Boyd Group Services (BYD) Q4 2024 earnings summary

Executive summary

• Achieved $3.1 billion in sales for 2024, up 4.2% year-over-year, driven by 155 new locations despite a 1.8% same-store sales decline; adjusted EBITDA was $334.8M, down 9.1% year-over-year.

• Net earnings for 2024 were CAD 24.5 million, down 71.7% from the prior year; adjusted net earnings per share fell to CAD 1.44.

• Maintained or increased market share in a challenging environment with a 9% industry-wide drop in repairable claims and economic uncertainty.

• Launched Project 360, targeting $100 million in annual recurring cost savings, with $4.4 million in Q4 expenses and $20–$23 million in upfront investments.

• Announced a five-year goal to reach $5 billion in revenue and $700 million adjusted EBITDA by 2029, with a 14%+ EBITDA margin target and CEO transition planned for May 2025.

Financial highlights

• Gross margin held steady at 45.5% for 2024; Q4 sales were $752.3M, up from $740.0M in Q4 2023.

• Adjusted EBITDA for 2024 was $334.8M (10.9% margin), down from $368.2M in 2023; Q4 adjusted EBITDA was CAD 83.4 million, down 11.5% year-over-year.

• Adjusted net earnings for 2024 were $30.9M ($1.44/share), down from $89.7M ($4.18/share) in 2023.

• Debt net of cash at year-end was $1.23B, up from $1.1B in 2023; net debt before lease liabilities increased to $487.3M.

• Annual dividend increased 2% to C$0.612 per share.

Outlook and guidance

• Same-store sales in Q1 2025 have improved over Q4 but remain negative; margin pressures persist due to higher payroll taxes.

• Project 360 cost savings expected to begin in Q2 2025, with 70% of savings in run rate by end of 2026.

• Capital expenditures (excluding acquisitions) planned at 1.6%-1.8% of sales for 2025; network technology upgrades to continue.

• Five-year growth goal may be delayed due to ongoing claims environment uncertainty.

• Targets for 2029 include $5B+ revenue, $700M+ adjusted EBITDA, 1,400+ units, and 14%+ EBITDA margin.