BGSI's revenue grew 29.9% year-over-year in 2026Q2, but net margin fell to 0.1% despite a 47.4% gross margin, highlighting severe SG&A and interest expense burdens that erode profitability.
Boyd Group Services Inc. (BGSI) annual income statement — 6-year revenue, gross profit & net income history
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 |
|---|
| Sales/Revenue | 3.58B | 3.14B | 3.07B | 2.95B | 2.43B | 1.87B | 1.56B |
| Revenue Growth % | 16.88% | 2.36% | 4.22% | 21.12% | 29.89% | 19.95% | - |
| Cost of Goods Sold | 1.99B | 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 | 1.59B | 1.46B | 1.4B | 1.34B | 1.09B | 839.26M | 713.54M |
| Gross Margin % | 44.44% | 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 | 1.34B | 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 | 680.67M | 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 | 2M | 1.33B | 1.29B | 1.16B | 989.44M | 773.41M | 0 |
| Operating Income | 253.99M | 132.33M | 109.5M | 175.4M | 97.88M | 65.85M | 207.28M |
| Operating Margin % | 7.09% | 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 | 506.75M | 376.31M | 334.82M | 368.25M | 273.5M | 219.54M | 262.13M |
| EBITDA Margin % | 14.15% | 11.97% | 10.9% | 12.5% | 11.24% | 11.72% | 16.79% |
| EBITDA Growth % | 49.99% | 12.39% | -9.08% | 34.64% | 24.58% | -16.25% | - |
| D&A (Non-Cash Add-back) | 252.76M | 243.97M | 225.32M | 192.85M | 175.62M | 153.69M | 54.85M |
| EBIT | 122.46M | 98.4M | 100.57M | 171.24M | 96.03M | 59.87M | 75.5M |
| Net Interest Income | -94.51M | -69.67M | -68.91M | -51.72M | -37.31M | -27.65M | -33.34M |
| Interest Income | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Interest Expense | 94.51M | 69.67M | 68.91M | 51.72M | 37.31M | 27.65M | 33.34M |
| Other Income/Expense | -235.77M | -103.61M | -77.84M | -55.88M | -39.15M | -33.64M | -148.33M |
| Pretax Income | 18.22M | 28.72M | 31.66M | 119.52M | 58.73M | 32.21M | 58.95M |
| Pretax Margin % | 0.51% | 0.91% | 1.03% | 4.06% | 2.41% | 1.72% | 3.78% |
| Income Tax | 9.11M | 10.3M | 7.12M | 32.87M | 17.77M | 8.67M | 14.84M |
| Effective Tax Rate % | 50% | 35.87% | 22.48% | 27.5% | 30.25% | 26.93% | 25.17% |
| Net Income | 9.11M | 18.42M | 24.54M | 86.66M | 40.96M | 23.54M | 44.11M |
| Net Margin % | 0.25% | 0.59% | 0.8% | 2.94% | 1.68% | 1.26% | 2.83% |
| Net Income Growth % | 12.16% | -24.95% | -71.68% | 111.55% | 74.01% | -46.64% | - |
| Net Income (Continuing) | 9.11M | 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) | 0.33 | 0.83 | 1.14 | 4.04 | 1.91 | 1.10 | 2.00 |
| EPS Growth % | 26.05% | -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 | 27.9M | 22.46M | 21.48M | 21.48M | 21.47M | 21.47M | 21.01M |
| Basic Shares Outstanding | 27.84M | 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% |
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.
Key Metrics
Top Statement Risk
Persistent Margin Compression
Decelerating Growth Amid Volatility
According to recent quarterly reports, BGSI's revenue growth decelerated sharply to 5.5% in 2025Q4 after averaging over 25% in early 2026, suggesting a potential normalization of demand or acquisition-driven lumpiness.
The sharp re-acceleration to 29.9% in 2026Q2 appears heavily influenced by inorganic growth given the company's acquisition strategy, making the underlying organic trajectory difficult to assess. This volatility indicates that the historical 'double-double' growth model may be facing increasing headwinds from a shrinking pool of acquisition targets or integration challenges.
Structural Margin Ceiling Exposed
As reported in the financial statements, BGSI's net margin collapsed to a razor-thin 0.1% in 2026Q2 despite a 47.4% gross margin, highlighting severe SG&A and interest expense burdens that completely erode operational profitability.
The persistent gap between gross profit and net income suggests the company is operating with minimal pricing power relative to its insurance carrier customers and fixed cost overhead. The recent gross margin expansion to 47.4% may be unsustainable if driven by favorable repair mix rather than true structural improvement.
Fragile Operating Leverage Dynamics
Based on the income statement data, BGSI's operating income expanded 304% year-over-year in 2026Q2, yet this surge only translated to an 81% decline in EPS, indicating severe non-operating drags on profitability.
The company demonstrates strong gross-to-operating leverage when revenue scales, but this efficiency is entirely negated by below-the-line costs. This pattern suggests that while the repair shop network can generate incremental profit from volume, the corporate structure and financing costs are disproportionately heavy.
Net Income Masked by Non-Operating Items
Per the quarterly financials, BGSI reported a net loss of $7.8 million in 2026Q1 despite generating $40.7 million in operating income, implying that interest expense, taxes, and possibly foreign exchange losses are consuming nearly all operational cash flow.
The extreme volatility in EPS, swinging from negative to positive quarter-to-quarter, makes the reported earnings metric unreliable for valuation purposes. Investors should focus on operating income as a cleaner proxy for core performance, though even this metric shows concerning instability.
SG&A Outpacing Revenue Expansion
According to BGSI's recent filings, SG&A expenses jumped to $344.1 million in 2026Q2, representing a 41% increase from 2024Q1 levels that far exceeds the 27% revenue growth over the same period.
This disproportionate SG&A growth suggests the company is experiencing significant overhead bloat from acquisitions, integration costs, or corporate expansion that is not being leveraged across the revenue base. The absence of R&D spending further underscores a potential lack of investment in technology-driven efficiency gains.
Illusory Growth Masking Structural Weakness
The most significant analytical challenge is that BGSI's recent revenue acceleration appears to be masking deepening operational weaknesses, as the 29.9% growth in 2026Q2 delivered only $1.3 million in net income versus $10.8 million a year prior.
This suggests that each incremental dollar of revenue is becoming less profitable, potentially indicating market saturation, increased competition for insurance referrals, or unsustainable pricing concessions. The business model may be approaching a ceiling where volume growth cannot overcome margin compression.