Boyd Group Services (BYD) Q1 2025 earnings summary

Executive summary

• Achieved $3.07B in 2024 revenue, maintaining #2 position in a $50B North American collision repair market, with 987 locations and 13,000 employees.

• Q1 2025 sales were $778.3M, down 1% year-over-year, with same-store sales down 2.8% amid industry repairable claims down 9-10%.

• Gross profit increased to $359.3M, with gross margin up to 46.2% from 44.8% year-over-year, driven by Project 360 cost initiatives and internalization of services.

• Adjusted EBITDA for Q1 2025 was $80.5M (10.3% margin), down 1.4% year-over-year; net loss was $2.6M compared to net earnings of $8.4M in Q1 2024.

• Leadership transition: Tim O'Day stepping down as CEO, succeeded by Brian Kaner, with O'Day remaining as advisor through 2025.

Financial highlights

• 2024 revenue: $3.07B (up from $2.95B in 2023); adjusted EBITDA: $334.8M (down from $368.2M in 2023).

• Q1 2025: sales $778.3M, gross margin 46.2%, adjusted EBITDA $80.5M, adjusted net earnings $2.2M ($0.10/share), net loss $2.6M.

• Operating expenses rose to $278.7M (35.8% of sales), impacted by new locations and fixed costs.

• Net debt before lease liabilities: $487.3M as of March 31, 2025; increased due to acquisitions and investments.

• Over $470M in cash and available credit; strong liquidity position.

Outlook and guidance

• 5-year plan targets $5B revenue and $700M+ adjusted EBITDA by 2029, with 1,400+ locations and 10%+ market share.

• Project 360 aims for $100M in annual cost savings by 2029, with $30M already realized in 2025 and $40M more targeted by end of 2026.

• Anticipates 3-5% annual same-store sales growth and 5-7% annual unit growth.

• Early Q2 trends show stable same-store sales, moderating insurance premium inflation, and rising used car prices.

• Eight startup sites scheduled for Q2, with 16 more planned for the rest of 2025.