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The call conveyed strong operational and financial momentum driven by record revenue (+28% YoY), significant adjusted EBITDA growth (+51.9% YoY) and accelerated location expansion (33% increase), with meaningful realized cost savings from Project 360 and acquisition synergies and a successful Joe Hudson's integration underway. Counterbalancing these positives were higher net debt following the Joe Hudson's acquisition, GAAP net loss driven by one‑time integration costs, lower same‑store sales than long‑term targets (though weather‑adjusted performance was stronger), and ongoing uncertainty around TCOR growth and claims volumes. Overall, the positives (revenue/EBITDA records, margin expansion, large footprint growth, and material synergy realization) substantially outweigh the near‑term integration, weather and leverage headwinds.
The company’s forward-looking framework reiterates long‑term targets of 3%–5% same‑store sales growth (Q1 same‑store +1.7%, ~2.6% adjusting for southern weather), average total cost of repair growth of 3%–4% annually, ~1% annual miles driven growth and an assumed ~2% decline in repairable claims, supported by a 5%–7% target for average annual unit growth; operationally it reiterated synergy and cost‑save plans of $140M from Project 360 and acquisitions (>$60M realized to date, $20M incremental in Q1, $30M additional in 2026, $50M in 2027–2029) plus ~ $40M of Joe Hudson’s synergies (≈50% to be realized in 2026, remainder by 2028) while incurring ~$50M of one‑time integration/Project 360 costs ( $26.5M recorded); 2026 cash capex is guided to 1.6%–1.8% of sales (Q1 excl. Joe Hudson’s: 1.3%), footprint expanded 33% to 1,312 locations (including 258 Joe Hudson’s), 5 start‑ups planned in Q2 and 17 more later in 2026, and balance‑sheet targets include pro‑forma leverage of ~2.9x at Q1 trending to ~2.6x by end‑2026, with Q1 revenue $996.7M, adjusted EBITDA $122.4M (margin 12.3%) and an objective to drive margins toward the mid‑teens (14%+ over time).
Generated record Q1 revenue of $996.7–$997.0 million, up ~28.1% year‑over‑year, and record adjusted EBITDA of $122.4 million, up ~51.9% year‑over‑year; adjusted EBITDA margin expanded 200 basis points to 12.3%.
Increased location footprint by 33% to 1,312 locations at quarter end, including 258 locations from the Joe Hudson's transaction; 339 new locations contributed approximately $203.3 million of incremental sales in the quarter.
Realized over $60 million in cumulative cost savings to date from Project 360 and acquisition synergies, including an incremental $20 million in Q1; company remains on track to realize an additional $30 million in 2026 and total anticipated savings of $140 million; Joe Hudson's synergies expected ~ $40 million with ~50% in 2026.
Recorded third consecutive quarter of positive same‑store sales growth: +1.7% (would be ~+2.6% adjusting for adverse Southern weather); management cites market share gains and repairable claims normalizing to long‑term framework (0% to ‑2% estimate for Q1).
Adjusted net earnings were $16.1 million, or $0.58 per share (excluding fair value adjustments, acquisition/transformational costs, and amortization), versus adjusted net earnings of $6.6 million or $0.31 per share in the prior year period.
Gross profit increased ~29.1% to $463.7 million and gross margin modestly improved to 46.5% (from 46.2%); operating expenses fell to 34.2% of sales from 35.8% a year ago, reflecting operational efficiencies and Project 360 benefits.
Pro forma debt leverage declined to ~2.9x from 3.1x at Q4 2025 with management expecting leverage to reach ~2.6x by the end of 2026; company highlights strong liquidity and available capacity on its credit facility to support growth.
Good morning, everyone. Welcome to the Boyd Group Services Inc. 2026 First Quarter Results Conference Call. Listeners are reminded that certain matters discussed in today's 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. We released our 2026 first quarter results before markets opened today. You can access our news release as well as our complete financial statements and management discussion and analysis on our website at boydgroup.com.
Our news release, financial statements, and MD&A have also been filed at SEDAR+ and EDGAR this morning. On today's call, we will discuss the financial results for the quarter ended March 31, 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, May 13, 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.
Thank you, operator. Good morning, everyone, and thank you for joining us for today's call. On the call with me today is Jeff Murray, o...