Boyd Group Services
North America's largest collision-repair operator — a growth roll-up compounding through acquisitions and margin expansion.
The business
Boyd operates one of the largest non-franchised collision-repair networks in North America (Boyd Autobody & Glass in Canada; Gerber Collision & Glass in the U.S.), plus a glass business.
It grows by acquiring and building shops and by winning insurer direct-repair volume, converting scale into same-store growth and cost synergies (its 'Project 360' program).
The moat
Scale in a fragmented industry, dense shop networks, and deep insurer relationships (direct-repair programs) create real advantages new entrants can't easily match.
The roll-up flywheel — buy shops, integrate, expand margins — compounds over time.
Related on CoinCompass: Compound interest calculator · Guides. For the underlying numbers, see Boyd Q1 2026 record results (Boyd Group).
Financial snapshot
Most recent reported period : Q1 FY2026 (ended March 31, 2026). Figures reflect the review date — confirm current numbers before acting.
| Sales (Q1) | C$996.7M (+28.1%, record) |
| Adjusted EBITDA | C$122.4M (+51.9%, record) |
| Adj. EBITDA margin | 12.3% (+200 bps) |
| Same-store sales | +1.7% (~2.6% weather-adjusted) |
| Footprint | +269 locations (+33% YoY) |
Free cash flow yield & sustainable growth
Free cash flow yield : ≈2.5% (est.)low — growth capex on new locations consumes most operating cash flow; ~C$3.8B market cap
Boyd is a reinvestment-led compounder: strong and growing EBITDA, but expansion (269 new locations in a quarter) consumes cash, so the current free-cash-flow yield is modest. The thesis is future cash flow, not today's.
The swing factor is margins — adjusted EBITDA margin expanded 200 bps to 12.3% as Project 360 and acquisition synergies landed; sustained margin recovery is what turns growth into rising free cash flow.
Sustainable growth: a long runway of tuck-in acquisitions in a fragmented market plus same-store growth — durable as long as claims volumes and integration hold up.
Valuation & what to watch
Boyd is a growth roll-up and trades at a premium multiple; because it reinvests heavily in acquisitions and new shops, its free-cash-flow yield is low today.
The appeal is durable double-digit revenue growth and margin expansion (Project 360, Joe Hudson synergies), not a high starting yield — so valuation hinges on continued unit growth and margin recovery.
Dividend
Pays a small, largely symbolic dividend; Boyd reinvests its cash into acquisitions and new locations rather than income.
Risks & the bear case
- Long-term, safer vehicles (ADAS) and EVs could reduce collision frequency.
- Labour availability and repair-cost inflation.
- Integration risk and the capital intensity of rapid expansion.
- A premium multiple leaves little room for a growth or margin stumble.
Recent developments
Record Q1 FY2026 sales of C$996.7M (+28%) and adjusted EBITDA of C$122.4M (+52%), with margins up 200 bps and 269 locations added — a third straight quarter of same-store growth.
Verdict
A high-quality growth roll-up with a long acquisition runway and improving margins, priced at a premium and light on current free cash flow. The bull case is years of unit growth and margin expansion; the bear case is falling collision frequency and multiple compression. Conviction: quality growth compounder, valuation-sensitive.
Sources
CoinCompass is a publisher, not a registered investment adviser. This is factual information and opinion for a general audience — not a recommendation to buy or sell any security, and not individualized advice. Figures are the most recent reported at the review date and will change. The author, John Wilson, has disclosed long-term holdings in Canadian equities (including Boyd Group, Constellation Software and MTY Food Group) and may hold positions in securities discussed. Do your own research or consult a licensed professional. See our disclosures. John Wilson → · disclosures →