AutoCanada’s collision repair operations posted a notable improvement in profitability in the second quarter of 2026, despite a decline in revenue.

Gross Margin Reaches 48.7%

For the period ended June 30, collision revenue totalled $36.4 million, compared with $38.4 million a year earlier, representing a 5.3% decrease. Gross profit, however, moved in the opposite direction, increasing by 7.1% to $17.7 million.

As a result, the segment’s gross margin increased from 43.1% to 48.7% year over year.

The decline in revenue was partly attributable to lower paintless dent repair (PDR) activity, which had been particularly strong the previous year following significant hailstorms. At the same time, acquisitions and added capacity in traditional collision repair operations contributed to the results.

Collision Repair Network Continues to Expand

AutoCanada continues to expand its network of collision repair centres. During the quarter, the company added Contemporary Coachworks in Calgary, Mascarin Collision Centre in Thunder Bay, as well as a facility in Stratford that previously operated under the Fix Auto banner.

This strategy allows the group to increase its repair capacity while gradually expanding its presence across different regions of the country.

Profitability Beyond Revenue

For collision repair managers, these results are a reminder that revenue growth is not the only measure of performance. The type of work performed, capacity utilization, productivity and operational control can all have a significant impact on a shop’s profitability.

In this case, AutoCanada generated more gross profit despite reporting lower revenue than during the same period a year earlier.

Picture credit : AutoCanada