LAVAL, Quebec, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Savaria Corporation ("Savaria") (TSX: SIS), one of the global leaders in the accessibility industry, is pleased to announce its results for the second quarter of 2025.
Highlights - Q2 2025 compared to Q2 2024
- Revenue was $226.7M, up $5.4M or 2.4%, mainly due to a positive foreign exchange impact of 2.6% partially offset by an organic contraction of 0.7%. The revenue benefited from the contribution of Western Elevator acquired this quarter.
- Accessibility experienced growth of 1.9%, including growth of 3.3% coming from North America and partially offset by a contraction of 0.8% in Europe.
- Patient Care achieved revenue growth of 4.4%.
- Gross profit was $88.5M, up $5.5M or 6.6%, representing 39.0% of revenue, an increase of 150 bps compared to 37.5% in Q2 2024.
- Operating income was $26.7M, up $4.1M or 18.2%, representing 11.8% of revenue compared to 10.2% in Q2 2024.
- Adjusted EBITDA* was $46.7M, up $4.8M or 11.4%, representing $0.65 per share, up $0.06, when compared to Q2 2024.
- Adjusted EBITDA margin stood at 20.6% up 160 bps compared to 19.0% in Q2 2024.
- Accessibility adjusted EBITDA margin reached 21.9%.
- Patient Care adjusted EBITDA margin stood at 20.9%.
- Net earnings were $16.3M or $0.23 per share on a diluted basis, compared to $11.4M or $0.16 per share in Q2 2024.
- The ratio of net debt to adjusted EBITDA* stood at 1.34 in comparison to 1.63 as at December 31, 2024.
- Available funds* of $275.5M, as of June 30, 2025, to support working capital, investments and growth opportunities.
| Q2 | YTD | |||||||||||||||
| in thousands of dollars, except percentages and per-share amounts | 2025 | 2024 | Change | 2025 | 2024 | Change | ||||||||||
| Revenue | $ | 226,746 | $ | 221,344 | 2.4 | % | $ | 446,978 | $ | 430,788 | 3.8 | % | ||||
| Gross profit | $ | 88,490 | $ | 82,974 | 6.6 | % | $ | 171,741 | $ | 158,368 | 8.4 | % | ||||
| % of revenue | 39.0 | % | 37.5 | % | 150 bps | 38.4 | % | 36.8 | % | 160 bps | ||||||
| Operating income | $ | 26,712 | $ | 22,604 | 18.2 | % | $ | 47,950 | $ | 40,325 | 18.9 | % | ||||
| Net earnings1 | $ | 16,316 | $ | 11,383 | 43.3 | % | $ | 28,795 | $ | 23,012 | 25.1 | % | ||||
| Diluted net earnings per share 1 | $ | 0.23 | $ | 0.16 | 43.8 | % | $ | 0.40 | $ | 0.32 | 25.0 | % | ||||
| Adjusted net earnings*1 | $ | 20,829 | $ | 16,014 | 30.1 | % | $ | 37,345 | $ | 30,347 | 23.1 | % | ||||
| Adjusted net earnings per share*1 | $ | 0.29 | $ | 0.23 | 26.1 | % | $ | 0.52 | $ | 0.43 | 20.9 | % | ||||
| Adjusted EBITDA* | $ | 46,738 | $ | 41,945 | 11.4 | % | $ | 87,385 | $ | 76,626 | 14.0 | % | ||||
| Adjusted EBITDA per share* | $ | 0.65 | $ | 0.59 | 10.2 | % | $ | 1.22 | $ | 1.08 | 13.0 | % | ||||
| % of revenue | 20.6 | % | 19.0 | % | 160 bps | 19.6 | % | 17.8 | % | 180 bps | ||||||
*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A.
1 The amounts for 2024 reflect adjustments made for Q2 2024 and YTD, as detailed and explained in Section 7 of the MD&A.
Words from the Executive Chairman and from the President & CEO
"As a result of our collective, global efforts, we achieved an adjusted EBITDA margin of 20.6%, meeting our Savaria One goal. We quickly pivoted our home elevator manufacturing for US distribution with a new production line in Greenville, South Carolina that now handles many of our residential elevator orders for American dealers. With available funds of over $275 million, we have the flexibility to invest in additional marketing for new products such as the Luma lift and Matot dumbwaiters, as well as seek out strategic acquisitions, giving us confidence for the remainder of the year and beyond," said Marcel Bourassa, Executive Chairman.
"Our focus on transformation over the past 18 months uncovered many efficiencies from procurement, to pricing, to operations. The gross margin in the second quarter was 39% - our highest ever. Meeting our Savaria One goal for adjusted EBITDA margin in the second quarter is a testament to our employees' commitment to succeed. The senior leadership team has now initiated planning sessions for the second stage of Savaria One that will outline our strategy for the next three years. We are focused on growth including marketing of the Luma through-floor lift and additional Savaria products for European distribution. With a ratio of net debt to adjusted EBITDA* now at 1.34, we have a comfortable position for investments in growth and the management team is energized about the future," said Sebastien Bourassa, President and CEO.
Second Quarter Results - Q2 2025 compared to Q2 2024
REVENUE
Revenue reached $226.7M, up $5.4M or 2.4%. The increase was mainly due to a positive foreign exchange impact of 2.6% combined with the revenue contribution from the acquisition of Western Elevator, partially offset by an organic contraction of 0.7%.
- Accessibility segment (78% of Q2-25 revenue): Revenue was $176.7M, an increase of $3.3M or 1.9%.
- Patient Care segment (22% of Q2-25 revenue): Revenue was $50.1M, an increase of $2.1M or 4.4%.
OPERATING INCOME
Operating income was $26.7M, up $4.1M or 18.2%, representing an operating margin of 11.8% compared to 10.2% in Q2 2024. The increase was mainly attributable to the additional revenue contribution and higher gross margins while partially offset by increased selling and administrative expenses and other expenses.
ADJUSTED EBITDA
Adjusted EBITDA and adjusted EBITDA margin* was $46.7M and 20.6%, respectively, compared to $41.9M and 19.0% for Q2 2024.
- Accessibility segment: Adjusted EBITDA and adjusted EBITDA margin was $38.8M and 21.9%, respectively, compared to $36.2M and 20.9% for Q2 2024.
- Patient Care segment: Adjusted EBITDA and adjusted EBITDA margin stood at $10.5M and 20.9%, respectively, compared to $8.2M and 17.0% for Q2 2024.
*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A.
Six-Month Results - YTD 2025 compared to YTD 2024
REVENUE
The Corporation generated revenue of $447.0M, up $16.2M or 3.8%. The increase is mainly due to a positive foreign exchange impact of 3.0%, combined with the impact of the acquisition of Western Elevator and Matot. The growth was partially offset by the divestitures of Van-Action and Freedom Motors.
OPERATING INCOME
Operating income was $48.0M, up $7.6M or 18.9%, representing an operating margin of 10.7% compared to 9.4% in 2024.
ADJUSTED EBITDA
Adjusted EBITDA and adjusted EBITDA margin stood at $87.4M and 19.6%, respectively, compared to $76.6M and 17.8% in 2024.
LIQUIDITY AND CAPITAL RESOURCES
Savaria generated $61.5M of cash from operations which was primarily used to invest in capital projects, a business acquisition, repay debt and pay interest and dividends.
As at June 30, 2025, the Corporation had a net debt* position of $231.2M and a ratio of net debt to adjusted EBITDA of 1.34 compared to 1.63 as of December 31, 2024.
Outlook
Savaria's fiscal 2025 forecast projects revenue of approximately $925M, with an adjusted EBITDA margin of approximately 20%. This revenue forecast is driven by volume and price increases, new product launches, and favorable foreign exchange effects across the Accessibility and Patient Care segments.
Despite geopolitical uncertainties, the completion of Savaria One positions us well to sustain profitability. Structural improvements have enhanced production capacity, increased operational efficiencies, and generated meaningful cost savings through streamlined procurement.
As one of the global leaders in the accessibility industry with extensive operations in Canada and the United States, Savaria is assessing its supply chain and evaluating and implementing strategies to optimize its North American manufacturing footprint. These efforts aim to maintain competitiveness and ensure continued service for our valued dealer partners.
The above-mentioned outlook is a "forward-looking statement" within the meaning of the securities laws of Canada and subject to the Corporation's disclosure statement.
Environmental, Social and Governance ("ESG") Values
As a global leader within the accessibility industry, Savaria is committed to minimizing its environmental footprint and upholding the highest social and governance standards. We believe that promoting environmentally and socially responsible behaviour across our organization is key to achieving sustainable growth and long-term value creation.
By delivering products and solutions that promote accessibility, health, and wellness, improving operational efficiencies and resource usage, and engaging our employees and stakeholders, we'll create a stronger, more resilient business that will continue to be an industry leader while delivering positive social change.
*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A.
We recognize this work requires long-term vision, planning, and collaboration, yet also must be grounded in clear actions and an ongoing commitment to transparency.
To that end, on April 30, 2025 Savaria published its ESG report for the fiscal year ended December 31, 2024. Through this report, Savaria discloses its strategy and initiatives on ESG matters that are important to its stakeholders, and where it sees an opportunity to have a positive and meaningful influence. The 2024 ESG report can be found under the investor relations section of our website at savaria.com.
Savaria Corporation (savaria.com) is a global leader in the accessibility industry. It provides accessibility solutions for the physically challenged to increase their comfort, their mobility and their independence. Its product line is one of the most comprehensive on the market. Savaria designs, manufactures, distributes and installs accessibility equipment, such as elevators for home and commercial use, stairlifts for straight and curved stairs, vertical and inclined wheelchair lifts and dumbwaiters. In addition, Savaria manufactures and markets a comprehensive selection of pressure management products, medical beds, as well as an extensive line of medical equipment and solutions for the safe movement of patients, such as transfer, lifting and repositioning aids. The Corporation operates a sales network of dealers worldwide and direct sales offices in North America, Europe (UK, Netherlands, Switzerland, Italy, Germany, Poland and Czech Republic) and Australia. Savaria employs approximately 2,500 people globally and its plants are located across Canada, the United States, Mexico, Europe and China.
Compliance with International Financial Reporting Standards ("IFRS")
The information appearing in this press release has been prepared in accordance with IFRS. However, Savaria uses EBITDA, adjusted EBITDA, adjusted EBITDA margin, adjusted EBITDA per share, adjusted net earnings, adjusted net earnings per share, available funds, net debt and ratio of net debt to adjusted EBITDA for analysis purposes to measure its financial performance. These measures have no standardized definitions in accordance with IFRS and are therefore regarded as non-IFRS measures. These measures may therefore not be comparable to similar measures reported by other companies. Additional details for these non-IFRS measures can be found in sections 3, 6 and 8 of Savaria's MD&A, which is posted on Savaria's website at savaria.com, and filed with SEDAR+ at sedarplus.ca. Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is presented in the section below.
Forward-Looking Statements
This press release includes certain statements that are "forward-looking statements" within the meaning of the securities laws of Canada. Any statement in this press release that is not a statement of historical fact may be deemed to be a forward-looking statement. When used in this press release, the words "believe", "could", "should", "intend", "expect", "estimate", "assume" and other similar expressions are generally intended to identify forward-looking statements. It is important to know that the forward-looking statements in this document describe the Corporation's expectations as at the date hereof, which are not guarantees of future performance of Savaria or its industry, and involve known and unknown risks and uncertainties that may cause Savaria's or the industry's outlook, actual results or performance to be materially different from any future results or performance expressed or implied by such statements. The Corporation's actual results could be materially different from its expectations if known or unknown risks affect its business, or if its estimates or assumptions turn out to be inaccurate.
A change affecting an assumption can also have an impact on other interrelated assumptions, which could increase or diminish the effect of the change. As a result, the Corporation cannot guarantee that any forward-looking statement will materialize and, accordingly, the reader is cautioned not to place undue reliance on these forward-looking statements. Forward-looking statements do not take into account the effect that transactions or special items announced or occurring after the statements are made may have on the Corporation's business. For example, they do not include the effect of sales of assets, monetizations, mergers, acquisitions, other business combinations or transactions, asset write-downs or other charges announced or occurring after forward-looking statements are made.
Unless otherwise required by applicable securities laws, Savaria disclaims any intention or obligation to update or revise the forward-looking statements, whether as a result of new information, future events or otherwise. The foregoing risks and uncertainties include the risks set forth under "Risks and Uncertainties" in Savaria's latest Annual MD&A as well as other risks detailed from time to time in reports filed by Savaria with securities regulators in Canada.
Results webcast and conference call on August 7, 2025, at 8:30 a.m. (EDT)
Savaria will host a conference call on Thursday, August 7th at 8:30 a.m. Eastern Daylight Time with financial analysts to discuss results of the period ended June 30, 2025. Investors and members of the media are invited to participate on a listen-only basis.
Conference call access:
To register: https://register-conf.media-server.com/register/BI0ac58e03f3c147d5bd77a4278f39154e
Webcast (en): https://edge.media-server.com/mmc/p/i8znh7ik
Link to the replay of the webcast will be available on the Corporation's website at savaria.com.
| For further information: | ||
| Sébastien Bourassa President and Chief Executive Officer sb@savaria.com 1.800.661.5112 | Stephen Reitknecht, CPA Chief Financial Officer sreitknecht@savaria.com 1.800.661.5112 | facebook.com/savariabettermobility x.com/Mobilityforlife www.savaria.com |
Reconciliation of adjusted net earnings and adjusted EBITDA with net earnings is provided below. Complete financial statements and the management's report for Q2 2025 will be available shortly on Savaria's website and on SEDAR+ sedarplus.ca.
Reconciliation of adjusted net earnings*1 and adjusted EBITDA* with net earnings1
| Q2 | YTD | |||||||||||
| in thousands of dollars, except per-share amounts | 2025 | 2024 | 2025 | 2024 | ||||||||
| Net earnings1 | $ | 16,316 | $ | 11,383 | $ | 28,795 | $ | 23,012 | ||||
| Strategic initiatives expenses | 4,607 | 5,347 | 9,277 | 10,646 | ||||||||
| Other expenses (income) | 1,391 | 764 | 2,164 | (427 | ) | |||||||
| Income tax related to strategic initiatives and other expenses | (1,485 | ) | (1,480 | ) | (2,891 | ) | (2,884 | ) | ||||
| Adjusted net earnings*1 | $ | 20,829 | $ | 16,014 | $ | 37,345 | $ | 30,347 | ||||
| Adjusted net earnings per share*1 | $ | 0.29 | $ | 0.23 | $ | 0.52 | $ | 0.43 | ||||
| Income tax related to strategic initiatives and other expenses | 1,485 | 1,480 | 2,891 | 2,884 | ||||||||
| Income tax expense | 5,742 | 4,407 | 10,979 | 8,158 | ||||||||
| Depreciation of fixed assets | 2,570 | 2,234 | 5,305 | 4,371 | ||||||||
| Depreciation of right-of-use assets | 3,339 | 2,737 | 6,501 | 5,418 | ||||||||
| Amortization of intangible assets | 7,472 | 7,576 | 14,813 | 15,020 | ||||||||
| Net finance costs | 4,654 | 6,814 | 8,176 | 9,155 | ||||||||
| Stock-based compensation | 647 | 683 | 1,375 | 1,273 | ||||||||
| Adjusted EBITDA* | $ | 46,738 | $ | 41,945 | $ | 87,385 | $ | 76,626 | ||||
| Adjusted EBITDA per share* | $ | 0.65 | $ | 0.59 | $ | 1.22 | $ | 1.08 | ||||
| Diluted weighted average number of shares | 71,858,056 | 71,405,637 | 71,869,297 | 71,309,308 | ||||||||
*Non-IFRS measures are described and reconciled in sections 3, 6 and 8 of the MD&A.
1 The amounts for 2024 reflect adjustments made for Q2 and YTD 2024, as detailed and explained in Section 7 of the MD&A.
