Record Quarter as Savaria Delivers $16.3M of Net Earnings and Reaches 20.6% Adjusted EBITDA Margin* in Q2 2025

Core Insights - Savaria Corporation reported a revenue of $226.7 million for Q2 2025, reflecting a 2.4% increase compared to Q2 2024, primarily driven by a positive foreign exchange impact and the acquisition of Western Elevator [5][8] - The company achieved a net earnings increase of 43.3% to $16.3 million, with diluted net earnings per share rising to $0.23 [5][9] - Adjusted EBITDA for Q2 2025 was $46.7 million, representing an 11.4% increase, with an adjusted EBITDA margin of 20.6%, up 160 basis points from the previous year [10][19] Financial Performance - Revenue for Q2 2025 was $226.7 million, up $5.4 million or 2.4%, with a foreign exchange impact of 2.6% and an organic contraction of 0.7% [5][8] - Gross profit increased by 6.6% to $88.5 million, representing 39.0% of revenue, an increase of 150 basis points compared to Q2 2024 [5][9] - Operating income rose to $26.7 million, an 18.2% increase, with an operating margin of 11.8% [9][13] Segment Performance - The Accessibility segment accounted for 78% of Q2 2025 revenue, generating $176.7 million, a 1.9% increase [16] - The Patient Care segment contributed $50.1 million in revenue, reflecting a growth of 4.4% [16][17] - Adjusted EBITDA for the Accessibility segment was $38.8 million with a margin of 21.9%, while the Patient Care segment had an adjusted EBITDA of $10.5 million and a margin of 20.9% [17] Liquidity and Capital Resources - As of June 30, 2025, Savaria had available funds of $275.5 million to support working capital and growth opportunities [5][18] - The net debt position was $231.2 million, with a ratio of net debt to adjusted EBITDA of 1.34, down from 1.63 at the end of 2024 [5][18] Outlook - The company projects fiscal 2025 revenue of approximately $925 million, driven by volume and price increases, new product launches, and favorable foreign exchange effects [19][20] - Savaria's focus on operational efficiencies and strategic initiatives is expected to sustain profitability despite geopolitical uncertainties [20][21] ESG Commitment - Savaria is committed to minimizing its environmental footprint and upholding high social and governance standards, which are seen as key to sustainable growth [23][24] - The company published its ESG report for the fiscal year ended December 31, 2024, outlining its strategy and initiatives on ESG matters [26]