Boyd Group Services Inc.

Second-quarter 2026 revenue increased 30% year over year to $1,013 million. Gross profit rose 31% to $480 million, with gross margin at 47.4% versus 46.8% a year ago. Adjusted EBITDA was $135.9 million, up 45%, and adjusted EBITDA margin expanded to 13.4% from 12.0%. Net earnings were $1.3 million versus $5.4 million in Q2 2025; adjusted net earnings increased 47% to $22.4 million and adjusted EPS rose to $0.80 from $0.71. Same-store sales grew 2.9%. For 2026, Boyd kept maintenance capex at 1.6% to 1.8% of sales, kept Joe Hudson acquisition-related capex at about $30 million, and raised the synergy target to $35 million from $20 million. Management said pro forma net leverage improved to about 2.8x at quarter-end from 3.1x at fiscal 2025 year-end.

Brian Kaner framed the quarter as evidence of deliberate execution, with strong revenue growth, margin expansion, and progress on strategic priorities. He emphasized market share gains, densification, and disciplined M&A as the long-term growth formula, while saying the claims environment has stabilized in the 0% to down 2% range. He was constructive on the balance of the year, saying Project 360 benefits should continue and that Joe Hudson integration is now largely complete.

Jeff Murray highlighted the hard numbers: revenue of $1,013 million, gross profit of $480 million, gross margin of 47.4%, adjusted EBITDA of $135.9 million, adjusted EBITDA margin of 13.4%, adjusted net earnings of $22.4 million, and adjusted EPS of $0.80. He attributed margin gains to Project 360, Joe Hudson synergies, higher paint and parts margins, and improved scanning, calibration, and sublet margins. He also noted maintenance capex of 1.6% to 1.8% of sales, Joe Hudson-related capex of about $30 million with $9.8 million invested through Q2, and pro forma net leverage improving to about 2.8x.

Analysts focused on how Boyd is pulling forward synergies, the outlook for same-store sales, total cost of repair, total loss rates, acquisition pace, and regional performance. Management said Joe Hudson systems conversion happened faster than planned, enabling back-office and supply chain synergies earlier than expected and lifting the synergy target to $35 million. On demand, Boyd said claims volumes appear stabilized, July same-store sales were still positive in the low single digits, and share gains are broad-based rather than confined to one region; management also said there were no major one-time same-store sales headwinds in the quarter.