Boyd Group Services reported over $1 billion in quarterly sales for the first time, driven by Joe Hudson's Collision Center integration, while Mavis Tire completed a $700 million acquisition of Pep Boys and AutoCanada improved collision margins despite lower revenue.
- Boyd Group milestone: Q2 sales reached US$1.014 billion, up 29.9% year-over-year, with adjusted EBITDA increasing 44.9% to US$135.9 million
- Mavis-Pep Boys deal: US$700 million acquisition expands Mavis network to over 4,400 service centres across North America
- AutoCanada efficiency: Collision gross profit rose 7.1% to $17.7 million despite 5.3% revenue decline, with gross margin improving to 48.7%
- Advance Auto Parts: Operating income more than doubled while Q2 sales remained flat at US$2 billion with gross margin rising to 46.2%
- Synergy gains: Boyd now expects US$35 million in Joe Hudson synergies in 2026, up from US$20 million target
In this week’s Tuesday Ticker: a collision repair operator passes
US$1 billion in quarterly sales, a US$700-million automotive service
deal closes, a Canadian collision platform sees its margins lift
despite lower revenue and a major aftermarket parts supplier enjoys improved profitability.
Boyd's Billion
Boyd Group Services has reported more than US$1 billion in quarterly
sales for the first time, helped by the addition and integration of
the Joe Hudson’s Collision Center network.
Winnipeg-based Boyd Group Services (TSX: BYD; NYSE: BGSI) operates
collision repair centres in Canada and the U.S. under brands including
Boyd Autobody & Glass and Gerber Collision & Glass.
Second-quarter sales reached US$1.014 billion, up 29.9% from US$780.4
million a year earlier.
New locations contributed US$211.3 million,
while same-store sales rose 2.9%. Adjusted EBITDA increased 44.9% to
US$135.9 million.
The conversion of 258 Joe Hudson locations was completed during the
quarter. Boyd now expects US$35 million in Joe Hudson synergies in
2026, up from an earlier US$20-million target.
Total expected 2026 savings from the acquisition and Project 360 have increased to US$65 million from US$50 million.
“Quarterly revenue surpassed $1 billion for the first time in Boyd’s
history,” president and CEO Brian Kaner said in the Aug. 12 release.
Boyd shares closed at $146.37 on the Toronto Stock Exchange on Aug.
12, up 2.3%. The price fell 12.6% in the following session to $127.98.
Pep Purchase
Florida's Icahn Enterprises has completed the US$700-million sale of Pep Boys to New York-based Mavis Tire Express Services.
Mavis is an independent tire and vehicle service provider with operations across the U.S. and Canada.
A Mavis subsidiary paid about US$700 million in cash for Pep Boys. The
transaction transfers nearly 800 locations and takes the Mavis network
above 4,400 service centres across the U.S. and Canada. Pep Boys will
continue to use its existing brand.
The assets retained by Icahn Enterprises include real estate previously separated from Pep Boys, along with AAMCO Transmissions and Precision Tune Auto Care.
“Closing this transaction marks an important milestone for Mavis and
an exciting next chapter for Pep Boys,” Mavis co-CEO Stephen Sorbaro
said in the Aug. 20 announcement.
Icahn Enterprises units closed at US$6.65 on Aug. 20. The price rose
2.1% in the following session to US$6.79.
AutoCanada collision margins climb despite lower sales
AutoCanada has increased second-quarter collision gross profit by 7.1%
despite a 5.3% decline in collision revenue.
Edmonton-based AutoCanada (TSX: ACQ) operates automotive dealerships
and collision repair centres across Canada. The collision operation
had 37 centres and 26 OEM certifications covering 37 vehicle brands as
of June 30.
Collision revenue fell to $36.4 million from $38.4 million. Gross
profit increased to $17.7 million from $16.6 million, while gross
margin rose to 48.7% from 43.1%.
The margin improvement reflected contributions from acquired
conventional collision businesses and a shift away from lower-margin
paintless dent repair work following the previous year’s hail
activity.
The quarter included the acquisitions of Contemporary Coachworks in
Calgary, Mascarin Collision Centre in Thunder Bay, Ont., and ACX
Stratford in Stratford, Ont.
“We are encouraged by improving trends in used vehicle sales
productivity, used vehicle profit per retail unit, operational
efficiencies achieved through organizational changes implemented
during the quarter, and the continued resilience of our collision
platform,” CEO Samuel Cochrane said in the Aug. 12 release.
AutoCanada shares closed at $22.58 on Aug. 12, up 1.3%. The price rose
another 8% in the following session to $24.38.
Advance Advance Advances
Advance Auto Parts has more than doubled operating income while
second-quarter sales remained essentially flat.
Raleigh, N.C.-based Advance Auto Parts (NYSE: AAP) supplies automotive
aftermarket parts to professional repairers and do-it-yourself
customers across North America.
Second-quarter sales totalled about US$2 billion, while
comparable-store sales fell 0.5%. Gross margin rose to 46.2% from
43.5%.
Professional sales grew in the low single digits, while weaker
do-it-yourself demand pulled down overall comparable sales.
“Our second quarter comparable sales results reflected low-single-digit growth in the Pro channel,” president and CEO Shane O’Kelly said in the Aug. 20 release.
Advance shares closed at US$42.39 on Aug. 20, down 24.6% from the previous session.
