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Image source: The Motley Fool. Wednesday, Aug. 12, 2026 at 8:00 a.m. ET President and Chief Executive Officer - Brian Kaner Executive Vice President and Chief Financial Officer - Jeff Murray Investor Relations - Steve Savard Operator: Good morning, everyone. Welcome to the Boyd Group Services, Inc.'s 2026 Second Quarter Results Conference Call. Listeners are reminded that certain matters discussed in today's conference call or answers that may be given to questions asked could constitute forward-looking statements that are subject to risks and uncertainties relating to Boyd's future financial or business performance. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are detailed in Boyd's annual information form and other periodic filings and registration statements, and you can access these documents at SEDAR's database found at sedarplus.ca and EDGAR at www.sec.gov. Boyd released its 2026 second quarter results before markets opened today. You can access the news release as well as the complete financial statements and management discussion and analysis on the company's website at boydgroup.com. The news release, financial statements and MD&A have also been filed on SEDAR+ and EDGAR this morning. On today's call, Boyd will discuss the financial results for the quarter ended June 30, 2026, and provide a general business update. We will then open the call for questions. I'd like to remind everyone that this conference call is being recorded today, Wednesday, August 12, 2026. I would now like to introduce Mr. Brian Kaner, President and Chief Executive Officer of Boyd Group Services, Inc. Please go ahead, Mr. Kaner. Brian Kaner: Thank you, operator. Good morning, everyone, and thank you for joining us on today's call. On the call with me today is Jeff Murray, our Executive Vice President and Chief Financial Officer; and Steve Savard, who recently joined our team to lead our Investor Relations and capital markets efforts. We look forward to Steve maturing and professionalizing this function and driving direct and meaningful engagement with our shareholders. Our second quarter results reflect deliberate execution across our business, evidenced by strong revenue growth, meaningful margin expansion and measurable progress against our strategic priorities. Revenue increased 30% year-over-year, exceeding $1 billion for the first time in Boyd's history, while adjusted EBITDA grew 45%. Adjusted EBITDA margin expanded to 13.4%, up from 12% in the second quarter of 2025 and 11.5% in Q2 of '24 prior to the launch of Project 360, our cost transformation program. Our top line performance reflects continued market share gains as well as ongoing execution of our densification strategy, driving a 32% year-over-year expansion of our location footprint, anchored by the acquisition of Joe Hudson's Collision Center alongside new location development. Importantly, this top line expansion was paired with strong margin gains. The 140 basis point year-over-year increase in adjusted EBITDA margin reflects the continued execution of Project 360 alongside accelerated synergy realization from the Joe Hudson's acquisition. As a result, we are raising our 2026 synergy target to $35 million, up from our previous estimate of $20 million. During the quarter, we successfully completed the system conversion across all Joe Hudson's locations. This marks a critical integration milestone, establishing a unified operating platform that will drive greater consistency, productivity and margin expansion across the entire business. While the conversion resulted in temporary sales disruption, we have implemented target initiatives to strengthen throughput and local execution. These actions are now gaining traction and driving revenue on a more profitable foundation. Turning to the broader operating environment. Based on second quarter claims processing data, we estimate that repairable claims volumes were flat to down 2% year-over-year. This represents a meaningful improvement compared to the decline seen in Q2 of 2025 and points to the ongoing stabilization consistent with our long-term planning assumptions. Against this backdrop, we generated 2.9% same-store sales growth in the second quarter with limited contribution from total cost of repair. This performance confirms continued market share gains, reflecting the strength of the company's insurer relationships, continued improvement in carrier performance and the benefits of our 2025 regional incentive realignment. In July 2026, same-store sales remained positive in the low single digits, continuing to reflect the aforementioned market share gains. Monthly results can vary widely. Consequently, we track same-store sales trends over broader horizons and do not view any single month performance as indicative of full quarter's results. Our continued outperformance relative to the industry repair volumes reflects the strength of our strategy and execution. We remain focused on driving sustainable, profitable growth by improving capacity utilization, capturing local market share and selectively expanding our footprint through disciplined acquisitions and new location development, all while driving profitability and cash flow. Given the highly fragmented nature of our industry, we see a significant runway to expand our market share, both organically and through disciplined M&A while leveraging our network scale to drive further operational efficiencies. I will now pass the call over to Jeff, who will provide a more detailed analysis of our second quarter results. Jeff? Jeff Murray: Thanks, Brian. As highlighted, we delivered strong second quarter performance, marked by robust top line growth, positive same-store sales and strong margin expansion. Second quarter revenue increased 30% year-over-year to $1,013 million. Growth was driven by $211 million in incremental contributions from 340 new locations not in operation for the full prior year period, alongside 2.9% same-store sales growth as Boyd continued to outperform the broader industry. During the quarter, Joe Hudson's locations contributed $175 million to total sales. Gross profit increased 31% year-over-year to $480 million, representing a gross margin of 47.4%, up 60 basis points compared to 46.8% in the second quarter of 2025. This margin expansion was driven by higher paint and parts margins, supported by accelerated synergies and Project 360 cost savings as well as increased scanning, calibration and sublet margins. Turning to operating expenses. For the second quarter of 2026, operating expenses as a percentage of sales improved to 33.9% compared to 34.8% in the prior year period. This 90 basis point improvement was driven by Project 360 and Joe Hudson synergy realization. Adjusted EBITDA grew 45% to $135.9 million, outpacing revenue growth. Adjusted EBITDA margin expanded 140 basis points to 13.4%, up from 12% in the prior period. These gains were anchored by approximately $15 million in combined Project 360 cost savings and Joe Hudson synergies realized during the quarter. Net earnings for the second quarter of 2026 were $1.3 million, compared to $5.4 million in the same period of 2025. Net earnings were impacted by higher amortization and depreciation costs related to new location growth as well as higher financing costs. An adjustment was made in the quarter to revise the initial purchase price allocation, which negatively impacted amortization in the quarter in the amount of $5 million. Net earnings adjusted for this incremental intangible amortization would have resulted in net earnings of $6.4 million, up $1 million from the same period of 2025. Adjusted net earnings for the second quarter increased 47% year-over-year to $22.4 million and adjusted EPS increased to $0.80 from $0.71 in the same period of the prior year. For full year 2026, the company continues to expect maintenance capital expenditures to range between 1.6% and 1.8% of sales. Additionally, capital expenditures associated with the Joe Hudson's acquisition remain on track at an estimated $30 million, of which approximately $9.8 million has been invested through Q2 of 2026. Boyd's balance sheet remains strong, providing the financial flexibility to fund our future growth initiatives. Robust earnings growth in the first half of the year, combined with our capital-light business model, drove improvement in pro forma net leverage to approximately 2.8x at quarter end, down from 3.1x at the close of fiscal 2025. I will now pass it back to Brian for closing remarks. Brian Kaner: Thanks, Jeff. To wrap up, our second quarter performance underscores the strength of our operating model and our ability to deliver profitable, high-quality growth. We are executing well on our strategic priorities, successfully integrating Joe Hudson's and expanding our margins through Project 360 and network synergies. With a strong balance sheet and a clear runway in a highly fragmented market, we remain well positioned to drive long-term value for our shareholders. With that, I would like to open the call to questions. Operator? Operator: [Operator Instructions] Your first question comes from the line of Steven Hansen with Raymond James. Steven Hansen: Brian, I wanted to focus on the margin expansion first. It looked pretty solid at 140 basis points. Some of that's coming from Project 360 and faster-than-expected synergy realization. But just trying to get a level set on how you think that sort of journey is going. I know you raised the guidance for the year, but I mean, are you seeing more synergies, where are they coming from specifically? And how are you getting them faster ultimately is the question. Brian Kaner: Yes. So first of all, I would say very pleased with the progress around margins, the cadence that we've seen. If you look back to Q2 of last year, 12% in Q2, 12.4% in Q3, 13.1% in Q4. And then as we know, we seasonally kind of dip down in Q1 to 12.3%, but then bounce right back up to 13.4%. So we're seeing kind of this 40 basis point expansion on our journey back to the 14% kind of on a quarterly basis. So I expect that to continue. We -- as you know, the Project 360 benefits that we called for them to be ratably distributed throughout the balance of the year. And I think the result is evidence of that. As it relates to the synergies, I think we'll talk -- I'm sure we'll talk more about Joe Hudson, but the -- the pull forward of synergies really has to do with the timing of the pacing of the integration. We were able to integrate Joe Hudson more quickly. I think operationally, that was the right thing for us to do. We needed to get visibility into the operations more deeply than we were able to on their systems. So getting them on our systems platform, being able to accelerate the back-office synergies much more aggressively put us in a position where we were able to call up the synergy expectation and at the same time, continue to achieve really strong margins in the quarter. Steven Hansen: Very helpful. And just quickly on the July outlook, you're referencing low single on the July mark. I know you don't like to extrapolate a single month. But I mean, how are you viewing the recovery in claims environment and on top of that, your ability to continue to take share? Brian Kaner: Yes. Look, the recovery on the claims environment remains -- we're happy that it's kind of stabilized in that 0 to 2% -- or 0 to down 2%. That allows us to achieve our long-term growth algorithm. As we've talked about in the release, I mean, we are still seeing limited price, which is really the only downside in the market right now. So I do believe that, that stabilization is here to stay. It's evidenced by the -- we had talked about last year, the drivers of that being the heavy insurance premium inflation. As you know, insurance premium inflation at this point has almost turned to a deflationary category. We talked about the impact to total losses and not taking cars out of the consideration set. In our world, total losses are essentially flat on a year-on-year basis at this point. So as we see the things that we said were the drivers of the negative getting better, we continue to see the marketplace just being a much more stable environment for us to operate in. Operator: The next question comes from the line of Mark Jordan with Goldman Sachs. Mark Jordan: As we think about total cost of repair, how should we think about the second half of the year? And is there any color you can provide on maybe the various components that make up that measure, be it the mix between parts and labor, alternative parts usage, et cetera? Brian Kaner: Yes. So I'll say a couple of things on total cost of repair. Relative to timing, we don't really have a point of view on the timing. I do think structurally, we'll talk in a second about the things that will drive it in the long term. In the short term, I think Steve actually, the Raymond James hosted a really nice call with Ryan Mandell that talked about what's happening in the near term. That focus really on a couple of things, higher total loss rates, which, as I said earlier, are kind of moderating at this point, a little bit of an increase in alternative part usage. And then in times where there's less work in the marketplace, you have a tendency to see technicians doing a lot more repair versus replace. That repair versus replace can have a negative impact on the TCOR. I think more importantly than that is just the structural tailwinds that still remain behind us. If you look at the cost of repairing a vehicle that's 0 -- or 3 years or newer, it's about $2,000 greater than the overall cost of a repair. So we're seeing now the cost of repairing a vehicle that's in that 0- to 3-year category close to $6,000. If you think about the future of this business and you think about the -- how that becomes the older part of the car park in the long run or in the older part of the cars that we're actually repairing, you can see a place where the ticket is definitely going to continue to blend up as those cars become more of our repair set. So I believe that there's still structural tailwinds in the marketplace. I think in the short term, we're controlling what we can control, which is taking market share in a market that's kind of in that 0% to down 2%. And we'll continue to do that. And when price comes back, it will be a nice overlay on top of where we're performing today. Mark Jordan: Perfect. And just one follow-up, if I could. I think last quarter, you mentioned a bit of a headwind from mix shift to aftermarket parts, just given the older car park. How does that play out over the coming years? Is that something that should kind of be diminished or as the car park ages with those newer vehicles that you're mentioning? Brian Kaner: Yes. I think it just -- it laps, right? I mean you get to a place where it's a similar thing. So I don't see it accelerating the usage -- I don't see the usage of aftermarket parts accelerating. I see it kind of us getting to a place where it stabilizes and then it doesn't become a headwind. It just becomes a muted impact. Operator: Your next question comes from the line of Bret Jordan with Jefferies. Bret Jordan: Could you talk a little bit about your longer-term expectations on total loss rates, sort of where you see the upper boundary there sort of on a maybe 5- or 10-year basis? Brian Kaner: Yes. It's interesting when you think about some of the things that are happening around total loss rates, I think there was -- CCC came out with something earlier in the quarter that talked about just the impact to the consumer on total losses. So I think -- and it's a very negative impact. And we know that from many perspectives, having a total loss event is one of the worst customer experiences that a consumer will have. So there -- the insurance carriers don't like total losses, the OEMs don't like total losses. And certainly, we like to repair people's vehicles and get them back on the road safely. So I think my view is longer term, you can continue to believe that there might be some upward movement. I would say that I don't expect it to be -- I do not expect it to be a very large movement. I think we get more to a cadence where it's a very minimal -- it's a very minimal number. I would -- if I were to peg a number to it, I would expect something in the neighborhood of 3/10 a year of movement, which really isn't a lot. And I do think, as I said, there's a lot of momentum to try to drive total losses down. You even saw some legislature passed in Rhode Island is an example, where they are now -- they're now mandating an 85% threshold for total losses versus the industry that kind of sits at a 70% today. So I think there's more momentum to move it down than there is to move it up. The aging car park might put us in a position where it has -- it will go up based on the car park age, but I think there's some other factors that are suppressing it as well. Jeff Murray: And Brian, I would just add that it's important to think about it in the context of the overall market size growth as well because it really is also important to understand how is it changing in relation to the total market size changing because even if the total loss is increasing, there could still be more cars available to be repaired in that scenario. Bret Jordan: Great. And I guess, could you talk about regional performance? I mean, some of the densification benefits from the Joe Hudson's acquisition, sort of what you're seeing in any sort of market outliers? Brian Kaner: Yes. I mean we've talked before about, we see continued strength in the North right now. Obviously, the South with Joe Hudson was going through a heavy amount of integration in the first -- in the first and second quarter. So we don't see -- I think most of what we're seeing in the North or a lot of what we're seeing in the North is weather-related activity that is probably putting it in a position where there's a little bit of outsized growth in the North. But beyond that, I would say that we see the same opportunity across all markets that we operate in. And the most important thing we can do is to continue to perform against our clients' metrics. And as we do that, we know that opens up more opportunities for us. And as we get more opportunities, that gives us the ability to then capture more work in the marketplace and take the share that we've talked about. So I think on balance, we still control a lot of what's happening in the regional performance. Operator: The next question comes from the line of Thomas Wendler with Stephens Inc. Tom Wendler: Solid quarter. You guys kind of highlighted 13 new start-ups for the remainder of the year. How should we be thinking about the acquisitions for the remainder of the year? Brian Kaner: Yes. I wouldn't -- I would think of the acquisitions similar to what we've seen historically. We have a tendency to start -- we have a tendency historically to start slow and finish strong. We see a nice robust pipeline of acquisitions that are out there. I think you're going to see an increase in activity as we get into the second half of the year, which is typically what we have seen. We have had a tendency to have a really strong fourth quarter as it relates to acquisitions. Some of that's just timing of when the opportunities come to the marketplace and when they're there, we obviously take advantage of that. So I would say from an acquisition perspective, expect acceleration as we get into the back half of the year, no different than we've seen historically. And then as you know, we're still working to get our NTI pipeline, our new-to-industry pipeline in a position where there is some more stability. We had a couple of opportunities in the pipeline that actually pushed -- some pushed out and some -- a couple of projects that we actually canceled because of the Joe Hudson acquisition. So that's why you saw a little bit of an erosion of what we were expecting in the third quarter. Some of those just came out of the pipeline because of the -- because they're -- as we looked at the overlay of them with Joe Hudson, it didn't make sense for us to keep that project going. But we would like to see that continue to get to a more normal kind of 8 or so a quarter. And you can see that as we get into the fourth quarter, we have 10 planned essentially for the -- 10 NTIs planned for the fourth quarter, and we'll layer on acquisitions on top of that. Tom Wendler: Perfect. I appreciate the color. And then maybe one more for me. You mentioned capacity utilization as maybe an opportunity for the back half of the year. Can you maybe help us think about what utilization rates are right now and how the company's fixed costs are probably going to lever as we see a little bit better utilization? Brian Kaner: Yes. I mean, obviously, the technician workforce is where we're really talking about capacity utilization. And we look at -- we watch productivity. So we're watching kind of the hours per tech per week. And that's our barometer of how utilized the technician base is. We still see a little bit of upside in the ability to utilize the existing tech. But as you guys know, we're always out looking for additional tech to add to the workforce, and we'll continue to do so. But I do see a little bit of -- we do have a little bit of capacity utilization still left to go. But as I said earlier, I mean, we're winning on growth. And when we had those conversations historically, we were in a situation where we were in a declining environment. And as you look at our position today, as we said, we're really winning on volume. And if you look at that 2.9% that we reported against the, call it, the down 2% that we were a year ago, that's really about a 5% shift in our -- or 5% swing in our same-store sales, which is really eating up a chunk of that capacity utilization. Operator: Your next question comes from the line of Sabahat Khan with RBC Capital Markets. Sabahat Khan: Great. Maybe if we can get some color on some of the commentary around the market share gains. I think the algo run rate is X percent industry growth and then you guys capture some share on top of that. Maybe if you can comment on sort of year-to-date and just the outlook. Is it market share broadly nationally speaking? Is it the more densified regions? Maybe if you can just share some thoughts on where typically you're able to capture share above the market growth rates. Brian Kaner: Yes. Well, as we talked about before, I mean, market share gains in our world come with outperforming our competitive set. And we continue -- as you know, we did the regional incentive alignment where we aligned our -- we deliberately aligned our field leadership's compensation to the performance of their top 3 clients. And when we did that, we saw a nice -- we saw a really good movement in our client performance. And when that happens, it gives us the ability to see more opportunities. So I would say that there's not a -- because of the way that we're rolling that out, it's -- there's not a regional difference, so to speak. It's really more broad-based. And as we continue to execute on our -- on those initiatives, we continue to see more opportunities coming into the funnel. And then -- our obligation then is to make sure that we're capturing as many of those as we possibly can into our stores. So I think there's -- it's very -- it was very deliberate actions to continue to drive market share gains. And I think those deliberate actions are really taking hold as we get into this quarter and the balance of the year. Sabahat Khan: Great. And then just for my follow-up, maybe if you can share a bit more color on the synergies related to Joe Hudson sort of like what's been done? It sounds like the branding is done. Maybe if you can talk about on the operations side, supply chain? Are you starting to see the benefits of increased scale and volumes from your suppliers? Maybe you can just talk about what's done, what's left? And any sort of evolution on the opportunity with the synergies or just areas of opportunity versus your initial take on Joe Hudson? Brian Kaner: Yes. Well, I mean, the timing is we essentially have done the systems conversion. We've done the rebranding of the locations. We've moved a good chunk of the back office. When we switch over the systems, it essentially is moving much of the supply chain to a common contract. So we are seeing the supply chain benefits. We have done the internalization of scanning and calibration. So I think a lot of the things that we were expecting that had a little bit of a longer tail and were more predicated off of our ability to pace the integration. Their pace of systems conversion have been done in an accelerated fashion, which has given us the ability and the confidence to increase our outcome by about $15 million. So I think there isn't really a lot left to do from an integration perspective, much of the back office has swung into our systems at this point. So we're very pleased with where we're at in the integration. We're happy that we made the decision to accelerate faster. It was a little bit painful for the organization to do that, but it's given us now the ability to apply our operating model on top of Joe Hudson's and leverage that new 258 locations the same way we operate our existing stores. Operator: The next question comes from Derek Lessard with TD Cowen. Derek Lessard: Congrats on a solid operating performance. You guys have done a really good job at parsing out the cost synergies. Just wondering if maybe you could lift the foot on potential revenue synergies maybe around the customer service best practices, leveraging your insurance partnerships. Anything you could add on that side would be appreciated. Brian Kaner: Yes. Well, I think there's revenue synergy on both sides. I mean we've talked -- historically, we've talked about some of the relationships that Joe Hudson had that we hadn't had as good a relationship with. We've obviously got a great relationship with many of our insurance carriers. So I think there's combinations where the relationships on both sides will be helpful. We've retained the sales team from Joe Hudson to make sure that we leverage those 2 things. I think the most important thing that you're going to see in terms of revenue synergies is our focus on client performance. And as we continue to drive that into the Joe Hudson environment, you're going to continue to see benefits associated with that client performance improvement. And that is -- we have a maniacal focus and have all of the information we need in order to make sure our stores know how to win with the customer and making sure that when we've talked about this, it's really not just the 3 things, having a lower average cost to repair, having good NPS and having lower length of rentals. Those are really just the ticket to the dance. Making sure that beyond that, you know how to win with some of the finer points with each of our customers is really what carries the day. And I think we have a much better model and have much better training modules to make sure that our stores understand how to win. And I think you'll see a lot -- you will see in the future revenue synergy associated with that. Operator: The next question comes from Razi Hasan with Paradigm Capital. Razi Hasan: Just maybe on the internalization of scanning and calibration. I believe you had a target of 80%. Can you just remind us where you are now? And if that 80% is the high watermark? Or do you think you can go higher than that? Brian Kaner: Yes. We're -- I mean, we achieved the 80% last quarter. So we announced that last quarter. We're between 80% and 85% right now. There is a point at which utilization is so high that you start to sacrifice productivity. So we think that's still -- we think that the 80% to 85% is a comfortable place for us to be where you're not overstaffing the field so that you have so much availability that you have an unproductive workforce. So we're happy with where we're at. We've got good secondary relationships in place that allow us to fill the balance of that need. And again, I think we're very pleased with the progress that we've made on the internalization. You can see that in our gross margins at a 47.4%, it's one of the highest gross margins we've seen in the history of the company. So it is a key lever to driving that. Jeff Murray: And while we've got the right number of utilization in the right range right now, I mean this is a business that continues to grow. The service -- there's more needs for this type of service, which means we do continue to add team members and this will continue to expand, but utilization is at the right range. Brian Kaner: Yes. That's a great point. I mean the -- as the penetration of calibration services continues to grow, we need to continue to grow that workforce on top of that. So it isn't like let's get to the 80% and now we're done. It's -- now we've got to keep up with the pace of the changing car park. Razi Hasan: Okay. Great. That's really helpful. And maybe just one follow-up. Just in regards to past cycles where you've had to cycle through elevated inflation and car prices rising and dropping. Where we're at now, can you maybe talk about the time lag that you typically see when insurance premiums start to moderate and car prices start rising and the flow-through to repair volumes? Is that like a year typically when consumers come back to the repair shop? Or maybe any color on that would be helpful. Brian Kaner: Yes. I think on the insurance premium side, what we're really looking for is, one, the premiums need to become less of an issue. But in some cases, what we're really looking for is people to better prepare -- we're looking for them to better position themselves with the insurance product that they have. What you see when you get into times of high premium inflation is you see people raising deductibles, you see people that are dropping certain coverages. And that's why, as we've articulated historically, you tend to see liability claims stay relatively stable. What falters is the collision claim, which is the first party in the accident. So what we're looking for are signs of deductibles coming back down, and we're also looking for people to add insurance coverages. So the other thing that's interesting is, one of the other potential benefits for us in the longer term is you are starting to see because new car prices are becoming so expensive, you're starting to see people elongate the loans. So now you're seeing loans up to 84 months. When someone is in a car loan, they have no choice but to keep all of the coverages on their vehicle. So I think that is a -- it's a bit of a structural tailwind for us as it relates to the claims side. Because we will see people that have to do that. So I think from that perspective, we see that probably taking a little bit more time. But you are seeing -- at this point, you're seeing the down -- the 0 to down 2%, which is really well within the range that we expect it to be. On the flip side, when you think about used car pricing, that's a mathematical equation. So as used car prices -- if used car prices continue to rise, you'll see total losses continue to come down. It's not -- there's not much time lag between those two. And as you've seen used car prices moderate, I wouldn't say they're kind of positive or negative at this point, the kind of hover around zero. But when you look at that, you're starting to see -- you're definitely seeing a moderation in the -- in a stabilization of the total loss rates that we're experiencing today. Operator: The next question comes from Zachary Evershed with National Bank of Canada. Zachary Evershed: Congrats on the quarter. So you mentioned earlier that some of the revenue synergies would come from better relationships that Joe Hudson had and better relationships that you had. Progressive captured a whole whack of the insurance industry premium growth in 2025. How are things going on breaking up in that relationship? Brian Kaner: Yes. We continue to work on that relationship. There's nothing fractured in the relationship. It's a function of them having a need. And when they have a need, we want to make sure that we're performing in a way that makes us their first choice to come to. So there's -- right now, our pacing with that particular client is pretty much on par with their growth. So we're not seeing -- and Joe Hudson -- just geographically, Joe Hudson had a much better relationship because when you look at their presence in certain markets like in Alabama as an example, Joe Hudson's was the service provider in Alabama that gives them the option to really go deeper with insurance clients. But we continue to work that relationship. And the good news is as it continues to -- as that continues to grow, it becomes a little bit of a tailwind for us. Zachary Evershed: Great color. And then for my follow-up, Insurify is flagging that insurance premiums are rising in just over half of states now. Any immediate concerns on that front over potential impacts to claim counts? Or is it still looking pretty stable? Brian Kaner: No, I don't have any concerns. I think insurance premiums are -- when you look at insurance premiums, when they're rising in the low single digits or at CPI levels, I don't think that's what consumers generally expect. What we don't expect is to have periods of time where they're rising at 17% to 20%, and that's really what puts some strain on the industry. I also think that what's not reflected in what you're seeing in Insurify is what's happening with the rebates. Many of the insurance carriers are rebating dollars back to customers. That doesn't get captured necessarily in the data that you're looking at. Operator: The next question comes from Jonathan Goldman with Scotiabank. Jonathan Goldman: Brian, can you help us parse out the cadence of same-store sales for the quarter and maybe the June exit rate? Just trying to piece all the items together. I think on the last call, you talked about ex weather, Q1 would have been 2.6%. April is approaching the low end of the range, and you finished the quarter at 2.9%. Brian Kaner: Yes. I mean we won't speak to the cadence because as we've said before, I mean, 1 month does not make a trend in this business. And we're really trying to move away from this notion of kind of the monthly cadence. I mean we've -- I think unintentionally, we've created an environment right now where 3% becomes a pass-fail on our success of the business. And it's really not -- when I said -- as I said before, when you look at the cadence of where we've been in the 3% to 5% range, it's been 84% of the time we've been outside of that range, a chunk of time above, a chunk of time below. So I'm not really going to comment on the cadence of the quarter. I think what's most important right now is, the underlying environment has now stabilized in a position where our share gains are ultimately manifesting themselves as same-store sales. We see that positive. We've now seen 4 quarters in a row of positive same-store sales growth. And we still have -- we're still seeing limited benefit from the average cost of repair, which has really historically been in that 4% range. So as we look to the industry to get back to that 4% range, we see that as a nice tailwind for us. We'll continue to focus on controlling the things that we control in the short term. And I think that's -- as we've said, that's really what's propping up the same-store sales as we sit here today. And I would expect that there's nothing -- that is the one thing that we can control. So I'd expect that to continue. Jonathan Goldman: Okay. Fair enough. Was there anything in the quarter that you would classify as onetime or a headwind, particularly on a year-over-year basis in terms of capturing same-store sales volume? Brian Kaner: No, not particularly. I mean this is the type of -- this is the time of year that you tend to see. There are weather events that drive positives and negatives and which is, again, why we don't try to get ourselves pinned to a -- we talk about a long-range number, not something that's quarter-to-quarter or to a month. But so far, what we've seen from a -- particularly around hail, the number of hail events, the type of hail volume that we're experiencing on a year-over-year basis has been relatively stable, relatively flat. And that's really what can -- in the summer months, that certainly is something that can move same-store sales positive or negative depending upon the impact year on year. Jonathan Goldman: Okay. And if I can just squeeze one more in. Brian, do you have a view on what is the potential upper bound of the age of the car park? I think we're currently sitting at 13 years, maybe a bit higher for passenger, a bit lower for light vehicle trucks. Brian Kaner: No, I mean -- when you say the upper bound, do you mean the upper bound of vehicles that we would work on or the upper bound of the car park? Jonathan Goldman: The fleet age totally in the U.S. Jeff Murray: Well, I think we've got -- I think as has been reported, there's sort of been a bit of a bubble of a lack of new cars coming out of the pandemic. And that -- to me, that's one of the main drivers that's causing this little shift right now in terms of aging vehicles because there's a gap. But over time, that bubble is going to likely move through and then ultimately will probably limit and even reduce the age of the car park, I think, over some period of years here. Operator: There are no further questions at this time. I will now turn the call back to Mr. Brian Kaner for closing remarks. Brian Kaner: Thank you, operator, and thank you all once again for joining our call today as we look forward to reporting our third quarter results in November. Thanks again, and have a great day. Operator: This concludes today's call. Thank you for attending. You may now disconnect. Before you buy stock in Boyd Group Services, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Boyd Group Services wasn’t one of them. The 10 stocks that made the cut are built for long-term growth and could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you’d have $419,408!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you’d have $1,348,694!* That performance is why people listen. With a track record of beating the S&P 500 by nearly 5x, Stock Advisor offers a distinct advantage. Don't miss the latest top 10 list, available with Stock Advisor, and join an investing community built for the long haul. See the 10 stocks » *Stock Advisor returns as of August 19, 2026. This article is a transcript of this conference call produced for The Motley Fool. While we strive for our Foolish Best, there may be errors, omissions, or inaccuracies in this transcript. As with all our articles, The Motley Fool does not assume any responsibility for your use of this content, and we strongly encourage you to do your own research, including listening to the call yourself and reading the company's SEC filings. Please see our Terms and Conditions for additional details, including our Obligatory Capitalized Disclaimers of Liability. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Boyd Group Services (BGSI) Q2 2026 Earnings Call Transcript was originally published by The Motley Fool

Delivering Strong Sales Growth, Margin Expansion and Accelerated Synergy Realization Second Quarter 2026 Highlights Sales increased 29.9% to $1,013.7 million Adjusted EBITDA1 increased 44.9% to $135.9 million, with Adjusted EBITDA margins1 expanding 140 basis points to 13.4% New locations contributed $211.3 million to revenue, complemented by 2.9% same-store sales1 growth Achieved $15 million in incremental cost savings from Project 360 and synergy realization Joe Hudson's synergy realization ahead of schedule following completion of shop conversion Pro forma debt leverage improved to 2.8x from 3.1x at the end of 2025 WINNIPEG, MB, Aug. 12, 2026 /CNW/ -- Boyd Group Services Inc. (TSX: BYD) (NYSE: BGSI) ("Boyd Group" or "the Company") today announced financial results for the quarter ended June 30, 2026. "The Boyd team delivered another strong quarter, with sales increasing 30% in the second quarter and Adjusted EBITDA growing 45%. Quarterly revenue surpassed $1 billion for the first time in Boyd's history, while Adjusted EBITDA margins reached 13.4%, up from 12.0% in Q2 2025 and 11.5% in Q2 2024, reflecting the continued benefits of Project 360 and synergy realization. We also successfully completed the conversion of Joe Hudson's 258 locations during the quarter, accelerating synergy realization, which contributed to the strength in our profitability. Combined with our strong balance sheet, these achievements position us well to continue executing our growth strategy, enhancing profitability and creating long-term value for our shareholders." - Brian Kaner, President & CEO of the Boyd Group Q2 2026 Results(Second quarter 2026 compared to second quarter of 2025) Sales increased 29.9% to $1,013.7 million, driven by $211.3 million from 340 new locations that were not in operation for the full comparative quarter and 2.9% same-store sales1 . The second quarter of 2026 had the same number of selling and production days as the prior year period. Gross profit increased by 31.4% to $480.0 million as gross margins expanded to 47.4% from 46.8% in the second quarter of 2025. Gross margins benefited from increased paint and parts margins, driven by Joe Hudson's synergy realization and Project 360, as well as higher sublet, scanning, and calibration margins. These gains were partially offset by lower labor margins and variability in performance-based pricing. Adjusted EBITDA1 increased 44.9% to $135.9 million with Adjusted EBITDA margins1 expanding to 13.4% from 12.0% reflecting the contribution from the Joe Hudson's acquisition, which is accretive to Adjusted EBITDA margin1, cost savings from Project 360 and faster than expected synergy realization. Net earnings was $1.3 million, compared to $5.4 million in the same period of the prior year. Net earnings was impacted by higher depreciation and amortization costs from new location growth, as well as higher finance costs related to the Joe Hudson's acquisition. Adjusted net earnings1 increased 46.7% to $22.4 million and Adjusted earnings per share increased to $0.80 from $0.71, driven primarily by the increase in Adjusted EBITDA1. The conversion of Joe Hudson's locations was completed during the quarter, with the timing of synergy realization coming in ahead of expectations. During the second quarter, Boyd realized an incremental $15 million in cost savings from Project 360 and acquisition synergies and a total of $35 million in the first six month of 2026. Boyd added ten new locations during the quarter, including four single shop acquisitions and six new start up locations. Outlook Industry repairable-claims volumes showed continued stabilization during the second quarter of 2026. Based on second quarter claims-processing data, the Company estimates that repairable-claims volumes were flat to down 2% year-over-year, representing a meaningful improvement from the declines experienced during the same period in 2025, and consistent with our long-term planning assumptions. Against this backdrop, Boyd continued to outperform underlying industry volumes and gain market share. This performance reflects the strength of the Company's insurer relationships and underscores the competitive advantage of Boyd's scale and business model. These share gains delivered positive same-store sales growth for the quarter, with only limited contribution from total cost of repair ("TCOR") growth. In July 2026, same-store sales growth was positive in the low single digits, driven entirely by continued share gains. While TCOR growth continues to face well-documented, short-term transitory pressures, long-term structural tailwinds remain intact. Given the inherent monthly and quarterly variability the Company evaluates same-store sales over longer periods and does not view any single period as indicative of sustainable market share expansion or multi-year strategic targets. Looking ahead, Boyd's scale and network allows it to invest in superior client capabilities, providing multiple company-specific growth paths independent of any single industry variable. Boyd remains focused on strengthening its position as a leading direct repair program multi-shop operator by deepening insurer relationships, improving opportunity capture and capacity utilization, and expanding its presence in priority markets. The Company expects these initiatives to support continued growth and additional share gains. Boyd also intends to complement organic growth through disciplined acquisitions and new-location development, together with continued investment in glass, scanning, calibration and other adjacent capabilities, while maintaining balance-sheet flexibility. The Company is accelerating its Project 360 and acquisition cost savings target of $140 million due to faster-than-expected gains from the Joe Hudson's integration. It now expects $35 million in Joe Hudson's synergies in 2026, up from the previous $20 million target. As a result, total cost savings expected in 2026 have increased to $65 million from $50 million, with the remaining $35 million expected to be realized ratably from 2027 to 2029. The conversion of Joe Hudson's location was successfully completed in the second quarter, establishing a stronger operating foundation and driving meaningful year-over-year profit growth. While the transition has resulted in some temporary sales disruptions that have continued into the third quarter, initiatives focused on throughput and local market execution are driving revenue on a more profitable foundation. The Company expects to open three new start-up locations during the third quarter and currently has an additional 10 start-up locations targeted for completion in the fourth quarter. Organic expansion is expected to be complemented by single-location acquisitions, supported by the Company's strong balance sheet. 2026 Second Quarter Conference Call & Webcast Management will hold a conference call on Wednesday, August 12, 2026, at 8:00 a.m. (ET) to review the Company's 2026 second quarter results. You can join the call by dialing 1-833-461-5787 or 1-585-542-9983. A live audio webcast of the conference call will be available at https://events.q4inc.com/attendee/789326895. An archived replay of the webcast will be available for 90 days on the Boyd Group's website https://www.boydgroup.com. About Boyd Group Services Inc. Boyd Group Services Inc. is a Canadian corporation and controls The Boyd Group Inc. and its subsidiaries. Boyd Group Services Inc. shares trade on the Toronto Stock Exchange (TSX) under the symbol BYD.TO and the New York Stock Exchange (NYSE) under the symbol BGSI. For more information on The Boyd Group Inc. or Boyd Group Services Inc., please visit our website at https://www.boydgroup.com. About The Boyd Group Inc. Boyd Group Services Inc. ("BGSI"), through its operating company, The Boyd Group Inc. and its subsidiaries ("Boyd" or the "Company"), is one of the largest operators of non-franchised collision repair centers in North America in terms of number of locations and sales. The Company currently operates locations in Canada under the trade name Boyd Autobody & Glass and Assured Automotive, as well as in the U.S. under the trade name Gerber Collision & Glass. The Company is also a major retail auto glass operator in the U.S., under the trade names Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority and Autoglassonly.com. In addition, the Company operates a third party administrator, Gerber National Claims Services ("GNCS"), that offers glass, emergency roadside and first notice of loss services. The Company also operates Mobile Auto Solutions ("MAS") in the U.S. and Volta Auto Diagnostics Ltd. ("Volta") in Canada that offer scanning and calibration services. For more information on The Boyd Group Inc. or Boyd Group Services Inc., please visit our website at http://www.boydgroup.com. Non-GAAP Financial Measures and Ratios Same-store sales, Adjusted EBITDA, Adjusted EBITDA margin, Adjusted net earnings and Adjusted net earnings per share are non-GAAP financial measures and ratios, which are not standardized measures under International Financial Reporting Standards ("IFRS") and therefore may not be comparable to similar measures disclosed by other issuers. Boyd's management uses certain non-GAAP financial measures to evaluate the performance of the business and to reward employees. These non-GAAP should not be considered as a substitute for, or superior to, measures of financial performance prepared in accordance with IFRS, such as net earnings or sales in measuring the performance of Boyd. The following is a reconciliation of Boyd's non-GAAP financial measures and ratios used in this release: SAME-STORE SALES Same-store sales is a non-GAAP measure that includes only those locations in operation for the full comparative period. Same-store sales is presented excluding the impact of foreign exchange fluctuation on the current period. ADJUSTED EBITDA EBITDA represents an indication of the Company's capacity to generate income from operations before taking into account management's financing decisions and costs of consuming tangible and intangible capital assets, which vary according to their vintage, technological age and management's estimates of their useful life. EBITDA comprises sales less operating expenses before finance costs, capital asset amortization and impairment charges, and income taxes. Adjusted EBITDA is calculated to exclude items of an unusual nature that do not reflect normal or ongoing operations of BGSI and which should not be considered in a valuation metric or should not be included in an assessment of the ability to service or incur debt. Included as an adjustment to EBITDA are acquisition and transformational cost initiative expenses and fair value adjustments to contingent consideration and financial instruments which do not have a cash impact. These adjustments do not relate to the current operating performance of the business units but are typically costs incurred to expand operations as well as execute transformational plans. Acquisition and transformational costs include transaction costs in acquiring and integrating a business acquisition and other non-recurring costs related to the execution of Project 360. From time to time BGSI may make other adjustments to its Adjusted EBITDA for items that are not expected to recur. Management believes that in addition to net earnings and cash flows, Adjusted EBITDA is useful to readers to provide an indication of earnings from operations and cash available for distribution, both before and after debt management , productive capacity maintenance and non-recurring and other adjustments. Adjusted EBITDA margin is a measure of operating profit that can be used to assess Boyd's operational performance. Adjusted EBITDA margin is calculated by dividing Adjusted EBITDA by total sales. ADJUSTED NET EARNINGS Adjusted net earnings means net earnings adjusted to add back fair value adjustments (non-taxable) and acquisition and transformational cost initiatives (net of tax). Commencing in the fourth quarter of 2025, and on a go-forward basis, the calculation of Adjusted net earnings also excludes amortization of intangibles arising on acquisitions. Amortization of intangible assets arising on acquisition is the result of the purchase price allocation on completion of an acquisition. There are no future capital expenditures associated with maintaining or replacing these intangible assets. Comparative periods have been restated to reflect this additional adjustment. BGSI believes that certain users of financial statements are interested in understanding net earnings excluding certain fair value adjustments and other items of an unusual or infrequent nature that do not reflect normal or ongoing operations of the Company. This can assist these users in comparing current results to historical results that did not include such items. Adjusted net earnings per share means Adjusted net earnings, divided by our weighted average number of shares for the applicable period. Caution concerning forward-looking statements Statements made in this press release, other than those concerning historical information, may be "forward-looking statements" and "forward-looking information" within the meaning of applicable securities laws of the U.S. and Canada, respectively (collectively, "forward-looking statements") and therefore subject to various risks and uncertainties. Some forward-looking statements may be identified by words such as "may", "will", "anticipate", "estimate", "expect", "intend", "continue", "will", "project", "target", "plan", "goal" or the negative thereof or similar variations. The forward-looking statements in this press release include, without limitation, statements regarding: Boyd's outlook and expectations regarding performance relative to industry peers; trends and industry conditions; execution of the Company's growth strategy and outlook; progress on Project 360 initiatives; the Company's financial metric goals, including for Adjusted EBITDA margin; growth opportunities presented by the Company's increased scale, greater market density, expanded platform and fragmentation; the Company's ability and expectations to open three start-up locations in the third quarter of 2026 with an additional ten locations to be added through year-end; execute on the pipeline of approximately eight to ten start-up locations per quarter; the Company's ability to activate the stores in its development pipeline for 2026; the Company's expectations for continued acquisition activity and the Company's ability to deliver sustained growth and value creation for shareholders and customers. Forward-looking statements are subject to significant risks and uncertainties and are based on a number of assumptions and estimates. Forward-looking statements are based on certain assumptions and analyses made by Boyd concerning its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes are appropriate. A number of factors could cause actual results, performance or achievement to differ materially from those discussed or implied in the forward-looking statements. Risks and uncertainties related to Boyd's business include, but are not limited to, risks and uncertainties relating to: acquisition and new location risk; employee relations and staffing; operational performance; brand management and reputation; market environment change; reliance on technology; corporate governance; decline in number of insurance claims; low capture rates; supply chain risk; margin pressure and sales mix changes; economic downturn; changes in client relationships; environmental, health and safety risk; climate change and weather conditions; pandemic risk; competition; access to capital; dependence on key personnel; tax position risk; increased government regulation and tax risk; fluctuations in operating results and seasonality; risk of litigation; execution on new strategies; insurance risk; interest rates; U.S. health care costs and workers compensation claims; foreign currency risk; capital expenditures; public company costs; foreign private issuer status; differences in Canadian and U.S. corporate and securities laws; enforceability against foreign persons and of foreign judgments; intellectual property; and energy costs; and Boyd's success in anticipating and managing the foregoing risks. We caution that the foregoing list of factors is not exhaustive and that when reviewing our forward-looking statements, investors and others should refer to the "Business Risks and Uncertainties" section of Boyd's Annual Information Form, the "Business Risks and Uncertainties" and other sections of our Management's Discussion and Analysis of Operating Results and Financial Position and our other periodic filings with Canadian securities regulatory authorities and the SEC from time to time, available at www.sedarplus.ca and www.sec.gov. All forward-looking statements presented herein should be considered in conjunction with such filings. Readers are cautioned not to place undue reliance on such forward-looking statements, as actual results may differ materially from those expressed or implied in such statements. The forward-looking statements in this press release reflect the Boyd's current expectations, assumptions and/or beliefs based on information currently available, including with respect to such things as conditions in the collision and auto glass repair business, including weather, accident frequency, cost of repair, miles driven and available repairable vehicles; the Company's ability to complete the integration of acquired businesses within anticipated time periods and at expected cost levels; the Company's ability to achieve synergies arising from successful integration of acquired businesses; the impact of acquisitions on growth; the accuracy and completeness of the information (including financial information) regarding acquired businesses; the absence of significant undisclosed costs or liabilities associated with acquisitions; the successful implementation of margin improvement initiatives; the future performance and results of our business and operations; general economic conditions, industry forecasts and/or trends, the government and regulatory environment and potential impacts thereof. Although the Company believes the expectations reflected in these forward-looking statements and the assumptions upon which they are based are reasonable, no assurance can be given that actual results will be consistent with those expressed or implied in such forward-looking statements, and they should not be unduly relied upon. There can be no assurance that such expectations and assumptions will prove to be correct. The forward-looking statements contained in this presentation describe the expectations of the Company as of the date of this press release. Except as required by law, the Company does not undertake to update or revise any forward-looking statements, whether as a result of new information, future events or for any other reason. The forward-looking statements contained herein are expressly qualified in their entirety by this cautionary statement. View original content:https://www.prnewswire.com/news-releases/boyd-group-services-inc-reports-second-quarter-2026-results-302849251.html

Interested in Boyd Group Services Inc.? Here are five stocks we like better. Strong Q2 growth: Revenue surpassed $1 billion for the first time, rising 30% year over year to $1.013 billion, while adjusted EBITDA increased 45% to $135.9 million and margins expanded to 13.4%. Joe Hudson integration is ahead of plan: Boyd completed the system conversion across all 258 acquired locations and raised its 2026 synergy target to $35 million from $20 million. Project 360 savings and Joe Hudson synergies contributed about $15 million in Q2. Expansion supports the outlook: Same-store sales grew 2.9% despite flat-to-down industry repair volumes, while the footprint expanded 32% year over year. Management expects acquisition activity to accelerate in the second half of 2026 and reported improved pro forma leverage of about 2.8 times. Boyd Group Services (TSE:BYD) reported second-quarter 2026 revenue above $1 billion for the first time, as the company expanded its footprint, integrated Joe Hudson’s Collision Center and advanced its Project 360 cost-transformation program. Revenue rose 30% year over year to $1.013 billion, while adjusted EBITDA increased 45% to $135.9 million. Adjusted EBITDA margin expanded 140 basis points to 13.4%, compared with 12.0% in the second quarter of 2025. → SoundHound AI Sends a Loud Signal After Its Q2 Earnings Beat President and Chief Executive Officer Brian Kaner said the results reflected “deliberate execution” across the business, including market-share gains, new-location development and accelerated realization of acquisition synergies. Boyd said it completed the system conversion across all Joe Hudson’s locations during the quarter, creating a unified operating platform for the acquired business. Kaner said the conversion caused temporary sales disruption, but targeted efforts to improve throughput and local execution were gaining traction. → AST SpaceMobile Earnings Just Reminded Investors How Risky Space Can Be The company raised its 2026 synergy target from the Joe Hudson’s acquisition to $35 million, up from its previous estimate of $20 million. Kaner attributed the increase primarily to the faster pace of integration, including quicker access to operational data, accelerated back-office consolidation and movement to common supply-chain contracts. Joe Hudson’s locations contributed $175 million in sales during the quarter. Boyd said the integration has included systems conversion, rebranding, substantial back-office migration, supply-chain alignment and internalization of scanning and calibration services. Kaner said there was “not really a lot left to do from an integration perspective,” allowing the company to apply its operating model across the acquired network of 258 locations. → First Solar’s Profit Engine Faces a New Policy Test in Washington Combined Project 360 savings and Joe Hudson’s synergies totaled about $15 million in the second quarter, management said. Gross profit rose 31% to $480 million, with gross margin increasing 60 basis points to 47.4%. The company cited stronger paint and parts margins, savings initiatives, and increased margins from scanning, calibration and sublet services. Boyd generated 2.9% same-store sales growth in the second quarter, despite estimating that industry repairable claims volumes were flat to down 2% year over year based on claims-processing data. Management said the comparison marked an improvement from the claims-volume decline experienced in the second quarter of 2025. Kaner said same-store sales remained positive in the low-single digits in July, though he cautioned that monthly results can vary significantly and should not be viewed as indicative of an entire quarter. The company attributed its outperformance to market-share gains, insurer relationships, improved carrier performance and a 2025 regional incentive realignment that tied field leadership compensation to performance for Boyd’s three largest clients. Kaner said the initiative has increased opportunities flowing into stores, with the company focused on converting those opportunities into repair work. Management said growth in total cost of repair remained limited. Kaner pointed to several near-term pressures, including greater repair-versus-replace activity during periods of lower industry demand and a modest increase in alternative-parts usage. However, he said the longer-term outlook remains supported by the increasing cost to repair newer vehicles. According to Kaner, repairs for vehicles zero to three years old cost about C$2,000 more than the overall average repair and are approaching C$6,000. On total losses, Kaner said the company expects only modest longer-term movement, estimating potential annual growth of roughly 0.3 percentage points. He noted that insurers, automakers and consumers all have incentives to limit total losses, while vehicle aging could exert some upward pressure. He also cited Rhode Island legislation requiring an 85% total-loss threshold, compared with an industry level that he said is closer to 70%. Revenue growth included $211 million of incremental contributions from 340 locations that were not in operation for the full prior-year period. Boyd’s location footprint grew 32% year over year, supported by the Joe Hudson’s acquisition and new-location development. Kaner said Boyd expects acquisition activity to accelerate in the second half, consistent with its historical pattern of starting the year slowly and finishing strongly. The company sees a “robust pipeline” of potential acquisitions in the fragmented collision-repair industry. The company plans 13 new startups for the remainder of 2026, including 10 new-industry locations planned for the fourth quarter. Some planned projects were delayed or canceled after Boyd evaluated overlap with the Joe Hudson’s acquisition, Kaner said. Management said it ultimately aims to return its new-location pipeline to a more typical pace of about eight openings per quarter. Boyd also sees room to improve technician capacity utilization. Kaner said the company tracks technician productivity through hours per technician per week and believes some additional capacity remains, even as it continues recruiting technicians. He said the company’s same-store growth has already absorbed part of that capacity. Operating expenses declined to 33.9% of sales from 34.8% a year earlier, an improvement of 90 basis points driven by Project 360 and Joe Hudson’s synergies. Reported net earnings were $1.3 million, compared with $5.4 million in the prior-year period. Chief Financial Officer Jeff Murray said earnings were affected by higher depreciation and amortization associated with location growth, higher financing costs and a $5 million increase in amortization related to a revision of the initial purchase-price allocation for the acquisition. Excluding that incremental intangible amortization, net earnings would have been $6.4 million, Murray said. Adjusted net earnings increased 47% to $22.4 million, while adjusted earnings per share rose to $0.80 from $0.71 a year earlier. For full-year 2026, Boyd maintained its expectation for maintenance capital expenditures of 1.6% to 1.8% of sales. Capital expenditures tied to the Joe Hudson’s acquisition remain estimated at $30 million, with approximately $9.8 million invested through the second quarter. Pro forma net leverage improved to about 2.8 times at quarter-end from 3.1 times at the end of fiscal 2025. Management said the company’s balance sheet and capital-light business model provide flexibility to fund future growth initiatives. Boyd Group Services Inc is a Canadian corporation and controls The Boyd Group Inc and its subsidiaries. Boyd Group Services Inc shares trade on the Toronto Stock Exchange (TSX) under the symbol BYD.TO and the New York Stock Exchange (NYSE) under the symbol BGSI. For more information on The Boyd Group Inc or Boyd Group Services Inc, please visit our website at https://www.boydgroup.com . This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Boyd Group Services Q2 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for August 2026.

Boyd Group Services Inc. (BGSI) came out with quarterly earnings of $0.8 per share, missing the Zacks Consensus Estimate of $0.94 per share. This compares to earnings of $0.5 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of -14.89%. A quarter ago, it was expected that this company would post earnings of $0.56 per share when it actually produced earnings of $0.58, delivering a surprise of +3.57%. Over the last four quarters, the company has surpassed consensus EPS estimates two times. Boyd Group Services Inc., which belongs to the Zacks Consumer Products - Staples industry, posted revenues of $1.01 billion for the quarter ended June 2026, missing the Zacks Consensus Estimate by 0.53%. This compares to year-ago revenues of $780.41 million. The company has topped consensus revenue estimates just once over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Boyd Group Services Inc. shares have lost about 35.6% since the beginning of the year versus the S&P 500's gain of 12.9%. While Boyd Group Services Inc. has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Boyd Group Services Inc. was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $1.10 on $1.05 billion in revenues for the coming quarter and $3.74 on $4.14 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Consumer Products - Staples is currently in the bottom 14% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Ollie's Bargain Outlet (OLLI), another stock in the same industry, has yet to report results for the quarter ended July 2026. This retailer is expected to post quarterly earnings of $1.15 per share in its upcoming report, which represents a year-over-year change of +16.2%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Ollie's Bargain Outlet's revenues are expected to be $761.06 million, up 12% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Boyd Group Services Inc. (BGSI) : Free Stock Analysis Report Ollie's Bargain Outlet Holdings, Inc. (OLLI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

Hershey (HSY) came out with quarterly earnings of $1.9 per share, beating the Zacks Consensus Estimate of $1.45 per share. This compares to earnings of $1.21 per share a year ago. These figures are adjusted for non-recurring items. This quarterly report represents an earnings surprise of +31.03%. A quarter ago, it was expected that this chocolate bar and candy maker would post earnings of $2.05 per share when it actually produced earnings of $2.35, delivering a surprise of +14.63%. Over the last four quarters, the company has surpassed consensus EPS estimates four times. Hershey, which belongs to the Zacks Food - Confectionery industry, posted revenues of $2.79 billion for the quarter ended June 2026, surpassing the Zacks Consensus Estimate by 5.21%. This compares to year-ago revenues of $2.61 billion. The company has topped consensus revenue estimates four times over the last four quarters. The sustainability of the stock's immediate price movement based on the recently-released numbers and future earnings expectations will mostly depend on management's commentary on the earnings call. Hershey shares have added about 1.1% since the beginning of the year versus the S&P 500's gain of 6.9%. While Hershey has underperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? There are no easy answers to this key question, but one reliable measure that can help investors address this is the company's earnings outlook. Not only does this include current consensus earnings expectations for the coming quarter(s), but also how these expectations have changed lately. Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions. Investors can track such revisions by themselves or rely on a tried-and-tested rating tool like the Zacks Rank, which has an impressive track record of harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revisions trend for Hershey was unfavorable. While the magnitude and direction of estimate revisions could change following the company's just-released earnings report, the current status translates into a Zacks Rank #4 (Sell) for the stock. So, the shares are expected to underperform the market in the near future. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. It will be interesting to see how estimates for the coming quarters and the current fiscal year change in the days ahead. The current consensus EPS estimate is $2.29 on $3.32 billion in revenues for the coming quarter and $8.42 on $12.24 billion in revenues for the current fiscal year. Investors should be mindful of the fact that the outlook for the industry can have a material impact on the performance of the stock as well. In terms of the Zacks Industry Rank, Food - Confectionery is currently in the bottom 4% of the 250 plus Zacks industries. Our research shows that the top 50% of the Zacks-ranked industries outperform the bottom 50% by a factor of more than 2 to 1. Boyd Group Services Inc. (BGSI), another stock in the broader Zacks Consumer Staples sector, has yet to report results for the quarter ended June 2026. The results are expected to be released on August 12. This company is expected to post quarterly earnings of $1.03 per share in its upcoming report, which represents a year-over-year change of +106%. The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. Boyd Group Services Inc.'s revenues are expected to be $1.02 billion, up 30.6% from the year-ago quarter. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Hershey Company (The) (HSY) : Free Stock Analysis Report Boyd Group Services Inc. (BGSI) : Free Stock Analysis Report This article originally published on Zacks Investment Research (zacks.com). Zacks Investment Research

WINNIPEG, MB, June 17, 2026 /CNW/ - Boyd Group Services Inc. (TSX: BYD) (NYSE: BGSI) today announced a cash dividend for the second quarter of 2026 of C$0.156 per common share. The dividend will be payable on July 29, 2026 to common shareholders of record at the close of business on June 30, 2026. Shareholders who are non-residents of Canada will be subject to withholding taxes in respect of any dividends made by Boyd Group Services Inc. ON BEHALF OF THE BOARD OF DIRECTORSof Boyd Group Services Inc. Mr. Brian Kaner, President & CEO About Boyd Group Services Inc. Boyd Group Services Inc. ("BGSI") is a Canadian corporation and controls The Boyd Group Inc. and its subsidiaries. BGSI shares trade on the Toronto Stock Exchange under the symbol BYD and on the New York Stock Exchange under the symbol BGSI. About The Boyd Group Inc. The Boyd Group Inc. ("Boyd") is one of the largest operators of non-franchised collision repair centres in North America in terms of number of locations and sales. Boyd operates locations in Canada under the trade names Boyd Autobody & Glass and Assured Automotive as well as in the U.S. under the trade name Gerber Collision & Glass. In addition, Boyd is a major retail auto glass operator in the U.S. with operations under the trade names Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority and Autoglassonly.com. Boyd also operates a third-party administrator, Gerber National Claims Services, that offers glass, emergency roadside and first notice of loss services. Boyd also operates a Mobile Auto Solutions ("MAS") service that offers scanning and calibration services. Caution concerning forward-looking information Statements made in this press release constitute "forward-looking information" and "forward-looking statements" within the meaning of applicable Canadian and United States securities laws, including the United States Private Securities Litigation Reform Act of 1995 (collectively, "forward-looking information"). Forward-looking information can be generally identified by words such as "may", "will", "anticipate", "estimate", "expect", "intend", "continue", "should", "believe" or the negatives thereof and similar variations. Statements containing forward-looking information are not historical facts but instead represent management's expectations, estimates and projections regarding future events. Forward-looking information is necessarily based on a number of opinions, assumptions and estimates that, while considered reasonable by the Company as of the date of this press release, are subject to known and unknown risks, uncertainties and other factors that may cause the actual results or events to be materially different from those expressed or implied by such forward-looking information, including but not limited to the risks and uncertainties detailed under the "Business Risks and Uncertainties" section of the Company's current annual information form, the "Business Risks and Uncertainties" and other sections of the Company's management's discussion and analysis of operating results and financial position and in the Company's other periodic filings with the Canadian securities regulatory authorities and the SEC from time to time, available at www.sedarplus.com and www.sec.gov, respectively. These factors are not intended to represent a complete list of the factors that could affect the Company; however, these factors should be considered carefully. All forward-looking information presented herein should be considered in conjunction with such filings. Although the Company believes the expectations reflected in such forward-looking information and the assumptions upon which it is based are reasonable, no assurance can be given that actual results will be consistent with such forward-looking information, and it should not be unduly relied upon. There can be no assurance that such expectations and assumptions will prove to be correct. The forward-looking information contained in this press release describes the expectations of the Company as of the date of this press release. Except as required by law, the Company does not undertake to update or revise any forward-looking information contained herein, whether as a result of new information, future events or for any other reason. The forward-looking information contained herein is expressly qualified in its entirety by this cautionary statement. View original content:https://www.prnewswire.com/news-releases/boyd-group-services-inc-announces-second-quarter-2026-cash-dividend-302802616.html View original content: http://www.newswire.ca/en/releases/archive/June2026/17/c9355.html

Interested in Boyd Group Services Inc.? Here are five stocks we like better. Boyd Group delivered record Q1 results, with revenue up 28.1% to CAD 996.7 million and adjusted EBITDA up 51.9% to CAD 122.4 million. Adjusted EBITDA margin also improved to 12.3% from 10.3% a year earlier. The Joe Hudson’s Collision Center acquisition was a major growth driver, adding 258 locations and contributing CAD 168 million in first-quarter sales. Boyd ended the quarter with 1,312 locations and expects about CAD 40 million in synergies from the deal. Margins improved thanks to cost savings and operating leverage, with more than CAD 60 million in cumulative savings from Project 360 and acquisition synergies. Despite a wider net loss due to acquisition-related costs, adjusted net earnings rose to CAD 16.1 million from CAD 6.6 million a year earlier. Boyd Group Services (TSE:BYD) reported record first-quarter revenue and adjusted EBITDA, helped by the January acquisition of Joe Hudson’s Collision Center, ongoing cost-savings initiatives and a return to positive same-store sales growth. President and Chief Executive Officer Brian Kaner said the company “delivered all-time record first quarter results,” citing record revenue and adjusted EBITDA, a 33% increase in the company’s location footprint, the third consecutive quarter of positive same-store sales growth and a 200-basis-point expansion in adjusted EBITDA margin. → Micron Investors Face a High-Stakes Moment After the Latest Rally For the quarter ended March 31, 2026, Boyd generated revenue of CAD 996.7 million, up 28.1% from the prior-year period. Adjusted EBITDA rose 51.9% to CAD 122.4 million, while adjusted EBITDA margin improved to 12.3% from 10.3% a year earlier. Boyd closed its acquisition of Joe Hudson’s on Jan. 9, a transaction Kaner described as “the largest MSO transaction in the company’s history.” The acquisition added 258 locations and contributed CAD 168 million in first-quarter sales. → How Bad Could Tesla’s Cybertruck Recall Be for Shares? At quarter-end, Boyd operated 1,312 locations, up 33% from a year earlier. The company also added three single-shop acquisitions and opened eight startup locations during the quarter. Kaner said Boyd expects to open five additional startup locations in the second quarter and has 17 more under development for the remainder of 2026. Kaner said the integration of Joe Hudson’s was completed after quarter-end, including the conversion of all Joe Hudson’s locations to Boyd’s systems. He said the acquired stores experienced some sales disruption from storms in the first quarter and from the conversion process through the end of April, but added that the conversions are now complete and sales are expected to return to normal projections shortly. → How Berkshire’s New York Times Bet Looks Today Boyd continues to expect approximately CAD 40 million in synergies from the Joe Hudson’s acquisition, with about half realized in 2026 and the remainder by 2028. Same-store sales increased 1.7% in the first quarter, excluding foreign exchange. Management estimated that same-store sales would have increased approximately 2.6% without the negative impact of winter storm activity in the U.S. South. Kaner said repairable claims volumes declined by an estimated 0% to 2% in the quarter, which he said is back in line with the company’s long-term growth framework. That framework assumes average same-store sales growth of 3% to 5%, supported by market share gains, insurance client performance and operational execution. The company said April same-store sales approached the low end of its long-term range. Kaner said Boyd’s same-store sales performance has benefited from continued market share gains and an improvement in repairable claims volumes through 2025 and into the first quarter of 2026. In response to analyst questions, Kaner said Boyd’s initiatives to support sales growth include a focus on client performance, including linking general manager compensation to performance with top insurance clients. He said strong client performance “drives an outsized volume” and helps Boyd gain market share. Boyd said it realized an incremental CAD 20 million in savings during the quarter from Project 360 and Joe Hudson’s synergies, bringing total savings achieved to date to more than CAD 60 million. The company expects another CAD 30 million in savings in 2026 and CAD 50 million more between 2027 and 2029, for total anticipated savings of CAD 140 million. Chief Financial Officer Jeff Murray said gross profit increased 29.1% year over year to CAD 463.7 million. Gross margin was 46.5%, compared with 46.2% a year earlier. Murray said gross margin benefited from increased parts and paint margins from Project 360 and Joe Hudson’s synergy realization, partly offset by a lower mix of glass sales, variability in performance-based pricing and lower gross margins inherent in the Joe Hudson’s business. Operating expenses were 34.2% of sales, down from 35.8% in the prior-year period. Murray attributed the improvement to Project 360, the inclusion of Joe Hudson’s, which had a lower operating expense ratio, and the impact of same-store sales growth. Boyd reported a net loss of CAD 7.9 million, compared with a net loss of CAD 2.6 million a year earlier. Murray said the loss was negatively affected by acquisition and transformational cost initiatives, which are expected to decline as integration work finalizes. Adjusted net earnings were CAD 16.1 million, or CAD 0.58 per share, compared with CAD 6.6 million, or CAD 0.31 per share, in the prior-year quarter. At the end of the quarter, Boyd had total debt net of cash of CAD 2.0 billion, compared with CAD 488 million at the end of the fourth quarter of 2025 and CAD 1.3 billion at the end of the first quarter of 2025. Excluding lease liabilities, net debt was CAD 946 million, compared with net cash of CAD 290.1 million at the end of 2025. Murray said the increase reflected the closing of the Joe Hudson’s acquisition, which had a total transaction value of approximately CAD 1.3 billion. He said Boyd maintained strong liquidity and had “ample room” under its credit facility. Pro forma debt leverage declined to approximately 2.9 times at quarter-end from 3.1 times at the end of the fourth quarter. Boyd continues to expect leverage to reach 2.6 times as early as the end of 2026. During the question-and-answer portion of the call, analysts focused on claims activity, total cost of repair, acquisition opportunities and margins. Kaner said the company continues to see a strong opportunity for tuck-in acquisitions in a fragmented industry with more than 30,000 locations. He said Boyd’s growth strategy includes single-shop acquisitions, smaller multi-shop operators and new greenfield and brownfield locations. Kaner also said total cost of repair has been muted by elevated total losses and the age of the vehicle fleet, which can lead to more aftermarket parts usage and more repair-versus-replace decisions. He said Boyd expects repair costs to return to its long-term framework as used car prices rise, vehicle complexity increases and parts and labor inflation continue. On calibration services, Kaner said Boyd has reached its 80% internalization goal but will continue hiring technicians where needed. Murray added that the calibration market continues to expand, which should provide further gross margin benefits. Looking ahead, Kaner said Boyd remains focused on customer and insurance client experience, Project 360, Joe Hudson’s integration and acquisition-led growth. He said the company is “well-positioned to execute on our strategy and continue to grow in the highly fragmented North American collision industry.” Boyd Group Services Inc is a Canadian corporation and controls The Boyd Group Inc and its subsidiaries. Boyd Group Services Inc shares trade on the Toronto Stock Exchange (TSX) under the symbol BYD.TO and the New York Stock Exchange (NYSE) under the symbol BGSI. For more information on The Boyd Group Inc or Boyd Group Services Inc, please visit our website at https://www.boydgroup.com . This instant news alert was generated by narrative science technology and financial data from MarketBeat in order to provide readers with the fastest reporting and unbiased coverage. Please send any questions or comments about this story to [email protected]. The article "Boyd Group Services Q1 Earnings Call Highlights" was originally published by MarketBeat. View MarketBeat's top stocks for May 2026.