Revenue surged 26.3% year-over-year to $982.9 million in 2026Q1, yet gross margins contracted to 38.4%, falling well below the historical 45-46% range observed in 2024 and 2025.
| Sales/Revenue | 3.35B | 3.14B | 3.07B | 2.95B | 2.43B | 1.87B | 1.56B |
| Revenue Growth % | 9.31% | 2.36% | 4.22% | 21.12% | 29.89% | 19.95% | - |
| Cost of Goods Sold | 1.87B | 1.68B | 1.67B | 1.61B | 1.34B | 1.03B | 847.68M |
| COGS % of Revenue | - | 53.59% | 54.52% | 54.51% | 55.3% | 55.18% | 54.3% |
| Gross Profit | 1.48B | 1.46B | 1.4B | 1.34B | 1.09B | 839.26M | 713.54M |
| Gross Margin % | 44.11% | 46.41% | 45.48% | 45.49% | 44.7% | 44.82% | 45.7% |
| Gross Profit Growth % | - | 4.45% | 4.21% | 23.24% | 29.56% | 17.62% | - |
| Operating Expenses | 1.32B | 1.33B | 1.29B | 1.16B | 989.44M | 773.41M | 506.26M |
| OpEx % of Revenue | - | 42.2% | 41.92% | 39.53% | 40.68% | 41.3% | 32.43% |
| Selling, General & Admin | 336.57M | 0 | 0 | 0 | 0 | 0 | 506.26M |
| SG&A % of Revenue | - | - | - | - | - | - | 32.43% |
| Research & Development | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| R&D % of Revenue | - | - | - | - | - | - | - |
| Other Operating Expenses | 3M | 1.33B | 1.29B | 1.16B | 989.44M | 773.41M | 0 |
| Operating Income | 151.63M | 132.33M | 109.5M | 175.4M | 97.88M | 65.85M | 207.28M |
| Operating Margin % | 4.53% | 4.21% | 3.57% | 5.95% | 4.02% | 3.52% | 13.28% |
| Operating Income Growth % | - | 20.85% | -37.57% | 79.19% | 48.64% | -68.23% | - |
| EBITDA | 416.45M | 376.31M | 334.82M | 368.25M | 273.5M | 219.54M | 262.13M |
| EBITDA Margin % | 12.44% | 11.97% | 10.9% | 12.5% | 11.24% | 11.72% | 16.79% |
| EBITDA Growth % | 24.81% | 12.39% | -9.08% | 34.64% | 24.58% | -16.25% | - |
| D&A (Non-Cash Add-back) | 264.82M | 243.97M | 225.32M | 192.85M | 175.62M | 153.69M | 54.85M |
| EBIT | 124.19M | 98.4M | 100.57M | 171.24M | 96.03M | 59.87M | 75.5M |
| Net Interest Income | -81.5M | -69.67M | -68.91M | -51.72M | -37.31M | -27.65M | -33.34M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 81.5M | 69.67M | 68.91M | 51.72M | 37.31M | 27.65M | 33.34M |
| Other Income/Expense | -128.45M | -103.61M | -77.84M | -55.88M | -39.15M | -33.64M | -148.33M |
| Pretax Income | 23.18M | 28.72M | 31.66M | 119.52M | 58.73M | 32.21M | 58.95M |
| Pretax Margin % | 0.69% | 0.91% | 1.03% | 4.06% | 2.41% | 1.72% | 3.78% |
| Income Tax | 9.94M | 10.3M | 7.12M | 32.87M | 17.77M | 8.67M | 14.84M |
| Effective Tax Rate % | 42.87% | 35.87% | 22.48% | 27.5% | 30.25% | 26.93% | 25.17% |
| Net Income | 13.24M | 18.42M | 24.54M | 86.66M | 40.96M | 23.54M | 44.11M |
| Net Margin % | 0.4% | 0.59% | 0.8% | 2.94% | 1.68% | 1.26% | 2.83% |
| Net Income Growth % | -2.11% | -24.95% | -71.68% | 111.55% | 74.01% | -46.64% | - |
| Net Income (Continuing) | 13.24M | 18.42M | 24.54M | 86.66M | 40.96M | 23.54M | 44.11M |
| Discontinued Operations | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Minority Interest | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| EPS (Diluted) | 0.48 | 0.83 | 1.14 | 4.04 | 1.91 | 1.10 | 2.00 |
| EPS Growth % | 8.06% | -27.19% | -71.78% | 111.52% | 73.64% | -45% | - |
| EPS (Basic) | - | 0.83 | 1.14 | 4.04 | 1.91 | 1.10 | 2.10 |
| Diluted Shares Outstanding | 27.83M | 22.46M | 21.48M | 21.48M | 21.47M | 21.47M | 21.01M |
| Basic Shares Outstanding | 27.83M | 22.46M | 21.47M | 21.47M | 21.47M | 21.47M | 22.11M |
| Dividend Payout Ratio | - | 51.74% | 38.48% | 10.83% | 23.3% | 41.01% | 16.17% |
Margin compression and labor constraints
According to the latest quarterly data, BGSI reported a revenue surge to $982.9 million in 2026Q1, representing a 26.3% year-over-year increase, though this growth appears disconnected from the more stagnant performance observed in the preceding four quarters where growth hovered near the low single digits.
The recent spike in top-line revenue warrants caution as it may reflect inorganic contributions rather than sustained organic demand. Investors should monitor whether this acceleration can be maintained without further diluting the company's already thin operating margins.
As reported in financial statements, BGSI's gross margin experienced a significant contraction to 38.4% in 2026Q1, falling well below the historical 45-46% range that characterized the company's performance throughout the 2024 and 2025 fiscal periods, suggesting potential challenges in managing rising input costs.
This compression indicates that the company is struggling to pass through inflationary pressures to insurance carriers, which is critical given the high-variable-cost nature of collision repair. The inability to maintain historical gross margin levels suggests that the firm's pricing power may be currently constrained by rigid insurance reimbursement rate structures.
Based on the provided income statement data, operating income scaled to $40.7 million in 2026Q1, yet the operating margin of 4.1% remains significantly suppressed compared to the 12.7% margin achieved in 2023Q4, indicating a substantial deterioration in the company's ability to convert gross profit into operating profit.
The widening gap between gross profit and operating income suggests that administrative and overhead costs are rising faster than the company's ability to scale its repair volume. This trend implies that the current operational model may be reaching a point of diminishing returns regarding fixed-cost absorption.
As evidenced by the reported net loss of $7.8 million in 2026Q1, BGSI's bottom-line performance has become increasingly erratic, contrasting sharply with the $19.1 million profit recorded in 2023Q4 and highlighting a potential disconnect between revenue expansion and actual shareholder value creation.
The shift to negative net income despite higher revenue suggests that non-operating items or increased SG&A burdens are eroding profitability. Analysts should investigate whether these losses are driven by one-time integration costs or a more permanent shift in the company's cost structure.
Data from recent filings indicates that while revenue has grown, the net margin has compressed to 0.59% in recent periods, raising questions about whether the company's acquisition-heavy strategy can continue to generate meaningful returns in a market where labor shortages and rising parts costs persist.
Short-term revenue growth may be masking a fundamental decline in the efficiency of the company's existing shop footprint. Investors should be wary of the possibility that the company is prioritizing scale over the profitability of individual repair bays, which could lead to long-term value destruction.
Quick answers to the most common questions about buying BGSI stock.
For fiscal year 2025, Boyd Group Services Inc. (BGSI) reported total revenue of $3.14B. This represents a 101.3% increase compared to $1.56B in 2020.
Boyd Group Services Inc. (BGSI) is profitable, generating $18.4M in net income for the fiscal year ending 2025 with a net profit margin of 0.6%.
Boyd Group Services Inc. (BGSI) reported an operating income of $132.3M, resulting in an operating profit margin of 4.2%. This margin reflects the operational efficiency of the business before interest and taxes.
Boyd Group Services Inc. (BGSI) generated $1.46B in gross profit for the year, representing a gross profit margin of 46.4%. This demonstrates the company's core pricing power and production efficiency.