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 for 2024 was $334.8 million (10.9% margin), down from $368.2 million in 2023; net earnings dropped 71.7% to $24.5 million.

• 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 costs.

• Announced a new five-year goal to reach $5 billion in revenue and $700 million adjusted EBITDA by 2029, with a 14%+ EBITDA margin target and CEO transition planned for May 2025.

Financial highlights

• Gross margin for 2024 was 45.5%, consistent with the prior year; Q4 gross margin was 45.8%.

• Adjusted net earnings per share for 2024 decreased 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 was CAD 1.2 billion at year-end, up from CAD 1.1 billion in 2023; net debt before lease liabilities increased to $487.3 million.

• Cash flow from operations was $313.3 million, down from $357.5 million in 2023.

• Dividend increased by 2% to CAD 0.61 per share annualized.

Outlook and guidance

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

• New five-year goal: $5B+ revenue, $700M+ adjusted EBITDA, 1,400+ units, and 14%+ EBITDA margin by 2029.

• Plans to achieve 3-5% annual same-store sales growth and 5-7% annual unit growth.

• Capital expenditures (excluding acquisitions) planned at 1.6%-1.8% of sales for 2025, with additional investments in technology upgrades.

• Early 2025 sees continued claims volume pressure, but same-store sales trend improving sequentially.