A damaged bumper or cracked windshield may look like an everyday expense, but across North America those repairs now feed a collision-repair business operating at remarkable scale. Winnipeg-based Boyd Group Services crossed a new threshold in the second quarter of 2026, generating more than US$1 billion in quarterly sales for the first time in its history. Sales rose 29.9% from a year earlier, helped by a dramatically larger repair network, positive same-store growth and faster-than-expected savings from a major U.S. acquisition. The headline number, however, tells only part of the story. Boyd is simultaneously integrating hundreds of shops, improving operating margins and dealing with higher financing and depreciation costs while trying to capture more business in an industry where the underlying number of repairable claims remains subdued.
Boyd Finally Breaks Through the US$1 Billion Quarterly Mark
Boyd reported second-quarter sales of US$1.0137 billion for the three months ended June 30, up 29.9% from US$780.4 million in the same period of 2025. It was the first time quarterly revenue had exceeded US$1 billion in the company’s history. The milestone came only three months after Boyd posted what was then a record US$996.7 million in first-quarter sales. Put together, the first half of 2026 produced US$2.01 billion in revenue, compared with roughly US$1.56 billion during the first six months of 2025, an increase of about 29%.
For a company headquartered in Winnipeg, the scale increasingly reflects a continent-wide operation rather than a traditional Canadian body-shop chain. Boyd operates Canadian collision centres under Boyd Autobody & Glass and Assured Automotive, while its much larger U.S. presence includes Gerber Collision & Glass. It also operates auto-glass and vehicle-diagnostics businesses. That mix means the billion-dollar quarter represents thousands of repair jobs moving through an increasingly integrated network, from conventional body work to the electronic scanning and calibration now required on newer vehicles.
Hundreds of New Shops Provided Most of the Growth
Acquisitions and new locations were the biggest force behind the revenue jump. Boyd said 340 locations that were not operating for the full comparable period generated approximately US$211.3 million of second-quarter sales. By June 30, the company operated 1,321 collision locations, up from 991 a year earlier. That represents a 33% increase in the network in only 12 months. Boyd also added another 10 locations during the second quarter itself, consisting of four single-shop acquisitions and six newly built or opened locations.
The largest step change came from Boyd’s acquisition of Joe Hudson’s Collision Center, which brought 258 shops into the organization in early 2026 and substantially expanded its presence in the U.S. Southeast. The transaction changed the scale of the business almost overnight. Instead of relying primarily on gradual openings and small acquisitions, Boyd suddenly had hundreds of additional facilities, employees, insurer relationships and local repair volumes to integrate. That creates execution risk, but it also provides greater purchasing power and a denser network in markets where insurers increasingly prefer repair partners capable of handling large numbers of claims across multiple locations.
Existing Shops Are Growing Even as Industry Claims Stay Soft
The quarter was not simply an acquisition story. Same-store sales, which measure locations operating during both comparable periods, increased 2.9%. That marked a significant improvement from the 2.1% same-store decline Boyd reported in the second quarter of 2025. The comparison is particularly useful because the number of selling and production days was unchanged from the year before, reducing one potential source of distortion. Boyd’s same-store performance also strengthened from the 1.7% increase reported during the first quarter of 2026.
That growth came against an industry backdrop that remains less robust than the headline revenue number might suggest. Boyd estimated that industry repairable-claims volumes were roughly flat to down 2% from a year earlier during the second quarter. Management therefore attributed much of its positive same-store performance to market-share gains rather than a surge in accidents or insurance claims. July continued the pattern, with same-store sales running positive in the low single digits. For Boyd, gaining more insurer-directed work while the overall claims pool is barely growing may be more strategically important than a temporary industry-wide demand spike.
Profitability Is Expanding Faster Than Revenue
Boyd’s operating performance improved more sharply than its sales. Gross profit increased 31.4% to US$480 million, while gross margin rose to 47.4% from 46.8% a year earlier. Adjusted EBITDA climbed 44.9% to US$135.9 million, meaning this measure of operating profitability grew roughly 15 percentage points faster than revenue. The adjusted EBITDA margin reached 13.4%, compared with 12% in the second quarter of 2025 and 11.5% two years earlier. For the first six months of 2026, adjusted EBITDA reached US$258.3 million, up 48%.
Several operational improvements contributed to that margin expansion. Boyd pointed to stronger parts and paint margins, higher margins from outsourced work, scanning and calibration, and savings associated with its Project 360 transformation program and the Joe Hudson integration. Some of those gains were partly offset by weaker labour margins and variability in performance-based pricing arrangements. The broader trend still matters: when a company expands rapidly through acquisitions, revenue can rise simply because the organization becomes bigger. Improving margins at the same time suggests Boyd is extracting more value from that added scale rather than merely accumulating locations.
The Joe Hudson Integration Is Moving Faster Than Expected
Integrating 258 collision centres is a complicated operational project. Shops have their own software, suppliers, insurer procedures, employee routines and customer relationships, so combining them with a national platform involves considerably more than changing exterior signage. Boyd said the conversion of the Joe Hudson locations was completed during the second quarter and that savings were materializing faster than originally expected. Together, Project 360 initiatives and acquisition synergies generated an incremental US$15 million of savings during the quarter and US$35 million during the first half of 2026.
The faster integration prompted management to raise its expectations. Boyd now anticipates US$35 million of Joe Hudson synergies during 2026, up from its previous US$20 million target. Total expected savings for 2026 were increased to US$65 million from US$50 million. The company is working toward a broader US$140 million Project 360 and acquisition cost-savings objective, with additional benefits expected over the next several years. There is still friction: Boyd acknowledged that the systems transition caused temporary sales disruption that extended into the third quarter. The trade-off is that management believes the converted locations are now operating from a stronger, more profitable foundation.
Net Income Shows the Cost of Becoming Much Bigger
The income statement also contains an important caution. Despite record sales and sharply higher adjusted EBITDA, reported net earnings fell to just US$1.3 million from US$5.4 million a year earlier. The apparent contradiction largely reflects the financial costs associated with Boyd’s rapid expansion. Finance costs reached approximately US$30.8 million during the quarter, up from US$18 million a year earlier. Depreciation of property, plant and equipment increased to US$28.1 million, while depreciation of right-of-use assets rose to US$43.7 million. Amortization of intangible assets nearly tripled to roughly US$20 million.
Those expenses illustrate why acquisition-heavy growth can look very different depending on which earnings measure is examined. Boyd’s adjusted net earnings, which exclude certain acquisition, transformation and other specified items, increased 46.7% to US$22.4 million. Adjusted earnings per share rose to US$0.80 from US$0.71. Management emphasizes adjusted EBITDA and adjusted earnings when assessing operating progress, but Boyd itself notes that these are non-GAAP measures and should not replace IFRS results. The quarter therefore offers two legitimate perspectives: the underlying repair operation became considerably more profitable, while financing and accounting costs associated with expansion continued to weigh heavily on bottom-line earnings.
Modern Vehicles Are Making Collision Repair More Technical
Boyd’s investment in scanning and calibration is closely tied to a broader change inside collision shops. Repairing a newer vehicle increasingly involves cameras, radar sensors, electronic modules and advanced driver-assistance systems in addition to sheet metal and paint. Mitchell reported in June that the proportion of collision estimates containing a calibration line increased 31.4% year over year in 2025. When calibration appeared on an estimate, the average cost was US$688, while the number of calibrations required per repair rose nearly 10%. CCC Intelligent Solutions likewise describes diagnostics and calibrations as increasingly routine parts of modern collision work.
That evolution helps explain why Boyd has built businesses such as Mobile Auto Solutions in the U.S. and Volta Auto Diagnostics in Canada. The company has also been internalizing more scanning and calibration work rather than sending it to outside providers. There is an interesting tension in the technology. Crash-avoidance equipment can reduce how frequently accidents occur, yet when sensor-equipped vehicles are damaged, repairs can be more expensive. The Insurance Institute for Highway Safety recently found collision-claim severity was about 10% higher for otherwise comparable vehicles equipped with a bundle of driver-assistance features. For a scaled repair operator, fewer but more technically demanding claims can still create valuable service opportunities.
Boyd Is Still Planning More Expansion, but Balance-Sheet Discipline Matters
Boyd ended the quarter with pro forma debt leverage of 2.8 times, improving from 3.1 times at the end of 2025 and from 2.9 times after the first quarter. That movement is significant because the Joe Hudson transaction increased the company’s financial obligations at the same time that hundreds of facilities were being integrated. Faster earnings growth and synergy realization are now helping reduce leverage, giving Boyd more flexibility to pursue additional expansion without relying entirely on a continuously rising debt load.
Management has no intention of stopping at 1,321 collision centres. Boyd expects to open three start-up locations during the third quarter and is targeting another 10 during the fourth quarter, while continuing to evaluate single-location acquisitions. The company also plans further investment in glass, scanning, calibration and related services. Its corporate network already spans more than 1,300 collision locations and employs more than 16,000 people across the U.S. and Canada. The billion-dollar quarter therefore looks less like an endpoint than a test of Boyd’s strategy: keep consolidating a fragmented repair industry, use scale to deepen insurer relationships, capture specialized technical work and convert a larger network into steadily improving margins.
