Boyd Group Providers (TSX:BYD) inventory is down 36% from its 52-week excessive, and we expect that may be a uncommon reward for long-term traders.
The selloff seems to be overdone, the enterprise is quietly turning a nook, margins are increasing at a wholesome tempo, and a transformative acquisition is simply getting began. Furthermore, the continuing drawdown has raised the dividend yield to 0.4% in 2026.
Whereas the dividend yield is way from enticing, the TSX dividend inventory is poised to outpace broader market returns over the subsequent 12 months and past.
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Boyd Group is a North American collision restore powerhouse
Boyd operates non-franchised collision restore centres throughout North America. In Canada, it runs places beneath the Boyd Autobody and Glass and Assured Automotive names.
In america, it operates beneath the Gerber Collision and Glass model in addition to a number of auto glass retail banners.
The corporate additionally runs Gerber Nationwide Claims Providers, a third-party administrator that handles glass, roadside, and first-notice-of-loss companies for insurers.
Boyd was based in Winnipeg in 1990 and has grown into one of many largest collision restore companies on the continent. That scale issues enormously in a fragmented business the place insurance coverage relationships and procurement moats drive profitability.
In 2025, Boyd generated $3.1 billion in income, a 2.4% year-over-year enhance. Extra importantly, adjusted earnings earlier than curiosity, taxes, depreciation, and amortization (EBITDA) jumped 12.4%, and EBITDA margins expanded by 110 foundation factors to 12%.
In This fall, Boyd posted same-store gross sales development of two.2%, EBITDA development of 24.2%, and EBITDA margins of 13.1%. That compares to 11.1% in the identical interval of 2024, a 200-basis-point enchancment in a single 12 months.
The corporate’s margin enchancment is tied to Mission 360, Boyd’s $100 million price transformation plan launched in late 2024.
The initiative has already delivered $40 million in annualized financial savings via measures resembling oblique staffing adjustments and direct procurement enhancements. An additional $50 million in financial savings is predicted in 2026.
Joe Hudson’s acquisition is a key driver
In January 2026, Boyd closed its $1.3 billion acquisition of Joe Hudson’s Collision Middle. The acquisition provides over 250 places primarily throughout the Southern United States and marks a major step in Boyd’s long-running technique to construct density in present markets and seize the primary or two place in each area it serves.
The deal is predicted to generate $35 million to $45 million in synergies yearly at full run fee. Boyd’s administration mentioned on the earnings name that it expects to seize roughly 50% of these synergies in 2026 alone, with procurement financial savings already coming via within the first quarter.
Retailer conversions to Boyd’s know-how platforms and branding are progressing at round 30 places per week. By early within the second quarter of 2026, the complete integration must be full.
Along with Mission 360, Boyd now manages a $140 million built-in price program. That could be a significant catalyst for margin enlargement over the subsequent a number of years.
A concentrate on margin enlargement
The Canadian dividend inventory is down over 50% from all-time highs resulting from weaker repairable claims exercise. Elevated insurance coverage premiums had been pushing extra drivers to skip submitting claims after minor accidents. Rising used automobile costs had been additionally pushing extra broken automobiles into complete losses quite than repairs.
Nevertheless, in current months, auto insurance coverage premium development has fallen beneath total inflation, and a few carriers have already begun slicing charges. Used automobile costs are rising once more, with the Manheim Index displaying a 4% acquire in February 2026.
The result’s that the estimated business decline in repairable claims improved from 9% to 10% in early 2025 to only 2%-4% by the fourth quarter.
Boyd has constantly outperformed the business by about 5 share factors all through this era. Because the claims setting continues to normalize, that outperformance ought to move instantly into stronger same-store gross sales.
Boyd’s administration has set a transparent long-term purpose to increase EBITDA margins to 14% by 2029. It exited 2025 with full-year margins of 12% and fourth-quarter margins of 13.1%.
At 36% beneath its 52-week excessive, Boyd affords traders the prospect to purchase right into a enterprise with bettering fundamentals, a transparent path to margin enlargement, and a powerful acquisition pipeline at a significant low cost.
