Boyd Group Services (TSE:BYD) used its fourth-quarter and year-end 2025 earnings call to highlight a return to positive same-store sales in the second half of the year, margin expansion tied to Project 360 cost initiatives, and early progress integrating the recently closed Joe Hudson’s Collision Center acquisition.
2025 results show margin expansion despite mixed industry backdrop
Management said fiscal 2025 was “busy and highly successful,” pointing to stronger execution in the second half of the year following earlier work to implement Project 360, an enhanced go-to-market strategy, and a “more localized customer service approach.” CEO Brian Kaner said those initiatives, along with improving repairable claims trends, supported a return to positive same-store sales growth in the second half of 2025 that continued into early 2026.
CFO Jeff Murray said annual same-store sales declined 0.2%, but noted 2025 had one fewer selling and production day versus 2024, which reduced capacity by about 0.4%. He added that Boyd outperformed an estimated 5%-7% industry decline in repairable claims during the year.
Net earnings for 2025 were CAD 18.4 million, down from CAD 24.5 million a year earlier. Murray attributed the decline in part to CAD 22.6 million of acquisition and transformation costs (net of tax), including CAD 9.1 million tied to the Joe Hudson’s transaction and CAD 9.9 million related to Project 360 implementation. Adjusted net earnings increased 28.8% to CAD 62.4 million, and adjusted EPS rose to CAD 2.78 from CAD 2.26.
Q4: positive same-store sales and sharp EBITDA growth
In the fourth quarter, Boyd reported sales of CAD 793.9 million, up 5.5% year-over-year. Same-store sales (excluding foreign exchange) increased 2.2%, and the company cited CAD 26.9 million of incremental sales from 83 new locations not in operation for the full comparative period.
Adjusted EBITDA increased 24.2% to CAD 103.6 million. Adjusted EBITDA margin rose to 13.1% from 11.1% in the prior-year quarter, which management attributed to improved same-store sales, benefits from internalizing scanning and calibration work, and Project 360 cost savings.
Gross margin improved to 46.3% in Q4 2025 from 45.8% in Q4 2024. Murray said the improvement reflected internalization of scanning and calibration, higher parts margins, and stronger performance-based pricing. He said parts margin gains were driven by Project 360 initiatives, while performance-based pricing improved due to stronger alignment across regional teams to meet insurer-specific KPIs.
Operating expenses were 33.3% of sales, down 150 basis points year-over-year, aided by Project 360 and operating leverage from the return to positive same-store sales growth. Murray also cautioned about sequential comparisons into Q1 2026, citing higher payroll taxes early in the year and that Q4 benefited from reductions in expense accruals as estimates were finalized at lower-than-accrued amounts.
Q4 net earnings were CAD 4.8 million versus CAD 2.4 million a year earlier. Adjusted net earnings were CAD 22.8 million, or CAD 0.90 per share, compared with CAD 10.8 million, or CAD 0.50 per share, in the prior-year quarter. Management said adjusted net earnings now exclude amortization of intangibles from acquisitions beginning in Q4 2025, and prior periods were restated for consistency.
Industry conditions improving; storms created a short-term Q1 disruption
Management reiterated that industry headwinds affecting repairable claims moderated through 2025. Kaner said estimated declines in claims activity improved from 9%-10% in Q1 2025 to 2%-4% by Q4, and he said the improvement continued into 2026, with auto insurance premium growth now running below CPI, carriers implementing rate reductions, and used car prices increasing.
On Q1 2026 trends, Kaner said winter storms benefited northern regions but were partially offset by unusual storm activity in the southern U.S., which reduced driving activity and led to a short-term dip in volume in southern locations, including Joe Hudson’s. He described the impact as isolated to “a couple day period” and said volumes in the south normalized as the quarter progressed, with overall same-store sales “tracking similar to Q4 levels” so far.
In response to analyst questions, management declined to provide a March run-rate, but said activity rebounded quickly into February. Kaner also said Q4 same-store sales were affected by increased technician vacation time and holiday timing, emphasizing it was not a demand issue but a throughput constraint.
Growth strategy: new locations, small MSO acquisitions, and Joe Hudson’s integration
Boyd said it continued to expand its footprint in 2025, opening 70 new locations, including 27 startups and 43 acquired locations. Looking ahead, the company expects to open eight new locations in Q1 2026 and has 24 additional locations in development for the remainder of the year. Kaner told analysts the company expects total growth of 80-100 units in 2026, with 32 startup locations already planned and the remainder expected to come from acquisitions or additional startups.
In 2025, Boyd completed four small MSO acquisitions, including L&M Body Shop in Virginia and additional acquisitions in Nevada, Hawaii, and Nova Scotia. Kaner said the Nova Scotia transaction represented Boyd’s entry into that province and underscored its commitment to continued growth in Canada. He characterized the acquisition pipeline as “very robust” and said the competitive landscape has become less competitive, which he suggested favors buyers.
Project 360 and Joe Hudson’s: integrated cost program and synergy timeline
Kaner said Boyd delivered on Project 360’s 2025 targets, realizing CAD 40 million in annualized cost savings in 2025 from its indirect staffing model and procurement savings. Going forward, Boyd will report Project 360 savings and Joe Hudson’s synergies together as a single integrated cost program totaling CAD 140 million, consisting of the CAD 100 million Project 360 plan and approximately CAD 40 million of expected Joe Hudson’s synergies.
Management’s timeline for Project 360 savings included:
- CAD 40 million realized in 2025
- CAD 50 million expected in 2026
- Remaining savings expected between 2027 and 2029
Boyd closed the Joe Hudson’s acquisition in early January 2026, and Kaner said integration is proceeding in line with expectations. The company’s initial focus has been IT platform and branding conversions. After converting six stores in the first week, Boyd increased the pace to roughly 30 stores per week. Management said about 44% of stores have been converted and expects remaining conversions to be completed early in Q2 2026.
Kaner said Boyd has already begun realizing procurement-related synergies and remains on track to achieve about 50% of the CAD 35 million to CAD 45 million expected synergies in 2026. He added that while some synergy items may skew later in the year, procurement savings began around the time of closing and should be visible as early as Q1.
Murray said the company’s 2026 capital expenditures (excluding acquisition-related development of new locations) are planned at 1.6%-1.8% of sales. He also said Boyd expects to incur about $30 million related to the Joe Hudson’s acquisition and planned network technology updates, along with one-time costs for Project 360 and Joe Hudson’s synergy realization. Project 360 “cost to achieve” is expected to total CAD 20 million to CAD 23 million (with CAD 13.4 million incurred in 2025), and one-time costs to achieve Joe Hudson’s synergies are estimated at approximately CAD 30 million.
On the balance sheet, Murray said Boyd ended 2025 with total debt net of cash of CAD 488.1 million, down from CAD 1.28 billion at the end of Q3 2025. He attributed the change to proceeds from a CAD 525 million senior unsecured note offering and an $897 million U.S. bought deal IPO, which reduced credit facility draws and helped fund the $1.3 billion Joe Hudson’s acquisition that closed on Jan. 9, 2026.
About Boyd Group Services (TSE:BYD)
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 .
