Boyd Group Services (NYSE:BGSI) released first-quarter results on Wednesday that came in below Wall Street forecasts, although the company continued to post record adjusted EBITDA and expanded its operating footprint significantly through acquisitions.
The stock was little changed in after-hours trading following the earnings release, edging up just 0.02%.
Earnings and revenue miss analyst forecasts
Boyd Group reported adjusted earnings per share of $0.58 for the quarter, missing analyst expectations of $0.66 by $0.08.
Quarterly revenue totaled $996.7 million, below the consensus estimate of $1.01 billion. However, revenue still increased 28.1% from $778.3 million in the same quarter last year.
The company posted a net loss of $7.9 million, compared with a net loss of $2.6 million in the first quarter of 2025.
Adjusted EBITDA reaches record level
Despite missing revenue expectations, Boyd delivered record adjusted EBITDA of $122.4 million, representing year-on-year growth of 51.9%.
Adjusted EBITDA margin improved by 200 basis points to 12.3%.
Same-store sales increased 1.7% during the quarter, or approximately 2.6% after adjusting for unusual winter storm activity in the southern United States.
Expansion driven by Joe Hudson acquisition
Boyd added 269 locations during the quarter, including 258 tied to the acquisition of Joe Hudson’s, increasing its collision repair network by 33% year-on-year to a total of 1,312 locations.
“We delivered all-time record sales and Adjusted EBITDA in the first quarter, reflecting strong execution of our growth strategy and operational priorities,” said Brian Kaner, president and chief executive officer of the company.
“Sales increased by 28.1% while Adjusted EBITDA grew an even stronger 51.9%, driven by a 33% year-over-year growth in our location footprint,” Kaner added.
Cost savings and integration efforts continue
The company said it generated more than $20 million in additional savings through its Project 360 programme and synergies related to the Joe Hudson acquisition.
Boyd also confirmed that the conversion of Joe Hudson locations onto Boyd’s operating systems was completed on schedule.
Looking ahead, the company expects to open five new start-up locations during the second quarter, with an additional 17 openings planned before the end of the year.