Boyd Group Services (BYD.TO, BGSI) reported wider net loss in the first quarter, despite a rise in sales and adjusted net earnings, the company said on Wednesday.
First quarter net loss was US$7.9 million, compared to net loss of $2.6 million in the corresponding year-ago quarter. The net loss was impacted by acquisition and transformational cost expenses in the first quarter of 2026 related to the Joe Hudson acquisition and Project 360, said the company and added that these costs are expected to decline as integration finalizes.
First quarter adjusted net earnings per share was $0.58 per share, up from $0.31 per share in the year-ago quarter, driven primarily by the increase in adjusted EBITDA, said the company.
First quarter sales were $996.7 million, compared to $778.3 million in the year-ago quarter. The consensus estimates compiled by FactSet for Sales was $992 million. The increase in sales was driven by $203.3 million from new location growth and continued market share gains reflected in positive same-store sales performance, added the company.
"We achieved our third consecutive quarter of positive same-store sales, supported by market share gains and improving industry conditions that continue to drive volume growth, even as total cost of repair remained subdued," said Brian Kaner, President and Chief Executive Officer of the Boyd Group. "In addition to strong top-line performance, we expanded Adjusted EBITDA margins by 200 basis points as we continue to make meaningful progress towards our 14%+ Adjusted EBITDA margin goal."
The company added 269 locations during the quarter, including 258 from the Joe Hudson's acquisition, three from single shop acquisitions and eight new start up locations, it added.
Industry conditions continued to improve in the first quarter of 2026, stated the company. Based on first quarter claims processing platform data, the company estimates that repairable claims volume declined in the range of 0-2% during the quarter, which is now back in-line with Boyd's long-term growth framework, the company added.
"I'm pleased to report that the normalization in repairable claims has continued to positively benefit our business early in the second quarter, with same-store sales in April approaching the low end of our long-term range," added the CEO. "We continue to expect same-store sales growth to be complemented by contributions from new location growth as we execute our growth strategy. In the second quarter of 2026, the Company expects to open five start up locations with an additional 17 start up locations to be added through year-end. Supported by a robust pipeline of both new start up opportunities and acquisitions, we remain confident in our outlook for new location growth in 2026 and beyond."