025 年第一季財報電話會議。我叫露西，今天我要負責協調您的通話。（操作員指示）

I will now hand over to your host, Joe Boutross, Vice President of Investor Relation, LKQ to begin. Please go ahead.

現在我將把時間交給主持人、LKQ 投資者關係副總裁 Joe Boutross。請繼續。

Thank you, operator, and good morning, everyone, and welcome to LKQ's first quarter 2025 earnings conference call. With us today are Justin Jude, LKQ's President and Chief Executive Officer; and Rick Galloway, our Senior Vice President and Chief Financial Officer. Please refer to the LKQ website at lkqcorp.com for our earnings release issued this morning as well as the accompanying slide presentation for this call.

謝謝接線員，大家早上好，歡迎參加 LKQ 2025 年第一季財報電話會議。今天與我們在一起的有 LKQ 總裁兼執行長賈斯汀·裘德 (Justin Jude)；以及我們的高級副總裁兼財務長 Rick Galloway。請參閱 LKQ 網站 lkqcorp.com，以了解我們今天早上發布的收益報告以及本次電話會議的幻燈片簡報。

Now let me quickly cover the safe harbor. Some of the statements that we make today may be considered forward-looking. These include statements regarding our expectations, beliefs, hopes, intentions or strategies. Actual events or results may differ materially from those expressed or implied in the forward-looking statements as a result of various factors. We assume no obligation to update any forward-looking statements. For more information, please refer to the risk factors discussed in our Form 10-K and subsequent reports filed with the SEC.

現在讓我快速介紹一下安全港。我們今天所作的一些聲明可能被視為具有前瞻性。這些包括關於我們的期望、信念、希望、意圖或策略的陳述。由於各種因素，實際事件或結果可能與前瞻性陳述中表達或暗示的事件或結果有重大差異。我們不承擔更新任何前瞻性陳述的義務。欲了解更多信息，請參閱我們向美國證券交易委員會提交的 10-K 表格和後續報告中討論的風險因素。

During this call, we will present both GAAP and non-GAAP financial measures. A reconciliation of GAAP to non-GAAP measures is included in today's earnings press release and slide presentation. Hopefully, everyone has had a chance to look at our 8-K, which we filed with the SEC earlier today. And as normal, we are planning to file our 10-Q in the coming days.

在本次電話會議中，我們將介紹 GAAP 和非 GAAP 財務指標。今天的收益新聞稿和幻燈片簡報中包含了 GAAP 與非 GAAP 指標的對帳。希望大家都有機會看一下我們今天早些時候向美國證券交易委員會提交的 8-K 報告。和往常一樣，我們計劃在未來幾天提交 10-Q 表。

And with that, I'm happy to turn the call over to CEO, Justin Jude.

現在，我很高興將電話轉給執行長賈斯汀·裘德 (Justin Jude)。

Thank you, Joe, and good morning to everyone joining us on the call. Since the tariffs were announced on April 2, much has changed, capturing the interest of all of us on this call and affecting the global economy. Before discussing tariffs, I would like to address several topics concerning our people, our operations and our performance.

謝謝你，喬，大家早安，歡迎參加我們的電話會議。自4月2日宣布關稅以來，情況發生了很大變化，引起了我們所有人的關注，並影響了全球經濟。在討論關稅之前，我想先談幾個關於我們的員工、我們的營運和我們的業績的話題。

What sets us apart from our competition is our dedicated workforce, which we consider to be our most valuable asset. To ensure their safety, we implemented an end-cap monitoring equipment in our fleet last year, achieving 95% coverage in North America by the end of Q1. This initiative has led to a nearly 40% reduction in on the road accidents, and we aim to implement these features in Europe where feasible.

我們與競爭對手的不同之處在於我們擁有敬業的員工隊伍，我們認為他們是我們的最寶貴的資產。為了確保他們的安全，我們去年在車隊中安裝了端蓋監控設備，到第一季末在北美實現了 95% 的覆蓋率。這項措施已使道路交通事故減少了近 40%，我們的目標是在可行的情況下在歐洲實施這些措施。

We value talent development and have launched our global talent development function to unify our workforce through leadership competencies and career planning. In February, a cohort of high-potential global leaders began new sessions to promote learning and idea sharing. This initiative will also help facilitate best practice sharing between our North America and European operations.

我們重視人才發展，並啟動了全球人才發展職能，透過領導能力和職涯規劃來團結我們的員工隊伍。今年 2 月，一群極具潛力的全球領導者開始舉辦新的會議，以促進學習和思想交流。這項措施也將有助於促進我們的北美和歐洲業務之間的最佳實踐共享。

During the quarter, we also held both our North American and European leadership conferences, bringing together more than 1,300 of our top global leaders to align on our strategy and goals. As anticipated, part of the discussion revolved around navigating recent tariff developments and challenging macroeconomic conditions.

本季度，我們還舉辦了北美和歐洲領導力會議，匯集了 1,300 多名全球頂尖領導者，以協調我們的策略和目標。正如預期的那樣，部分討論圍繞著如何應對近期的關稅發展和嚴峻的宏觀經濟狀況。

Despite these challenges, our team managed to meet our expectations, achieving earnings per share of $0.79 for the quarter. Although the markets present uncertainties, we must continue executing our simplification strategy without delay. I will highlight some of our operational accomplishments during the segment breakout, and Rick will provide more detail later in the call.

儘管面臨這些挑戰，我們的團隊仍設法達到了預期，本季每股收益達到 0.79 美元。儘管市場存在不確定性，但我們必須毫不拖延地繼續執行我們的簡化策略。我將在分組討論期間重點介紹我們的一些營運成就，Rick 將在稍後的電話會議中提供更多細節。

Regarding our ongoing strategy to simplify the portfolio, we divested two operations, a self-serve yard in Florida and a Europe-based noncore leisure business, demonstrating our commitment to streamlining our portfolio. We remain committed to a balanced capital allocation strategy, incorporating dividends, share repurchases and maintaining our investment-grade rating. During the quarter, we repurchased 1 million shares for about $40 million and paid $78 million in dividends in March.

關於我們持續簡化投資組合的策略，我們剝離了兩項業務，即佛羅裡達州的自助堆場和歐洲的非核心休閒業務，這表明我們致力於精簡投資組合。我們仍然致力於平衡的資本配置策略，包括股利、股票回購和維持我們的投資等級。本季度，我們以約 4,000 萬美元回購了 100 萬股，並在 3 月份支付了 7,800 萬美元的股息。

Now moving to our segments. North America's organic revenue fell by 4.1% per day, which is less of a decline than the last three quarters of 2024 amid nearly 10% decline in repairable claims. The drag on repairable claims resulting from declining used car pricing and rising insurance premiums really started worsening in Q2 of 2024, so the comps will start to ease as we progress through the year.

現在轉到我們的部分。北美有機收入每天下降 4.1%，在可修復索賠下降近 10% 的情況下，降幅小於 2024 年最後三個季度。二手車價格下跌和保險費上漲導致可修復索賠的拖累在 2024 年第二季度真正開始惡化，因此隨著時間的推移，可修復索賠的情況將開始緩解。

Since 2015, we have outperformed the repairable claims count growth by over 400 bps per year, and Q1 was 570 bps better, indicating market share gains against a low demand environment. North America also benefited from having a diversified portfolio of products and services, mitigating potential shortfalls in other business areas. We generated positive growth for our Elitek calibration and diagnostics business and our Bumper-to-Bumper hard parts business in Canada.

自 2015 年以來，我們的業績表現每年都比可修復索賠數量的增長高出 400 個基點，而第一季更是高出 570 個基點，這表明在低需求環境下我們的市場份額有所增長。北美也受益於多元化的產品和服務組合，從而減輕了其他業務領域的潛在不足。我們在加拿大的 Elitek 校準和診斷業務以及 Bumper-to-Bumper 硬體零件業務均實現了正成長。

In Europe, organic revenue declined by 1.8% per day compared to a growth of 4.4% in Q1 of 2024. On a two-year stack, organic revenue growth was 2.6%. There was noticeable softness in many markets impacted by consumer confidence. Europe also experienced a relatively mild winter year-over-year, impacting certain products such as batteries, which are higher in demand during periods of inclement weather.

在歐洲，有機收入每天下降 1.8%，而 2024 年第一季則成長 4.4%。兩年來，有機收入成長率為 2.6%。受消費者信心影響，許多市場明顯疲軟。歐洲今年的冬季氣候與去年同期相比相對溫和，對電池等某些產品產生了影響，因為這些產品在惡劣天氣期間的需求較高。

Competitive pricing in some countries also contributed to challenging conditions that we believe will stabilize long term. Our comprehensive product and service offerings are best-in-class across Europe, and we cautiously avoid making rash short-term pricing decisions that dilute the value proposition we offer in Europe. Best practices to support our daily success at LKQ.

一些國家的競爭性定價也導致了嚴峻的形勢，我們相信這種情況將長期穩定下來。我們提供的綜合產品和服務在整個歐洲都是一流的，我們謹慎避免做出草率的短期定價決策，以免削弱我們在歐洲提供的價值主張。支持 LKQ 日常成功的最佳實踐。

Our SKU rationalization project in Europe aims to reduce complexity and simplify our distribution network across all markets. We have reviewed over 60% of our product brands and reduced stocking by an additional 17,000 SKUs. Additionally, our private label penetration increased by 20 basis points. As Andy and I mentioned at the Investor Day, the integration of Europe is mission-critical and accelerating that effort is imperative given it has not progressed at the cadence we promised in the past.

我們在歐洲的 SKU 合理化專案旨在降低複雜性並簡化我們在所有市場的分銷網絡。我們審查了超過 60% 的產品品牌，並額外減少了 17,000 個 SKU 的庫存。此外，我們的自有品牌滲透率增加了20個基點。正如安迪和我在投資者日上提到的那樣，歐洲一體化至關重要，鑑於其進展速度並未達到我們過去承諾的水平，加快這一努力勢在必行。

In order to drive change management, we need the right leaders in place to truly achieve the benefits of the scale of one LKQ Europe represents. Since taking the helm in Europe, Andy, alongside Rick and, I have replaced a fair number of the previous leadership team and have onboarded individuals that are aligned with the operational excellence and lean management initiatives necessary to optimize our European operations. Our focus is on people, process and performance.

為了推動變革管理，我們需要合適的領導者來真正實現 LKQ Europe 所代表的規模效益。自從執掌歐洲業務以來，安迪、里克和我已替換了相當多的前領導團隊，並吸收了符合卓越營運和精益管理計劃的人員，以優化我們的歐洲業務。我們的重點是人員、流程和績效。

Regarding Specialty, our organic revenue declined by 4.9% on a per day basis, which is a sequential improvement compared to Q4 of 2024. At the start of 2025, there was optimism about specialty stabilizing later in the year, but consumer sentiment decreased significantly due to anticipated tariff pricing pressures. This sentiment, along with inflationary pressures, will likely continue throughout the year.

就專業產品而言，我們的有機收入每天下降 4.9%，與 2024 年第四季相比有所改善。2025 年初，人們對今年稍後專業市場穩定持樂觀態度，但由於預期的關稅定價壓力，消費者信心大幅下降。這種情緒以及通膨壓力可能會持續全年。

Now turning to tariffs. While the current headlines of the tariffs are broadly known, the final decisions remain unclear. There are many dynamics of this tariff situation than those in the past. We have established an internal global tariff task force, which includes leaders from procurement, operations, finance, risk management, sales and marketing to help navigate and make decisions.

現在談談關稅。儘管目前關稅的消息已廣為人知，但最終決定仍不明朗。此次關稅情勢較以往有較大變化。我們成立了一個內部全球關稅工作小組，成員包括採購、營運、財務、風險管理、銷售和行銷部門的領導，以協助指導和做出決策。

If everyone remembers the supply chain constraint following COVID, where inflation was driving up product cost and a supply-demand imbalance created a huge increase in ocean freight, the team proved their agility of mitigating the impact and we came out financially stronger.

如果每個人都記得新冠疫情之後的供應鏈限制，通貨膨脹推高了產品成本，供需失衡導致海運費用大幅增加，那麼團隊證明了他們能夠靈活地減輕影響，我們的財務狀況也變得更加強勁。

Specific to our tariff exposure, less than 15% of our US businesses' cost of goods are directly imported from outside the US with the majority of that product coming out of Taiwan. LKQ's advantage over our aftermarket collision parts competitors lies in our supply of recycled products, which we anticipate will see an increase in demand given their competitive pricing relative to new OE parts.

具體到我們的關稅風險，我們美國企業的商品成本中不到 15% 是直接從美國以外進口的，其中大部分產品來自台灣。LKQ 相對於售後碰撞零件競爭對手的優勢在於我們提供再生產品，我們預計，鑑於其相對於新 OE 零件具有競爭力的價格，對這些產品的需求將會增加。

We expect the tariffs will raise part prices and increased used car values. Historically, these increases have benefited the industry as used car values are expected to rise faster than the vehicle repair cost, potentially leading to more cars being repaired and kept on the road longer.

我們預計關稅將提高零件價格並增加二手車價值。從歷史上看，這些成長對汽車產業有利，因為二手車價值預計上漲速度將快於汽車維修成本，這可能導致更多汽車需要維修並在路上行駛更長時間。

Our tariff task force is working on mitigating tariff impacts through potential cost concessions from vendor partnerships and identifying supply chain optimization and SG&A reductions. The nondiscretionary nature of the North American business and the industry allows for need-based pricing power, enabling LKQ to pass on select price increases, thus insulating the wholesale dynamic from the other part suppliers in the market.

我們的關稅工作小組正在努力透過與供應商合作提供潛在成本優惠來減輕關稅影響，並確定供應鏈優化和銷售、一般及行政費用 (SG&A) 削減措施。北美業務和行業的非自由裁量性質使其擁有基於需求的定價權，從而使 LKQ 能夠轉嫁選擇性的價格上漲，從而使批發動態與市場上的其他零件供應商隔離。

Now before I turn the call to Rick to discuss our Q1 results, I am pleased to announce that we will be publishing our 2024 Sustainability Report at the end of May. Sustainability continues to be at the heart of what we do, especially in our North American and Europe salvage operations. This is true today as it was when we started over 26 years ago.

現在，在我打電話給 Rick 討論我們的第一季業績之前，我很高興地宣布，我們將在 5 月底發布我們的 2024 年永續發展報告。永續性仍然是我們工作的核心，尤其是在北美和歐洲的打撈業務中。今天的情況和我們 26 年前剛開始時的情況一樣。

Rick?

瑞克？

Thank you, Justin, and welcome to everyone joining us today. We are pleased with our start to 2025. Cost actions taken in 2024, including exiting underperforming businesses and driving our lean operating model, have positioned us well to offset the top line headwinds across each of our segments.

謝謝賈斯汀，歡迎大家今天加入我們。我們對 2025 年的開始感到滿意。2024 年採取的成本行動，包括退出表現不佳的業務和推動精益營運模式，使我們能夠很好地抵消各部門的營收逆風。

Overall, Q1 results were largely consistent with the trends we saw throughout the last several quarters. Europe continued its solid performance with a 60 basis points year-over-year improvement in segment EBITDA. In North America, we were pleased with their performance given the anticipated top line pressure as we work through the decline in repairable claims.

總體而言，第一季的業績與我們過去幾季看到的趨勢基本一致。歐洲持續維持穩健表現，分部 EBITDA 年成長 60 個基點。在北美，由於可修復索賠的減少，我們預計營業收入將面臨壓力，因此我們對他們的表現感到滿意。

Self Service delivered another quarter of year-over-year improvement in both EBITDA dollars and percentage. Specialty's results remained under pressure with soft demand in the RV and SEMA space, partially driven by softening consumer sentiment in light of the ongoing macroeconomic instability, including uncertainty around the effect of tariffs.

自助服務業務的 EBITDA 金額和百分比在本季均較去年同期增加。由於 RV 和 SEMA 領域需求疲軟，Specialty 的表現仍面臨壓力，部分原因是持續的宏觀經濟不穩定導致消費者情緒低落，包括關稅影響的不確定性。

Now turning to the first quarter consolidated results. Our first quarter performance was in line with our expectations. We reported diluted earnings per share of $0.65, a $0.06 increase compared to Q1 2024. On an adjusted diluted earnings per share basis, we reported $0.79, a decrease of $0.03 per share versus prior year. The decrease in adjusted EPS is largely due to lower segment EBITDA dollars predominantly from our wholesale North America segment.

現在來談談第一季綜合業績。我們第一季的業績符合我們的預期。我們報告每股攤薄收益為 0.65 美元，與 2024 年第一季相比增加 0.06 美元。調整後每股攤薄收益為 0.79 美元，較前一年減少 0.03 美元。調整後每股收益的下降主要是由於部門 EBITDA 下降（主要來自我們的北美批發部門）。

Higher legal and professional fees were also a $0.01 headwind as we reached the cooperation agreement with Ancora and Engine Capital in the first quarter. The impacts from interest and FX rates largely offset each other with interest being a slight positive and FX being a slight negative. On a positive note, lower share count resulting from our disciplined share repurchase program drove $0.03 of incremental adjusted EPS versus prior year.

當我們在第一季與 Ancora 和 Engine Capital 達成合作協議時，更高的法律和專業費用也為我們帶來了 0.01 美元的不利因素。利率和外匯匯率的影響在很大程度上相互抵消，利率略微產生正影響，而外匯略微產生負影響。從積極的一面來看，由於我們嚴格的股票回購計劃，股票數量減少，推動調整後每股收益較上年增加 0.03 美元。

Now for segment results. Going to Slide 8. North America posted a segment EBITDA margin of 15.7%, a 60 basis points decrease relative to last year, primarily due to the organic revenue decline. The decline in organic revenue was driven by a reduction in repairable claims and having one less selling day. partially offset by targeted actions to increase market penetration.

現在來看看細分結果。轉到投影片 8。北美分部 EBITDA 利潤率為 15.7%，較去年同期下降 60 個基點，主要原因是有機收入下降。有機收入的下降是由於可修復索賠的減少和銷售日數的減少。部分抵消了有針對性的行動，以增加市場滲透率。

Gross margin improved by 20 bps as a result of product mix and pricing initiatives. Overhead expenses declined by $16 million relative to prior year, including $24 million of decreased personnel costs due to Uni-Select synergies and productivity initiatives. These were partially offset by inflationary cost pressures related to facilities and vehicle expenses as well as higher legal and professional fees.

由於產品組合和定價舉措，毛利率提高了 20 個基點。與前一年相比，管理費用減少了 1,600 萬美元，其中包括由於 Uni-Select 協同效應和生產力舉措而減少的 2,400 萬美元的人事成本。但這些增長被與設施和車輛費用以及更高的法律和專業費用相關的通膨成本壓力部分抵消。

The leverage effect of the organic revenue decline largely drove the increase in OpEx as a percentage of revenue. We expect headwinds on repairable claims to continue in 2025 but abate somewhat toward the back half of the year. Excluding any potential impacts from tariffs over the balance of the year, we still believe North America's EBITDA margins will be in the low 16s on a full year basis.

有機收入下降的槓桿效應在很大程度上推動了營運支出佔收入百分比的上升。我們預計，2025 年可修復索賠的阻力仍將持續，但到下半年將減弱。排除今年餘下時間關稅帶來的潛在影響，我們仍然相信北美全年的 EBITDA 利潤率將維持在 16% 左右。

Looking at Slide 9. Europe reported a segment EBITDA margin of 9.3%, a 60 basis points improvement over last year. The year-over-year improvement was driven by higher gross margins, the ongoing efforts to simplify the operations and portfolio as well as productivity efforts to offset inflationary pressures on overhead costs.

看投影片 9。歐洲分部 EBITDA 利潤率為 9.3%，較去年同期提高 60 個基點。同比成長的動力來自於更高的毛利率、持續簡化營運和產品組合的努力以及為抵消通膨對間接成本的壓力而做出的生產力努力。

Overhead costs were also negatively affected in the prior year due to union-related negotiations. Given the actions we've taken to drive productivity and simplify the portfolio and absent any macroeconomic impact from the tariff situation, we continue to project EBITDA margin will be double digits on a full year basis in 2025.

由於工會相關談判，上一年的管理費用也受到負面影響。鑑於我們為提高生產力和簡化產品組合所採取的措施，且關稅情況不會對宏觀經濟產生任何影響，我們仍然預測 2025 年全年 EBITDA 利潤率將達到兩位數。

Moving to Slide 10. Specialty EBITDA margin of 5.4% is 100 basis points below the prior year, primarily driven by a decline in organic revenue and resulting leverage effect on overhead costs. Demand softness in the light vehicle and RV product lines remain challenges for the business.

移至投影片 10。專業 EBITDA 利潤率為 5.4%，比前一年低 100 個基點，主要原因是有機收入下降以及由此產生的對間接成本的槓桿效應。輕型車和房車產品線的需求疲軟仍然是該業務面臨的挑戰。

Economic instability stemming from tariffs has resulted in declines in consumer sentiment, which negatively impacts discretionary spending in some of the markets in which Specialty operates. Given the ongoing uncertainty and demand softness, we expect segment EBITDA margin to be around the low end of the 7% to 8% range we provided when we issued full year 2025 guidance.

關稅導致的經濟不穩定已導致消費者信心下降，這對 Specialty 經營的部分市場的可自由支配支出產生了負面影響。鑑於持續的不確定性和需求疲軟，我們預計分部 EBITDA 利潤率將處於我們發布 2025 年全年指引時提供的 7% 至 8% 區間的低端。

Self Service generated $20 million in segment EBITDA in Q1, an increase of $4 million and a 290 bps improvement as a percentage of revenue. Disciplined vehicle procurement, combined with overhead cost controls, helped to drive the fourth consecutive quarterly improvement in year-over-year profitability.

自助服務第一季的部門 EBITDA 為 2000 萬美元，增加了 400 萬美元，佔收入的百分比提高了 290 個基點。嚴格的車輛採購與間接成本控制相結合，幫助推動了盈利能力連續第四個季度同比增長。

Shifting to cash flows and the balance sheet. Free cash flow during the quarter was a net outflow of $57 million. This performance was in line with our expectations due to the timing of our payables, partially related to the investment in inventory in North America in anticipation of possible Q1 port strikes and higher interest payments for the 2031 euro senior notes due to timing.

轉向現金流和資產負債表。本季自由現金流淨流出5700萬美元。由於應付款項的時間安排，這一業績符合我們的預期，部分原因是由於預期第一季可能發生的港口罷工而對北美的庫存進行投資，以及由於時間安排而對 2031 年歐元優先票據支付更高的利息。

We anticipate generating positive free cash flow in the next three quarters will bring us in line with our full year guidance, absent any significant tariff-driven market turbulence.

我們預計，如果不存在任何重大的關稅驅動的市場動盪，未來三個季度產生的正自由現金流將使我們達到全年預期。

Moving to Slide 11. We remained active in the market, allocating $40 million in share repurchases for 1 million shares. We also paid our quarterly dividend totaling $78 million. As a continuation of our disciplined capital allocation strategy, we did not make any acquisitions in the first quarter. We borrowed approximately $170 million in the quarter. As of March 31, we had total debt of $4.4 billion with a total leverage ratio of 2.5 times EBITDA.

移至投影片 11。我們在市場上保持活躍，撥出 4,000 萬美元回購 100 萬股股票。我們還支付了總計 7800 萬美元的季度股息。作為我們嚴謹的資本配置策略的延續，我們在第一季沒有進行任何收購。本季我們借款約 1.7 億美元。截至 3 月 31 日，我們的總負債為 44 億美元，總槓桿率為 EBITDA 的 2.5 倍。

Although the leverage ratio is slightly higher than the prior quarter, we anticipated the increase as we built trade working capital in Q1, largely associated to the seasonal nature of our business and the increase in inventory purchases in Q4 and Q1 to get ahead of potential disruptions at the ports and from tariffs.

儘管槓桿率略高於上一季度，但我們預計槓桿率會上升，因為我們在第一季度建立了貿易營運資本，這主要與我們業務的季節性以及第四季度和第一季度庫存採購的增加有關，以應對港口和關稅可能造成的中斷。

We remain committed to maintaining a manageable debt level and our investment-grade rating. As of March 31, 2025, our current maturities were $558 million, including the $500 million term loan coming due in Q1 2026. As normal practice, we actively manage our capital structure, and we are working through our options with our lending group. We have no significant concerns regarding our ability to extend the maturity date.

我們仍然致力於維持可控的債務水準和投資等級。截至 2025 年 3 月 31 日，我們目前的到期債務為 5.58 億美元，其中包括 2026 年第一季到期的 5 億美元定期貸款。按照正常做法，我們積極管理我們的資本結構，並且我們正在與我們的貸款團隊一起研究我們的選擇。我們對延長到期日的能力沒有重大擔憂。

Our effective interest rate was 5.2% at the end of Q1, slightly down from Q4. We have $1.8 billion in variable rate debt, of which $700 million has been fixed with interest rate swaps, which effectively provide fixed rate on approximately 75% of our debt.

我們第一季末的實際利率為 5.2%，略低於第四季。我們擁有 18 億美元的浮動利率債務，其中 7 億美元已透過利率互換固定，這實際上為我們約 75% 的債務提供了固定利率。

I will conclude with our thoughts on 2025 guidance, as shown on slide 12. Although there are always uncertainties, we believe we can deliver on our guidance provided back in February, excluding any material impacts from tariffs. The discussions around tariffs may affect our markets directly and indirectly. Companies have taken a variety of methods and addressing the remainder of the year. We will wait to fully analyze the pending changes and update you during our Q2 call when we believe the tariff situation becomes clearer.

最後，我將總結我們對 2025 年指導的想法，如投影片 12 所示。儘管總是存在不確定性，但我們相信，我們可以實現 2 月給予的指導，不包括關稅的任何重大影響。有關關稅的討論可能會直接或間接地影響我們的市場。企業已採取各種方法來應對今年剩餘的時間。我們將等待全面分析即將發生的變化，並在我們認為關稅情況變得更加明朗時在第二季度電話會議上向您通報最新情況。

That being said, our guidance is based on current market conditions and recent trends, excluding the potential impacts of tariffs and assumed scrap and precious metal prices hold near first quarter prices. On foreign exchange, our guidance is near March average rates, including the euro at $1.08, the pound sterling at $1.28 and the Canadian dollar at $0.70.

話雖如此，我們的指導是基於當前的市場狀況和近期趨勢，不包括關稅的潛在影響，並假設廢料和貴金屬價格保持在第一季價格附近。在外匯方面，我們的指導匯率接近 3 月的平均匯率，包括歐元兌美元 1.08 美元、英鎊兌美元 1.28 美元和加元兌美元 0.70 美元。

The global tax rate is at 27.0%, which is consistent with our original guidance and prior year. In our original guidance, we expected organic parts and services revenue growth between 0% and 2% given our Q1 results. We are likely headed toward the lower end of that range. Excluding potential tariff impacts, our adjusted diluted EPS remains in the range of $3.40 to $3.70, and our free cash flow remains in the range of $750 million to $900 million.

全球稅率為 27.0%，與我們最初的指導和前一年一致。在我們最初的指引中，根據第一季的業績，我們預期有機零件和服務收入成長率將在 0% 至 2% 之間。我們可能會走向該範圍的低端。不包括潛在關稅的影響，我們的調整後稀釋每股收益保持在 3.40 美元至 3.70 美元之間，我們的自由現金流保持在 7.5 億美元至 9 億美元之間。

We will balance our trade working capital and capital expenditure needs to fund our strategic growth objectives for 2025 and beyond.

我們將平衡貿易營運資金和資本支出需求，為 2025 年及以後的策略成長目標提供資金。

Thanks for your time. I will now turn the call back to Justin for his closing comments.

感謝您的時間。現在我會把電話轉回給賈斯汀，請他作最後發言。

Thanks, Rick, for the financial commentary. Before we open up for questions, I would like to remind everyone, we remain committed to our long-term key strategic priorities, and our team is agile to navigate short-term challenges.

謝謝 Rick 的財務評論。在我們開始提問之前，我想提醒大家，我們仍然致力於我們的長期關鍵策略重點，我們的團隊能夠靈活應對短期挑戰。

First, we need to grow above the market. Next, simplify. Simplify our operations by ensuring lean thinking is in everything we do. And simplify our portfolio across our markets, businesses and product lines. Improve free cash flow by growing profitably and strengthening our balance sheet, invest in growth organically and via small, highly synergistic tuck-ins with the continuation on the moratorium of any large acquisitions. Focus on our capital allocation strategy around returning capital to our shareholders through a combination of share repurchases and dividends.

首先，我們需要超越市場的成長。接下來，簡化。確保精益思想貫穿我們所做的每一件事，從而簡化我們的營運。並簡化我們的市場、業務和產品線組合。透過獲利成長和加強資產負債表來改善自由現金流，透過有機成長和小規模、高度協同的收購進行投資，並繼續暫停任何大型收購。專注於我們的資本配置策略，透過股票回購和股利結合的方式向股東返還資本。

In Q1, we met most of our strategic goals with our 46,000 employees adeptly managing volatile markets. Whether it's tariffs or some other challenge, no matter what our company may face, I'm truly proud of how consistent our team emerges stronger and better prepared for the future.

在第一季度，我們 46,000 名員工熟練地應對了動盪的市場，實現了大部分策略目標。無論是關稅還是其他挑戰，無論我們公司面臨什麼，我都為我們的團隊如何始終如一地變得更加強大、為未來做好更充分的準備而感到自豪。

Operator, I'll now turn the call over for questions.

接線員，我現在將電話轉交給提問者。

(Operator Instructions)

（操作員指示）

Scott Stember, Roth MKM.

史坦伯（Scott Stember），羅斯 MKM。

Good morning and thanks for taking my questions. Regarding North America, it sounds as if the comparisons get a lot easier in the second quarter just on a repairable claim basis. But can you talk about what trends in a real-time basis you're seeing from the insurance companies regarding used car pricing? Has there been any change in their behavior regarding whether or not they will junk a car or repair it?

早上好，感謝您回答我的問題。就北美而言，聽起來好像第二季僅以可修復索賠為基礎的比較就變得容易得多。但是您能否談談您從保險公司看到的二手車定價的即時趨勢？他們對於是否報廢或修理汽車的行為有什麼改變嗎？

Yeah. Good question, Scott. Throughout the 2024, there's been a lot of shift in market share with insurance carriers. We talked a lot about the high rising insurance cost premiums, people raising their deductibles. I think with a lot of the shift of competition, we will not expect -- I don't expect to see rising insurance prices anymore for the time or at least for the next year or so. I think they're going to be more competitive.

是的。問得好，史考特。在整個2024年，保險公司的市佔率發生了很大的變化。我們討論了很多有關保險費不斷上漲以及人們提高免賠額的問題。我認為，隨著競爭的不斷轉變，我們不會期望——我預計在一段時間內或至少在未來一年左右不會再看到保險價格上漲。我認為他們的競爭力將會更強。

From the used car standpoint, we had an almost two-year, I think, decline of used car values. We saw in April, that number actually ticked up. Obviously, it's only one month. But it's nice to see that used cars have -- used car pricing has plateaued and started to improve. Those dynamics of flattening insurance premiums, rising used car prices, and we're going to talk about tariffs, probably somebody is going to ask that question, but tariffs typically will drive a car pricing, and that will be good for the industry.

從二手車的角度來看，我認為二手車價值已經下降了近兩年。我們看到，四月這個數字其實有所上升。顯然，只有一個月。但很高興看到二手車的價格已經趨於平穩並開始回升。保險費趨於平穩、二手車價格上漲，我們將討論關稅問題，可能有人會問這個問題，但關稅通常會推動汽車定價，這對該行業有利。

We actually had also one state that approved an increase in the repairable total loss value. So it used to be 70%, and I think it's a small state called Rhode Island, but it was 70%. They raised it to 85% to help improve keeping cars on the road and getting repaired. And we're seeing some of that noise start to happen in a good way in other states, where they will increase the threshold of when a car tolls out.

實際上，也有一個州批准提高可修復全損價值。所以以前是 70%，我認為是一個叫羅德島的小州，但也是 70%。他們將其提高到 85%，以幫助改善汽車上路和維修的情況。我們看到，其他州已經開始以好的方式採取措施，提高汽車通行費的門檻。

So overall, we only got one good month of used car pricing, but we're starting to see some trends that hopefully will improve the repairable claims.

因此總體而言，我們只有一個月的二手車定價表現良好，但我們開始看到一些趨勢，希望這些趨勢能改善可修復的索賠。

Got you. And then the last question, of course, on tariffs, it seems like your biggest exposure in North America is Taiwan. It seems like there is, I think, a blanket reciprocal tariff on most countries for 10%. I think Taiwan is in there as well. How would that have an impact on your business? Do you think you could put price increases through to cover that? Or is it just too soon to say right now?

明白了。當然，最後一個問題是關於關稅的，看來您在北美最大的風險敞口是台灣。我認為，似乎大多數國家都徵收 10% 的統一互惠關稅。我認為台灣也在其中。這會對您的業務產生什麼影響？您認為可以透過提高價格來彌補這一缺陷嗎？還是現在說這些還太早？

Yeah. I'll probably answer that question in a few more -- and my guess is tariffs are on a lot of people's mind on the call. So Rick and I are going to spend a few minutes talking about that. First, I'll tell you, historically, when the industry has seen tariffs, they've been good for the industry, and they've been good for LKQ. One caveat of LKQ, we have a global footprint.

是的。我可能還會再回答這個問題——我猜很多人在電話會議上都在考慮關稅問題。因此，里克和我將花幾分鐘討論這個問題。首先，我要告訴你，從歷史上看，當產業看到關稅時，這對產業有利，對 LKQ 也有利。LKQ 的一個警告是，我們的足跡遍佈全球。

Nearly 50% of our business in Europe is currently not subject to tariffs. But there's a lot of volatility right now with the tariffs. The news seems like it's changing every day. As I mentioned on my -- on the call, we put a task force together to really dig into this. We'll talk about Taiwan.

目前我們在歐洲近50%的業務不受關稅影響。但目前關稅存在很大的波動。新聞似乎每天都在改變。正如我在電話中提到的那樣，我們成立了一個工作小組來深入研究這個問題。我們將討論台灣。

But we really had one of the task force to react pretty quick just because it seems to be changing every day. And that -- what we've identified, obviously, is based on what we know, there's more tariffs than just Taiwan. There's other countries that we import product from. And if you look at our product costs, we really broke those into two different buckets. The first bucket, I would say, is what's direct, meaning we import from China, we import from Mexico, we import from Taiwan.

但我們確實有一個特別工作小組能夠迅速做出反應，因為情況似乎每天都在變化。顯然，根據我們所了解的情況，我們已經確定，關稅不僅僅針對台灣。我們也從其他國家進口產品。如果你看一下我們的產品成本，我們實際上將其分為兩個不同的部分。我想說，第一類是直接進口，也就是我們從中國進口、從墨西哥進口、從台灣進口。

Understanding what the tariff impact and where we stand today with what we know on tariffs, that's a little bit easier to identify and quantify. When we talk about the indirect piece, that gets a little bit more complex. So you think about one of our businesses in the US -- buying a product from a US distributor. That product could have been 100% imported from China or Taiwan. That product could have components, take a Jeep lift kit that our Specialty division sales. The supplier that we buy from could get the fasteners and nuts and bolts from China, they could get to brackets from Mexico.

了解關稅的影響以及我們目前對關稅的了解，這將更容易識別和量化。當我們談論間接部分時，情況會變得更加複雜。所以你想想我們在美國的一個業務——從美國經銷商購買產品。該產品可能 100% 從中國或台灣進口。該產品可能包含組件，例如我們專業部門銷售的吉普車升降套件。我們購買的供應商可以從中國獲得緊固件和螺母和螺栓，他們可以從墨西哥獲得支架。

So understanding the impact of our indirect is a little bit more complex. We're working with all of our suppliers on that. But we do have some quantifications of those buckets.

因此，要理解間接影響要稍微複雜一點。我們正在與所有供應商就此展開合作。但我們確實對這些桶子進行了一些量化。

Rick, if you want to talk about that.

里克，如果你想談論這個。

Sure. Yeah. Let me try to address a couple of things that I'm sure on people's minds as well and quantify these things. So look, certain new tariffs took effect within the quarter, the financial impact was immaterial for us within the quarter. Also, it's important to note that we've been living with the previous Trump tariffs and we've been able to pass it along long. So Scott, to your point, are we able to pass them along? Historically, we've been very, very successful in being able to pass those along.

當然。是的。讓我嘗試解決一些我確信人們也關心的問題，並量化這些問題。所以看，某些新關稅在本季生效，對我們來說在本季的財務影響並不大。此外，值得注意的是，我們一直在承受川普之前的關稅，並且我們已經能夠將其傳遞下去。那麼斯科特，就你的觀點而言，我們能夠將它們傳達下去嗎？從歷史上看，我們在傳遞這些理念方面非常非常成功。

If I quantify the couple of different things that Justin talked about, the direct imports, those are the ones that are really exposed to the new tariffs in a direct way. The way we are looking at that, and to help quantify for the folks on the call, is overall cost of goods sold if I look at 2024 is cost of goods sold. So it's kind of a baseline, look at the 10-K, be able to quantify that. Less than 10% of our global cost of goods sold are in the bucket that Justin talked about being direct imports. So less than 10% of that is in there.

如果我量化賈斯汀談到的幾種不同的東西，那麼直接進口就是真正直接受到新關稅影響的東西。我們看待這個問題的方式，以及為了幫助電話會議中的人們量化的方式，是如果我看 2024 年，總銷售成本就是銷售成本。所以這是一種基線，看看 10-K，能夠量化它。我們全球銷售商品成本中不到 10% 屬於賈斯汀所說的直接進口。所以其中只有不到 10%。

The quantification before any mitigations is less than $200 million of cost. That would be the quantification of that 10% -- a little less than 10%. On the indirect population, to quantify that and give you guys a little bit of visibility on the indirects, that's the ones Justin was talking about that are essentially purchased from a US company but they're importing from somewhere else. That's roughly 20% of our global cost of goods sold.

採取任何緩解措施之前的量化成本不到 2 億美元。這就是那 10% 的量化——略低於 10%。關於間接人口，為了量化這一點，並讓你們對間接人口有一點了解，這就是賈斯汀所說的基本上是從一家美國公司購買的，但他們是從其他地方進口的。這大約占我們全球銷售成本的20%。

So the direct portion is a little less than the 10%. The indirect portion is a little less than 20% of our global cost of goods sold. That 20%, we can't really quantify at this point in time because we're not sure what is going to be passed along, and we're not sure what components of those items are imported by our suppliers.

因此直接部分略低於 10%。間接部分占我們全球銷售成本的略低於 20%。目前我們無法真正量化那 20%，因為我們不確定哪些產品會被傳遞出去，也不確定我們的供應商進口了這些產品的哪些零件。

And so the key -- couple of key points is, look, these are as of tariffs as of today. Those could change in the coming hours or days as we all have seen. And these will evolve rapidly over the changing landscape. And we're going to work diligently with our vendor partners to try to figure out how we can mitigate some of these things. I don't know if you want to cover anything else.

因此，關鍵的幾個關鍵點是，看，這些都是截至今天的關稅。正如我們所見，這些情況可能會在未來幾小時或幾天內發生變化。而這些都會隨著情勢的變化而迅速演變。我們將與我們的供應商合作夥伴密切合作，試圖找出如何緩解其中的一些問題。我不知道您是否還想討論其他內容。

Yeah. And Scott, I know you talked about pricing. Before we get to that lever, we really, as Rick talked about, we work with our supplier partners, making sure that we're in this together. Can we share the burden of some of these tariffs? Are there opportunities where we can resource that product somewhere else to a different country, different supplier, reduce the impact on the tariff? Are there any inefficiencies within our supply chain or logistics that we can remedy and help offset some of the costs?

是的。史考特，我知道你談到了定價。在我們達到這一目標之前，正如 Rick 所說的那樣，我們確實與我們的供應商合作夥伴合作，確保我們共同努力。我們能分擔部分關稅的負擔嗎？我們是否有機會將該產品從其他國家、不同供應商採購，以減少對關稅的影響？我們的供應鏈或物流中是否有效率低下的問題，我們可以補救並幫助抵銷部分成本嗎？

And then ultimately, if you think about the products that we import from Taiwan, and your specific question on Taiwan, every aftermarket supplier that we compete with today -- I'm sorry, every aftermarket competitor and distributor that we compete with today is importing those same exact product types from Taiwan. So we're all in this at the same level. So anything that's going to impact us is going to impact our pure aftermarket competitor. And so if we can't reduce the tariff impact by some of those other mitigating levers, then we're going to obviously pass that through to the customer. We won't be left holding the bag.

最後，如果您考慮我們從台灣進口的產品，以及您關於台灣的具體問題，我們今天與之競爭的每個售後市場供應商——對不起，我們今天與之競爭的每個售後市場競爭對手和分銷商都在從台灣進口完全相同類型的產品。所以我們都處於同一水平。因此，任何影響我們的事情都會影響我們純粹的售後市場競爭對手。因此，如果我們不能透過其他一些緩解手段來降低關稅的影響，那麼我們顯然會將其轉嫁給客戶。我們不會承擔責任。

Got it, that's great. Thank you so much.

明白了，太好了。太感謝了。

Craig Kennison, Baird.

克雷格·肯尼森，貝爾德。

Hey, good morning. Thanks for the additional color on tariffs. That's helpful. Maybe to pivot to Europe, Justin, have you seen any impact on revenue or on your fulfillment rates due to your SKU reduction program?

嘿，早安。感謝您對關稅的補充說明。這很有幫助。也許是轉向歐洲，賈斯汀，你是否看到你的 SKU 減少計劃對收入或履行率有任何影響？

No, we have not. We've been able to offset the sale of reducing that SKU either to one of our private labels or to another brand that we keep. We talked about some higher numbers, that 17,000 SKUs that we essentially delisted. A lot of those things that were -- have those big -- a lot of the products that we're delisting right now have very, very low volume at the end of the day. where we have other applications, we have other part members that have that application. We've not seen an impact of that.

沒有。我們已經能夠透過減少 SKU 的銷售額來抵消我們保留的自有品牌之一或另一個品牌的銷售。我們討論了一些更高的數字，即我們基本上刪除的 17,000 個 SKU。很多曾經很大的東西——我們現在下架的很多產品到最後銷量都非常非常低。當我們有其他應用程式時，我們的其他成員也擁有該應用程式。我們尚未看到其影響。

Most of the headwinds that we see is either competition giving up price in a key markets. We do see some countries that we operate in are just in an economic situation where there's some delays in repairs and maintenance or some people are foregoing maintenance or extending maintenance on our vehicles, and we're seeing that impacted.

我們看到的大多數阻力要么是競爭對手在關鍵市場放棄價格。我們確實看到，我們經營的一些國家正處於經濟困境中，維修和保養出現了一些延誤，或者有些人放棄或延長了我們車輛的保養時間，我們看到了這些影響。

Overall, we were pretty happy with our -- and once again, we look at it country by country to see how we're doing and how the market is doing. We're pretty confident we're not losing share. We're still growing. We're still gaining share. And even with that revenue reduction that we saw in Europe, I was pretty proud of the team to be able to deliver an improvement in EBITDA. When the volume drops, normally you lose that leverage. But the team actually has stepped up on some of these initiatives. So -- but overall, your main question, I don't -- we don't see any risk yet, and we would slow down if we did on the SKU rationalization impacting revenue.

總體而言，我們對我們的情況感到非常滿意——我們再次逐一審視每個國家，看看我們的表現如何以及市場表現如何。我們非常有信心我們不會失去市場份額。我們仍在成長。我們的份額仍在增加。即使我們在歐洲的收入有所減少，我仍然為團隊能夠提高 EBITDA 而感到自豪。當交易量下降時，你通常會失去這種影響力。但該團隊實際上已經加強了其中一些措施。所以 - 但總的來說，你的主要問題是，我並沒有 - 我們還沒有看到任何風險，如果我們看到 SKU 合理化對收入產生影響，我們就會放慢速度。

Thanks. And then as a related question, I think in the press release, you mentioned a 20 basis points improvement in your private label program. Could you give us an idea of what percentage of your revenue is from private label and where you think that could go over some long period of time?

謝謝。然後作為一個相關問題，我認為在新聞稿中，您提到了自有品牌計劃提高了 20 個基點。您能否告訴我們，您的收入中有多少比例來自自有品牌，以及您認為從長遠來看，這一比例會是多少？

Yeah. We're in that 21% to 22% range today. We think it can go to up to --

是的。目前我們的比率處於 21% 至 22% 之間。我們認為它可以達到--

Yeah. What we talked about in the last call is that, Craig, it would go -- by 2030, we're looking at around 30%. So as we move along -- look, there will be some small steps. We're happy with the 20 basis points improvement that we had in the quarter. But we think that, that number will likely go close to 30% across all of Europe by the 2030 timeframe.

是的。克雷格，我們在上次通話中談到的是，到 2030 年，我們預計這一比例將達到 30% 左右。因此，隨著我們不斷前進——你看，將會有一些小的進步。我們對本季 20 個基點的改善感到滿意。但我們認為，到 2030 年，整個歐洲的數字可能會接近 30%。

Thank you.

謝謝。

Jash Patwa, JP Morgan.

摩根大通的 Jash Patwa。

Hi, good morning, and thanks for taking my questions. Building on the earlier discussion, I'd just like to focus on the North American business. You highlighted targeted actions to enhance market penetration, which have positively impacted revenue along with the pricing initiatives that have improved gross margins.

大家好，早安，感謝您回答我的問題。基於先前的討論，我只想專注在北美業務。您強調了提高市場滲透率的有針對性的行動，這些行動對收入產生了積極影響，同時定價舉措也提高了毛利率。

Could you provide some additional insights into these strategies? Specifically, is there a link between your pricing initiatives and the potentially easing competitive landscape as some smaller competitors who were initially pricing aggressively might have now pulled back amidst the tariff uncertainties?

您能否對這些策略提供一些額外的見解？具體來說，你們的定價舉措和可能緩和的競爭格局之間是否存在聯繫，因為一些最初積極定價的小型競爭對手現在可能在關稅不確定性的影響下退縮了？

Thanks. And I have a follow-up.

謝謝。我還有一個後續問題。

Yeah. You may be confusing some of the comments on Europe. Some of the pricing pressures that we've seen have been in Europe and a few countries that have put some pressure on the pricing improvements or some gross margin. I want to make sure. Are do you specifically want to talk about North America or Europe?

是的。您可能對有關歐洲的一些評論感到困惑。我們看到的一些定價壓力來自歐洲和一些國家，這些國家對定價改善或毛利率施加了一些壓力。我想確認一下。您具體想談談北美還是歐洲？

He's talking about the changes that I talked about improvements.

他談論的是變化，而我談論的是改進。

I was just referring to discussion in the earnings presentation.

我只是提到了收益報告中的討論。

Yeah. So we have seen improvements across several different parts of our business to go after some market share gains. We're pleased with the performance of things like our services business going after some new areas of opportunity. There's not a pricing action that we took, Jash. So it's not -- we're not going after and chasing price. Instead what we're doing is making sure that we have the best service levels across the board, and we're seeing nice gains across that.

是的。因此，我們看到我們業務的多個不同部分都取得了進步，從而獲得了一些市場份額。我們對服務業務等一些新領域發展的表現感到滿意。我們沒有採取定價行動，賈什。所以，我們不會追求價格。相反，我們所做的是確保我們擁有全面的最佳服務水平，並且我們看到了良好的收益。

So Justin talked about the gap that we have between repairable claims and what we had for revenue. That widened a little bigger than what we've had historically, talking about how we're going after having really good fill rates, nice inventory levels and being able to provide a service level to our customers in order to gain back some of that share.

賈斯汀談到了可修復索賠和收入之間的差距。這個範圍比我們歷史上的任何時候都要大一些，談論我們如何在實現真正良好的填充率、良好的庫存水平以及能夠為客戶提供服務水平之後重新獲得部分份額。

Understood. That's very helpful. And then just following up on the earlier tariff discussion. Thanks again for all the color there. But I just wanted to clarify if aftermarket parts imports are subject to the 10% universal reciprocal tariff. My understanding was that auto parts are exempt from the reciprocal tariffs, and while there could be some moving pieces in there, but it would be just helpful to clarify that.

明白了。這非常有幫助。然後繼續之前的關稅討論。再次感謝那裡的所有色彩。但我只是想澄清一下售後零件進口是否需要繳納 10% 的普遍互惠關稅。我的理解是，汽車零件不受互惠關稅的約束，雖然其中可能存在一些變動，但澄清這一點是有幫助的。

And then relatedly, you also mentioned some mitigating strategies in relation to tariffs. Is there an opportunity to introduce private label aftermarket collision repair parts in the US as a way to navigate this industry disruption? Thank you.

與此相關的是，您也提到了一些與關稅有關的緩解策略。是否有機會在美國推出自有品牌售後碰撞修復零件，以應對這一行業混亂？謝謝。

Yes. In regard to the -- I'll start with the private label piece first. Majority of our sales that we have on the aftermarket side are private labeled under Platinum Plus. The uniqueness of collision parts, there's not a lot of brand recognition in the aftermarket collision space world. And so to create consistency, we've been branding a lot of our products as private label under Keystone Platinum Plus for a few decades. So the majority of the collision parts, hoods, benders, bumper covers, headlights are already branded.

是的。關於－我將首先從自有品牌部分開始。我們在售後市場的銷售大部分都是 Platinum Plus 旗下的私人品牌。碰撞部件的獨特性，在售後碰撞空間領域中沒有太多的品牌知名度。因此，為了保持一致性，幾十年來，我們一直將許多產品打上 Keystone Platinum Plus 的自有品牌。因此，大多數碰撞部件、引擎蓋、彎梁、保險桿蓋、前燈都已經貼上品牌標誌。

Regarding the tariffs, it's pretty complex. If you guys have researched it, whether it's 10%, 25% or even 32%, some of our product lines fall into different buckets of those, specifically coming from Taiwan. Obviously, if you get into China, some things or 25%, some things are 145%. But on average, I think the Taiwan is roughly 25%.

關於關稅，相當複雜。如果你們研究過的話，無論是 10%、25% 還是 32%，我們的一些產品線都屬於不同的類別，特別是來自台灣的產品線。顯然，如果你進入中國，有些東西的稅率是 25%，有些東西的稅率是 145%。但平均而言，我認為台灣大約是25%。

Yes. So Jash, let me -- without going into so much detail because this is really a complex issue, there's a Section 232 that deals with both steel and aluminum and automotive. The way that the reciprocals work is if it's in those tariffs which are 25%, they're excluded from the additional 10%. So what you're seeing is the exclusion of automotive. It's excluded only because it's already got a 25% tariff on that item.

是的。所以 Jash，讓我——不用講太多細節，因為這確實是一個複雜的問題，第 232 條涉及鋼鐵、鋁和汽車。互惠原則的運作方式是，如果關稅稅率為 25%，則它們將被排除在額外的 10% 之外。所以你看到的是汽車被排除在外。它之所以被排除在外，只是因為該產品已經徵收了 25% 的關稅。

So that's kind of the way to think through this. So what our team has done is they've gone through every single SKU on a direct basis, looking at whether or not that's included in the detail and is it part of the steel, aluminum or automotive. And if it's not, then there's a 10% reciprocal tariff.

這就是思考這個問題的方法。因此，我們的團隊所做的就是直接檢查每一個 SKU，看看它是否包含在細節中，以及它是否是鋼鐵、鋁或汽車的一部分。如果不是，則徵收 10% 的互惠關稅。

Great. Thanks so much and good luck.

偉大的。非常感謝，祝你好運。

Gary Prestopino, Barrington Research.

巴林頓研究公司的加里‧普雷斯托皮諾 (Gary Prestopino)

Hi, good morning. Could you just remind me what your targets are on your SKU rationalization in Europe?

嗨，早安。您能否提醒我您在歐洲的 SKU 合理化目標是什麼？

Yeah. So when we kicked this project off, we did say it's going to take over three years because we want to make sure that we're not going too fast and impacting revenue. We feel as the improvement in private label, so adding more private label SKUs on top of the reduction of our existing SKUs, this -- what's the exact number that we quote, do you know?

是的。因此，當我們啟動這個計畫時，我們確實說過這將需要三年以上的時間，因為我們想確保我們不會進展得太快而影響收入。我們感覺到自有品牌的改進，因此在減少現有 SKU 的基礎上增加更多自有品牌 SKU，這個——我們引用的確切數字是多少，你知道嗎？

Let me -- Gary, let me get back to you on those numbers. I've got to pull them up on the specific items that we talked about. We talked about three different items that we are going to go after. We're talking about SKU rationalization. We started around 750 million items that we had, and we brought that down to around 700 million at this point.

讓我——加里，讓我回覆你這些數字。我必須讓他們了解我們討論過的具體事項。我們討論了我們將要解決的三個不同問題。我們正在討論 SKU 合理化。我們一開始擁有約 7.5 億件物品，現在我們將其減少到約 7 億件。

Overall, SKU reduction we believe, is going to get us down to about 600 million by end of 2027. So we started with 750 million, we're going to get down to about 600 million. That's inclusive of private labeling. So we're going to obviously go below that 600 million. And we're going to increase based on the private labeling.

總體而言，我們相信，到 2027 年底，SKU 數量將減少至約 6 億。因此，我們從 7.5 億開始，然後下降到約 6 億。其中包括私人標籤。所以我們顯然會低於 6 億。我們將根據私人標籤增加產量。

And then the other component we have is, obviously, we got to review these items. So the goal is to get to 100% of that by the end of 2026. By the end of 2025, we'll be at 80%. So we're north of 60% at this point. We've got another 20% to go for the rest of the year.

然後，我們要做的另一個部分顯然是審查這些項目。因此我們的目標是到 2026 年底實現 100% 的目標。到 2025 年底，這一比例將達到 80%。所以目前我們已經超過 60%。今年剩餘時間我們還要完成 20% 的任務。

And then the third item that we had was overall private labeling, and that's the one that Scott asked, I think, a little bit earlier, or maybe Craig did, trying to get up to what was that number. And so what we said was about 30% by 2030.

然後，我們的第三個項目是整體私人標籤，我想，這是斯科特早些時候問過的問題，或者是克雷格問過的，他試圖弄清楚這個數字是多少。所以我們說到 2030 年這個比例大約是 30%。

Okay. Thank you.

好的。謝謝。

Bret Jordan, Jefferies LLC.

布雷特喬丹（Bret Jordan），Jefferies LLC。

Hey good morning, guys. When you do the tariff math, and looking at the imports from Taiwan, how does the delta to the OE product shake out here? Is the OE primarily USMCA-compliant or domestic? I guess netting out the tariffs, does your value gap to OE remain equal? Or are you relatively more or less expensive than you were before?

嘿，大家早安。當您計算關稅並查看來自台灣的進口量時，與原始產品的差異如何？OE 主要符合 USMCA 規定還是國內規定？我猜扣除關稅後，您與 OE 的價值差距是否保持不變？或者說，與以前相比，您的價格相對更高還是更低？

Yeah. Great question. I mean the devil will be in the details of what the final decision is going to come out to. As you know, you followed LKQ for a while, our pricing is always typically higher than the pure aftermarket competitor just because of our quality, of our service and fill rate and then we hover below the OEM. So we always kind of play in that space somewhere in the middle between OEM and the other aftermarket pure players.

是的。好問題。我的意思是，魔鬼藏在最終決定的細節中。如您所知，您關注 LKQ 有一段時間了，我們的定價通常總是高於純售後市場競爭對手，這僅僅是因為我們的品質、我們的服務和供應率，然後我們的定價徘徊在 OEM 以下。因此，我們始終處於 OEM 和其他售後市場純參與者之間的某個中間位置。

If there's parity, meaning if all the tariffs go through and there's really no exemption, we'll be on equal playing field. There's enough margin gap there where we can improve price and still be competitive and offer the insurance companies and the consumer savings to the OEM. But it will really depend on what happens not only to the tariffs, but then how do the OEMs react. I mean, we've actually seen a flat price change in the OEs on April and some of the prices that we've seen come through for planning in May.

如果存在平等，即如果所有關稅都通過且沒有豁免，我們將處於平等的競爭環境中。那裡有足夠的利潤差距，我們可以提高價格並保持競爭力，並為保險公司和消費者提供 OEM 節省的費用。但這實際上不僅取決於關稅的變化，還取決於原始設備製造商的反應。我的意思是，我們實際上看到 4 月份 OE 的價格發生了持平變化，而且我們看到的一些價格是在 5 月份計劃的。

So we haven't seen them move their needle yet, but they're going to be experiencing some of those tariffs that we are, then I expect them to raise there prices as well. But it will really depend on what the final decision comes to.

所以我們還沒有看到他們採取任何行動，但他們將經歷我們所經歷的一些關稅，然後我預計他們也會提高價格。但這確實取決於最終的決定。

Okay. Great. And then on the European price competition, is that primarily GSF or are there others over there that are being aggressive in other markets outside the UK?

好的。偉大的。那麼關於歐洲的價格競爭，主要是 GSF 嗎，還是有其他公司在英國以外的其他市場積極進取？

I mean we always have competition on pricing. The most aggressive is in the UK, I would say. And we're starting to see some of that slow down. Some of their -- they've expanded quite a bit, but we've seen that expansion slow down. But the main area has been in the UK.

我的意思是我們在定價上總是有競爭。我想說，最具侵略性的是英國。我們開始看到其中一些趨勢正在放緩。他們中的一些人已經擴張了不少，但我們看到這種擴張正在放緩。但主要地區在英國。

Okay, great. Thank you.

好的，太好了。謝謝。

We have no further questions. So I'll hand back to Justin Jude, CEO for closing remarks.

我們沒有其他問題了。因此，我將把發言權交還給執行長賈斯汀·裘德 (Justin Jude)，請他做最後發言。

Well, we appreciate everybody joining the call today, truly thankful for that. And we look forward to speaking to everyone in July when we report on our second quarter results. Thank you, everyone, and take care.

好吧，我們感謝今天參加電話會議的每個人，我們對此深表感謝。我們期待在 7 月報告第二季業績時與大家進行交流。謝謝大家，保重。

This concludes today's call. Thank you for joining. You may now disconnect.

今天的電話會議到此結束。感謝您的加入。您現在可以斷開連線。