Boyd Group Services Inc. (NYSE:BGSI) reported second-quarter earnings and revenue below Wall Street expectations on Wednesday, despite delivering substantial year-on-year growth and surpassing $1 billion in quarterly revenue for the first time.
Adjusted earnings per share came in at $0.80, missing the consensus estimate of $0.99 by $0.19. Revenue reached $1.01 billion, below the $1.03 billion analyst forecast but 29.9% higher than the $780.4 million reported in the corresponding period last year.
Shares of the collision repair operator were broadly unchanged in after-hours trading following the announcement.
Adjusted EBITDA rises 45% as margins expand
Boyd delivered a stronger performance at the adjusted EBITDA level, with the measure increasing 44.9% year on year to $135.9 million.
Adjusted EBITDA margin expanded by 140 basis points to 13.4%, compared with 12.0% in the second quarter of 2025.
Revenue growth was supported by $211.3 million generated from 340 new locations, while same-store sales increased 2.9%.
The company also achieved $15 million in incremental savings during the quarter through its Project 360 programme and the realisation of acquisition synergies.
“The Boyd team delivered another strong quarter, with sales increasing 30% in the second quarter and Adjusted EBITDA growing 45%,” said Brian Kaner, President and CEO. “Quarterly revenue surpassed $1 billion for the first time in Boyd’s history, while Adjusted EBITDA margins reached 13.4%, reflecting the continued benefits of Project 360 and synergy realization.”
Joe Hudson’s integration progresses ahead of schedule
Boyd completed the conversion of all 258 Joe Hudson’s locations during the second quarter, with associated synergies being captured faster than originally anticipated.
Following that progress, the company increased its 2026 cost-saving target from Project 360 and acquisitions to $65 million, up from its previous objective of $50 million.
Boyd also raised its 2026 synergy target related to Joe Hudson’s to $35 million from $20 million, reflecting stronger-than-expected progress with the integration.
Net earnings decline on higher costs
Net earnings fell to $1.3 million during the quarter from $5.4 million in the corresponding period of 2025.
The decline primarily reflected higher depreciation and finance expenses, which offset some of the benefits from stronger revenue, improving margins and operational cost savings.
Boyd continues expanding repair network
Boyd added ten new locations during the second quarter as it continued expanding its collision repair network.
The company expects to open another three start-up locations during the third quarter, followed by an additional ten targeted for the fourth quarter.
Despite missing Wall Street’s headline earnings and revenue forecasts, Boyd’s accelerating cost savings, stronger adjusted EBITDA margins and faster-than-expected Joe Hudson’s synergies highlighted continued progress in improving the profitability of its expanded operations.
Boyd Group Services stock price
