Boyd Group Services Inc. Reports Third Quarter 2025 Results

Executive Summary

• Boyd Group Services reported Q3 2025 sales of $790.2 M (+5.0% YoY) and Adjusted EBITDA of $98.4 M (+22.8% YoY), marking a return to positive same‑store sales growth.
• Announced definitive agreement to acquire Joe Hudson’s Collision Center for $1.3 B, adding 258 locations in the U.S. Southeast; acquisition expected to close Q4 2025.
• Completed a $897 M bought‑deal IPO on NYSE and a C$525 M senior unsecured note offering to fund the Joe Hudson’s transaction; shares now trade under “BGSI”.

Key Details

• Financial Performance (Q3 2025 vs Q3 2024)
• Sales: $790.2 M vs $752.3 M (+5.0%).
• Same‑store sales growth: +2.4% (excluding FX).
• Gross profit: $365.9 M (+6.5%), margin 46.3% (up 0.6 pts).
• Adjusted EBITDA: $98.4 M (+22.8%); margin 12.4% (up 170 bps).
• Adjusted net earnings: $13.3 M vs $3.2 M; EPS adjusted $0.62 vs $0.15.

• Net earnings (GAAP): $10.8 M vs $2.9 M; EPS $0.51 vs $0.13.

• Capital Structure

• Debt, net of cash before lease liabilities: $521.0 M at Sept‑30 2025 (up from $505.8 M).

• Completed C$275 M unsecured note offering (used to repay existing indebtedness).

• Dividends

• Declared Q3 dividend: C$0.153 per share.

• Announced dividend increase of 2.0% to annualized $0.624 per share.

• Location Activity

• Surpassed 1,000 locations milestone.
• Added 24 collision‑repair sites (17 acquired, 7 start‑ups).

• Acquired L&M Body Shop (8 locations, including an intake center).

• Strategic Transactions

• Joe Hudson’s Collision Center acquisition: $1.3 B cash consideration; adds 258 locations, concentrated in U.S. Southeast; expected close Q4 2025.

• IPO & Debt Financing: $897 M bought‑deal IPO on NYSE (ticker “BGSI”) and C$525 M senior unsecured note offering to fund the acquisition.

• Outlook & Guidance

• Anticipates opening ~13 new start‑up locations in Q4 2025 plus 18 in development through Sept 30 2026.
• Projected synergies from Joe Hudson’s integration: $35–$45 M, half realized near‑term, remainder by 2028.
• Cost transformation plan (Project 360) on track: >$30 M annualized run‑rate savings achieved; target $70 M by end‑2026, $100 M by end‑2029.

Notable Quotes

• Brian Kaner, President & CEO: “We signed a definitive agreement to acquire Joe Hudson’s… successfully completed a $897 million bought‑deal IPO… and achieved a return to positive same‑store sales… These milestones represent an exciting chapter of growth.”
• Kaner on acquisition synergy: “Total synergies are projected to range between $35‑$45 million, with approximately 50% anticipated in the near term and the balance by 2028.”