Boyd Group Posts 28% Revenue Jump to $1 Billion in Q3

Boyd Group Services (TSE:BYD) grew third-quarter revenue 28% to just over $1 billion for the quarter ended September 30, 2026, while adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) rose 34% to $132 million. The margin expanded to 13% from 12.4% a year earlier. President and CEO Brian Kaner delivered the figures on the company's earnings call.

Acquisition contributions, cost savings and same-store sales growth offset softer industry repair volumes. Same-store sales grew 2.2%, supported by higher volumes and a modest improvement in total cost of repair.

The backdrop was not kind. Kaner said repairable claims volumes across the industry were estimated to have fallen 1% to 3% year over year, though they remained consistent with Boyd's long-term planning assumptions. A 2.2% same-store result against a shrinking market is, by collision-repair arithmetic, a respectable showing.

How much has Project 360 delivered?

Boyd has realized $90 million in cumulative savings from Project 360, its internal efficiency program, and synergies from the Joe Hudson's acquisition. The company expects another $15 million in the fourth quarter, bringing the total to $105 million by year-end against a combined $140 million target.

Project 360 originally targeted $100 million in savings from 2025 through 2029. The target rose after Boyd added roughly $40 million in expected Joe Hudson's synergies. Kaner said the remaining $35 million should arrive between 2027 and 2029, with technology and artificial intelligence playing a greater role in productivity and operations.

CFO Jeff Murray said Boyd realized approximately $15 million in combined savings and synergies during the third quarter alone. Gross margin rose to 46.7% from 46.3%, helped by higher paint margins, acquisition synergies, Project 360 savings and increased scanning, calibration and sublet margins. Slightly lower labor and parts margins partially offset those gains.

Boyd has also reached and exceeded its target of bringing 80% of scanning and calibration coverage in-house, Kaner said. Faster-than-expected internalization at Joe Hudson's contributed to synergies arriving ahead of schedule.

What happened to earnings per share?

Adjusted net earnings rose to $19 million from $17.8 million, yet adjusted earnings per share declined to $0.68 from $0.83. Murray attributed the gap to increased depreciation and finance costs partly offsetting higher adjusted EBITDA. More money, fewer cents per share: the dilution arithmetic of an acquisition-heavy balance sheet.

Are repair costs still rising?

Total cost of repair continued to improve into October as the year-over-year effect of more vehicles being declared total losses leveled out, Kaner said. Previously, the removal of larger repair jobs from the mix had muted underlying labor and parts price increases.

Greater use of calibration services also supported repair costs, although the increase remained below the roughly 4% Boyd expects. Kaner later clarified that total loss rates had stabilized rather than declined. Same-store sales stayed positive in October, with continued volume growth and a sequential increase in total cost of repair.

Boyd did not provide a numerical October sales figure. The company is moving away from quantitative figures for individual months, Kaner said, because monthly results fluctuate. Investors will draw their own conclusions.

Where does Joe Hudson's stand?

Joe Hudson's locations contributed $170 million in sales during the quarter, Murray said. Kaner said Boyd accelerated the conversion of those locations to its systems after identifying a need for better operational tools and data visibility.

The company is now focused on introducing its operating model and regional management incentives across the acquired locations. Their year-over-year revenue trend improved during the third quarter, with positive momentum continuing into October, Kaner said.

Boyd has 34 startup locations planned over the next 12 months. Kaner said the company could open roughly 30 to 35 startups annually, potentially approaching 40 in some years, though construction delays can shift openings between quarters.

On acquisitions, Boyd is concentrating on building density in markets where it can achieve a leading position. That selectivity narrows the pool of potential purchases and can slow the pace of growth, Kaner said. Single-shop opportunities remain available; Boyd is not buying larger operators at current seller valuation expectations. Discipline, one presumes, has its price.

What about buybacks and capital spending?

Boyd launched a normal course issuer bid (a share repurchase program) in September and bought back approximately $14 million of shares during the quarter, Murray said. Pro forma net leverage stood at 2.9 times at September 30, down from 3.1 times at the end of 2025.

Kaner said buybacks give Boyd another capital allocation option, but the company would not prescribe a repurchase pace. Boyd continues to expect 2026 maintenance capital expenditures of 1.6% to 1.8% of sales, while acquisition-related capital spending for Joe Hudson's remains estimated at $30 million.

Boyd Group Services Inc. is a Canadian corporation controlling The Boyd Group Inc. and its subsidiaries. Its shares trade on the Toronto Stock Exchange under the symbol BYD.TO and on the New York Stock Exchange under the symbol BGSI.