CIBC has revised its price target for Boyd Group Services (BYDGF, Financial), reducing it from C$278 to C$249. Despite this adjustment, CIBC maintains an Outperform rating on the company's shares. The investment firm remains optimistic about BYDGF's potential in the market, suggesting continued confidence in its performance.
BYDGF Key Business Developments
Release Date: May 14, 2025
- Revenue: $778.3 million, a 1% increase compared to the same period of 2024.
- Same-Store Sales: Declined by 2.8%, excluding foreign exchange.
- Gross Margin: 46.2%, up from 44.8% in the same period of 2024.
- Operating Expenses: $278.7 million or 35.8% of sales, compared to $270.9 million or 34.4% of sales in 2024.
- Adjusted EBITDA: $80.5 million, a decrease of 1.4% from the same period of 2024.
- Net Loss: $2.6 million compared to net earnings of $8.4 million in 2024.
- Adjusted Net Earnings: $2.2 million or $0.10 per share, down from $9.4 million or $0.44 per share in 2024.
- Total Debt Net of Cash: $1.3 billion, increased due to acquisition activity and other investments.
- New Locations: 58 new locations contributing $20.4 million in incremental sales.
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
- Boyd Group Services Inc (BYDGF, Financial) achieved a gross margin increase to 46.2% in Q1 2025, up from 44.8% in the same period of 2024.
- The company reported a 1% increase in sales to $778.3 million, driven by $20.4 million in incremental sales from 58 new locations.
- Project 360 is showing early signs of success, with a new indirect staffing model expected to save approximately $30 million annually.
- Boyd Group Services Inc (BYDGF) continues to outperform the industry, gaining market share despite a challenging environment.
- The company is on track with its five-year growth plan, aiming to grow revenue to $5 billion and double adjusted EBITDA to $700 million by 2029.
Negative Points
- Same-store sales declined by 2.8% in Q1 2025, reflecting a challenging market environment.
- Net loss for Q1 2025 was $2.6 million, compared to net earnings of $8.4 million in the same period of 2024.
- Operating expenses increased to $278.7 million, or 35.8% of sales, negatively impacting profitability.
- Adjusted EBITDA decreased by 1.4% to $80.5 million, primarily due to a decline in same-store sales and lower contributions from new locations.
- Total debt net of cash increased to $1.3 billion, driven by acquisition activity and other investments, raising concerns about leverage.
