Boyd Group Services Inc. reported a strong finish to 2025, with improved margins and a return to positive same-store sales growth in the fourth quarter, while highlighting improving demand trends and ongoing consolidation in a “highly fragmented industry of approximately 30,000 repair locations,” according to the company’s March 18 earnings release.
The results come as collision repair businesses across the industry continue to navigate fluctuating claims volume and shifting market conditions, with many shops adjusting operations in response to fewer repairable claims earlier in 2025.
Boyd posted full-year sales of $3.1 billion, up 2.4% from 2024, driven in part by contributions from 119 new locations that added $94.2 million in revenue. Same-store sales declined 0.2% for the year, which Boyd attributed partly to one fewer selling day, reducing capacity by approximately 0.4%.
Adjusted EBITDA rose 12.4% year over year to $376.3 million, while adjusted net earnings increased 28.8% to $62.4 million. Adjusted EBITDA margin expanded to 12.0% from 10.9% in 2024.
“We closed out 2025 with strong momentum, highlighted by our second consecutive quarter of positive same-store sales growth, continued outperformance relative to industry trends, margin expansion and a strengthened competitive position,” said Brian Kaner in the release.
Margin gains offset by acquisition-related costs
Despite improved adjusted performance, reported net earnings declined 25% to $18.4 million, reflecting $22.6 million in after-tax acquisition and transformation costs. These included expenses tied to Boyd’s acquisition of Joe Hudson’s Collision Center and its internal Project 360 initiative.
Fourth-quarter results showed similar trends. Revenue increased 5.5% to $793.9 million, while adjusted EBITDA climbed 24.2% to $103.6 million. Adjusted net earnings for the quarter more than doubled to $22.8 million.
The company also reported stronger operating cash flow, which rose to $353.0 million from $313.3 million in 2024.
Expansion accelerates with Joe Hudson’s acquisition
Boyd continued to expand aggressively in 2025, adding 70 collision repair locations, including 43 through acquisitions and 27 start-ups. The company also announced and subsequently completed its $1.3 billion acquisition of Joe Hudson’s, adding 258 locations across the southeastern U.S.
Since closing, approximately 44% of those locations have been converted to Boyd’s systems and branding, the company said.
The acquisition follows a broader trend of large-scale consolidation moves in the industry, including Boyd’s previously reported $1.3 billion deal for Joe Hudson’s, one of the largest transactions in recent years.
The acquisition, along with Boyd’s U.S. initial public offering and additional financing activities, is expected to “increase our scale, deepen our U.S. presence, and position Boyd for continued long-term growth and value creation,” CEO Brian Kaner said in the release.
Industry conditions improve heading into 2026
Boyd said “industry conditions steadily improved throughout 2025 and into the early part of 2026,” citing sequential improvement in repairable claims volume over the course of the year. Based on claims platform data, repairable claims volume declined between 2% and 4% in the fourth quarter, a notable improvement from declines of as much as 9% to 10% earlier in the year.
The company cited several factors supporting recovery, including moderating insurance premium inflation, rate reductions by carriers and rising used vehicle prices.
Early 2026 trends have shown volumes “normalize,” with same-store sales tracking similar to fourth-quarter levels, while regional storm activity created short-term volume fluctuations, according to the company.
Long-term growth tied to consolidation
With more than 1,300 locations across North America following the Joe Hudson’s acquisition, Boyd said it has solidified its position as the second-largest independent collision repair operator on the continent.
However, the company emphasized that the industry remains highly fragmented, with approximately 30,000 repair locations, presenting ongoing consolidation opportunities.
Even as consolidation continues, overall M&A activity slowed in 2025, with fewer deals and lower valuations, highlighting the significance of large transactions like Boyd’s acquisition.
