Boyd Group Services Inc. Reports Second Quarter 2025 Results

Executive Summary

• Boyd Group Services Inc. reported its financial results for the second quarter and first half of 2025, highlighting margin expansion driven by profitability initiatives despite industry headwinds.
• The company announced the appointment of Brian Kaner as President & Chief Executive Officer and declared a second-quarter dividend of C$0.153 per share.
• Operational updates include surpassing 1,000 locations, adding eight new collision repair locations during the quarter, and completing the acquisition of an eight-location multi-shop operator (MSO) in Virginia subsequent to the quarter-end.

Key Details

• Financial Performance (Q2 2025):
  • Sales: $780.4 million (up 0.2% YoY); Same-store sales declined 2.1%.
  • Gross Profit: $365.4 million (46.8% of sales, up from 45.6% in Q2 2024).
  • Adjusted EBITDA: $93.8 million (up 4.7% YoY); Margin increased to 12.0% from 11.5%.
  • Adjusted Net Earnings: $10.8 million ($0.50 per share), down from $11.9 million ($0.56 per share) in Q2 2024.
  • Net Earnings (GAAP): $5.4 million ($0.25 per share), down from $10.8 million ($0.50 per share) in Q2 2024.
  • Debt (net of cash, before lease liabilities): Decreased from $510.4 million (March 31, 2025) to $505.8 million (June 30, 2025).
• Financial Performance (Six Months Ended June 30, 2025):
  • Sales: $1,558.7 million (down 0.4% YoY).
  • Adjusted EBITDA: $174.3 million (up 1.8% YoY); Margin 11.2%.
  • Adjusted Net Earnings: $13.0 million ($0.60 per share), down from $21.4 million ($1.00 per share) in 2024.
  • Net Earnings (GAAP): $2.8 million ($0.13 per share), down from $19.2 million ($0.89 per share) in 2024.
• Dividends:
  • Declared second-quarter dividend of C$0.153 per share.
• Operational Updates & Growth:
  • Added eight collision repair locations during Q2 (four via acquisition, four start-ups).
  • Implemented a new indirect staffing model, targeting annualized run-rate cost savings of approximately $30 million.
  • Subsequent to quarter-end, location count surpassed 1,000.
  • Added 12 additional locations post-Q2, including the acquisition of L&M Body Shop (an eight-location MSO in Virginia), plus two single acquisitions and two start-ups.
  • On track to open 16 new start-up locations in the second half of 2025.
• Strategic Initiatives:
  • "Project 360" cost transformation plan: Expecting an incremental $40 million in annualized run-rate cost savings by end of 2026, with the remaining $30 million of the $100 million target to be realized between 2027 and 2029.
  • Internalization of scanning and calibration services reached 67% by end of Q2.
  • Targeting an Adjusted EBITDA margin of 14% by 2029.
• Management Changes:
  • Announced the appointment of Brian Kaner as President & Chief Executive Officer.

Notable Quotes

• "During the second quarter, we continued to realize the benefits of further internalization of scanning and calibration services and made additional headway on our Project 360 cost transformation plan... Despite ongoing industry headwinds, our Adjusted EBITDA margin in the second quarter was the highest quarterly performance since 2023." — Brian Kaner, President and Chief Executive Officer
• "We continued to expand our location footprint during the second quarter... I am thrilled with the progress we have made subsequent to the end of the second quarter, as we surpassed the 1,000 location milestone and in early August completed the acquisition of a regional multi-store operator ('MSO') based in Virginia with eight locations." — Brian Kaner, President and Chief Executive Officer