LKQ Corp (LKQ) 2025 Q2 法說會逐字稿

Hello, everyone, and thank you for joining the LKQ Corporation's second 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 年第二季財報電話會議。我叫露西，今天我將負責協調您的通話。（操作員指示）

It is now my pleasure to hand over to your host, Joe Boutross, Vice President of Investor Relations, to begin. Please go ahead.

現在我很高興將主持人、投資者關係副總裁喬·布特羅斯 (Joe Boutross) 交給他開始演講。請繼續。

Thank you, operator. Good morning, everyone, and welcome to LKQ's second 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 earnings release this morning, as well as the accompanying slide presentation for this call.

謝謝您，接線生。大家早安，歡迎參加 LKQ 2025 年第二季財報電話會議。今天與我們在一起的有 LKQ 總裁兼首席執行官賈斯汀·裘德 (Justin Jude) 和高級副總裁兼首席財務官里克·加洛韋 (Rick Galloway)。請參閱 LKQ 網站 lkqcorp.com 以了解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 as well as a 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 am happy to turn the call over to our CEO, Justin Jude.

現在，我很高興將電話轉給我們的執行長賈斯汀·裘德 (Justin Jude)。

Thank you, Joe, and good morning to everyone joining us on the call.

謝謝你，喬，大家早安，歡迎參加我們的電話會議。

As you all know, I have now been in the CEO role for a full year. The year has presented some macro challenges and some short-term operational obstacles but also opportunities for longer-term value creation. Alongside my leadership team, we have made some tough but necessary decisions to fundamentally reshape how we operate and put us back to a path of consistent value creation.

眾所周知，我擔任執行長已經整整一年了。今年出現了一些宏觀挑戰和一些短期營運障礙，但也帶來了長期價值創造的機會。我和我的領導團隊做出了一些艱難但必要的決定，從根本上重塑我們的營運方式，讓我們回到持續創造價值的道路上。

The decisions we made are aligned with our overarching strategy, a multiyear transformation to simplify our portfolio, sharpen our focus and position us as a high-performing company centered on our core business segments.

我們所做的決定與我們的整體策略一致，即透過多年的轉型來簡化我們的產品組合，加強我們的重點，並將我們定位為以核心業務部門為中心的高績效公司。

Our global team is laser-focused on growing our market share, while driving productivity and efficiently managing our cost structure. At our September 2024 Investor Day, we set our strategic priorities, simplify our business portfolio and operations, expand our lean operating model globally with a focus on margin enhancement, invest and grow organically, and pursue a disciplined capital allocation strategy.

我們的全球團隊專注於擴大我們的市場份額，同時提高生產力並有效管理我們的成本結構。在 2024 年 9 月的投資者日上，我們制定了戰略重點，簡化了業務組合和運營，在全球範圍內擴展了精益運營模式，重點提高了利潤率，實現了有機投資和增長，並推行了嚴謹的資本配置策略。

And so as we move forward, we are going to share how we are doing against each of these, a scorecard, if you will, that makes it clear for the investment community to see how we are doing. I can't sugarcoat that today, the results are yet to show this progress, and the macro headwinds necessitated our revised guidance. We are not where we need to be, and so we are going to push harder and move faster.

因此，隨著我們繼續前進，我們將分享我們在各個方面的表現，如果你願意的話，可以製作一張記分卡，讓投資界清楚地了解我們的表現。今天我無法粉飾這一點，結果尚未顯示出這一進展，宏觀逆風迫使我們修改指導方針。我們還沒有達到我們需要的水平，所以我們要更加努力，加快步伐。

To that end, we are focused on two immediate things. One, additional cost-cutting measures primarily in Europe but also in North America with a goal of cutting another $75 million in costs. Two, a heightened emphasis on the strategic review of our business units in operations that may result in the sale of assets that further accelerate our simplification strategy and capital allocation priorities.

為此，我們將重點放在兩件眼前的事。一是主要在歐洲但也在北美採取額外的成本削減措施，目標是再削減 7,500 萬美元的成本。二是更重視對我們營運業務部門的策略審查，這可能導致資產出售，從而進一步加速我們的簡化策略和資本配置重點。

We are seeing a turn in the market for strategic activity with credit markets opening. Momentum behind midsized transactions and private equity actively seeking to deploy capital. While this will not be a linear process, I remain confident that we are on track to realize the full benefits of this strategy by 2027, as outlined at our September 2024 Investor Day.

隨著信貸市場的開放，我們看到市場策略活動出現轉變。中型交易和私募股權積極尋求部署資本的動力。雖然這不會是一個線性過程，但我仍然相信，正如我們在 2024 年 9 月投資者日所概述的那樣，我們預計在 2027 年實現這一策略的全部好處。

It is worth noting that we are doing these things at a time when there are broader challenges in the overall auto industry and macroeconomic environment. It is a dynamic and fluid environment. Given amongst other factors, the rising input costs and the uncertainties around tariffs are creating confusion. We are not alone in the industry in facing these challenges, but you can either complain and make excuses or focus on your business and operating model to deliver the best possible results.

值得注意的是，我們做這些事情的時候，整個汽車產業和宏觀經濟環境都面臨更廣泛的挑戰。這是一個動態且流動的環境。除其他因素外，投入成本的上升和關稅的不確定性正在造成混亂。我們並不是業界唯一面臨這些挑戰的公司，但您可以抱怨和找藉口，也可以專注於您的業務和營運模式，以取得最好的結果。

Our team has chosen to focus on executing our plan, controlling the things we can, such as being efficient in managing our costs and looking for opportunities to take advantage of the current dislocations and disruptions in our core markets to gain market share and expand margins.

我們的團隊選擇專注於執行我們的計劃，控制我們能控制的事情，例如有效地管理我們的成本，並尋找機會利用我們核心市場的當前混亂和混亂來獲得市場份額和擴大利潤率。

We know in a challenging earnings environment, cost discipline is paramount, which is why we've taken actions to remove $125 million of costs in the past 12 months without compromising our ability to execute and service our customers. This is just a first step. And as I mentioned, we are going to continue to scrutinize our cost structure and find additional ways to enhance our margins.

我們知道，在充滿挑戰的獲利環境中，成本控制至關重要，這就是為什麼我們在過去 12 個月內採取行動消除了 1.25 億美元的成本，同時又不損害我們執行和服務客戶的能力。這只是第一步。正如我所提到的，我們將繼續審查我們的成本結構並尋找其他方法來提高我們的利潤率。

Next, I will discuss our business segments, North America first. North America's organic revenue fell by 2.2% per day, which is less of a decline than the last five quarters and an outperformance of repairable claims by over 650 bps, well above our historical 450 bps outperformance. Importantly, our aftermarket collision parts business witnessed a slight growth in the quarter. We are still seeing consistent demand across our hard parts business in Canada and margin enhancement as we convert from three-step to two-step.

接下來，我將討論我們的業務部門，首先是北美。北美的有機收入每天下降 2.2%，降幅小於過去五個季度，可修復索賠的表現超出預期 650 個基點，遠高於我們歷史上 450 個基點的表現。重要的是，我們的售後碰撞零件業務在本季略有成長。隨著我們從三步驟轉向兩步驟法，我們仍然看到加拿大硬體零件業務的穩定需求和利潤率的提高。

Lastly, as an update to the issue of repairable claims resulting from declining used car pricing and rising insurance premiums, we previously said that the comps will start to ease as we progress into 2025. However, the June numbers were weaker than anticipated, and at this juncture, we think it is prudent to assume minimal market recovery in the back half of the year.

最後，關於二手車價格下降和保險費上漲導致的可修復索賠問題的最新情況，我們之前曾表示，隨著進入 2025 年，可修復索賠的情況將開始緩解。然而，六月的數據弱於預期，目前我們認為，謹慎的做法是假設下半年市場將出現微小復甦。

Moving on to Europe. Europe's organic revenue decreased 4.9% or 3.8% on a per day basis, primarily driven by difficult economic conditions, increased competition in certain markets and some temporary headwinds due to operational challenges. We expect the economic conditions to continue throughout the balance of the year, along with the competitive pressures, which has led to price concessions. As an example, in the UK, we've renegotiated several dozen national account agreements and resigned all but one validating the strong value proposition we offer to our customers.

繼續前往歐洲。歐洲的有機收入下降了 4.9%，即每天下降 3.8%，這主要是由於經濟形勢嚴峻、某些市場競爭加劇以及營運挑戰帶來的一些暫時性阻力。我們預計，今年全年經濟狀況將持續良好，同時競爭壓力也將加大，導致價格優惠。例如，在英國，我們重新談判了數十份國家帳戶協議，並重新簽署了除一份之外的所有協議，這證明了我們向客戶提供的強大價值主張。

Regarding the operational challenges impacting revenue in a nutshell, we unintentionally created negative customer experiences and ultimately top line erosion. We have resolved these service issues and are in the process of regaining the customers' confidence and ultimately our share of wallet back.

簡而言之，關於影響收入的營運挑戰，我們無意中創造了負面的客戶體驗，並最終導致收入下降。我們已經解決了這些服務問題，並且正在重新贏得客戶的信任，最終贏回我們的客戶份額。

One thing I would like to emphasize here is that Europe represents a significant opportunity for us. As I mentioned in the past, we need the right leaders in place to truly drive the change and achieve the benefits of scale that Europe represents.

我想在這裡強調的一點是，歐洲對我們來說是一個重大機會。正如我過去所提到的，我們需要合適的領導者來真正推動變革並實現歐洲所代表的規模效益。

After recently making significant leadership changes, we now believe we have the right people. This revamped team is now focused on process and performance, both of which been lagged in certain areas of our European business. This lack of focus from previous leaders played a role in the underperformance in the quarter, and it will take some time to manage these legacy issues. However, we are confident that we are on track with the three-year targets presented at our September 2024 Investor Day.

在最近做出重大領導層變動之後，我們現在相信我們找到了合適的人才。改組後的團隊目前專注於流程和績效，這兩點在我們歐洲業務的某些領域都落後了。前任領導人缺乏關注是導致本季業績不佳的原因之一，解決這些遺留問題需要一些時間。不過，我們有信心，我們正在實現 2024 年 9 月投資者日提出的三年目標。

I was in Europe the last week of June to meet with our management teams, and we will be focused on ensuring we are moving quickly to implement our strategy in that market. Europe is a competitive marketplace, and our focus is on key geographies where we have the ability to be a top player.

六月的最後一周我在歐洲與我們的管理團隊會面，我們將專注於確保我們能夠迅速在該市場實施我們的策略。歐洲是一個競爭激烈的市場，我們的重點是我們有能力成為頂尖參與者的關鍵地區。

We continue to make progress on our SKU rationalization goals. Our SKU rationalization project in Europe aims to reduce complexity and simplify our distribution network across all markets. We have reviewed over 70% of our product brands and reduced stocking by an additional 13,000 SKUs. Our private label penetration was flat sequentially, but up 20 bps year-to-date, keeping us on track to hit our 2027 target of 27%.

我們在 SKU 合理化目標方面繼續取得進展。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 70% 的產品品牌，並額外減少了 13,000 個 SKU 的庫存。我們的自有品牌滲透率環比持平，但今年迄今已上升 20 個基點，使我們有望實現 2027 年 27% 的目標。

In addition to our SKU rationalization, we are streamlining our operations and reducing costs through back office and systems rationalization programs as well as greater utilization of our global competency centers. Moreover, we believe we're now positioned to expand our market share, and we feel confident we can continue as the leading European player. We started executing on this goal as we recently announced our partnership with SYNETIQ Limited, which is a critical building block in the development of LKQ Europe's salvage channel, a market that will benefit from the [full service salvage intellectual capital] in North America.

除了 SKU 合理化之外，我們還透過後台和系統合理化計劃以及更多地利用我們的全球能力中心來簡化營運並降低成本。此外，我們相信我們現在有能力擴大我們的市場份額，並且我們有信心繼續保持歐洲領先地位。我們最近宣布與 SYNETIQ Limited 建立合作夥伴關係，並開始執行這一目標，這是 LKQ 歐洲打撈通路發展的關鍵基石，該市場將受益於北美的 [全方位服務打撈知識資本]。

Moving on to specialty. Specialty has turned a corner and is seeing improved results. Specialty's organic revenue was largely flat year-over-year, which is the best quarterly year-over-year revenue performance since the fourth quarter of 2021. We are cautiously optimistic this segment is starting to show green shoots as our July revenue has continued to show positive trends we saw in June.

轉向專業化。專業領域已出現轉機，並正在取得更好的成果。Specialty 的有機收入與去年同期基本持平，這是自 2021 年第四季以來最好的季度同比營收表現。我們謹慎樂觀地認為，這一領域正開始出現復甦跡象，因為我們 7 月的收入繼續呈現 6 月的正面趨勢。

Lastly, self service. Self service's organic revenue was soft in the quarter from lower part volumes but still managed to deliver a 10% EBITDA margin. Disciplined vehicle procurement, combined with overhead cost controls continue to help drive profitable quarterly results in this segment.

最後，自助服務。由於零件銷售量較低，本季自助服務的有機收入較弱，但仍實現了 10% 的 EBITDA 利潤率。嚴格的車輛採購與間接成本控制相結合，繼續幫助推動該部門實現季度盈利。

I want to stress that people are our greatest assets, ensuring we have the most talented and effective team is critical to our success. As a result, we have created an executive position focused on global talent development. We think this will be an important role, and we are excited about how it will support our overall business around the globe.

我想強調的是，人才是我們最大的財富，確保我們擁有最有才華和最高效的團隊對我們的成功至關重要。因此，我們設立了一個專注於全球人才發展的高階主管職位。我們認為這將是一個重要的角色，我們對它將如何支持我們在全球的整體業務感到興奮。

A few facts that I think are important to share on talent. Since I took over the CEO role last July, we have taken difficult, bold and necessary steps to reshape our leadership team. Over 25% of the roles at the VP level and above have been refreshed with new talent or redefined responsibilities. This level of transformation reflects our commitment to building a high-performing agile organization.

我認為關於人才，有一些重要的事實值得分享。自從去年七月我接任執行長以來，我們已經採取了艱難、大膽和必要的措施來重塑我們的領導團隊。超過 25% 的副總裁及以上級別職位已任命新人才或重新定義職責。這種程度的轉型體現了我們致力於打造高效敏捷組織的決心。

We're focused on getting the right people on the bus and just as importantly, ensuring they're in the right seats. These changes, while not without challenges, are foundational to driving sustainable growth and consistent performance, which yield long-term value creation for shareholders.

我們專注於讓合適的人上車，同樣重要的是，確保他們坐在合適的座位上。這些變化雖然並非沒有挑戰，但卻是推動永續成長和持續績效的基礎，可以為股東創造長期價值。

Equally important is the strength of our talent pipeline. Over 50% of it now comes from external hires with a high focus on our European operations to lead us through business transformation. This infusion of fresh perspectives and different experiences is accelerating innovation, bringing a clear lens on growing the business, finding efficiencies and positioning us for the future. We're not just evolving. We're focused on fixing, repairing and building momentum.

同樣重要的是我們的人才儲備實力。目前，超過 50% 的資金來自外部聘用，他們高度重視我們的歐洲業務，帶領我們完成業務轉型。這種新視角和不同經驗的整合正在加速創新，為業務成長、效率提升和未來定位帶來清晰的視角。我們不只是在進化。我們專注於修復、維修和建立動力。

I'm going to hand it over to Rick now, but I want to emphasize the following. We have size, scale in an unmatched distribution network. We know the current results are yet to reflect the value we are creating, and we share your frustration. But we are solidifying our foundation and ensuring when the cycle turns in this sector that we will be in the strongest position to capitalize on it to deliver results for our customers, partners and importantly, our shareholders. That is our mission, and we are hellbent on accomplishing it.

我現在要把它交給里克，但我想強調以下幾點。我們的分銷網絡規模無與倫比。我們知道目前的結果尚未反映出我們所創造的價值，我們也感受到您的沮喪。但我們正在鞏固基礎，確保當該行業的周期轉變時，我們將處於最強大的地位，利用它為我們的客戶、合作夥伴以及重要的股東帶來成果。這是我們的使命，我們決心完成它。

Thank you, Justin, and welcome to everyone joining us today. I want to begin by reinforcing Justin's remarks on our continued commitment to execute on our multiyear transformation strategy that includes simplifying the business and reshaping our focus on core segments. We are and will continue to be relentless in our pursuit of these goals.

謝謝賈斯汀，歡迎大家今天加入我們。首先，我想重申賈斯汀關於我們繼續致力於執行多年轉型策略的評論，其中包括簡化業務和重塑我們對核心領域的關注。我們現在並將繼續不懈地追求這些目標。

Now turning to Q2 results. As Justin said in his remarks, our results are yet to reflect all of these efforts and Q2 results were below our expectations. While our initiatives are underway, revenue declines overall have created margin pressure driving down our earnings and free cash flow.

現在轉向第二季業績。正如賈斯汀在演講中所說，我們的業績尚未反映出所有這些努力，第二季的業績低於我們的預期。雖然我們正在實施這些舉措，但整體收入下降已經造成了利潤壓力，導致我們的收益和自由現金流下降。

We reported total revenues of $3.6 billion. Diluted earnings per share were $0.75, a $0.05 increase compared to Q2 2024. On an adjusted diluted earnings per share basis, we reported $0.87, a decrease of $0.11 per share versus prior year primarily due to lower operating results. On a positive note, execution on our balanced capital allocation strategy benefited earnings per share by $0.03 from share repurchases and another $0.01 for interest. FX rates added another $0.03.

我們報告的總收入為 36 億美元。每股攤薄收益為 0.75 美元，較 2024 年第二季增加 0.05 美元。以調整後的每股攤薄收益計算，我們報告每股收益為 0.87 美元，較上年減少 0.11 美元，主要原因是經營業績下降。從積極的一面來看，執行我們的平衡資本配置策略使每股收益因股票回購而增加 0.03 美元，因利息而增加 0.01 美元。外匯匯率又增加了 0.03 美元。

Free cash flow during the quarter was $243 million despite a nearly $35 million headwind from tariffs, bringing the year-to-date cash flows to $186 million. We anticipate generating positive free cash flow in the next two quarters, but tariffs will present a working capital challenge in the back half of the year that I will discuss shortly.

儘管關稅帶來近 3,500 萬美元的不利影響，但本季的自由現金流仍達到 2.43 億美元，使年初至今的現金流達到 1.86 億美元。我們預計未來兩個季度將產生正的自由現金流，但關稅將對下半年的營運資金帶來挑戰，我很快就會討論這一點。

We returned $117 million to shareholders, including $39 million to repurchase 1 million shares and $78 million for our quarterly dividend. We remain focused on deploying capital in a way that maximizes shareholder value while supporting growth.

我們向股東返還了 1.17 億美元，其中包括 3,900 萬美元用於回購 100 萬股股票以及 7,800 萬美元用於季度股息。我們仍然專注於以最大化股東價值並支持成長的方式部署資本。

In North America, we were pleased with our top line performance given the market pressure as we work through the continued decline in repairable claims. We are confident we are increasing our market share in a declining market. However, increasing competition and market dynamics contributed to a 100-basis-point decline in gross margins. North America posted a segment EBITDA margin of 15.8%, a 150-basis-point decrease relative to last year, but roughly 10 basis points better than Q1. The decline in gross margins and leverage effects from lower revenue on overheads contributed to the decline in EBITDA margins.

在北美，儘管我們努力應對可修復索賠持續下降帶來的市場壓力，但我們對我們的營業額表現感到滿意。我們有信心在下滑的市場中增加我們的市場份額。然而，競爭和市場動態加劇導致毛利率下降了 100 個基點。北美分部的 EBITDA 利潤率為 15.8%，較去年同期下降 150 個基點，但比第一季高出約 10 個基點。毛利率的下降以及收入減少對管理費用的槓桿效應導致了 EBITDA 利潤率的下降。

In Europe, segment EBITDA was 9.4%, a 120-basis-point decrease from last year. If you will recall, in last year's Q2 call, I discussed a reduction in labor-related accruals previously recorded after a successful conclusion to the union negotiations in Germany. This benefited the prior year by roughly 70 basis points. Excluding this non-recurring prior year benefit, EBITDA margins declined by 50 basis points.

歐洲分部 EBITDA 為 9.4%，較去年同期下降 120 個基點。如果您還記得的話，在去年第二季的電話會議上，我討論了在德國工會談判成功結束後先前記錄的與勞動力相關的應計費用的減少。這比前一年增加了約 70 個基點。不包括這筆非經常性上年收益，EBITDA 利潤率下降了 50 個基點。

We were pleased to see the year-over-year gross margin improvement resulting from procurement initiatives and ongoing productivity measures that outpaced inflation. However, the organic revenue decline put pressure on overhead expense leverage, resulting in the decrease to segment EBITDA margins.

我們很高興看到，由於採購措施和持續的生產力措施超過了通貨膨脹，毛利率年增。然而，有機收入的下降給管理費用槓桿帶來了壓力，導致分部 EBITDA 利潤率下降。

Specialties EBITDA margin of 8.5% is 40 basis points below the prior year due to a slight uptick in overhead costs related to inflationary cost increases with organic revenue being largely flat year-over-year, and positive in June and thus far in July, we are encouraged by these recent trends heading into the back half of the year. Self Service reported EBITDA margin of 10%, consistent with the prior year.

特種產品 EBITDA 利潤率為 8.5%，比上年低 40 個基點，原因是通貨膨脹成本增加導致管理費用略有上升，而有機收入與去年同期相比基本持平，6 月份和 7 月份迄今為正，我們對下半年這些最新趨勢感到鼓舞。Self Service 報告的 EBITDA 利潤率為 10%，與前一年持平。

Turning now to the balance sheet. We repaid approximately $111 million of debt in the quarter. As of June 30, we had total debt of $4.5 billion with a total leverage ratio of 2.6 times EBITDA. We remain committed to maintaining a manageable debt level and our investment-grade ratings. As of June 30, 2025, our current debt maturities were $34 million, a reduction from the $558 million on March 31, 2025, as we extended the maturity date of the $500 million US term loan by one year to Q1 2027.

現在來看資產負債表。本季我們償還了約 1.11 億美元的債務。截至 6 月 30 日，我們的總債務為 45 億美元，總槓桿率為 EBITDA 的 2.6 倍。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 6 月 30 日，我們目前的債務到期金額為 3,400 萬美元，較 2025 年 3 月 31 日的 5.58 億美元有所減少，因為我們將 5 億美元美國定期貸款的到期日延長一年至 2027 年第一季。

As normal practice, we actively manage our capital structure, and we are working through our options with our lending group regarding the Canadian term loan due in the third quarter of 2026. We think in a high interest rate environment, ensuring our cost of capital is reasonable and managing the timing of our maturities is an important piece of prudent financial management. Our effective interest rate was 5.2% at the end of Q2, consistent with Q1. We have $1.8 billion in variable rate debt, of which $700 million has been fixed with interest rate swaps, which effectively provides a fixed rate on approximately 75% of our debt.

按照正常做法，我們積極管理我們的資本結構，我們正在與我們的貸款團隊就 2026 年第三季到期的加拿大定期貸款研究各種選擇。我們認為，在高利率環境下，確保我們的資本成本合理並管理好我們的到期時間是審慎財務管理的重要組成部分。我們第二季末的實際利率為 5.2%，與第一季一致。我們有 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。

Given the confluence of macroeconomic factors in both North America and Europe, coupled with the results this quarter, we are lowering our full year outlook. In North America, we are anticipating a delayed recovery in repairable claims, ongoing tariff disruptions and competitive market dynamics. In Europe, persistent economic softness, geopolitical unrest, and ongoing US trade negotiations are all drivers of an uncertain environment.

鑑於北美和歐洲宏觀經濟因素的匯合，再加上本季的業績，我們下調了全年預期。在北美，我們預計可修復索賠的恢復將會延遲，關稅中斷將持續存在，市場競爭也將加劇。在歐洲，持續的經濟疲軟、地緣政治動盪以及正在進行的美國貿易談判都是不確定環境的驅動因素。

To provide more detail, June's repairable claim numbers were down the most of all three months in the quarter despite our anticipated recovery. Based on current industry data and recent trends, we no longer expect these declines to rebound in 2025.

更詳細地說，儘管我們預期會出現復甦，但 6 月的可修復索賠數量卻是本季三個月中下降最多的。根據目前的行業數據和近期趨勢，我們不再預期這些下降趨勢會在 2025 年反彈。

Auto insurance prices are still rising and are expected to increase an average of 7.5% this year. According to a recent survey, nearly one in four people have downgraded or dropped their auto insurance to free up cash. To help further depict the economic factors driving the current market dynamics around repairable claims, we included a slide in the appendix on page 17 with data derived from our proprietary analysis.

汽車保險價格仍在上漲，預計今年平均上漲7.5%。根據最近的一項調查，近四分之一的人降低或放棄了汽車保險以釋放現金。為了進一步描述推動當前可修復索賠市場動態的經濟因素，我們在第 17 頁的附錄中附上了一張投影片，其中包含我們專有分析的數據。

The ever-changing tariff landscape further erodes consumer confidence and also complicates the views toward a more linear recovery. While we have been pricing in the impact from tariffs, our market remains competitive, and it may be difficult to maintain margins at the same levels in the short term.

不斷變化的關稅格局進一步削弱了消費者信心，也使人們對更線性的復甦的看法變得複雜。雖然我們已經將關稅的影響計入價格，但我們的市場仍然具有競爭力，短期內可能難以維持相同的利潤率水準。

In Europe, with the persistent softness in many of our markets and increased geopolitical unrest, we are no longer anticipating market improvements. To mitigate the lower revenue expectations, we have taken corrective action including leadership changes and productivity initiatives and are targeting additional cost removal in the back half of the year. However, these actions will not be enough to offset the full year impact of lower revenue.

在歐洲，由於許多市場持續疲軟以及地緣政治動盪加劇，我們不再預期市場會改善。為了緩解較低的收入預期，我們採取了糾正措施，包括領導層變動和生產力舉措，並計劃在今年下半年消除額外的成本。然而，這些舉措不足以抵銷全年收入下降的影響。

Turning back to 2025. Our revised outlook and assumptions are included on slide 13. We expect reported organic parts and services revenue in the range of negative 150 basis points to negative 350 basis points. As a result of the revenue headwinds, we expect adjusted diluted EPS to be in the range of $3 to $3.30, a decrease of $0.40 from the midpoint from the previous guidance. Approximately half of the decrease is from our North American segment, 40% from Europe and the remainder is largely from higher interest expense.

回顧2025年。我們的修訂展望和假設包含在幻燈片 13 中。我們預計報告的有機零件和服務收入將在負 150 個基點至負 350 個基點之間。由於收入逆風，我們預計調整後的稀釋每股收益將在 3 美元至 3.30 美元之間，比先前預期的中點下降 0.40 美元。約有一半的降幅來自北美地區，40%來自歐洲，其餘部分則主要來自更高的利息支出。

Free cash flow will be impacted by the anticipated decrease in earnings and the impact of tariffs on working capital that will be on the balance sheet at year-end. To partially mitigate these headwinds, we are reducing our anticipated capital spend by approximately $50 million. We will continue to diligently manage our trade working capital in order to mitigate the lower earnings and tariff impact to drive EBITDA conversion to the extent possible. Free cash flow is expected to be in the range of approximately $600 million to $750 million.

自由現金流將受到預期收益下降以及關稅對年底資產負債表上營運資本的影響的影響。為了部分緩解這些不利因素，我們將預期資本支出減少約 5,000 萬美元。我們將繼續努力管理我們的貿易營運資金，以減輕收益下降和關稅的影響，盡可能推動 EBITDA 轉換。預計自由現金流約 6 億至 7.5 億美元。

Thank you for your time. And with that, I will now turn the call back over to Justin for his closing remarks.

感謝您抽出時間。現在，我將把電話轉回給賈斯汀，請他作最後發言。

Thank you, Rick. As stated at the outset, we have made some tough but necessary decisions to fundamentally reshape how we operate and put us back on the path toward consistent value creation. We need to set ourselves up for success and be able to deliver on what we say we are going to do. We are implementing our strategic plan, and we are holding ourselves accountable to deliver that plan.

謝謝你，里克。正如一開始所述，我們做出了一些艱難但必要的決定，從根本上重塑我們的營運方式，並讓我們重新走上持續創造價值的道路。我們需要為成功做好準備，並且能夠兌現我們的承諾。我們正在實施我們的戰略計劃，並致力於實現該計劃。

In closing, I want to reiterate our key strategic priorities: simplify our business portfolio and operations, expand our lean operating model globally with a focus on margin enhancement, invest and grow organically and pursue a disciplined capital allocation strategy. I put us on the accelerator to deliver these strategic initiatives and create value for our shareholders. We expect to see the results, and we know you do too.

最後，我想重申我們的關鍵策略重點：簡化我們的業務組合和運營，在全球範圍內擴展我們的精益運營模式，重點是提高利潤率，進行有機投資和增長，並推行嚴謹的資本配置策略。我敦促我們加快步伐，實現這些策略舉措，為股東創造價值。我們期待看到結果，我們知道您也期待看到結果。

With that, I'll now turn the call over to the operator for questions.

說完這些，我現在將電話轉給接線生來回答問題。

(Operator Instructions)

（操作員指示）

Scott Stember, ROTH.

斯科特·斯坦伯，羅斯。

Talk about some of the -- in North America, some of the increased competition that you're talking about. And last quarter, we were talking about used car pricing starting to increase that might be helping? Are you not seeing that any more as a driver towards a recovery in claims?

請談談您提到的北美地區競爭加劇的情況。上個季度，我們談到二手車價格開始上漲，這可能會有幫助嗎？您是否不再將其視為索賠復甦的推動力？

Hey Scott, on the used car pricing, when we -- if you look at Q2, the beginning of April and May, we started to see some improvements in used car pricing, they kind of look to be bottoming out. Some of that, we're kind of uncovering that. There was a kind of some pulled up demand of new car sales, which drove up some used car pricing. So, we haven't necessarily seen coming into June or even in July, that those numbers are starting to grow fast enough.

嘿，斯科特，關於二手車價格，如果你看一下第二季度，也就是 4 月初和 5 月初，我們開始看到二手車價格有所改善，它們看起來已經觸底。其中的一些，我們正在揭示。新車銷售需求有所拉升，推高了一些二手車價格。因此，我們不一定能看到這些數字在進入六月甚至七月時開始以足夠快的速度增長。

We're seeing, in some cases, year-over-year growth, but not necessarily month over month. And so if you take that used car pricing change year-over-year relative to repair cost, it hasn't necessarily grown at the same rate, which is once again creating that gap between repairable claims.

在某些情況下，我們看到的是同比增長，但不一定是環比增長。因此，如果將二手車價格相對於維修成本的逐年變化視為，它不一定以相同的速度增長，這再次造成了可修復索賠之間的差距。

What we are seeing is, we're seeing a decent increase in APU. We're seeing quite a bit of opportunity for us to expand better than what we are seeing on the overall repairable claims. So, the business is really picking up a fair amount of market share proven by the 650 basis points better than the repairable claims. What we're not seeing, Scott, is the improvement on the overall repairable claims. So what we're saying is, look, the repairable claims number is going to have slight improvements, but the business is operating very, very well. Continues to drive performance, continues to pick up share, continues to diversify the portfolio. So all good news on that side of what we can control.

我們看到的是，APU 正在大幅成長。我們看到，與整體可修復索賠相比，我們有相當多的擴張機會。因此，該業務確實獲得了相當大的市場份額，這從比可修復索賠高出 650 個基點的結果可以看出。斯科特，我們沒有看到整體可修復索賠的改善。所以我們的意思是，看，可修復索賠數量將會略有改善，但業務運作得非常非常好。持續推動業績，持續提升份額，持續實現投資組合多元化。所以，在我們能夠控制的範圍內，這方面的所有好消息都是真的。

Got you. And then last, in Europe, one of your biggest competitors over there yesterday reported relatively -- or at least flattish results for Europe. And now you're talking about some [compensation]. It sounds like were you guys just not properly priced in the market? Or are you saying it's a combination of the market being increasingly weak plus the competitive nature ticking up.

明白了。最後，在歐洲，你們最大的競爭對手之一昨天報告了歐洲的業績相對或至少是持平的業績。現在你正在談論一些[賠償]。聽起來你們的市場定價是不是不太合理？或者您說這是市場日益疲軟和競爭日益激烈的綜合結果。

Yes. I mean I guess you're probably talking about GPC. I mean if you really back out some of the conflicted issues we talked about, we're pretty much in line with them, but it isn't necessarily always a good compare because we operate in different markets. For example, France, we know that market overall is up. We operate in France, but we're very small, and we grew. They're larger in France. Spain was up. We don't operate in Spain, but they do. And so it's not necessarily a great compare. But the market set -- the primary issue we're seeing still is that the market is just soft.

是的。我的意思是我猜你可能在談論 GPC。我的意思是，如果你真的回顧我們討論過的一些衝突問題，我們的觀點基本上一致，但這並不總是一個好的比較，因為我們在不同的市場運作。例如，我們知道法國市場整體呈現上漲趨勢。我們在法國開展業務，但規模很小，而且我們已經成長了。在法國它們更大。西班牙隊領先。我們不在西班牙開展業務，但他們在西班牙開展業務。所以這不一定是個很好的比較。但市場情勢——我們看到的主要問題仍然是市場疲軟。

In some cases, as I mentioned in the past, pricing becomes a problem with the smaller competitors. But as I mentioned, specifically in the UK, we renegotiated several dozen different contracts with our national accounts and we lost one. And we really lost one because we weren't going to chase the price all the way down. It did not make sense.

在某些情況下，正如我過去提到的，定價對於較小的競爭對手來說是一個問題。但正如我所提到的，特別是在英國，我們與國家帳戶重新談判了幾十份不同的合同，但其中一份失敗了。我們確實損失了一個，因為我們沒有全力壓低價格。這毫無意義。

So when you really look at the value proposition that we offer to our customers when it comes to service level, fill rate, we have to sharpen our pencils a little bit [with] that down in market, but we still feel that we're maintaining market share.

因此，當你真正審視我們在服務水準和供應率方面向客戶提供的價值主張時，我們必須在市場低迷的情況下稍微調整一下策略，但我們仍然覺得我們正在保持市場份額。

Bret Jordan, Jefferies.

布雷特·喬丹，傑富瑞。

That the main European topic, I guess, is GSF, obviously, the UK pricing issue? And are they abating on the price competition? Or does that remain as hot as ever? And then I guess you'd also mentioned negative customer experiences. Could you talk about the relatively weaker markets? Where did you see the real softness?

我猜歐洲的主要話題顯然是 GSF，也就是英國的定價問題？他們是否正在減少價格競爭？還是依然像以前一樣熱？然後我想您也提到了負面的客戶體驗。能談談相對較弱的市場嗎？你從哪裡看到真正的柔軟？

Yes. And UK, in particular, I mean, GSF is still there. Other folks are expanding as well. We're the largest today. We've got the most coverage. So as some of our competitors open branches, they create a little bit of noise, but GSF is still a big one. I think it's slowing down somewhat. I mean, when we look at some of the pricing that we won't necessarily chase down, I know how good we buy based on our scale and it doesn't necessarily make sense.

是的。尤其是英國，GSF 仍然存在。其他人也在擴張。今天我們是最大的。我們的報道最為廣泛。因此，當我們的一些競爭對手開設分店時，他們會產生一些噪音，但 GSF 仍然是一個很大的噪音。我認為它正在有所放緩。我的意思是，當我們看到一些我們不一定會追逐的定價時，我知道根據我們的規模我們購買得有多好，但這並不一定有意義。

So -- and we're winning the customer still, Bret, in that market. Even if you look at national accounts, it's really good for us. I was just there, as I mentioned in my script, at the end of June meeting with the team talking about not only the long-term strategy plan to integrate that business, transform that business, to really deliver significant opportunity for us, and they're working on that.

所以——布雷特，我們仍然在那個市場贏得客戶。即使你看一下國家帳戶，這對我們來說也確實是件好事。正如我在腳本中提到的那樣，我在 6 月底與團隊開會時不僅討論了整合該業務、轉變該業務的長期戰略計劃，還真正為我們提供重大機遇，他們正在為此努力。

If you look at the simplification of operations, SKU rationalization, they're working on implementing lean operating model, they have cost-cutting measures at $75 million of cost cutting that I mentioned primarily will be in Europe, and they've already started on that. In addition, as we announced, we did a partnership in the UK where we're pretty strong in the collision market with SYNETIQ. So, we're now expanding into salvage product lines into that to really fill in the portfolio for us on products.

如果你看一下營運的簡化、SKU 合理化，你會發現他們正在努力實施精實營運模式，他們已經採取了削減成本的措施，其中 7,500 萬美元的成本削減主要將在歐洲進行，而且他們已經開始這樣做了。此外，正如我們所宣布的那樣，我們與英國的 SYNETIQ 建立了合作夥伴關係，我們在碰撞市場上擁有相當強大的實力。因此，我們現在正在擴展到廢舊產品線，以真正填補我們的產品組合。

Okay. On the North American collision, I think you mentioned some price increase. Could you tell us what you took for price increase?

好的。關於北美碰撞，我想您提到了一些價格上漲。你能告訴我們你對物價上漲採取了什麼措施嗎？

We don't disclose the overall price increase, but we have been pushing price. Obviously, the tariffs are forcing that. We're seeing the [OEMs price]. I know last time you asked a question, we didn't see it. Obviously, if you read the headlines on the big -- on some of the big OEMs, they're feeling a pain of tariffs. I don't think they have any choice but to continue to push price. They're pushing it. We're pushing it.

我們不透露整體的價格上漲幅度，但我們一直在推價。顯然，關稅正在迫使這種情況發生。我們看到[OEM 價格]。我知道上次你問了一個問題，我們沒有看到。顯然，如果你讀一些大型原始設備製造商的新聞頭條，你會發現他們正感受到關稅的痛苦。我認為他們別無選擇，只能繼續提高價格。他們正在推動它。我們正在推動它。

The good news is, obviously, the most tariff product line that we have is aftermarket, and with repairable claims being down 9%, our actual volume on aftermarket was positive in the quarter. So even though we push price -- we maintain service levels, which -- with the leverage impacted our margins somewhat, but we wanted to make sure we maintain our service levels. It allowed us to outperform the market. I mean we grew 650 bps, as Rick mentioned over the repair claim decline. And we really want to just be poised from the service level and availability standpoint to gain that leverage when the market recovers.

好消息是，顯然，我們關稅最高的產品線是售後市場，而且由於可修復索賠下降了 9%，我們本季售後市場的實際銷售量為正。因此，即使我們提高價格，我們仍維持服務水平，這在一定程度上影響了我們的利潤率，但我們希望確保維持我們的服務水平。它使我們的表現超越了市場。我的意思是我們成長了 650 個基點，正如 Rick 在談到維修索賠下降時提到的那樣。我們確實希望從服務水準和可用性的角度做好準備，以便在市場復甦時獲得優勢。

Craig Kennison, Baird.

克雷格·肯尼森，貝爾德。

I really appreciate Appendix 1, slide 17 and trying to understand that even better. Your unrepaired vehicle metric seems to be one of the top issues that you face. How do you see that unfolding? Some of those trends look to be very long term, while they may be cyclical, insurance rates are still high and that behavior may persist for some time. So I'm curious when you think that will ultimately find a bottom?

我非常欣賞附錄 1 的第 17 張投影片，並試著更好地理解它。未修復的車輛指標似乎是您面臨的首要問題之一。您如何看待這項進展？其中一些趨勢看起來是長期的，雖然它們可能是週期性的，但保險費率仍然很高，而且這種行為可能會持續一段時間。所以我很好奇，您認為什麼時候最終會找到底部？

Yes, it's hard for me to speculate. I mean, we tried -- we saw some green shoots in used car pricing, as we mentioned early on, and we expected the market to recover. We haven't seen that yet necessarily. If you look at the big overall picture, Craig, on the -- just the industry in general, I mean, as I mentioned earlier, the OEMs are under tremendous pressure, a lot of tariff impact for them, lost profits, they are going to have no choice but to pass on pricing, increase new car sales to offset the volume, those will be good for us.

是的，我很難推測。我的意思是，我們嘗試過——正如我們早些時候提到的，我們看到了二手車定價的一些復甦跡象，我們預計市場將會復甦。我們還沒有看到這種情況。克雷格，如果你從整體上看，就整個行業而言，我的意思是，正如我之前提到的，原始設備製造商面臨著巨大的壓力，關稅對他們造成了很大的影響，利潤損失，他們別無選擇，只能轉嫁價格，增加新車銷量來抵消銷量，這些對我們有利。

If the OEMs have a strong presence in the market, that's good for us. It leads to higher used car pricing, higher part pricing, more car sales on a new side leads into our sweet spot. And so the unrepaired vehicles, that number has grown. That is cyclical.

如果 OEM 在市場上佔有重要地位，對我們來說是件好事。這會導致二手車價格上漲、零件價格上漲、新車銷售增加，從而達到我們的最佳狀態。因此，未修復車輛的數量增加。這是周期性的。

As you mentioned, our -- what we don't know is when it's going to turn around, right? I mean we've got to see abatement to high insurance rates. And I think we've seen the growth of that slowdown. The question is, will insurance rates start to drop as insurance companies want to gain market share. Used car pricing at some point will start to rebound to grow at the sustained rate of repair costs. And so, at some point, we see that unrepaired vehicles coming back to more of a normal number.

正如您所說，我們不知道什麼時候情況會好轉，對嗎？我的意思是我們必須看到高保險費率的下降。我認為我們已經看到了這種放緩的加劇。問題是，隨著保險公司想要獲得市場份額，保險費率是否會開始下降。二手車價格在某個時候將開始反彈，並以持續的維修成本速度成長。因此，在某個時候，我們會看到未修復的車輛數量恢復到正常水平。

But the team there is really -- I mean, in North America, as you saw, we're still executing. I mean, even though in a down market, repairable claims being down 9%, the team was down 2%. I mean, it's just phenomenal growth. So in some cases, if you look at that chart, you mentioned, you look at self-pay repairs. I mean we're the trade-down alternative on the OEM side. So, we're gaining share on that self-pay. And overall, just with our service levels and our fill rate, we're doing really well.

但那裡的團隊確實——我的意思是，在北美，正如你所看到的，我們仍在執行。我的意思是，即使在市場低迷的情況下，可修復索賠下降了 9%，但團隊卻下降了 2%。我的意思是，這真是驚人的成長。因此，在某些情況下，如果您查看您提到的圖表，您會看到自付維修費用。我的意思是我們是 OEM 方面的降級替代品。因此，我們在自付費用方面的份額正在增加。總體而言，就我們的服務水準和填充率而言，我們做得非常好。

In addition to help offset or create revenue opportunities, our hard parts business in Canada is performing really well as well as we convert that from three-step to two steps. So, we don't -- we're not just sitting with our -- sitting on our hands, I guess, letting the market dictate to us what we're going to do. We're still looking at revenue opportunities. And once again, Craig, we're definitely outperforming the market.

除了幫助抵銷或創造收入機會之外，我們在加拿大的硬體零件業務表現也非常好，而且我們將其從三步轉變為兩步。所以，我們不會——我想我們不會只是坐在那裡無所事事，讓市場來決定我們要做什麼。我們仍在尋找創收機會。克雷格，再說一次，我們的表現絕對優於大盤。

And I think it was Rick who mentioned APU being stronger. I'm wondering if you could share that metric.

我認為是 Rick 提到了 APU 更強大。我想知道您是否可以分享該指標。

Yes, I know the number went up about 150 bps. I don't know the exact --

是的，我知道這個數字上升了約 150 個基點。我不知道具體--

We're really close to 39%, Craig, is where the number is sitting right now.

克雷格，我們確實非常接近 39%，這是目前的數字。

And when you see, Craig, the OEMs, as I mentioned, they're pushing price, that's creating even more value proposition for alternative -- the alternative parts leader. I mean, obviously, we have no tariff impact on our salvage. So it pushes towards salvage. It pushes more towards aftermarket. And so that APU growth is just really just in a lot of cases, possible because of LKQ's just national coverage that we have.

正如我所提到的，克雷格，當你看到原始設備製造商 (OEM) 正在推高價格時，這為替代品——替代零件領導者——創造了更多的價值主張。我的意思是，顯然，關稅對我們的打撈沒有影響。因此它推動救援。它更加重視售後市場。因此，在許多情況下，APU 的成長都是因為 LKQ 的全國覆蓋而實現的。

Gary Prestopino, Barrington Research.

巴林頓研究公司的加里‧普雷斯托皮諾 (Gary Prestopino)

In your narrative, like you mentioned what's going on in Europe. You've had to change out some people. You're going to focus on cost cuts there. I mean, I think you basically said that you would also been going through some change in personnel over there since the start of the year. Are you where you need to be as far as personnel? And then what they're doing over there, coupled with the cost cuts that you're envisioning? When should we start seeing that impact come into the P&L?

在您的敘述中，就像您提到歐洲正在發生的事情一樣。你必須更換一些人。你將重點放在那裡的成本削減。我的意思是，我認為你基本上說過，自今年年初以來，你們那裡的人員也會經歷一些變動。就人員而言，您到達了您需要的地方嗎？那麼他們在那裡做了什麼，以及您設想的成本削減是什麼？我們什麼時候才能開始看到這種影響進入損益表？

Yes. Thanks for the question. I was over there and June meeting with that team. I feel pretty confident in the team that we have. We brought on new skill set, new mindsets, I mean, quite honestly, we've been after some of these initiatives for a while in Europe. And so making sure we have the right team that is going to execute against that. I mentioned at Investor Day, our three-year plan. It's not a linear progression, Gary. It's -- I mean it's really truly a three-year plan that the team has to execute.

是的。謝謝你的提問。我當時在那裡，六月與那個團隊會面。我對我們的團隊非常有信心。我們帶來了新的技能、新的思維方式，我的意思是，坦白說，我們在歐洲已經推行這些舉措有一段時間了。因此，我們要確保擁有合適的團隊來執行這一目標。我在投資者日提到了我們的三年計劃。這不是一個線性進展，加里。這是——我的意思是，這確實是一個團隊必須執行的三年計畫。

Obviously, they've got to navigate through the existing market conditions today, work on the cost-cutting initiatives, but they are truly laser-focused working on the three-year [strat] plan. integrating that business, transforming it to really unlock the significant potential that I feel we have over there.

顯然，他們必須適應當今現有的市場條件，並努力實施成本削減計劃，但他們真正專注於三年策略計劃。整合該業務，對其進行轉型，以真正釋放我認為我們在那裡擁有的巨大潛力。

I think the target that Justin gave out, $75 million, the vast majority of that is coming from our European operations. As you know, Gary, it takes a little while to get some of those implemented. I would expect those to be primarily implemented by the end of Q4. And so you should see the full benefit of that in 2026.

我認為賈斯汀提出的目標是 7500 萬美元，其中絕大部分來自我們的歐洲業務。加里，您知道，實現其中一些目標需要一些時間。我預計這些措施將在第四季末基本實施。因此，您應該在 2026 年看到它的全部好處。

And did you quantify on EPS and what the impact of the tariffs was on the bottom line?

您是否量化了每股盈餘以及關稅對底線的影響是什麼？

Yes. So, Gary, we think we have the ability to pass through all of our tariff costs. And so we're expecting to pass those through. What we are seeing as well as what Justin talked about as far as the competitiveness in the marketplace. So, it's a combination of the two. So for us, the tariff piece, we're pushing through all of that through pricing through when we net out the cost.

是的。所以，加里，我們認為我們有能力轉嫁所有的關稅成本。因此我們希望能夠通過這些。就市場競爭力而言，我們看到了這一點，賈斯汀也談到了這一點。所以，這是兩者的結合。因此，對於我們來說，關稅部分，我們會透過扣除成本後的定價來解決所有問題。

Okay. So, you're not having any issues with passing that through?

好的。那麼，您在傳遞這些訊息時沒有遇到任何問題嗎？

No, not so far. Justin talked about -- saw that in Q2, OEs started raising their prices, and we started doing the same. And the value proposition is strong. We're not losing anything there. So really optimistic looking in the back half of the year of what we've got coming up.

不，目前還沒有。賈斯汀談到——看到第二季度，OE 開始提高價格，我們也開始這樣做。而且價值主張很強。我們並沒有失去任何東西。因此，我們對下半年的前景非常樂觀。

And then just let me sneak in one more quick one and then I'll jump off. Was there -- in the slide that you put in 17, has there been any change in the impact of ADAS on accident volumes from where you talked about during your Investor Day last year? Any change in that outlook that's been de minimis due to ADAS?

然後讓我再偷偷潛入一次，然後我就會跳下去。在您放入 17 號的幻燈片中，ADAS 對事故數量的影響與您去年投資者日期間談到的相比有什麼變化嗎？由於 ADAS，這種前景是否有所改變？

I mean the long-term outlook remains the same. If you compare on this chart, we're comparing 2022 -- or 2022 to '25, and so ADAS, the technology did have an impact on overall accidents. It was offset by just some of that kind of what I would call COVID snap back, more people getting back into the office, more miles traveled, more vehicles in operations.

我的意思是長期前景保持不變。如果您比較這張圖表，我們會比較 2022 年——或者 2022 年與 25 年，因此 ADAS 技術確實對整體事故產生了影響。它被我所說的 COVID 反彈所抵消，更多的人回到了辦公室，更多的行駛里程，更多的車輛投入運營。

So actuality, we saw the true accidents increase. Long term, we still see ADAS having a slight headwind on overall accidents, but -- once again, I think we've talked during Investor Day is even with the reduction in accidents from ADAS, the overall market, we're still seeing on the collision side growing for the next 10 years, when you look at ATU growth opportunity, you look at just part proliferation, more parts on the estimate, the ability for us to gain share and push price. So we still see the overall collision market being very strong for us.

因此，事實上，我們看到真實事故數量增加。從長遠來看，我們仍然認為 ADAS 對整體事故的影響略有阻力，但是——我再次強調，我認為我們在投資者日期間已經討論過，即使 ADAS 導致的事故減少，但就整體市場而言，我們仍然看到未來 10 年碰撞方面仍將增長，當您查看 ATU 增長機會時，您會看到零件份額、估計有更多價格激增、估計有更多價格激增。因此，我們仍然認為整體碰撞市場對我們來說非常強勁。

Jash Patwa, JPMorgan.

摩根大通的 Jash Patwa。

I was hoping to just talk to the right to appraisal legislation in some key states like Texas and New Jersey. Could you maybe talk about the implications from a repairable claims standpoint? And whether this could move the needle on total loss frequencies if adopted by more states? And I have a follow-up.

我希望談論德克薩斯州和新澤西州等一些關鍵州的評估權立法。您能否從可修復索賠的角度談談其影響？如果更多州採用此措施，是否會對總損失頻率產生影響？我還有一個後續問題。

Yes. Thanks, Jash. I mean, obviously, those are pretty new in Texas and in New Jersey. It's kind of too soon for us to tell. At the end of the day, it's creating a benefit to consumers to dispute concerns with the insurance company on the appraisal to your point or the total loss value. So, my guess is most consumers would want a higher total loss. And typically, when there's a higher total loss amount, that leads to more repairable claims. So as of now, we haven't seen any impact to that.

是的。謝謝，賈什。我的意思是，顯然，這些在德克薩斯州和新澤西州都是相當新的。現在下結論還為時過早。歸根結底，與保險公司就您的評估或總損失價值提出爭議會給消費者帶來好處。因此，我猜測大多數消費者都希望總損失更高。通常，總損失金額越高，可修復的索賠就越多。因此到目前為止，我們還沒有看到任何影響。

I will say we do have our own government affairs department that that helps us navigate through some of these things, making sure that consumers have a choice in getting their vehicle repaired with alternative parts. And so, we're pretty actively monitoring that, but nothing that we've seen so far, Jash, has an impact to us.

我想說的是，我們確實有自己的政府事務部門，可以幫助我們處理其中的一些問題，確保消費者可以選擇使用替代零件來修復他們的車輛。因此，我們正在非常積極地監控這一點，但到目前為止，我們還沒有看到任何對我們產生影響的事情，Jash。

That's helpful. Could you maybe talk about the production flexibility of some of your key suppliers? Many aftermarket peers have shared their intentions to relocate production to Mexican facilities and mitigate the tariff impact from USMCA compliance. Is that something you're seeing with your vendor base? And if you could just provide some more flavor on these conversations you're having?

這很有幫助。您能否談談一些主要供應商的生產彈性？許多售後市場同行已表達了將生產遷至墨西哥工廠並減輕 USMCA 合規性帶來的關稅影響的意圖。您在供應商群體中看到過這種情況嗎？您能否為正在進行的這些對話提供一些更有趣的內容？

Yes. I mean a lot of the aftermarket collision has historically always been in Taiwan. We do have some -- those Taiwanese manufacturers that have production in the states. Some have looked at Mexico. The real benefit we've got, obviously, if you look at salvage, we have no tariff on that. So, there's no impact on that. It's creating a good opportunity for us and a better value proposition. But as of now, I think in some cases, a lot of the manufacturers are waiting to see what happens with the final tariff. So no major movement yet.

是的。我的意思是，歷史上很多售後市場的碰撞事故都發生在台灣。我們確實有一些在美國有生產的台灣製造商。有些人關注的是墨西哥。顯然，我們獲得的真正好處是，如果你看看打撈物，我們對此沒有關稅。所以，這沒有影響。這為我們創造了良好的機會和更好的價值主張。但截至目前，我認為在某些情況下，許多製造商都在等待最終關稅的結果。因此目前還沒有重大動靜。

Got it. If I could just sneak one more in. Could you maybe just provide a breakdown of the collision versus non-collision organic revenue growth in North America? I believe you called out non-collision revenue to be strong in the second quarter. Just wondering if you could put some numbers around that, please.

知道了。如果我能再偷偷溜進去一個就好了。您能否提供一下北美碰撞和非碰撞有機收入成長的明細？我相信您說過第二季非碰撞險收入將會強勁。我只是想知道您是否可以提供一些數字來說明這一點。

Yes, Jash, we haven't typically given numbers out specifically for that. What Justin talked about was volume for aftermarket parts was actually up in the quarter. So aftermarket volume was up a bit. What we are seeing is on the downside, things that are kind of the last thing to do within the repair, which is paint as a good example. That's down greater than what even the repairable claims are because that is essentially the last piece of the overall repair.

是的，賈什，我們通常不會特別為此給出數字。賈斯汀談到的是，本季售後零件的銷量實際上有所上升。因此售後市場交易量略有上升。我們看到的缺點是，有些事情是修復過程中最後要做的事情，而油漆就是一個很好的例子。這比可修復索賠的降幅還要大，因為這基本上是整體修復的最後一部分。

So if you think about the repair cycle and what we've got going on, you can look at hard parts. Hard parts is better than the negative 2.5% -- 2.2% that we put in for the quarter. And then you've got also things like aftermarket parts are better, but we are seeing a little bit in some of our major mechanicals that are down a bit more than what we had expected before. And typically, that happens when used car prices flatlined and some of the car park is getting a little bit older, the decision to actually repair that engine is something that the consumer is weighing.

因此，如果您考慮修復週期以及我們正在進行的工作，您就可以看到困難的部分。硬體部分比我們本季的-2.5%-2.2%要好。然後你也會發現售後零件市場的情況有所好轉，但我們發現一些主要機械部件的降幅比我們之前預期的要大一些。通常，當二手車價格持平並且一些停車場變得有點舊時，就會發生這種情況，消費者需要權衡是否要真正修理引擎。

Bret Jordan, Jefferies.

布雷特·喬丹，傑富瑞。

Follow-up on the IAA SYNETIQ partnership in the UK. Is there a CapEx involved in that? Do you need to build the dismantling yards to create alternative collision parts or is that on their infrastructure?

跟進英國 IAA SYNETIQ 合作夥伴關係。這其中是否涉及資本支出？您是否需要建造拆解場來製造替代碰撞部件，還是在其基礎設施上建造？

That's on their existing infrastructure. The partnership is great for us. I mean the -- they need a sales arm. They need a good distribution model. We provide that in the UK and we're the best in that. We're the number one collision parts provider on the aftermarket side. So being able to take some of those products and move into our network, and it was -- so really no capital expenditure. It was already set up on their infrastructure side.

這是在他們現有的基礎設施上。這次合作對我們來說非常有益。我的意思是──他們需要一個銷售部門。他們需要一個良好的分銷模式。我們在英國提供這項服務，我們是最好的。我們是售後市場上排名第一的碰撞零件供應商。因此，能夠將其中一些產品納入我們的網絡，而且實際上不需要資本支出。它已經在他們的基礎設施方面建立起來了。

Can you remind us what you're doing in collision revenues in the UK now, so we can benchmark that?

您能否提醒我們您目前在英國的碰撞收入所做的工作，以便我們可以對此進行基準測試？

We haven't provided that in the past, but it's something less than $100 million, I think, is what we've got. It's parts alone. Yes, it would be well over 100, yes, with paint and everything, it's a little bit different, Bret.

我們過去沒有提供過這樣的援助，但我認為，我們所得到的援助金額不到 1 億美元。它只是零件而已。是的，它會遠遠超過 100，是的，加上油漆和其他東西，它有點不同，布雷特。

(Operator Instructions)

（操作員指示）

Scott Stember, ROTH.

斯科特·斯坦伯，羅斯。

Just a follow-up on tariffs. I'm not sure if you said, but I think you said $35 million was the headwind in the quarter. Is that what you needed to offset? And just trying to get a sense of -- coming out of last quarter, the narrative was that you guys could more or less offset or it would be very, very manageable for you. Are you changing that narrative at this point right now?

這只是對關稅的後續關注。我不確定您是否這麼說過，但我認為您說的是 3500 萬美元是本季的阻力。這就是您需要抵消的嗎？只是想了解一下——從上個季度的情況來看，你們的情況或多或少可以抵消，或者這對你們來說非常非常容易管理。您現在要改變這種說法嗎？

The $35 million -- I'll take the first part and then you can take the second. The $35 million, Scott, was what is sitting in inventory at the end of Q2. So that's not what went through the P&L. It was minimal impact within the P&L as far as the cost side goes, and we've offset that with pricing. So, we think that, that will happen in the back half. So nothing's changed as far as what we talked about before. The numbers are roughly about the same as what we disclosed back in Q1. And then we'll continue to monitor.

3500 萬美元——我拿第一部分，然後你拿第二部分。斯科特，3500 萬美元是第二季末的庫存。所以這不是損益表中的內容。就成本方面而言，它對損益表的影響微乎其微，我們已經透過定價抵消了這一影響。所以，我們認為，這將在後半段發生。所以就我們之前談論的內容而言，沒有任何改變。這些數字與我們在第一季揭露的數字大致相同。然後我們將繼續監控。

And the one thing that we need to figure out and are going to continue to drive is the impact of trade working capital with the increase in tariffs is something we're going to have to mitigate and figure out how to do that in the back half of the year.

我們需要弄清楚並將繼續推動的一件事是，關稅增加對貿易營運資本的影響是我們必須減輕的，並在今年下半年想出如何做到這一點。

But from pushing it through pricing, Scott, there's been no issue. What we talked about last quarter was we're confident we can mitigate it, at least push the price to cover the tariffs. Historically, what we've always done is made margins on top of that. And so that's kind of yet to be known -- there's some uncertainty there, but there's no concern for us on the tariff increase on the cost side, being able to pass that through.

但從定價來看，斯科特，沒有任何問題。我們上個季度談到的是，我們有信心可以減輕影響，至少可以提高價格以覆蓋關稅。從歷史上看，我們一直以來所做的就是在此基礎上賺取利潤。所以這還有待確定——存在一些不確定性，但我們並不擔心成本方面的關稅上漲，因為我們能夠將其轉嫁出去。

We currently have no further questions. I will hand back to Justin Jude for any closing remarks.

目前我們沒有其他問題。我將發言交還給賈斯汀·裘德 (Justin Jude) 做結束語。

Thanks, operator.

謝謝，接線生。

I'll just -- in closing, even with the challenge that we talked about on repairable claims in North America, I just want to give a shout out to the team in North America. I mean they absolutely crushed it, outperformed the market by 650 bps. There's no team better than ours globally. And we're set up and poised to take advantage once the market recovers.

最後，儘管我們談到了北美可修復索賠的挑戰，我還是想向北美團隊致敬。我的意思是他們絕對取得了勝利，表現比市場高出 650 個基點。在全球範圍內沒有比我們更好的團隊。一旦市場復甦，我們就已做好準備並充分利用這一優勢。

In our Europe team. One thing I was just over there a month ago, really enjoyed meeting with some of our new key leaders, working with them on some of the cost-cutting actions. They're focused on executing against a three-year strat plan, but the integration and transformation of that company is hard, a lot of work to do, but they've got the right skill set and mindset and I'm excited to see what they can deliver and unlock that significant opportunity.

在我們的歐洲團隊中。一個月前我剛去過那裡，很高興能與我們的一些新的關鍵領導人會面，並與他們一起研究一些削減成本的措施。他們專注於執行三年戰略計劃，但該公司的整合和轉型很困難，還有很多工作要做，但他們擁有正確的技能和思維方式，我很高興看到他們能夠取得成果並釋放這一重大機會。

From overall in a strategy plan for simplifying the portfolio, we're still active on that. So more to come. And obviously, it's been a challenging market for our employees. So I just want to say thank you to all the employees that helped us deliver and continue to deliver every day. And so with that, I'll end the call. Thanks, everyone, for your time today.

從整體來看，在簡化投資組合的策略計畫中，我們仍在積極推進。未來還會有更多。顯然，對我們的員工來說，這是一個充滿挑戰的市場。所以我只想對所有幫助我們完成任務並繼續每天完成任務的員工說聲謝謝。就這樣，我將結束通話。謝謝大家今天抽出時間。

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。