Continued Margin Enhancements Push Savaria to Reach New Profitability Heights in Q3 2025

Core Insights - Savaria Corporation reported strong financial results for Q3 2025, with significant increases in revenue, gross profit, and net earnings compared to Q3 2024, indicating robust growth in the accessibility industry [2][3][8]. Financial Performance - Revenue for Q3 2025 was $224.8 million, an increase of $11.1 million or 5.2% from Q3 2024 [8][9]. - Gross profit reached $88.1 million, up $9.0 million or 11.4%, representing 39.2% of revenue, an increase of 220 basis points [8][10]. - Operating income was $27.7 million, reflecting a 25.7% increase, with an operating margin of 12.3% compared to 10.3% in Q3 2024 [8][10]. - Net earnings were $19.5 million, or $0.27 per diluted share, a 74.4% increase from the previous year [8][10]. - Adjusted EBITDA was $47.6 million, up 13.9%, with an adjusted EBITDA margin of 21.2%, an increase of 170 basis points [8][11]. Segment Performance - The Accessibility segment, which constitutes 80% of Q3 2025 revenue, generated $180.1 million, an increase of $10.3 million or 6.1% [19]. - The Patient Care segment accounted for 20% of revenue, totaling $44.7 million, an increase of $0.9 million or 1.9% [19][20]. - Adjusted EBITDA for the Accessibility segment was $42.3 million with a margin of 23.5%, while the Patient Care segment had an adjusted EBITDA of $8.2 million and a margin of 18.3% [20]. Strategic Initiatives - The "Savaria One" project has significantly improved operational efficiencies and is expected to conclude by the end of 2025, with anticipated consulting fees decreasing from $20 million in 2024 to approximately $17 million in 2025 [5][6]. - The company has achieved a debt leverage ratio of 1.19, down from 1.63 at the end of 2024, indicating a healthier balance sheet and positioning for future investments [6][12]. Outlook - For fiscal 2025, Savaria projects revenue of approximately $925 million, driven by volume and price increases, new product launches, and favorable foreign exchange effects [13][14]. - The completion of the Savaria One initiative is expected to sustain profitability and enhance production capacity [14]. Company Overview - Savaria Corporation is a global leader in the accessibility industry, providing a comprehensive range of accessibility solutions for the physically challenged [18]. - The company operates a sales network worldwide and employs approximately 2,500 people across various locations [21].