Canada's Boyd Group Services Q2 sales miss estimates

Overview

• Boyd Group Q2 sales up 0.2%, missing analyst expectations, per LSEG data

• Adjusted EPS for Q2 missed consensus, reflecting ongoing profitability challenges

• Company's location count surpasses 1,000, driven by acquisitions and new openings

Outlook

• Boyd Group says achieved modest positive same-store sales growth so far in Q3 2025

• Company aims for $100 mln cost savings by 2029 through Project 360

• Boyd Group plans to open 16 new locations in H2 2025

• Company sees improvement in industry conditions, including used car prices

Result Drivers

• NEW LOCATIONS - Sales growth driven by $21 mln revenue from new locations despite 2.1% decline in same-store sales

• PROFITABILITY INITIATIVES - Margin expansion attributed to internalization of scanning services and performance-based pricing

• COST SAVINGS - Implementation of indirect staffing model expected to save $30 mln annually, per CEO Brian Kaner

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 12 "strong buy" or "buy", 2 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the personal services peer group is "buy"

• Wall Street's median 12-month price target for Boyd Group Services Inc is C$262.50, about 26.5% above its August 12 closing price of C$193.00

• The stock recently traded at 40 times the next 12-month earnings vs. a P/E of 45 three months ago

Press Release: ID:nCNWYLXtXa