Boyd Group Services (BYD) Q4 2025 earnings summary

Executive summary

• Revenue reached $3.14 billion (CAD 3.1 billion) in 2025, up 2.4% year-over-year, driven by new locations, operational improvements, and the Joe Hudson's acquisition.

• Adjusted EBITDA grew 12.4% to $376.3 million, with margin expansion to 12% for the year and 13.1% in Q4.

• Achieved positive same-store sales growth in the second half of 2025, with Q4 up 2.2% year-over-year.

• Completed the acquisition of Joe Hudson's Collision Center, adding 258 locations and expanding U.S. presence and scale.

• Project 360 cost transformation and Joe Hudson's synergies targeted $140 million in annualized savings by 2029.

Financial highlights

• Q4 sales increased 5.5% year-over-year to CAD 793.9 million; full-year sales reached $3,142.8 million.

• Gross margin improved to 46.4% for 2025, up from 45.5% in 2024.

• Adjusted net earnings rose 28.8% to $62.4 million; adjusted EPS increased to $2.78.

• Net earnings decreased 25% to $18.4 million, impacted by $22.6 million in acquisition and transformation costs.

• Cash flows from operating activities increased to $353.0 million from $313.3 million in 2024.

Outlook and guidance

• Plans to open eight new locations in Q1 2026 and 24 more through the year, with a strong pipeline for further acquisitions.

• Targeting long-term same-store sales growth of 3%-5% and 5%-7% annual new location growth.

• Project 360 and Joe Hudson's synergies expected to deliver $140 million in annualized run-rate cost savings by 2029.

• Capital expenditures (excluding acquisitions) planned at 1.6%-1.8% of sales for 2026.

• Long-term goals include $5B+ revenue, 1,400+ units, and $700M+ Adjusted EBITDA with 14%+ margins.