Boyd Group Services Inc. Reports Fourth Quarter and Full Year 2025 Results

Executive Summary

• Boyd Group Services Inc. reported its Fourth Quarter and Full Year 2025 financial results, highlighting a strong finish to the year with positive same-store sales growth for the second consecutive quarter and significant margin expansion.
• The company completed the acquisition of Joe Hudson's Collision Center for $1.3 billion, adding 258 locations in the U.S. Southeast, and successfully listed its shares on the New York Stock Exchange under the symbol "BGSI."
• Full-year Adjusted EBITDA increased 12.4% to $376.3 million, while Adjusted net earnings rose 28.8% to $62.4 million, driven by disciplined execution of the "Project 360" growth strategy and integration of new locations.

Key Details

• Full Year 2025 Financials:
  • Sales: Increased 2.4% to $3.14 billion (from $3.07 billion in 2024).
  • Same-Store Sales: Declined 0.2% year-over-year, impacted by one fewer selling/production day in 2025, though Q4 2025 saw positive same-store sales growth.
  • Adjusted EBITDA: Increased 12.4% to $376.3 million (from $334.8 million in 2024); Margin expanded to 12.0% from 10.9%.
  • Adjusted Net Earnings: Increased 28.8% to $62.4 million (from $48.5 million in 2024); Adjusted EPS increased 23.0% to $2.78 (from $2.26).
  • Net Earnings: Decreased 25.0% to $18.4 million (from $24.5 million in 2024), impacted by $22.6 million in acquisition and transformational costs.
  • Operating Cash Flow: Increased to $353.0 million from $313.3 million in 2024.
• Q4 2025 Financials:
  • Sales: $793.9 million (up 5.5% from $752.3 million in Q4 2024).
  • Same-Store Sales: Increased 2.2% year-over-year.
  • Adjusted EBITDA: $103.6 million (up 24.2% from $83.4 million); Margin expanded to 13.1% from 11.1%.
  • Adjusted Net Earnings: $22.8 million (up 110.4% from $10.8 million); Adjusted EPS of $0.90 (up 80.0% from $0.50).
  • Net Earnings: $4.8 million (up 96.2% from $2.4 million).
• Strategic Transactions & Financing:
  • Joe Hudson's Acquisition: Completed the purchase of Joe Hudson's Collision Center for $1.3 billion (subject to post-closing adjustments). The acquisition added 258 locations in the U.S. Southeast. As of the report date, 44% of these locations have been converted to Boyd’s systems and branding.
  • Financing: Completed a $897 million bought-deal IPO in the U.S. and a C$525 million senior unsecured note offering to fund the acquisition. Also completed a C$275 million unsecured note offering and increased/extended the revolving credit facility in August 2025.
  • NYSE Listing: Shares began trading on the NYSE under symbol "BGSI."
• Operational Updates:
  • Location Growth: Added 70 collision locations in 2025 (43 acquisitions, 27 start-ups).
  • Internalization: Increased internalization of scanning and calibration services in the U.S. to 75% in Q4 2025 (up from 53% in Q4 2024).
  • Dividends: Increased quarterly dividends by 2.0% in November 2025 to an annualized C$0.624 per share. Declared Q1 and Q2 2026 dividends of C$0.156 per share per quarter.
• Outlook:
  • Management estimates repairable claims volume declined 2-4% in Q4 2025, an improvement from earlier declines of 9-10% in Q1.
  • Expects to open eight start-up locations in Q1 2026, with 24 more in development through year-end 2026.
  • Integration of Joe Hudson's is expected to be complete early in Q2 2026.

Notable Quotes

• "We closed out 2025 with strong momentum, highlighted by our second consecutive quarter of positive same-store sales growth, continued outperformance relative to industry trends, margin expansion and a strengthened competitive position," said Mr. Brian Kaner, President & CEO.
• "Our strong operating performance in 2025 was driven by improvements in same-store sales, growth from new locations... and strong margin improvement from the continued execution of Project 360."
• "The transformative acquisition of Joe Hudson's Collision Center marks a significant milestone, and we are confident that our increased scale, greater market density, and expanded growth platform will help us deliver even more value for our shareholders and customers."