Boyd Group Services (BYD) Q1 2025 earnings summary

Executive summary

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

• Gross margin improved to 46.2%, up 140 basis points year-over-year, driven by internalization of services and pricing improvements.

• Adjusted EBITDA was $80.5M (10.3% of sales), down 1.4% year-over-year; adjusted net earnings were $2.2M ($0.10/share), down from $9.4M ($0.44/share) last year.

• Net loss was $2.6M, compared to net earnings of $8.4M in Q1 2024, reflecting higher acquisition and transformational costs.

• CEO transition announced, with Brian Kaner succeeding Timothy O’Day, who remains as advisor through 2025.

Financial highlights

• 2024 revenue was $3.07B, up from $2.95B in 2023; Q1 2025 sales were $778.3M, with gross profit of $359.3M (46.2% margin).

• Operating expenses rose to $278.7M (35.8% of sales), up from $270.9M (34.4%) last year.

• Net debt before lease liabilities was $487.3M as of March 31, 2025; total net debt, including lease liabilities, was $1.3B.

• Cash flow from operations before working capital changes was $72.9M, down from $78.0M.

• Dividend of C$0.153 per share declared for Q1 2025.

Outlook and guidance

• Five-year plan targets $5B in 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 $70M by end of 2026 and $30M already realized in 2025.

• Indirect staffing model implemented in Q2 2025, targeting $30M in annualized savings; additional $40M in procurement savings expected by end of 2026.

• Eight start-up sites scheduled for Q2, with 16 more planned for the rest of the year.

• Margin profile expected to improve in Q2 due to cost actions and payroll seasonality.