Boyd Group Services Inc.

Thank you for standing by and welcome to the Boyd Group Services fourth quarter and year-end 2025 earnings conference call. All lines have been placed on mute to prevent any background noise. After the speaker's remarks, there will be a question and answer session. If you would like to ask a question during this time, simply press star followed by the number one on your telephone keypad. If you would like to withdraw your question, again press star one. Thank you. I'd now like to turn the call over to Linda Funk, BP Finance. You may begin.

Good morning, everyone. Welcome to the Boyd Group Services Inc. 2025 Fourth Quarter Results Conference Call. Listeners are reminded that certain matters discussed in today's conference call or answers that may be given to questions asked could constitute forward-looking statements that are subject to risks and uncertainties relating to Boyd's future financial or business performance. Actual results could differ materially from those anticipated in these forward-looking statements. The risk factors that may affect results are detailed in Boyd's annual information form and other periodic filings and registration statements. And you can access these documents at CDAR's database found at cdarplus.ca and edgar at sec.gov. I'd like to remind everyone that this conference call is being recorded today, Wednesday, March 18, 2026. I would now like to introduce Mr. Brian Kaner, President and Chief Executive Officer of Boyd Group Services, Inc. Please go ahead, Mr. Kaner.

Good morning, everyone, and thank you for joining us on today's call. On call with me today is Jeff Murray, our Executive Vice President and Chief Financial Officer. We released our 2025 fourth quarter and year end results before markets opened today. You can access our news release as well as our complete financial statements and management discussion and analysis on our website at voidgroup.com. Our news release, financial statements, and MD&A have also been filed on CDAR Plus and EDGAR this morning. On today's call, we will discuss the financial results for the three-month period and the year ended, December 31st, 2025, provide a general business update, and discuss our long-term growth strategy. We will then open the call up for questions. Our 2025 fiscal year was both busy and highly successful for Boyd. In the first half of the year, we focused on implementing a number of key initiatives, including Project 360, an enhanced go-to-market strategy, and a more localized customer service approach. As we moved into the second half, we saw strong execution on these initiatives, driving meaningful adjusted EBITDA, margin expansion, and industry outperformance. Combined with the continued improvement in repairable claims, This supported a return to positive same-store sales in the second half of the year, a trend that has continued into early 2026. Alongside these operational improvements, we also took advantage of an improving acquisition environment and our strong balance sheet to complete four small MSO acquisitions and announce the acquisition of Joe Hudson's Collision Center. We also listed our shares on the New York Stock Exchange and completed two unsecured note offerings important milestones in Boyd's evolution that we expect will broaden our access to U.S. investors and further strengthen our capital markets profile. Before I discuss our results in more detail, I want to thank our employees and senior leadership team. Their dedication and hard work are the foundation of our success, and these results are a direct reflection of their commitment. Turning to our financial performance, In 2025, we delivered $3.1 billion in revenue, representing growth of 2.4% year over year. And adjusted EBITDA increased by 12.4%, with adjusted EBITDA margins expanding by 110 basis points to 12%, driven by the successful execution of Project 360, our cost transformation plan, and the internalization of scanning and calibrations. We exited the year with strong momentum. In the fourth quarter, we generated our second consecutive quarter of positive same-store sales growth of 2.2% and grew EBITDA by 24.2% year over year. Our EBITDA margin expanded to 13.1% in the fourth quarter, up from 11.1% in the fourth quarter of 2024. As we've discussed on previous calls, Throughout 2025, we saw consistent improvement in several of the industry headwinds that had been negatively impacting repairable claims, namely moderation of insurance premium growth and increasing used vehicle prices. This resulted in a reduction in estimated declines in claims activity from 9% to 10% in the first quarter down to 2% to 4% by the fourth quarter of 2025. I'm pleased to report that this improvement has continued into 2026. Auto insurance premium growth is now running below CPI levels. Insurance carriers have implemented rate reductions and used car prices are increasing. These improvements, combined with increased activity levels we've seen in our business since the end of the second quarter, give us confidence that the industry conditions continue to normalize. In the early months of 2026, while winter storms benefited our northern regions, This benefit was partially offset by unusual storm activity in the south. These storms resulted in lower driving activity and therefore a short-term reduction in volume in our southern locations, including Joe Hudson's. As the quarter progressed, we've seen the volumes in the south normalize, with overall same-store sales thus far tracking similar to fourth quarter levels. Throughout 2025, we also continued to expand our location footprint through the execution of our longstanding growth strategy. During the year, we opened 70 new locations, including 27 startup locations and 43 through acquisitions. Looking ahead, we continue to have a robust pipeline of startup locations under development through 2026. We expect to open eight new locations in the first quarter, with an additional 24 locations in development for the remainder of the year. In addition, 2025 marked a return to MSO acquisitions for Boyd, as our strong balance sheet enabled us to capitalize on an improved acquisition landscape. In August, we completed our first small acquisition since 2021 with the acquisition of L&M Body Shop in Virginia. We also completed three additional MSO acquisitions in the fourth quarter in Nevada, Hawaii, and Nova Scotia. With the Nova Scotia acquisition representing our initial entry into that province and underscores our commitment to continued growth in the Canadian market. Looking ahead, our pipeline for single shop and small MSO acquisition remains strong and will complement our startup expansion. Our roadmap focuses on building density in our existing markets and achieving leading positions where we operate. Our goal is to establish a number one or two position in all of our markets, which strengthens our ability to serve our insurance company clients and its customers while driving long-term shareholder value through margin expansion and market share gains. Turning now to Joe Hudson's, we successfully closed the acquisition in early January. and the integration is progressing well and in line with our expectations, despite some softness and activity levels early in the quarter due to the unusual winter storm activity in the southern region. I've been very encouraged with the Joe Hudson's team. From the outset, they have shown strong enthusiasm about joining VOID, and the teams have worked well together, combining the strengths of both organizations as we continue to integrate and operate as one team. Our initial focus has been on converting Joe Hudson's location to Boyd's information technology platforms and branding. Similar to the successful rollout of our indirect staffing model in 2025, we began this process gradually to ensure operational stability. We initially converted six stores in our first week and have steadily increased the pace. We are now converting approximately 30 stores per week, which will remain the cadence until the process is completed. To date, we have converted approximately 44% of the stores and expect the remaining locations to be completed early in the second quarter of 2026. We have also begun realizing early synergy capture through direct procurement savings to date in the first quarter. Synergy realization is expected to accelerate once store conversions are complete and we are able to fully leverage our scale and market position. We remain on track to achieve approximately 50% of the 35 to 45 million in expected synergies in 2026. Before turning the call over to Jeff, I'd like to provide a brief update on Project 360. When we launched the $100 million cost transformation plan in the fourth quarter of 2024, we set ambitious targets. I'm pleased to report that we delivered on those targets in 2025. We realized 40 million in annualized cost savings in 2025, from the successful implementation of our indirect staffing model, as well as procurement savings. Going forward, we will report Project 360 savings and Joe Hudson synergies together, as the team will oversee both initiatives. This team has successfully executed our Project 360 transformation since its launch and will now also lead the realization of Joe Hudson synergies. As a result, these initiatives will be managed and disclosed as a single integrated cost program totaling $140 million, consisting of $100 million from Project 360 and approximately $40 million in synergies. To date, $40 million of the Project 360 savings were realized in 2025 with an additional $50 million expected in 2026 and the remaining $50 million to be realized between 2027 and 2029. With that, I'll turn the call over to Jeff.