Boyd Group Services Reports Thriving Third Quarter of 2025 with Strategic Acquisitions

Overview of Boyd Group Services Inc.

Boyd Group Services Inc. (TSX: BYD, NYSE: BGSI) is a notable player in the collision repair industry, operating one of the largest networks of non-franchised repair centers across North America. Recently, Boyd released its results for the third quarter of 2025, underscoring significant operational growth and strategic advancements.

Financial Highlights of Q3 2025

The Boyd Group experienced a commendable 5.0% increase in total sales, reaching $790.2 million, up from $752.3 million in the same period last year. This uptick can be attributed to a 2.4% rise in same-store sales and a substantial contribution of $22.2 million from newly opened locations. In terms of gross profit, the company registered a 6.5% improvement, amounting to $365.9 million or 46.3% of sales, compared to $343.6 million (45.7% of sales) during Q3 2024.

Adjusted EBITDA surged by 22.8% to $98.4 million, markedly increasing the adjusted EBITDA margin from 10.7% to 12.4%. The adjusted net earnings soared 309.4% to $13.3 million, a stark contrast to the $3.2 million recorded in the same quarter of 2024. Additionally, the company announced a dividend of C$0.153 per share, alongside a significant milestone of surpassing 1,000 locations.

Strategic Acquisitions and Future Growth

One of the pivotal developments reported is the company's agreement to acquire Joe Hudson's Collision Center for $1.3 billion. This acquisition is anticipated to expand Boyd's operational footprint with 258 new locations, primarily in the Southeastern United States. Boyd's strategic entrance into this market not only enhances its geographic diversification but also positions the company to leverage operational synergies, further solidifying its market leadership.

In conjunction with the acquisition announcement, Boyd also successfully completed a $897 million initial public offering in the U.S. and a C$525 million senior unsecured note offering to finance the Joe Hudson's acquisition. This robust capital raise is set to bolster Boyd's growth strategy as it aims to integrate and optimize the operations of the newly acquired locations.

Market Performance and Industry Trends

In the wider industry, Boyd observed a notable recovery in same-store sales growth amidst moderating trends in insurance costs and a rebound in used vehicle prices, indicating a more favorable environment for collision repair services. The company reported a reduced decline in repairable claims volume, allowing it to outperform the industry average during this quarter.

Boyd's Project 360 cost transformation initiative continues to generate meaningful progress, yielding over $30 million in annualized run-rate savings. The company anticipates reaching total annualized run-rate savings of $70 million by the end of 2026, effectively enhancing its operating profitability through greater procurement efficiencies and optimized scale.

Conclusion

The third quarter of 2025 marks a transformative period for Boyd Group Services, characterized by substantial growth in sales and strategic positioning through key acquisitions. Brian Kaner, the company's President and CEO, emphasized the importance of these achievements and the critical role played by Boyd's dedicated team. As it moves forward, Boyd is well-positioned for sustained growth, thanks to its strategic initiatives and expanded operational capabilities.

In summary, Boyd Group Services Inc. showcases a vigorous approach to enhancing its market footprint while delivering solid financial results—a true testament to the company's resilience and forward-thinking strategies in the collision repair industry.