Mr. Brian Kaner reports

BOYD GROUP SERVICES INC. REPORTS THIRD QUARTER 2026 RESULTS

Boyd Group Services Inc. has released financial results for the quarter ended Sept. 30, 2026.

Third quarter 2026 highlights:

• Sales increased 28.2 per cent to $1,012.7-million;
• Adjusted EBITDA (earnings before interest, taxes, depreciation and amortization) increased 34.3 per cent to $132.1-million and adjusted EBITDA margins expanded to 13.0 per cent;
• New locations contributed $206-million to revenue, complemented by 2.2 per cent same-store sales growth;
• Realized $50-million in Project 360 cost savings and acquisition synergies year to date in 2026;
• Announced a normal course issue bid and declared third quarter dividend.

"Our third quarter results reflect continued progress on our strategic priorities and ongoing outperformance of broader industry trends. Revenue increased 28 per cent, supported by the addition of Joe Hudson's, market share gains and positive same-store sales growth. We delivered year-over-year expansion in gross and adjusted EBITDA margins, benefiting from Project 360 initiatives and acquisition synergies, and remain on track to achieve our accelerated $65-million savings target for 2026.

"We also launched a normal course issuer bid, reinforcing our commitment to a disciplined and balanced approach to capital allocation, with a focus on supporting our existing operations, strengthening our market position and creating long-term shareholder value," stated Brian Kaner, president and chief executive officer of the Boyd Group.

Q3 2026 results (third quarter 2026 compared with third quarter of 2025)

Sales increased 28.2 per cent to $1,012.7-million, reflecting $206-million in contribution from 342 new locations that were not in operation for the full comparative quarter, along with 2.2-per-cent same-store sales. The number of selling and production days was unchanged from the third quarter of 2025.

Gross profit increased by 29.4 per cent to $473.4-million, with gross margins expanding to 46.7 per cent from 46.3 per cent. Margin improvement was driven by higher paint margins supported by synergies from Joe Hudson's acquisition and Project 360 as well as improved sublet, scanning and calibration margins. These gains were partially offset by lower labour and part margins.

Adjusted EBITDA increased 34.3 per cent to $132.1-million while adjusted EBITDA margins improved to 13.0 per cent from 12.4 per cent. Margin expansion was driven by cost savings from Project 360 and synergy realization from Joe Hudson's acquisition.

Net earnings was $100,000, compared with $10.8-million due to $5.2-million in acquisition and transformational costs and higher amortization of intangibles.

Adjusted net earnings were $19-million compared with $17.8-million due to higher adjusted EBITDA, partially offset by higher depreciation and finance costs. Adjusted earnings per share were 68 cents compared with 83.1 cents in the third quarter. For the nine months ended Sept. 30 2026, adjusted earnings per share increased to $2.06 from $1.85 in the prior-year period.

As of Sept. 30, 2026, Boyd realized $50-million in year-to-date savings from Project 360 and acquisition synergies and remains on track to achieve its full-year target of $65-million.

The company added 10 new locations through single-shop acquisitions during the quarter.

Outlook

During the third quarter, Boyd continued to outperform the underlying industry volume and gain market share, supported by its scale and continuing market densification strategy. Volume gains driven by the strength of the company's performance and insurer relationships contributed to positive same-store sales growth during the quarter of 2.2 per cent, complemented by a modest increase in total cost of repair.

Boyd estimates repairable claims volumes declined approximately 1 per cent to 3 per cent year over year in Q3 2026, which is consistent with the company's long-term planning assumptions.

In October, 2026, same-store sales growth continued to be positive. Given the inherent monthly and quarterly variability, the company evaluates same-store sales over longer periods and does not view any single period as indicative of sustainable market share expansion or multi-year strategic targets.

Project 360 and acquisition synergies are on track to deliver a further $15-million in the fourth quarter, elevating total projected savings to $65-million for 2026 and $140-million across the 2025-to-2029 period.

During the quarter, Boyd announced a normal course issuer bid and commenced share repurchases under the program. This initiative reflects the company's commitment to disciplined, returns-focused capital allocation. Boyd's objective is to ensure that capital is consistently directed toward high-return (risk-adjusted) opportunities, whether through growth investments in strategic or single-shop acquisitions, brownfield and greenfield start-up locations, investments in existing operations, debt reduction, share repurchases, dividends or other alternatives.

The company expects to complete and open 11 start-up locations in the fourth quarter.

2026 third quarter conference call and webcast

Management will hold a conference call on Wednesday, Nov. 11, 2026, at 8 a.m. ET to review the company's 2026 third quarter results. You can join the call by dialling 1-833-461-5787 or 1-585-542-9983 (conference ID: 902743145).

A live audio webcast of the conference call will be available on-line. An archived replay of the webcast will be available for 90 days on the Boyd Group's website.

About Boyd Group Services Inc.

Boyd Group Services is a Canadian corporation and controls The Boyd Group Inc. and its subsidiaries. Boyd Group Services shares trade on the Toronto Stock Exchange under the symbol BYD and the New York Stock Exchange (NYSE) under the symbol BGSI.

About The Boyd Group Inc.

Boyd Group Services, through its operating company, The Boyd Group and its subsidiaries, is one of the largest operators of non-franchised collision repair centres in North America in terms of number of locations and sales. The company currently operates locations in Canada under the trade name Boyd Autobody & Glass and Assured Automotive as well as in the United States under the trade name Gerber Collision & Glass. The company is also a major retail auto glass operator in the United States, under the trade names Gerber Collision & Glass, Glass America, Auto Glass Service, Auto Glass Authority, and Autoglassonly.com. In addition, the company operates a third party administrator, Gerber National Claims Services (GNCS), that offers glass, emergency roadside and first-notice-of-loss services. The company also operates Mobile Auto Solutions (MAS) in the United States and Volta Auto Diagnostics Ltd. in Canada that offer scanning and calibration services.

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