Canada's Boyd Group Q2 revenue up 30%, slightly misses estimates
Canada's Boyd Group Q2 revenue up 30%, slightly misses estimates
Overview
Canada collision repair operator's Q2 revenue rose 30% but slightly missed analyst expectations
Adjusted EPS for Q2 missed analyst expectations
Margin gains and cost synergies from Joe Hudsons acquisition supported profitability
Outlook
Boyd raises 2026 cost savings target to $65 mln from $50 mln, citing faster synergy gains
Company expects to open 3 new start-up locations in Q3 and 10 more in Q4 2026
Boyd sees industry repairable-claims volumes stabilizing, with market share gains expected to continue
Result Drivers
NEW LOCATIONS - Revenue growth was primarily driven by $211.3 mln from 340 new locations not in operation for the full comparative quarter
SYNERGY REALIZATION - Accelerated synergy realization from Joe Hudsons acquisition and Project 360 contributed to margin expansion and profitability
COST SAVINGS - Achieved $15 mln in incremental cost savings during the quarter from Project 360 and acquisition synergies
Company press release: ID:nPn8S08Bla
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q2 Sales | Slight Miss* | $1.01 bln | $1.02 bln (12 Analysts) |
Q2 Adjusted EPS | Miss | $0.80 | $0.91 (12 Analysts) |
Q2 EPS |
| $0.05 |
|
Q2 Adjusted Net Income |
| $22.40 mln |
|
Q2 Net Income |
| $1.29 mln |
|
Q2 Adjusted EBITDA |
| $135.93 mln |
|
Q2 Gross Margin |
| 47.40% |
|
*Applies to a deviation of less than 1%; not applicable for per-share numbers.
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 13 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"
The average consensus recommendation for the personal services peer group is "buy"
Wall Street's median 12-month price target for Boyd Group Services Inc is C$242.50, about 69.5% above its August 11 closing price of C$143.04
The stock recently traded at 22 times the next 12-month earnings vs. a P/E of 25 three months ago
Reuters Recommended Reads
Aug 11 - Canada's Pet Valu Q2 revenue slightly beats on higher retail, franchise sales
Aug 11 - Canada's Cineplex Q2 revenue rises to record high driven by live FIFA World Cup screenings
Aug 11 - Canada's Exchange Income Q2 results beat estimates on aerospace growth, acquisitions
For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.
(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)
Recent news on Boyd Services
See all newsCanada Research Roundup: First Quantum Minerals, Maple Leaf Foods, Pembina Pipeline
Canada Research Roundup: Banyan Gold, Imperial Oil, International Petroleum Corporation
Canada Research Roundup: Boyd Group Services, National Bank of Canada, TD Bank Group
Boyd Group Services Inc reports results for the quarter ended June 30 - Earnings Summary
Canada's Boyd Group Q2 revenue up 30%, slightly misses estimates