Boyd Group Services (BYD) Q4 2024 earnings summary

Executive summary

• Achieved $3.1 billion in sales for 2024, up 4.2% year-over-year, driven by 155 new locations despite a 1.8% same-store sales decline.

• Adjusted EBITDA fell 9.1% to CAD 334.8 million; net earnings dropped 71.7% to CAD 24.5 million year-over-year.

• Maintained market share gains in a challenging environment with a 9% industry-wide drop in repairable claims and economic uncertainty.

• Launched Project 360, targeting $100 million in annual recurring cost savings, with $4.4 million in related Q4 expenses and $20–$23 million in upfront investments.

• Announced a five-year goal to reach $5 billion in revenue and $700 million adjusted EBITDA by 2029, with a 14% EBITDA margin target.

Financial highlights

• Gross margin held steady at 45.5% for the year; operating expense ratio increased to 34.6%.

• Adjusted EBITDA for 2024 was CAD 334.8 million, down from CAD 368.2 million in 2023; Q4 adjusted EBITDA was CAD 83.4 million, down 11.5% year-over-year.

• Net earnings for 2024 were CAD 24.5 million, down from CAD 86.7 million; Q4 net earnings were CAD 2.4 million, down from CAD 19.1 million.

• Adjusted net earnings per share for 2024 fell to CAD 1.44 from CAD 4.18; Q4 adjusted net earnings per share were CAD 0.29, down from CAD 0.93.

• Debt (net of cash, before lease liabilities) increased to $487.3 million from $399.2 million.

Outlook and guidance

• Same-store sales in Q1 2025 have improved over Q4 but remain negative; margin pressures persist due to higher payroll taxes.

• Project 360 cost savings expected to begin in Q2 2025, with 70% of savings in run rate by end of 2026.

• Capital expenditures (excluding acquisitions) planned at 1.6%-1.8% of sales for 2025; network technology upgrades to continue.

• Five-year growth goal may be delayed due to ongoing claims environment uncertainty.

• Growth to continue via acquisitions and start-up sites, with 28 new locations planned for 2025.