Toronto, Ontario -- The first quarter of 2025 forced Canadian automotive aftermarket companies to deal with significant headwinds.
The Trump Administration's unstable tariff policies meant manufacturing costs rose and supply chains were disrupted. Additionally, a weaker Canadian dollar made imported components more expensive, further straining operational budgets.
In this week's Tuesday Ticker, we take a closer look at how two major Canadian firms managed during the chaotic period.
Boyd Group stands ground despite headwinds
Boyd Group Services Inc. reported a net loss of $2.6 million during the first quarter of 2025, compared to a net gain of $8.4 million during the same period in 2024.
The losses stem from investments made by the Winnipeg-based company. After adjusting for acquisition and transformation costs, it posted an adjusted net income of $2.2 million.
The company experienced a slight decrease in sales during the first quarter of 2025, reporting $778.3 million, down from $786.5 million in the same period of 2024. Same-store sales also declined by 2.8 percent. Despite these challenges, the company improved its gross margin to 46.2 percent.
According to the company, these gains were due to it providing more services in-house and implementing performance-based pricing strategies.
Magna International's income grows as market slows
Magna International Inc. saw its net income rise to $146 million, up from $9 million in the first quarter of 2024. The gains did not come about as a result of a favourable market.
During the period, it secured $10.1 billion from sales, an eight percent decrease from the same period in 2024. The decline was partly attributed to a three percent drop in global light vehicle production. Decreases were highest in Europe and North America, where Magna conducts the majority of its commercial operations.
The improvement was primarily due to the absence of significant one-time expenses that had affected the previous year's results, such as the $316 million write-down related to Fisker Inc.
Additionally, the company benefited from a $2 million reduction in amortization of acquired intangible assets, partly due to currency exchange effects and prior asset impairments.
