Boyd Group Services Inc., the Canada-based parent company of Gerber Collision & Glass, reported all-time record first-quarter 2026 results on May 13, posting total sales of $996.7 million, a 28.1% increase from the same period in 2025. Adjusted EBITDA rose 51.9% to an all-time record $122.4 million, and adjusted EBITDA margins expanded 200 basis points to 12.3%, according to the Q1 2026 earnings call transcript. The results and leadership commentary on claim volumes, parts pricing, labor costs and insurance dynamics reflect conditions facing the broader collision repair market.
Same-store sales increased 1.7% in the first quarter, the company's third consecutive quarter of positive same-store sales growth. President and CEO Brian Kaner said adjusting for weather-related disruptions in the U.S. South, same-store sales growth would have been approximately 2.6%.
The company reported a net loss of $7.9 million, compared to a net loss of $2.6 million in Q1 2025, per RTTNews. Adjusted net earnings rose to $16.1 million, or $0.58 per share, from $6.6 million, or $0.31 per share, in the prior-year period. CFO Jeff Murray said on the call that the net loss was driven by acquisition and transformational costs related to the Joe Hudson's integration and Project 360 — the company-wide cost transformation initiative launched in Q4 2024 targeting $100 million in recurring annual cost savings — and that those costs are expected to decline as the integration finalizes. New locations contributed $203.3 million in incremental sales, of which $168 million came from Joe Hudson's locations.
Joe Hudson's Integration Complete
Boyd Group completed its $1.3 billion acquisition of Joe Hudson's Collision Center on Jan. 9, 2026, adding 258 locations across the U.S. Southeast. Kaner said conversion of all Joe Hudson's locations to Boyd's systems finished by the end of April, slightly past the quarter's close.
"Converting 258 stores in just under a three-month period of time is no easy feat," he said. Storm disruptions and the conversion process dampened Joe Hudson's sales in Q1, but Kaner said both factors have been resolved.
Combined with Project 360, the company has realized over $60 million in total cost savings to date, up from $40 million at the end of 2025, with an additional $30 million expected in 2026 and the remaining roughly $50 million projected between 2027 and 2029 for total anticipated savings of $140 million, per the transcript. Kaner said the company expects to generate approximately $40 million in synergies from the Joe Hudson's combination specifically, revised from the original $35 million to $45 million range announced at the time of the acquisition announcement, with approximately 50% to be realized in 2026 and the balance by 2028.
Claim Volumes and Industry Conditions
Kaner told investors the claim environment has returned to normalized levels.
"In the first quarter of 2026, based on repairable claims processing data, we estimate that repairable claims volumes declined between 0 and 2%, which is now back in line with our long-term growth framework," he said.
That compares to an estimated 9% to 10% decline in Q1 2025, per Boyd's full-year 2025 press release. Kaner characterized the weakness as cyclical rather than structural, citing the impact of rising insurance premiums on consumer willingness to file claims. With premiums now up just 0.2% in April, he said that headwind has largely resolved. Same-store sales in April were approaching the low end of the company's long-term 3% to 5% target range.
Total Losses, Parts Pricing, and Vehicle Complexity
The industry total loss rate stood at 23.6% at the end of Q1 2026, Kaner said, but has declined 200 to 300 basis points from its September 2025 peak as used vehicle prices have risen. Manheim April data showed used car prices up 1.8% year over year, which Kaner cited as a driver of fewer total losses and more vehicles entering the repairable pool.
On parts, Kaner described a generally inflationary environment currently muted by the aging vehicle fleet. With new car sales having been depressed through the post-COVID period, the car park has shifted toward older vehicles that rely more on aftermarket parts and require fewer calibrations, lowering average repair values. Kaner said that mix effect is expected to fade as new car sales recover. On tariffs, he said elevated fuel costs are a pass-through into parts pricing and characterized the net effect on parts costs as positive.
Kaner said technician wage inflation is running at approximately CPI levels, consistent with what insurance carriers recognize as a baseline for labor rate discussions. He added that Boyd's current work volume gives the company a recruiting advantage. "Technicians want to go where there's work because they get paid for the hours that they produce, not the hours that they work," he said.
Calibration and New Location Growth
Boyd has reached its previously stated goal of 80% internalization of scanning and calibration services. Murray noted the calibration market continues to expand independently of internalization targets, supporting further gross margin benefit. Kaner described a longer-term opportunity for Boyd's mobile calibration fleet to serve single-shop operators that lack in-house capability, projecting that revenue stream will grow at approximately 20% to 25% annually.
Boyd opened eight startup locations and completed three single-shop acquisitions in the first quarter and expects five more startups in Q2 with 17 under development for the remainder of the year. Kaner said smaller operators are increasingly open to selling as volume recovery favors larger consolidators first. Boyd remains the second-largest collision repair operator in North America behind Caliber Collision, per Focus Advisors' 2025 M&A review. The Joe Hudson's deal was also covered at announcement and at the Q3 2025 earnings call.
