Boyd Group Services (BYD) Q2 2025 earnings summary

Executive summary

• Q2 2025 sales rose 0.2% to $780.4 million, with new locations offsetting a 2.1% same-store sales decline and outperforming the industry’s 6–8% drop.

• Adjusted EBITDA increased 4.7% to $93.8 million (12.0% margin), the highest since 2023, driven by Project 360, internalization of scanning/calibration, and cost initiatives.

• Net earnings were $5.4 million, down from $10.8 million last year, impacted by higher depreciation, finance, acquisition, and transformation costs.

• Surpassed 1,000 locations in early Q3 2025, aided by the acquisition of an 8-location MSO in Virginia and additional new stores.

• Maintains strong insurance carrier relationships, with 95% of revenue from insurance payors and 51% of 2024 revenue from the top five customers.

Financial highlights

• Gross margin improved to 46.8%, up 120 bps year-over-year, driven by internalization and procurement initiatives.

• Adjusted net earnings for Q2 were $10.8 million ($0.50/share), down from $11.9 million ($0.56/share) in Q2 2024.

• Operating expenses rose to $271.7 million (34.8% of sales), impacted by lower same-store sales and increased facility maintenance.

• Net debt (excluding lease liabilities) was $505.8 million as of June 30, 2025.

• Dividend of C$0.153 per share declared for Q2 2025.

Outlook and guidance

• Five-year plan targets $5 billion in revenue, $700 million adjusted EBITDA, and over 1,400 locations by 2029, with a 14%+ adjusted EBITDA margin.

• Project 360 targets $100 million in annualized cost savings by 2029, with $30 million realized, $40 million incremental savings expected by end of 2026, and $30 million more by 2029.

• Pipeline supports 8–10 new start-up locations per quarter, with 16 planned for H2 2025.

• Management remains cautious on sustainability of positive trends, citing early signs but not yet declaring a full recovery.