Boyd Group Services saw sales rise 28% to $1.013 billion but profit fell 99% to just $81,000 in the third quarter due to high acquisition costs, financing expenses from its $1.3 billion Joe Hudson purchase, and integration and restructuring expenses.
- Sales Growth vs. Profit Decline: Third-quarter sales increased 28% to US$1.013 billion, yet profits fell 99% to only US$81,000 from US$10.8 million a year earlier.
- Major Acquisition Impact: The US$1.3 billion Joe Hudson's Collision Center acquisition, completed in January 2026, added 258 locations across 18 U.S. states and increased shop count by approximately 25%.
- Integration and Financing Costs: Acquisition-related expenses totaled US$7 million in the quarter, while financing expenses surged to US$32.3 million from US$18.8 million due to debt servicing.
- Project 360 Savings Target: Boyd's cost-reduction program achieved US$50 million in savings through September, with a 2026 target of US$65 million from staffing controls, centralized purchasing, and technology improvements.
- Adjusted Profit Performance: When acquisition and transformation expenses were excluded, adjusted profit increased 6.4% to US$19 million, but adjusted earnings per share fell to US$0.68 from US$0.83 due to share dilution.
Despite sales growth of 28.2%, quarterly profit at collision repair operator Boyd Group Services fell 99% to US$81,000 as financing expenses and the costs of expanding and reorganizing the business increased.
The results come during a major overhaul. Managers have been combining a 258-shop acquisition with Boyd’s existing operations while changing staffing arrangements, centralizing purchasing and bringing more scanning and calibration work into the business.
Boyd’s Canadian operations include Boyd Autobody & Glass and Assured Automotive. Its U.S. collision repair locations operate under the Gerber Collision & Glass name.
Sales reached US$1.013 billion in the three months ended Sept. 30, compared with US$790.2 million a year earlier. Profit in the previous year’s quarter was US$10.8 million. The results were released Nov. 11.
The main source of growth was the US$1.3-billion purchase of Joe Hudson’s Collision Center, completed Jan. 9. The acquisition added 258 locations across 18 U.S. states, increasing Boyd’s shop count by approximately 25%.
To help finance the purchase, approximately 6.36 million new shares were sold for US$897 million in November 2025. Trading on the New York Stock Exchange began Oct. 31, 2025. Additional funding included $525 million in notes carrying 5.5% annual interest and borrowing under credit facilities.
The acquired Joe Hudson shops generated US$169.6 million in third-quarter sales. Across the business, locations outside the full comparable reporting period contributed US$206 million in additional revenue. Sales at established locations increased 2.2%.
Integrating the acquired shops has involved more than changing the signs. Employees had to move onto Boyd’s computer systems and operating procedures. In the second-quarter financial commentary released Aug. 12, management disclosed that the conversion had disrupted sales as employees adapted, with some disruption continuing into the third quarter.
Alongside the acquisition, Project 360, a cost-reduction program launched in late 2024, has been changing how the existing business operates.
The measures include tighter controls on staffing outside production roles, centralized purchasing and greater use of technology. Acquisition-related savings also include handling more scanning and calibration internally rather than paying outside providers.
The 2026 savings target was increased in August to US$65 million from US$50 million. Through September, management reported US$50 million in savings from Project 360 and the acquisition.
Brian Kaner, president and chief executive officer, said in the Nov. 11 release that management remained “on track to achieve our accelerated $65 million savings target for 2026.”
Those changes also carry costs. Third-quarter acquisition and business transformation expenses totalled US$7 million before tax, including US$5.1 million associated with the cost-reduction and integration work.
Financing expenses rose to US$32.3 million from US$18.8 million. Accounting charges that spread the cost of non-physical assets over time increased to US$16.3 million from US$7.1 million.
After selected acquisition expenses and accounting charges were excluded, adjusted profit increased 6.4% to US$19 million. Adjusted profit per share nevertheless fell to US$0.68 from US$0.83 because the profit was divided across a larger number of shares.
The pressure on reported profit has continued throughout 2026. For the first nine months, sales reached US$3.023 billion, but the net loss was US$6.6 million, compared with a US$13.6-million profit a year earlier.
Industry demand also remains weaker. Management estimated that claims involving repairable vehicles declined between 1% and 3% from the third quarter of 2025.
Boyd’s network comprised 1,329 collision repair locations at Sept. 30. Ten shops were acquired during the quarter, but no start-up locations opened, compared with three previously forecast. Management expects 11 start-up locations to open in the fourth quarter.
