Savaria Presents its Strongest Q1 on Record

Core Insights - Savaria Corporation reported strong financial results for Q1 2025, with revenue reaching $220.2 million, a 5.2% increase compared to Q1 2024, driven by foreign exchange impacts and organic growth [3][7][9] - The company achieved its highest-ever first-quarter adjusted EBITDA of $40.6 million, reflecting a 17.2% improvement year-over-year [6][11] - The Accessibility segment, which constitutes 77% of total revenue, grew by 6.1%, while the Patient Care segment saw a 2.1% increase [17][18] Financial Performance - Revenue for Q1 2025 was $220.2 million, up $10.8 million from $209.4 million in Q1 2024, with a positive foreign exchange impact of 3.3% and organic growth of 0.8% [3][7][9] - Gross profit increased to $83.3 million, representing 37.8% of revenue, an increase of 180 basis points from 36.0% in Q1 2024 [3][7] - Operating income rose to $21.2 million, a 19.8% increase, with an operating margin of 9.6% compared to 8.5% in the previous year [10] Adjusted Metrics - Adjusted net earnings for Q1 2025 were $16.5 million, up 15.2% from $14.3 million in Q1 2024, with adjusted net earnings per share increasing to $0.23 from $0.20 [3][30] - Adjusted EBITDA was $40.6 million, a 17.2% increase from $34.7 million in Q1 2024, with an adjusted EBITDA margin of 18.5%, up 190 basis points [11][12] - The Accessibility segment's adjusted EBITDA margin reached 20.1%, while the Patient Care segment's adjusted EBITDA margin stood at 18.8% [18] Liquidity and Capital Resources - As of March 31, 2025, Savaria had available funds of $254.7 million to support working capital and growth opportunities [7][12] - The net debt position was $249.5 million, with a ratio of net debt to adjusted EBITDA of 1.49, improved from 1.63 as of December 31, 2024 [12] Outlook - For fiscal 2025, Savaria projects revenue of approximately $925 million, with an adjusted EBITDA margin between 17% and 20%, anticipating growth driven by volume, price increases, and new product launches [13][14] - The company is focused on optimizing its North American manufacturing footprint to maintain competitiveness and service its dealer partners effectively [15]