Boyd Group Services Inc. Reports Positive Earnings Call

Boyd Group Services Inc ((TSE:BYD)) has held its Q2 earnings call. Read on for the main highlights of the call.

Boyd Group Services Inc. recently held an earnings call that conveyed a generally positive sentiment, highlighting strong operational improvements and strategic milestones. Despite facing industry challenges and a decline in same-store sales, the company showcased robust gross margin and adjusted EBITDA performance, driven by the successful execution of Project 360 initiatives. However, the company acknowledged challenges with declines in same-store sales and net earnings, as well as increased operating expenses.

Gross Margin Expansion

Boyd Group Services expanded its gross margins by 120 basis points to 46.8% in Q2 2025. This improvement was attributed to the internalization of scanning and calibration, improved performance-based pricing, and increased parts margins. The company’s strategic efforts in these areas have evidently paid off, contributing significantly to its financial performance.

Adjusted EBITDA Margin Achievement

The company reported an increase in adjusted EBITDA margins to 12%, marking the highest quarterly adjusted EBITDA margin performance since 2023. This represents a 4.7% year-over-year increase in adjusted EBITDA, underscoring the effectiveness of the company’s operational strategies.

Project 360 Initiatives

Boyd Group Services successfully executed its indirect staffing model as part of Project 360, which is expected to generate $30 million in annual run rate savings starting in Q2 2025. The company anticipates further savings, highlighting the initiative’s role in driving financial efficiency.

Milestone in Location Growth

The company achieved a significant milestone by reaching its 1,000th location and completing its first MSO acquisition since 2021. Boyd plans to continue its expansion by opening an average of 8 to 10 new start-up locations per quarter, emphasizing its commitment to growth.

Positive Signs in Same-Store Sales

Despite ongoing industry challenges, Boyd observed modest same-store sales growth in July, with improvements continuing into the third quarter. This indicates potential recovery and resilience in the company’s sales performance.

Decline in Same-Store Sales

Same-store sales, excluding foreign exchange, decreased by 2.1% in Q2 2025, despite a 0.2% increase in overall sales to $780.4 million. This decline reflects the broader industry challenges that Boyd is navigating.

Increased Operating Expenses

Operating expenses for Q2 2025 were $271.7 million, representing 34.8% of sales, up from 34.1% in the same period of 2024. The increase was due to lower same-store sales and increased facility maintenance costs.

Decline in Net Earnings

Net earnings for Q2 2025 were $5.4 million, down from $10.8 million in the same period of 2024. This decline was impacted by increased depreciation and finance costs, highlighting areas for potential improvement.

Challenging Industry Volumes

Industry volumes continued to be challenged, with Boyd Group’s sales growth offset by a decline in same-store sales and industry volumes down 6% to 8%. This remains a significant hurdle for the company.

Forward-Looking Guidance

Boyd Group Services provided forward-looking guidance that emphasized its strategic focus on operational and financial performance improvements. The company plans to leverage Project 360 initiatives for further savings and aims to open new locations to drive market share gains. Despite challenging industry volumes, Boyd is optimistic about modest improvements in same-store sales growth, driven by enhanced customer relationships and a strategic focus on insurance company clients.

In conclusion, Boyd Group Services Inc.’s earnings call highlighted a positive outlook with strong operational improvements and strategic milestones. While challenges remain with same-store sales and net earnings, the company’s focus on Project 360 initiatives and location growth positions it well for future success.