What Boyd Group Services (BYD) Said on Its Q3 Earnings Call

Key Points

• Q3 revenue rose 28% to just over $1 billion and adjusted EBITDA increased 34% to $132 million, lifting the margin to 13%. Same-store sales grew 2.2% despite industry repair-claim volumes falling an estimated 1% to 3%; adjusted EPS declined to $0.68 from $0.83 amid higher depreciation and finance costs.
• Project 360 savings and Joe Hudson’s acquisition synergies totaled $90 million through Q3, with Boyd expecting $105 million by year-end against a $140 million combined target. Cost savings and synergies helped gross margin expand to 46.7% from 46.3%.
• Boyd plans 34 startup locations over the next 12 months and is prioritizing acquisitions that build market density. It repurchased about $14 million of shares in Q3, while net leverage fell to 2.9 times.

Boyd Group Services TSE: BYD reported a 28% increase in third-quarter revenue and a higher adjusted EBITDA margin as acquisition contributions, cost savings and same-store sales growth helped offset softer industry repair volumes.

Revenue rose to just over $1 billion for the quarter ended September 30, 2026, while adjusted EBITDA increased 34% to $132 million. The adjusted EBITDA margin expanded to 13% from 12.4% a year earlier, President and CEO Brian Kaner said on the company’s earnings call.

Same-store sales grew 2.2%, supported by higher volumes and a modest improvement in total cost of repair. Kaner said repairable claims volumes across the industry were estimated to have fallen 1% to 3% from a year earlier, but remained consistent with Boyd’s long-term planning assumptions.

Cost savings and acquisition synergies lift margins

Boyd has realized $90 million in cumulative savings from Project 360 and synergies associated with its acquisition of Joe Hudson’s, Kaner said. The company expects another $15 million in the fourth quarter, bringing the total to $105 million by year-end against a combined $140 million target.

Project 360 originally targeted $100 million in savings from 2025 through 2029. The target increased after Boyd added approximately $40 million in expected Joe Hudson’s synergies. Kaner said the remaining $35 million is expected between 2027 and 2029, with technology and artificial intelligence playing a greater role in improving productivity and operations.

CFO Jeff Murray said Boyd realized approximately $15 million in combined savings and synergies during the third quarter. Gross margin rose to 46.7% from 46.3%, helped by higher paint margins, acquisition synergies, Project 360 savings and increased scanning, calibration and sublet margins. Slightly lower labor and parts margins partially offset those gains.

Boyd has reached and exceeded its target of bringing 80% of scanning and calibration coverage in-house, Kaner said. He said faster-than-expected internalization at Joe Hudson’s contributed to synergies arriving ahead of schedule.

Adjusted net earnings rose to $19 million from $17.8 million, although adjusted earnings per share declined to $0.68 from $0.83. Murray said higher adjusted EBITDA was partly offset by increased depreciation and finance costs.

Repair costs improve as total losses stabilize

Kaner said total cost of repair continued to improve into October as the year-over-year effect of more vehicles being declared total losses leveled out. Previously, the removal of larger repair jobs from the mix had muted underlying labor and parts price increases, he said.

Greater use of calibration services also supported repair costs, although Kaner said the increase remained below the roughly 4% Boyd expects. He later clarified that total loss rates had stabilized rather than declined.

Same-store sales remained positive in October, with continued volume growth and a sequential increase in total cost of repair, Kaner said. The company did not provide a numerical October sales figure. He said Boyd was moving away from giving quantitative figures for individual months because monthly results can fluctuate.

Joe Hudson’s integration and expansion plans

Joe Hudson’s locations contributed $170 million in sales during the quarter, Murray said. Kaner said Boyd accelerated the conversion of those locations to its systems after identifying a need for better operational tools and data visibility.

The company is now focused on introducing its operating model and regional management incentives across the acquired locations. Their year-over-year revenue trend improved during the third quarter, with positive momentum continuing into October, Kaner said.

Boyd has 34 startup locations planned over the next 12 months. Kaner said the company could open roughly 30 to 35 startups annually, potentially approaching 40 in some years, although construction delays can shift openings between quarters.

For acquisitions, Boyd is concentrating on building density in markets where it can achieve a leading position. That more selective approach narrows the pool of potential purchases and can slow the pace of growth, Kaner said. He added that single-shop opportunities remain available, while Boyd is not buying larger operators at current seller valuation expectations.

Buybacks and capital spending

Boyd launched a normal course issuer bid in September and repurchased approximately $14 million of shares during the quarter, Murray said. Its pro forma net leverage ratio was 2.9 times at September 30, down from 3.1 times at the end of 2025.

Kaner said buybacks give Boyd another capital allocation option, but the company would not prescribe a repurchase pace. Boyd continues to expect 2026 maintenance capital expenditures of 1.6% to 1.8% of sales, while acquisition-related capital spending for Joe Hudson’s remains estimated at $30 million.

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 .

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