Boyd Group Services (TSX:BYD) stock is down 36% from its 52-week high, and we think that is a rare gift for long-term investors.
The selloff looks overdone, the business is quietly turning a corner, margins are expanding at a healthy pace, and a transformative acquisition is just getting started. Moreover, the ongoing drawdown has raised the dividend yield to 0.4% in 2026.
While the dividend yield is far from attractive, the TSX dividend stock is poised to outpace broader market returns over the next 12 months and beyond.
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Boyd Group is a North American collision repair powerhouse
Boyd operates non-franchised collision repair centres across North America. In Canada, it runs locations under the Boyd Autobody and Glass and Assured Automotive names.
In the United States, it operates under the Gerber Collision and Glass brand as well as several auto glass retail banners.
The company also runs Gerber National Claims Services, a third-party administrator that handles glass, roadside, and first-notice-of-loss services for insurers.
Boyd was founded in Winnipeg in 1990 and has grown into one of the largest collision repair businesses on the continent. That scale matters enormously in a fragmented industry where insurance relationships and procurement moats drive profitability.
In 2025, Boyd generated $3.1 billion in revenue, a 2.4% year-over-year increase. More importantly, adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) jumped 12.4%, and EBITDA margins expanded by 110 basis points to 12%.
In Q4, Boyd posted same-store sales growth of 2.2%, EBITDA growth of 24.2%, and EBITDA margins of 13.1%. That compares to 11.1% in the same period of 2024, a 200-basis-point improvement in a single year.
The company’s margin improvement is tied to Project 360, Boyd’s $100 million cost transformation plan launched in late 2024.
The initiative has already delivered $40 million in annualized savings through measures such as indirect staffing changes and direct procurement improvements. A further $50 million in savings is expected 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 Center. The purchase adds over 250 locations primarily across the Southern United States and marks a significant step in Boyd’s long-running strategy to build density in existing markets and capture the number one or two position in every region it serves.
The deal is expected to generate $35 million to $45 million in synergies annually at full run rate. Boyd’s management said on the earnings call that it expects to capture roughly 50% of those synergies in 2026 alone, with procurement savings already coming through in the first quarter.
Store conversions to Boyd’s technology platforms and branding are progressing at around 30 locations per week. By early in the second quarter of 2026, the full integration should be complete.
In addition to Project 360, Boyd now manages a $140 million integrated cost program. That is a meaningful catalyst for margin expansion over the next several years.
A focus on margin expansion
The Canadian dividend stock is down over 50% from all-time highs due to weaker repairable claims activity. Elevated insurance premiums were pushing more drivers to skip filing claims after minor accidents. Rising used vehicle prices were also pushing more damaged cars into total losses rather than repairs.
However, in recent months, auto insurance premium growth has fallen below overall inflation, and some carriers have already begun cutting rates. Used car prices are rising again, with the Manheim Index showing a 4% gain in February 2026.
The result is that the estimated industry decline in repairable claims improved from 9% to 10% in early 2025 to just 2%-4% by the fourth quarter.
Boyd has consistently outperformed the industry by about five percentage points throughout this period. As the claims environment continues to normalize, that outperformance should flow directly into stronger same-store sales.
Boyd’s management has set a clear long-term goal to expand EBITDA margins to 14% by 2029. It exited 2025 with full-year margins of 12% and fourth-quarter margins of 13.1%.
At 36% below its 52-week high, Boyd offers investors the chance to buy into a business with improving fundamentals, a clear path to margin expansion, and a strong acquisition pipeline at a meaningful discount.
