Boyd Group Services Inc. Reports Second Quarter 2026 Results
Rhea-AI Summary
Boyd Group Services (NYSE: BGSI) reported Q2 2026 sales of $1,013.7 million, up 29.9% year-over-year, with gross margin rising to 47.4% and Adjusted EBITDA increasing 44.9% to $135.9 million, expanding Adjusted EBITDA margin to 13.4%.
New locations contributed $211.3 million of revenue alongside 2.9% same-store sales growth. Adjusted net earnings rose 46.7% to $22.4 million, though net earnings declined to $1.3 million due to higher depreciation, amortization and finance costs from growth and the Joe Hudson's acquisition. Boyd realized $15 million of incremental Q2 cost savings from Project 360 and synergies, $35 million year-to-date, completed conversion of 258 Joe Hudson's locations, and improved pro forma debt leverage to 2.8x from 3.1x at 2025 year-end.
Positive
- Sales +29.9% to $1,013.7 million in Q2 2026
- Adjusted EBITDA +44.9% to $135.9 million; margin up to 13.4%
- Adjusted net earnings +46.7% to $22.4 million; EPS $0.80
- $211.3 million revenue from 340 new locations plus 2.9% same-store growth
- $15 million Q2 and $35 million H1 2026 cost savings from Project 360 and synergies
- Pro forma leverage improved to 2.8x from 3.1x at end of 2025
Negative
- Net earnings fell to $1.3 million from $5.4 million in Q2 2025
- Six‑month net loss of $6.6 million versus prior‑year profit of $2.8 million
- Higher depreciation and finance costs linked to new locations and Joe Hudson’s acquisition
- Temporary sales disruptions from Joe Hudson’s conversion continuing into Q3 2026
- Industry repairable-claims volumes estimated flat to down 2% year-over-year
News Explained
The 2026 savings target rose to $65 million, but $35 million is expected from 2027–2029 amid temporary conversion-related sales disruption.
The Boyd Group raised its expected 2026 cost-savings total to
It reports
Management says temporary sales disruptions from the conversion continued into the third quarter, while it expects three start-up locations in the third quarter and has 10 more targeted for the fourth quarter.
The stated checkpoints are the third-quarter sales effect from the conversion and whether the planned start-up locations are completed in their targeted quarters.
News Market Reaction – BGSI
In the Aug 12 session, BGSI gained 2.29%, reflecting a moderate positive market reaction. Argus tracked a trough of -15.6% from its starting point during tracking. Our momentum scanner triggered 44 alerts that day, indicating elevated trading interest and price volatility. Trading volume was exceptionally heavy at 11.6x the daily average, suggesting very strong buying interest.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Mar 18 | 4Q25 earnings | Positive | -13.2% | Strong annual sales and adjusted earnings were offset by acquisition and financing costs. |
| Nov 12 | 3Q25 earnings | Positive | +6.6% | Sales and adjusted EBITDA growth accompanied Joe Hudson acquisition and network expansion. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were mixed, with one positive alignment and one divergence; the average move was -3.29%.
Key Terms
adjusted ebitda financial
same-store sales financial
non-gaap financial measures financial
pro forma debt leverage financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
Delivering Strong Sales Growth, Margin Expansion and Accelerated Synergy Realization
Second Quarter 2026 Highlights
- Sales increased
29.9% to$1,013.7 million - Adjusted EBITDA1 increased
44.9% to$135.9 million 13.4% - New locations contributed
$211.3 million 2.9% same-store sales1 growth - Achieved
$15 million - Joe Hudson's synergy realization ahead of schedule following completion of shop conversion
- Pro forma debt leverage improved to 2.8x from 3.1x at the end of 2025
"The Boyd team delivered another strong quarter, with sales increasing
We also successfully completed the conversion of Joe Hudson's 258 locations during the quarter, accelerating synergy realization, which contributed to the strength in our profitability. Combined with our strong balance sheet, these achievements position us well to continue executing our growth strategy, enhancing profitability and creating long-term value for our shareholders." - Brian Kaner, President & CEO of the Boyd Group
1 Same-store sales, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures and ratios and are not standardized financial measures under International Financial Reporting Standards and might not be comparable to similar financial measures disclosed by other issuers. For additional details, including a reconciliation of each non-GAAP financial measure to its nearest GAAP equivalent, please see "Non-GAAP financial measures and ratios" section of this news release. |
Financial And Operational Highlights | Three months ended June 30, | Six months ended June 30, | ||||
(thousands of | 2026 | 2025 | Y/Y Change | 2026 | 2025 | Y/Y Change |
Financial Highlights | ||||||
Sales | 1,013,652 | 780,407 | 30 % | 2,010,328 | 1,558,730 | 29 % |
Gross margin | 47.4 % | 46.8 % | 60 bps | 46.9 % | 46.5 % | 40 bps |
Adjusted EBITDA (1) | 135,932 | 93,786 | 45 % | 258,317 | 174,331 | 48 % |
Adjusted EBITDA margin (1) | 13.4 % | 12.0 % | 140 bps | 12.8 % | 11.2 % | 160 bps |
Net earnings (loss) | 1,291 | 5,422 | (76) % | (6,635) | 2,785 | N/A |
Basic and diluted loss per share | 0.05 | 0.25 | (80) % | (0.24) | 0.13 | N/A |
Adjusted net earnings (1)(2) | 22,403 | 15,267 | 47 % | 38,462 | 21,841 | 76 % |
Adjusted net earnings per share (1)(2) | 0.80 | 0.71 | 13 % | 1.38 | 1.02 | 35 % |
Operational Highlights | ||||||
Same-store sales growth (1) | 2.9 % | (2.1) % | 2.2 % | (2.5) % | ||
New locations added | 10 | 8 | 279 | 17 | ||
From multi-location acquisitions | -- | 258 | -- | |||
From single shop acquisitions | 4 | 4 | 7 | 7 | ||
From start-up locations | 6 | 4 | 14 | 10 | ||
Collision location count at period end | 1,321 | 991 | 33 % | 1,321 | 991 | 33 % |
(2) | Comparative figures have been restated to conform with current period presentation |
Q2 2026 Results
(Second quarter 2026 compared to second quarter of 2025)
Sales increased
Gross profit increased by
Adjusted EBITDA1 increased
Net earnings was
Adjusted net earnings1 increased
The conversion of Joe Hudson's locations was completed during the quarter, with the timing of synergy realization coming in ahead of expectations. During the second quarter, Boyd realized an incremental
Boyd added ten new locations during the quarter, including four single shop acquisitions and six new start up locations.
___________________________________ |
1Same-store sales, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures and ratios and are not standardized financial measures under International Financial Reporting Standards and might not be comparable to similar financial measures disclosed by other issuers. For additional details, including a reconciliation of each non-GAAP financial measure to its nearest GAAP equivalent, please see "Non-GAAP financial measures and ratios" section of this news release. |
Outlook
Industry repairable-claims volumes showed continued stabilization during the second quarter of 2026. Based on second quarter claims-processing data, the Company estimates that repairable-claims volumes were flat to down
Against this backdrop, Boyd continued to outperform underlying industry volumes and gain market share. This performance reflects the strength of the Company's insurer relationships and underscores the competitive advantage of Boyd's scale and business model. These share gains delivered positive same-store sales growth for the quarter, with only limited contribution from total cost of repair ("TCOR") growth.
In July 2026, same-store sales growth was positive in the low single digits, driven entirely by continued share gains. While TCOR growth continues to face well-documented, short-term transitory pressures, long-term structural tailwinds remain intact. Given the inherent monthly and quarterly variability the Company evaluates same-store sales over longer periods and does not view any single period as indicative of sustainable market share expansion or multi-year strategic targets. Looking ahead, Boyd's scale and network allows it to invest in superior client capabilities, providing multiple company-specific growth paths independent of any single industry variable.
Boyd remains focused on strengthening its position as a leading direct repair program multi-shop operator by deepening insurer relationships, improving opportunity capture and capacity utilization, and expanding its presence in priority markets. The Company expects these initiatives to support continued growth and additional share gains. Boyd also intends to complement organic growth through disciplined acquisitions and new-location development, together with continued investment in glass, scanning, calibration and other adjacent capabilities, while maintaining balance-sheet flexibility.
The Company is accelerating its Project 360 and acquisition cost savings target of
The conversion of Joe Hudson's location was successfully completed in the second quarter, establishing a stronger operating foundation and driving meaningful year-over-year profit growth. While the transition has resulted in some temporary sales disruptions that have continued into the third quarter, initiatives focused on throughput and local market execution are driving revenue on a more profitable foundation.
The Company expects to open three new start-up locations during the third quarter and currently has an additional 10 start-up locations targeted for completion in the fourth quarter. Organic expansion is expected to be complemented by single-location acquisitions, supported by the Company's strong balance sheet.
2026 Second Quarter Conference Call & Webcast
Management will hold a conference call on Wednesday, August 12, 2026, at 8:00 a.m. (ET) to review the Company's 2026 second quarter results. You can join the call by dialing 1-833-461-5787 or 1-585-542-9983.
A live audio webcast of the conference call will be available at https://events.q4inc.com/attendee/789326895. An archived replay of the webcast will be available for 90 days on the Boyd Group's website https://www.boydgroup.com.
About Boyd Group Services Inc.
Boyd Group Services Inc. is a Canadian corporation and controls The Boyd Group Inc. and its subsidiaries. Boyd Group Services Inc. shares trade on the Toronto Stock Exchange (TSX) under the symbol BYD.TO and the New York Stock Exchange (NYSE) under the symbol BGSI. For more information on The Boyd Group Inc. or Boyd Group Services Inc., please visit our website at https://www.boydgroup.com.
About The Boyd Group Inc.
Boyd Group Services Inc. ("BGSI"), through its operating company, The Boyd Group Inc. and its subsidiaries ("Boyd" or the "Company"), is one of the largest operators of non-franchised collision repair centers in
Non-GAAP Financial Measures and Ratios
Same-store sales, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures and ratios, which are not standardized measures under International Financial Reporting Standards ("IFRS") and therefore may not be comparable to similar measures disclosed by other issuers. Boyd's management uses certain non-GAAP financial measures to evaluate the performance of the business and to reward employees. These non-GAAP should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS, such as net earnings or sales in measuring the performance of Boyd.
The following is a reconciliation of Boyd's non-GAAP financial measures and ratios used in this release:
SAME-STORE SALES
Same-store sales is a non-GAAP measure that includes only those locations in operation for the full comparative period. Same-store sales is presented excluding the impact of foreign exchange fluctuation on the current period.
Three months ended June 30, | Six months ended June 30, | |||
(thousands of | 2026 | 2025 | 2026 | 2025 |
Sales | $ 1,013,652 | $ 780,407 | $ 2,010,328 | $ 1,558,730 |
Less: | ||||
Sales from locations not in the comparative period | (211,748) | (465) | (421,675) | (6,276) |
Sales from under-performing facilities closed during the period | — | (377) | — | (1,240) |
Foreign exchange | (32) | — | (2,924) | — |
Same-store sales (excluding foreign exchange) | $ 801,872 | $ 779,565 | $ 1,585,729 | $ 1,551,214 |
ADJUSTED EBITDA
EBITDA represents an indication of the Company's capacity to generate income from operations before taking into account management's financing decisions and costs of consuming tangible and intangible capital assets, which vary according to their vintage, technological age and management's estimates of their useful life. EBITDA comprises sales less operating expenses before finance costs, capital asset amortization and impairment charges, and income taxes.
Adjusted EBITDA is calculated to exclude items of an unusual nature that do not reflect normal or ongoing operations of BGSI and which should not be considered in a valuation metric or should not be included in an assessment of the ability to service or incur debt. Included as an adjustment to EBITDA are acquisition and transformational cost initiative expenses and fair value adjustments to contingent consideration and financial instruments which do not have a cash impact. These adjustments do not relate to the current operating performance of the business units but are typically costs incurred to expand operations as well as execute transformational plans. Acquisition and transformational costs include transaction costs in acquiring and integrating a business acquisition and other non-recurring costs related to the execution of Project 360. From time to time BGSI may make other adjustments to its Adjusted EBITDA for items that are not expected to recur. Management believes that in addition to net earnings and cash flows, Adjusted EBITDA is useful to readers to provide an indication of earnings from operations and cash available for distribution, both before and after debt management , productive capacity maintenance and non-recurring and other adjustments.
Adjusted EBITDA margin is a measure of operating profit that can be used to assess Boyd's operational performance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total sales.
Three months ended June 30, | Six months ended June 30, | ||||
(thousands of | 2026 | 2025 | 2026 | 2025 | |
Net earnings (loss) | $ 1,291 | $ 5,422 | $ (6,635) | $ 2,785 | |
Add: | |||||
Finance costs | 30,760 | 18,023 | 60,835 | 35,855 | |
Income tax expense | 2,023 | 2,851 | 1,357 | 2,561 | |
Depreciation of property, plant and equipment | 28,126 | 21,547 | 54,792 | 42,394 | |
Depreciation of right of use assets | 43,691 | 31,799 | 85,712 | 63,414 | |
Amortization of intangible assets | 20,032 | 6,868 | 32,457 | 13,548 | |
EBITDA | $ 125,923 | $ 86,510 | $ 228,518 | $ 160,557 | |
Add (deduct): | |||||
Fair value adjustments | (185) | — | (1,465) | 1 | |
Acquisition and transformational cost initiatives | 10,194 | 7,276 | 31,264 | 13,773 | |
Adjusted EBITDA | $ 135,932 | $ 93,786 | $ 258,317 | $ 174,331 | |
Sales | $ 1,013,652 | $ 780,407 | $ 2,010,328 | $ 1,558,730 | |
Adjusted EBITDA margin (%) | 13.4 % | 12.0 % | 12.8 % | 11.2 % | |
ADJUSTED NET EARNINGS
Adjusted net earnings means net earnings adjusted to add back fair value adjustments (non-taxable) and acquisition and transformational cost initiatives (net of tax). Commencing in the fourth quarter of 2025, and on a go-forward basis, the calculation of Adjusted net earnings also excludes amortization of intangibles arising on acquisitions. Amortization of intangible assets arising on acquisition is the result of the purchase price allocation on completion of an acquisition. There are no future capital expenditures associated with maintaining or replacing these intangible assets. Comparative periods have been restated to reflect this additional adjustment. BGSI believes that certain users of financial statements are interested in understanding net earnings excluding certain fair value adjustments and other items of an unusual or infrequent nature that do not reflect normal or ongoing operations of the Company. This can assist these users in comparing current results to historical results that did not include such items.
Adjusted net earnings per share means Adjusted net earnings, divided by our weighted average number of shares for the applicable period.
(thousands of | Three months ended June 30, | Six months ended June 30, | ||
2026 | 2025 | 2026 | 2025 | |
Net earnings (loss) | $ 1,291 | $ 5,422 | $ (6,635) | $ 2,785 |
Add (deduct): | ||||
Fair value adjustments (net of tax) | (137) | — | (1,084) | 1 |
Acquisition and transformational cost initiatives (net of tax) | 7,566 | 5,384 | 24,193 | 10,192 |
Amortization of intangibles arising on acquisitions (net of tax) | 13,683 | 4,461 | 21,987 | 8,863 |
Adjusted net earnings (1) | $ 22,403 | $ 15,267 | $ 38,462 | $ 21,841 |
Weighted average number of shares | 27,836,295 | 21,467,807 | 27,833,160 | 21,467,695 |
Adjusted net earnings per share (1) | $ 0.80 | $ 0.71 | $ 1.38 | $ 1.02 |
(1) Comparative figures have been restated to conform with current period presentation | ||||
Caution concerning forward-looking statements
Statements made in this press release, other than those concerning historical information, may be "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws of the
The forward-looking statements in this press release include, without limitation, statements regarding: Boyd's outlook and expectations regarding performance relative to industry peers; trends and industry conditions; execution of the Company's growth strategy and outlook; progress on Project 360 initiatives; the Company's financial metric goals, including for Adjusted EBITDA margin; growth opportunities presented by the Company's increased scale, greater market density, expanded platform and fragmentation; the Company's ability and expectations to open three start-up locations in the third quarter of 2026 with an additional ten locations to be added through year-end; execute on the pipeline of approximately eight to ten start-up locations per quarter; the Company's ability to activate the stores in its development pipeline for 2026; the Company's expectations for continued acquisition activity and the Company's ability to deliver sustained growth and value creation for shareholders and customers.
Forward-looking statements are subject to significant risks and uncertainties and are based on a number of assumptions and estimates. Forward-looking statements are based on certain assumptions and analyses made by Boyd concerning its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate. A number of factors could cause actual results, performance or achievement to differ materially from those discussed or implied in the forward-looking statements. Risks and uncertainties related to Boyd's business include, but are not limited to, risks and uncertainties relating to: acquisition and new location risk; employee relations and staffing; operational performance; brand management and reputation; market environment change; reliance on technology; corporate governance; decline in number of insurance claims; low capture rates; supply chain risk; margin pressure and sales mix changes; economic downturn; changes in client relationships; environmental, health and safety risk; climate change and weather conditions; pandemic risk; competition; access to capital; dependence on key personnel; tax position risk; increased government regulation and tax risk; fluctuations in operating results and seasonality; risk of litigation; execution on new strategies; insurance risk; interest rates;
We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Business Risks and Uncertainties" section of Boyd's Annual Information Form, the "Business Risks and Uncertainties" and other sections of our Management's Discussion and Analysis of Operating Results and Financial Position and our other periodic filings with Canadian securities regulatory authorities and the SEC from time to time, available at www.sedarplus.ca and www.sec.gov. All forward-looking statements presented herein should be considered in conjunction with such filings. Readers are cautioned not to place undue reliance on such forward-looking statements, as actual results may differ materially from those expressed or implied in such statements.
The forward-looking statements in this press release reflect the Boyd's current expectations, assumptions and/or beliefs based on information currently available, including with respect to such things as conditions in the collision and auto glass repair business, including weather, accident frequency, cost of repair, miles driven and available repairable vehicles; the Company's ability to complete the integration of acquired businesses within anticipated time periods and at expected cost levels; the Company's ability to achieve synergies arising from successful integration of acquired businesses; the impact of acquisitions on growth; the accuracy and completeness of the information (including financial information) regarding acquired businesses; the absence of significant undisclosed costs or liabilities associated with acquisitions; the successful implementation of margin improvement initiatives; the future performance and results of our business and operations; general economic conditions, industry forecasts and/or trends, the government and regulatory environment and potential impacts thereof. Although the Company believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with those expressed or implied in such forward-looking statements, and they should not be unduly relied upon. There can be no assurance that such expectations and assumptions will prove to be correct. The forward-looking statements contained in this presentation describe the expectations of the Company as of the date of this press release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement.
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SOURCE Boyd Group Services Inc.