Boyd on Q3: Average repair cost ‘much lower,’ parts price inflation remains up
Boyd Group, parent company of Gerber, reported to investors on Wednesday that the average repair cost, compared with historical figures, remains lower due to the mix of work.
President and CEO Brian Kaner said during the company’s Q3 earnings call that parts price inflation continues to creep up.
“If you look at a run from July to August, it’s 2.9% up in July, 3.4% in August, 3.1% in September,” he said. “As it relates to how much that’s actually helping our same-store sales growth, I would tell you that the average cost of repair continues to be much lower than it has been historically.
“If you look at the first half of the year, it’s only up 0.9%, and we only talk about the first half because it’s the mature data that’s out there, and that’s coming off of 2024, that was 3.7% and 2023, that was 7.4%. Right now, what we’re benefiting from is taking some market share in a down environment. We’re taking market share because we’re really focused on the success of our clients. Our stores are really dialed into making sure that they understand how to win with the clients, and that’s putting us in a much better position to be able to take share in a down environment.”
He added that he expects that as used car prices continue to go up, total loss rates will come down.
“I’d expect those larger tickets to come back into our repair facilities,” Kaner said. “And as that happens, I’d expect the overall to continue to increase. When you look at what CCC reports, the increase in labor rates is still up around 4.5%, so the rates themselves are increasing. The part prices, as I referenced earlier, are still continuing to increase. What’s really offsetting that is the larger tickets coming out of the shop and the mix effect of that going backwards.”
Kaner said Boyd generated positive same-store sales growth of 2.4% during Q3, which he attributed to continued market share gains and improving industry conditions.
“We’ve made significant strides across our business,” he said. “While it remains early in the fourth quarter, same-store sales for October continued to show positive growth, delivering further improvement compared to the third quarter, falling within the range.”
Kaner added that several exciting milestones were reached during Q3: surpassing Boyd’s 1000th location, announcing a definitive agreement to acquire Joe Hudson’s Collision Center, and listing stock on the New York Stock Exchange.
“We’ve seen an improvement in several headwinds that have been negatively impacting repairable claims,” he said. “These include a moderation in insurance premium increases, which are now back in line with historical levels, as well as a return to growth in used vehicle prices.
“Most recently, we’ve begun to see some insurance carriers in the United States seek regulatory approval to decrease insurance premiums. These trends, combined with our return to positive same-store sales, support our view that industry conditions are normalizing and that Boyd is well-positioned to continue to outperform.”
According to Q3 earnings results, adjusted EBITDA grew by 22.8%, and sales increased by 5% to $790.2 million.
Jeff Murray, executive vice president and chief financial officer, said $22.2 million in incremental sales were generated during the quarter from 64 new locations that weren’t in operation for the full comparative.
“For the third quarter, we estimate that repairable claims were down the range of three to 5%,” Murray said. “This represents a meaningful improvement from both the second quarter of 2025, which experienced an estimated decline of six to 8% and the first quarter of 2025, during which claims were down an estimated 9–10%.
“We have seen this strength continue in the early part of the fourth quarter, and our same-store sales are delivering further improvement when compared to the third quarter, falling within the range outlined in our five-year plan.”
Kaner added that under Project 360, Boyd has achieved over $30 million in annualized run-rate savings and is on track to reach a $70 million run rate by the end of 2026, with $100 million in savings expected by 2029. He previously said Project 360 is meant to drive store economics, cost leverage, and customer satisfaction.
Boyd plans to continue opening eight to 10 new startup locations each quarter. Thirteen are slated to open in Q4. An additional 18 are in development through the end of September 2026, Kaner said.
“Looking forward, our outlook remains strong,” he said. “With a return to positive same-store sales growth on the back of improved industry conditions, a positive start to the fourth quarter, continued progress on Project 360, and a transformative acquisition, Boyd is well-positioned for sustainable growth and continued value creation in the coming years.”
When asked what investors should be aware of going into 2026, Murray said conditions are improving, with insurance premium inflation diminishing and used car pricing stabilizing — the dynamics that are positively affecting Boyd’s business.
Kaner added, “The industry drivers around what’s happening with used car prices that are up, to kind of flat, to slightly up, is certainly helping the total loss situation. I think as insurance premiums come down, our expectation is that people will better insure themselves and put themselves in a better coverage position, which will ultimately result in them being able to file a claim, should they get into an accident.”
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